Statoil’s Sustainability Report
Table of Contents
Introduction and Background. 3
The case context and the company. 4
Background of the problems or opportunities. 6
A critical analysis of the Measures put in place by Statoil 7
Bibliography……………………………………………………………………………………………..10
Statoil’s Sustainability Report
Introduction and Background
As Energy Consultants, our purpose is to analyse the existing energy usage and offer a detailed report on how organizations can reduce their energy usage, costs, and carbon footprint. In this case, we seek to promote an environment that is free from pollution. We diligently work hard to help companies to avoid possible lawsuits and reduce environmental expenditures while maintaining sustaining the company progress. Based on the progress made by Statoil on sustainability, I have established the need to write this report to advice on the environmental management and related activities. In brief, this report will highlight key factors on energy conservation, energy saving, and energy reduction solutions.
With the goals put in place by Statoil, there is a need to have strategies that will meet the world growing needs environmentally, socially, and economically. Sustainability does not only entails doing business responsibly rather it is seeing sustainability challenges as great opportunities for business innovation and development (Rosendahl & Hepsø 2013, p77). The company should be committed to enhance safe operation that protects the well being of people, environment, and communities. This is because global prosperity depends on a company’s initiative to protect the environment (Grant 2013, p22). I strongly believe that the company should find solutions to climate, environment, and energy dilemma. Statoil is also in a better position to achieve its goals on sustainability management in that it has the experience, technology, and capital required to develop future solution to energy challenges. With these benefits in mind, the company should aim to lead in carbon efficiency. The company should closely work with different sectors and suppliers involved in the gas and oil industry to find solutions that can reduce emissions.
The case context and the company
The Statoil’s Sustainability 2011 was a good progress for the company to improve on stable and safety operations that regard the well-being of people while protecting the environment. With this initiative in mind, the company should consider sustainability in its broadest context. First, the company should implement health and safety measures. In this case, the company should work hard to prevent accidents, deter any harm to people, and create a good and healthy working environment. Secondly, the company should introduce measures that reduce negative impacts on the environment. Thirdly, Statoil Company should work hard to initiate a positive working environment for people. Fourthly, the company should act in accordance with the law, policy, ethics, and demonstrate environment responsibility to sustainable development. As the energy consultant, I would recommend the company to invest more on technology to make use of many energy sources. For instance, Statoil Company can benefit from hybrid electrical systems which utilize solar energy system. Although the company may have previously invested on such systems, it should improve on such measures so that it can cut energy costs. Additionally, natural gas is the most preferable fuel with numerous benefits. For instance, it is the most flexible and available fossil fuel that require low investment. With this, the company should consider utilizing natural gas for cost efficiency.
Problems and Opportunities
A research conducted by Kumar (2004, p11) indicates that, the company has experienced many accidental oil spills. For the past years, such accidents have been known to have dramatic effect on the marine environment. Oil spill damages the ecosystem and in turn this affects the well-being of animals and human beings. For instance, when oil spill into the sea or other sources of water, it endangers the life of animals, plants, and human beings. Water is a basic commodity that living and non-living things cannot live without. Secondly, there has been an upsurge rate of carbon dioxide emissions. Specifically, studies show that there was a tremendous increase of carbon dioxide emission from 13.4 M tonnes in 2010 to approximately 13.7 M tonnes in the following year (Pandey 2007, p22). Thirdly, energy consumption has also increased because of many operations and activities in the company. With this, the company has utilized a lot of finances and resources on energy consumption that would rather have been used for development. In this case, if the company embrace measures that would reduce the cost of energy consumption, then it would be in a better place to expound on growth and development. In other words, the company will use the resources for development and growth that would rather have been used on energy consumption.
Statoil aims to double its production globally from 2010 to 2020 (Satpathy 2005, p44). The journey of achieving this objective exposes the company to potential responsibilities to address a wide range of business challenges. Some of these challenges include implementing policies and strategies that would reduce environmental pollution and the need of deploying new technologies to increase the operation while reducing carbon dioxide emission. This creates new opportunities for Statoil to introduce and recognize new energy resources that protect the environment and the well-being of people. The company is expected to create a healthy environment for its workers and people surrounding the company. Still, the company will be in a better position to promote decent working conditions in their operations that will show their commitment in respecting human rights and labour standards.
Purpose of the Proposal
The purpose of this proposal is to advice the Statoil Company on the environmental management and related activities. This proposal is significant as it will create great insights on how the company can avoid possible lawsuits and reduce environmental expenditures while sustaining the company progress or growth.
Background of the problems or opportunities
It is a well-documented fact that, Statoil is an international company operating over 34 countries. The company has over 35 years of experience in gas and oil production (Lesourd & Schilizzi 2001, p11). The company is also involved in many pipelines (Layzer 2008, p12). Despite having many years of experience in oil and gas production, the company has recognizes that the industry is facing an increase scrutiny and public concern about the integrity of environmental management and related activities such as reducing carbon dioxide. This highlights the need for the company to be prepared to face the challenges affecting the oil and gas industry and in turn evaluate the possible measures of promoting safe conditions.
Sources of information
To gather the intended results of how to manage the environment effectively, this report gathered sources from the internet and books. For instance, one of the sources used in this proposal is obtained from the Statoil Annual report 2011 on the Environment and climate. This site provided facts and information of how the company has actively been involved to reduce the negative environment effects related to its operations. Additionally, this source creates insights on various problems experienced by the company and how the company has attempted to respond to these problems.
Scope of the research
This research focus on identifying what the company has done to reduce environmental expenditures while sustaining the company growth. After evaluation, the research focus on the best ways the company can respond to environmental management and related activities to augment growth.
