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A NEW PARADIGM IN SUSTAINABLE LEADERSHIP
SustainabilityReport2012-13
GRI G3.0 Compliant+A Level Report
Regd. office: Jeevan Bharti Bldg., Tower-II, 124, Indira Chowk, New Delhi - 110001.Tel: 23301000, 23310156, 23721756 Fax: 011-23316413 www.ongcindia.com
Oil and Natural Gas Corporation Ltd.
CO
NT
EN
TS About our Company 2
Organizational Profile 4
About this Report 9
Awards and Accolades 10
From the Chairman & Managing Director’s Desk 12
Our Governance Framework 14
Stakeholder Engagement 20
Sustainability Challenges & Responses 24
Management Approach & Performance-Economic 32
Management Approach & Performance-Environment 42
Management Approach & Performance-Social 58
GRI Index - Oil & Gas Sector Supplement 70
Assurance Statement 82
Our Performance 84
01
CO
NT
EN
TS About our Company 2
Organizational Profile 4
About this Report 9
Awards and Accolades 10
From the Chairman & Managing Director’s Desk 12
Our Governance Framework 14
Stakeholder Engagement 20
Sustainability Challenges & Responses 24
Management Approach & Performance-Economic 32
Management Approach & Performance-Environment 42
Management Approach & Performance-Social 58
GRI Index - Oil & Gas Sector Supplement 70
Assurance Statement 82
Our Performance 84
01
ABOUTOUR COMPANYOil and Natural Gas Corporation Limited (ONGC) is a National Oil Company of India focused
on Exploration and Production (E&P) of oil and gas and is a frontrunner at the global level as
well. The company has been working relentlessly for the past 57 years towards realising the
vision of energy independent India. The journey over these years has been a tale of
conviction, courage and commitment. From a modest beginning, ONGC has grown to be one
of the largest E&P companies in the world in terms of reserves and production through
superlative efforts that have resulted in conversion of earlier frontier areas into new 1hydrocarbon provinces .
To augment our conventional hydrocarbon reserves, we are developing newer sources of
hydrocarbons: shale gas, coal-bed methane (CBM) and underground coal gasification
(UCG). With our operations that spans across the entire hydrocarbon value chain including
Refining, Liquefied Natural Gas (LNG), Power, Petrochemicals and Fertilizer, we have single-
handedly scripted the country's hydrocarbon saga.
To be a global leader in integrated energy business through sustainable growth, knowledge
excellence and exemplary governance practices.
OUR VISION
1 ONGC’s historical perspective can be viewed at http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Company/History/ 02/03
OUR MISSION
World Class
• Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people.
• Imbibe high standards of business ethics and organizational values.
• Abiding commitment to safety, health and environment to enrich quality of community life.
• Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people.
• Strive for customer delight through quality products and services.
Integrated in Energy Business
Dominant Indian Leadership
• Focus on domestic and international oil and gas exploration and production business opportunities.
• Provide value linkages in other sectors of energy business.
• Create growth opportunities and maximize shareholder value.
• Retain dominant position in Indian petroleum sector and enhance India's energy availability.
Back to Contents
ABOUTOUR COMPANYOil and Natural Gas Corporation Limited (ONGC) is a National Oil Company of India focused
on Exploration and Production (E&P) of oil and gas and is a frontrunner at the global level as
well. The company has been working relentlessly for the past 57 years towards realising the
vision of energy independent India. The journey over these years has been a tale of
conviction, courage and commitment. From a modest beginning, ONGC has grown to be one
of the largest E&P companies in the world in terms of reserves and production through
superlative efforts that have resulted in conversion of earlier frontier areas into new 1hydrocarbon provinces .
To augment our conventional hydrocarbon reserves, we are developing newer sources of
hydrocarbons: shale gas, coal-bed methane (CBM) and underground coal gasification
(UCG). With our operations that spans across the entire hydrocarbon value chain including
Refining, Liquefied Natural Gas (LNG), Power, Petrochemicals and Fertilizer, we have single-
handedly scripted the country's hydrocarbon saga.
To be a global leader in integrated energy business through sustainable growth, knowledge
excellence and exemplary governance practices.
OUR VISION
1 ONGC’s historical perspective can be viewed at http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Company/History/ 02/03
OUR MISSION
World Class
• Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people.
• Imbibe high standards of business ethics and organizational values.
• Abiding commitment to safety, health and environment to enrich quality of community life.
• Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people.
• Strive for customer delight through quality products and services.
Integrated in Energy Business
Dominant Indian Leadership
• Focus on domestic and international oil and gas exploration and production business opportunities.
• Provide value linkages in other sectors of energy business.
• Create growth opportunities and maximize shareholder value.
• Retain dominant position in Indian petroleum sector and enhance India's energy availability.
ORGANISATIONALPROFILE
Organisational Overview
ONGC is Indian National Oil Company and the most valuable Public
Sector Enterprise with market capitalization of over INR 2300
billion. In FY13, our net revenue is INR 833.09 billion with total asset
of INR 1781.27 billion. We have not availed any loans-secured or
unsecured during FY13. We have 32988 permanent employees as ston 31 March 2013.
