Woodside maintained its ongoing commitment to sustainable, responsible and safe operations in 2016, despite the challenge presented early in the year by low oil prices.
Woodside’s approach has matured significantly since we published our first Sustainable Development Report in 2006. Ten years on and our sustainability principles are embedded at every level of our company and underpin our vision, mission and values.
We are committed to operating with transparency and integrity, fostering our organisation and culture, building a resilient business, operating responsibly and creating shared value through relationships with our stakeholders.
These principles are integral to our company’s vision to be a global leader in upstream oil and gas. Our commitment to sustainability encompasses not just the environmental footprint we leave but also our long-term engagement with communities.
Even in challenging economic times, Woodside maintains a substantial contribution to the communities in which we operate. Our focus on health and safety is unwavering. Over the last five years, we have significantly improved our safety performance, achieving a 60% reduction in our total recordable injury rate. Our aim is to continuously improve year on year towards a goal of industry leading health and safety performance.
We recognise the impact of climate change and are committed to being part of the solution. We believe that natural gas will play an increasingly important role globally, both in the energy mix and in reducing greenhouse gas emissions. This belief underpins our decision to support the emergence of a market for LNG as a fuel for shipping and onshore transport, starting in northern Western Australia. We are striving to improve our emissions performance. For the third consecutive year we reduced our flared gas intensity, decreasing by 33% from 2015.
In the global Dow Jones Sustainability Index, Woodside ranked in the top 5% of companies in the oil and gas upstream and integrated section, with an overall score of 80/100. This demonstrates the maturity of our sustainability approach and the ongoing commitment of our employees and contractors.
We embarked on our third Reconciliation Action Plan (RAP) in 2016 and are making progress in engagement with Indigenous communities. The RAP was awarded the highest of four ratings by Reconciliation Australia, making Woodside the only oil and gas company to attain the Elevate level.
In line with our global approach, we feel it is important to demonstrate in our operations and supply chains our commitment to preventing the occurrence of modern slavery and human trafficking. With this in mind, we have voluntarily published a Modern Slavery and Human Trafficking Statement for the 2016 financial year (see page 22
This year’s Sustainable Development Report is a step-change for the company. Content has been restructured to better demonstrate how our company strategy links to our sustainability performance and to reflect the integrated approach we are taking to sustainable development as our global footprint grows.
Woodside’s social licence to operate relies on maintaining effective relationships with our stakeholders. We value the views of our stakeholders and, through this report, we have sought to better understand and respond to the material issues that concern them.
I would like to thank David McEvoy for the dedication and vision he has shown as Chairman of the Sustainability Committee since its formation in 2007. In that role, he has overseen continuous improvement in our performance. Our success is made possible by the support of our people, partners and communities and I thank everyone for their contribution to our outstanding performance this year.
Managing Director and Chief Executive Officer
16 March 2017