Business Case
Statoil formerly known as StatoiHydro is an oil and gas company that rank among the best and largest oil and gas companies (Statoil 2011, p1). The company has worked hard to maintain its positive image in sales and revenues while still protecting the environment and well-being of people. The following describe some of measures it has implemented to promote a healthy environment.
A critical analysis of the Measures put in place by Statoil
There are various measures put in place by Statoil Company. Currently, the company has established that utilization of natural gas is the greatest contribution of solving climate and energy dilemma. Studies show that the company is the second supplier of natural in the European market (Statoil 2012, p1). The company believes that the natural gas is the source of energy and fuel in the future in that it is abundant, available, cheaper, and the cleanest energy source. The company is more likely to cut carbon dioxide emission in that natural gas emits over 50% carbon dioxide (Statoil 2011,p1). Natural gas has the potential of introducing other energy sources such as solar and wind power. It is also an abundant and affordable resource and with this, the company is in better position to cut cost used in energy consumption.
The company has also introduced social investment projects that focus on training and competence progress in the local communities. These include partnering with local or international agency such as NGOs and training centres and institutions related to oil and gas industry. The main purpose of these projects is to promote and build self-sustaining activities across the globe. The company has implemented high ethical standards that help to protect the environment while still preventing the well-being of people. The company has enacted ethics that employees can use to express their ethical and legal concerns related to the company’s activities. Additionally, the company respect labour standards and human rights. Although the company is in most parts of the world where decent working conditions and human rights are at risk, it has been committed to respect labour standards and human rights in accordance with the International Bill of Human Rights such as the Universal Declaration of the International Labour Organization and Human Rights enacted in 1998 (Statoil 2011, p1).
The Company has been committed to protect the environment, well-being of people, and integrated ways to use natural resources economically. The company’s ambition has been to be on the lead in health, safety, and carbon efficiency. As the company continues to progress from level of maturity to another, it has been committed to manage the environment. Statoil Company is committed to water resource management. For the past years, the company has diligently work hard to minimize the use of fresh water, preserve water quality, recycle and reuse water, and prevent water pollution (Statoil 2011, p1).The company recognizes the water use adversities related to shale gas and oil sands. With this, the company has implemented the mentioned programs to reduce the water intensity of oil sands and reduce the use of fresh water.
Summary and conclusion
As the energy consultant, I believe that the unconventional resources will be required for the company to meet the global future energy needs. The main challenge is to make the production cost effective and sustainable. The company should invest, implement and develop the most advanced or recent technology to recover oil from sands. This would minimize pollution caused by oil spills to the sources of water and land (Sasi 2007, p22). Despites the company’s goal to reduce carbon intensity, the main challenge has been to meet the growing energy demands and needs while at the same minimizing methane emissions and carbon dioxide. Thus, the company should establish some environmental principles to minimize pollutions on the environment. For instance, the company should fully compile to the standards and principles of environment. It should fulfil the applicable regulations and legislation and make their policies available to the public on their steps and procedures to minimize the footprint of the environment. Additionally, the company should seek the best utilisation of natural resources and continuously improve environmental performance and energy efficiency (Terje, Vaaland & Morten 2008, p212). Still, this report would also recommend the company to invest more on reducing the use of fresh water through sustainable water management. Lastly, the company should implement new technology to boost the cleaning produced water (Bogsnes 2009, p55). In so doing, this would deter water or land pollution that affects the lives of human beings and animals.
To sum up, this report intends to help the Statoil achieve its goals and objectives on environment management and related activities. In brief, this report highlight what the company has done for the past years and further underline measures that the company would emphasize more to achieve their final results.
Bibliography
Bogsnes, B. 2009, Implementing beyond budgeting: unlocking the performance potential, Hoboken, N.J., John Wiley & Sons.
Grant, T. 2013, International directory of company histories, Volume 138, Detroit, Mich, St. James Press.
Kumar, A. 2004, Environment management, New Delhi, A.P.H. Publishing Corporation.
Layzer, J. A. 2008, Natural experiments: ecosystem-based management and the environment, Cambridge, Mass, MIT Press.
Lesourd, J.-B., & Schilizzi, S. 2001, The environment in corporate management: new directions and economic insights, Cheltenham, UK, Edward Elgar.
Pandey, G. N. 2007, Environment Management, Lucknow, Vikas Publications.
Rosendahl, T., & Hepsø, V. 2013, Integrated operations in the oil and gas industry sustainability and capability development, Hershey, Pa, IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA).
Sasi Bhushana Rao, P. 2007, Environment management, New Delhi, Regal Publications.
Satpathy, I. 2005, Environment management, New Delhi, Excel Books.
Statoil 2011, Annual Report 2011, Environment and Climate, Retrieved from http://www.statoil.com/annualreport2011/en/boardofdirectorsreport/pages/environmentandclimate.aspx
Statoil 2011, Climate and Environment, Retrieved from http://www.statoil.com/AnnualReport2011/en/Sustainability/ClimateAndEnvironment/Pages/ClimateAndEnvironment.aspx
Statoil 2011, The Context of our Reporting, Retrieved from http://www.statoil.com/annualreport2011/en/sustainability/thecontextofourreporting/pages/thecontextofourreporting.aspx
Statoil 2011, Water Management in Statoil, Retrieved from http://www.statoil.com/annualReport2011/en/Sustainability/ClimateAndEnvironment/Pages/WaterManagementInStatoil.aspx
Statoil 2012, Statoil publishes Annual and Sustainability Report for 2011, Retrieved from http://www.statoil.com/en/NewsAndMedia/News/2012/Pages/AnnualReport2011.aspx
Terje I. Vaaland, & Morten Heide. 2008, Managing corporate social responsibility: lessons from the oil industry, Corporate Communications: An International Journal. 13, 212-225.
