HSE and Social Performance Management System

The company pursues the goal of not harming people, protecting the environment and contributing to sustainable development. This attitude is beneficial to the residents of Sakhalin and other key stakeholders. The Russian Federation and Sakhalin Oblast receive numerous benefits from the Sakhalin-2 project, including billions of dollars in investments, high local employment, contracts for Russian businesses, etc. However, due to its scope and complexity, the project can potentially cause environmental and social impacts, and Sakhalin Energy has committed to deal systematically with these impacts so as to minimise risks and prevent negative consequences. In its activities the company uses a preventive approach with a strong focus on risk management and impact assessment.

Health, Safety, Environment (HSE) and Social Performance (SP) management is an integral part of the entire corporate management system. Sakhalin Energy is guided in its HSE and SP activities by the following fundamental policies:

The documents listed above have been approved by the committee of executive directors, signed by the Sakhalin Energy chief executive officer, and communicated to all staff and contractors. This comprehensive approach to the HSE and SP management system is designed to ensure continuous improvement in this area. The company's integrated health, safety, environment and social performance management system describes the tools which Sakhalin Energy utilises to manage impacts and risks. The system applies to all project assets, facilities and operations, including those used by contractors. Sakhalin Energy sees the management of such risks as critical to its business success. The company management system is regularly updated, developed and optimised. The HSE and SP management system is based on the Plan – Do – Check – Act methodology of IS0 14001 and OHSAS 18001 standards.

Application of this methodology is intended to:

  • Set objectives and establish procedures required for achieving desired results in accordance with the company HSE and SP policy, which includes defining legal and other requirements, risk management and problem solving, identifying hazards, risk and impact assessment, determining procedures, and developing objectives and annual improvement plans.
  • Introduce procedures, including organisation, awareness, training and competence processes; contractor management, participation and engagement; management change; and emergency preparedness and response; also, operational control of occupational health, personal safety, asset integrity and process safety; transportation, environmental protection, and social performance — including indigenous peoples, cultural heritage, land acquisition, resettlement and supplemental assistance, public consultation and information disclosure grievances, and social investments.
  • Monitor and determine process effectiveness in compliance with given tasks as well as legal and other requirements, reporting results, incidents, and non-compliance, lesson learning, remedial and preventive measures, and inspection and HSE audits at the company facilities and in its functional units.
  • Review the management system on a regular basis and take measures for continuous improvement of the company HSE and SP.