We address the social or community aspects related to our operations and projects at the business unit (BU) level.

Governance and Strategy

We have a comprehensive governance framework that extends from the board of directors, through executive and senior management to the working levels in each BU. Read more about our sustainable development governance structure.

Risk and Impact Assessment

Social risks at the community level could result from potential project, operational and cumulative impacts to community safety, human rights, infrastructure, services, land use, environmental quality (air and water quality), cultural heritage, managing expectations for local business opportunities and employment. Risks could impact our business through project delays, business interruption, policy or regulatory costs, reputational damage, increased cost of capital or reduced demand for our products. Social risks for our asset portfolio are related to:

• Community opposition based on negative social and/or environmental impacts, including cumulative impacts.
• Community expectations of economic benefits, such as local hiring and local content.
• Public policy that restricts access to, or development of, natural gas and oil resources.
• Investor and financial sector expectations about environmental, social and governance (ESG) performance and reporting.
• Negative public sentiment.

By understanding the social, economic, political and environmental factors affecting stakeholders, we can identify and monitor emerging social trends, better manage social impacts and reputational risks associated with our operations and contribute to social value.

Our stakeholder identification process is a key component of social risk assessment. Each business unit is responsible for identifying stakeholders to understand their perspectives and concerns. The relationships of stakeholders and their priorities are considered to identify any potential points of collaboration or conflict. We then develop an engagement plan to address concerns and maintain our focus on developing mutually beneficial relationships. By having open dialogue, we identify and address the potential impacts associated with our operations. This is done through our integrated sustainable development (SD) risk management process where existing and planned exploration and production and major projects are examined against the physical, social and political settings of our operations. Social assessments consider:

• Impacts to community, including human rights, rights of Indigenous Peoples, labor rights, security, public health, political and economic issues.
• Stakeholder priorities.
• Stakeholder opposition to company activities.
• Risks and impacts related to supplier and contractor activities.
• Cumulative effects of company and/or industry activities.

Each business unit manages its own social risks, priorities and regulatory requirements, enabling tailored, region-specific business goals to address unique challenges and opportunities. To support our business units in operationalizing our Stakeholder Engagement Principles, we provide Social Performance Guidance with recommended internal processes and external engagement to understand and address stakeholder priorities.

Risk and Mitigation Actions

Social risks rated significant or high are included in the corporate SD Risk Register. The 2021 Risk Register includes two social categories: infrastructure and local intervention. Mitigation actions and milestones address the potential impacts and risks to stakeholders. Risks that are no longer ranked significant or high due to the effectiveness of mitigation actions continue to be tracked, as are risks that have been identified as low or medium to ensure those risks do not increase.