ONGC is the leader in E&P activities in India. In FY13, ONGC has
contributed 69% of India’s total production of crude oil and 62% of
natural gas. In FY13, we have produced 22.56 MMT of crude oil and
23.55 BCM of natural gas (26.12 MMT of crude oil and 25.33 BCM of
natural gas including our share in domestic joint ventures). We
established 8.78 billion tons (88% of total) of in-place hydrocarbon
reserves in the country. In fact, six out of seven producing basins in
India have been discovered by us. We produced 1.55 billion tons (83%
of total) of oil and oil equivalent (BTOE) since inception and produce
more than 1.20 million barrels of oil and oil equivalent per day (from
our domestic and overseas assets). We accreted 265.65 MTOE of In-
place volume of hydrocarbon with 84.84 MTOE ultimate reserves in
FY13 ( in domestic basins operated by us). We also produced 3.07
million tonnes of value added products including Liquefied Petroleum
Gas (LPG), Ethane/Propane (C2-C3), Naphtha, Motor Spirit (MS),
High Speed Diesel (HSD), Aviation Turbine Fuel (ATF), and Superior
Kerosene Oil (SKO) in FY13. We have also plans for foray in fertilizer
business in FY14.
We supply crude oil to public sector Oil Marketing Companies
(OMCs) mainly Indian Oil Corporation Limited, Bharat Petroleum
Corporation Limited, Hindustan Petroleum Corporation Limited and
also to our subsidiary Mangalore Refinery and Petrochemicals
Limited (MRPL). We supply produced natural gas mainly through
Gas Authority of India Limited; however, we directly market some
gas. We market value added products to Indian consumers and
internally consume products like HSD and ATF; however, in case of
off-take constraints by the domestic users some products like
Naphtha, HSD and ATF are also exported.
Table 1: Shareholding Pattern
st*As on 31 March 2013
Shareholders
The Government of India is our single largest shareholder with a stake of 69.23%. In FY13, the share of foreign institutional investors in ONGC
increased to 6.27% from 5.35% in FY12. On the other hand, the share of Indian banks, financial institutions and insurance companies declined to
9.69% from 10.05% in FY12.
Shareholder* Percentage of shareholding Percentage of Shareholding Number of Shares
President of India 69.23 5,92,25,46,522
Corporate Bodies 11.92 1,01,99,48,386
Indian Oil Corporation Limited 7.69 65,79,23,428
GAIL (India) Limited 2.4 20,56,01,068
Others 1.83 15,64,23,890
Banks, Financial Institutions and Insurance Companies 9.69 82,86,65,369
Life Insurance Corporation of India 7.75 66,28,45,162
Others 1.94 16,58,20,207
Foreign Institutional Investors 6.27 53,67,22,527
Public 1.65 14,10,85,805
Mutual Funds and UTI 1.13 9,68,60,594
NRIs and Qualified Foreign Investor 0.04 35,67,729
Employees 0.07 60,93,188
Total 100 8,55,54,90,120
04/05
Back to Contents
2 Information on our subsidiaries and joint ventures can be accessed from ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf
2Our Subsidiaries and Joint Ventures
ONGC has two subsidiaries – ONGC Videsh Limited (OVL) and
Mangalore Refinery and Petrochemicals Limited (MRPL). OVL, our
overseas arm to source equity oil and gas for energy security of the
country, is a wholly owned subsidiary of ONGC and is currently operating
in 16 countries on 32 projects with cumulative investment worth over USD
17 billion. Over the years OVL has increased its global presence
significantly and has emerged as the biggest Indian multinational.
The other subsidiary, MRPL, a “Mini Ratna” has around 7% of
India’s total refining capacity and is a state of the art refinery in India
with two units of Hydrocracking and Catalytic Conversions (CCR)
to produce Premium Diesel and Unleaded Petrol of High
Octane, respectively.
Apart from the two subsidiaries, ONGC has 9 Joint ventures also, as
listed below:
Table 2: Our Subsidiaries and Joint Ventures
Our investment in the subsidiaries and joint ventures is carefully structured to ensure our presence in the entire hydrocarbon value-chain.
Operational structure
Our company is the country’s most valuable Central Public Sector Enterprise (CPSE) with a majority stake held by the Government of India. The company is governed by the Companies Act 1956. Our financial performance and physical targets are determined on the basis of the Memorandum of Understanding (MoU) signed with the Ministry of Petroleum and Natural Gas (MoP&NG). The aspects such as the company’s functioning, performance management, corporate governance, corporate social responsibility and sustainable development are regulated as per the guidelines of the Department of Public Enterprise (DPE), under the Ministry of Heavy Industries and Public Enterprises.
ONGC has a pan India presence with business activities, spread across the length and breadth of the country, both on land (Onshore) and in sea (Offshore-shallow water and deepwater). We have assets, basins, and activity based organisational structures. We have 11 assets focusing on oil and gas production and 7 basins which are engaged in exploration of hydrocarbon in domestic basins. Three plants located in Uran, Hazira and Dahej are large scale oil and gas processing units involved in production of value added products. Our services located in Vadodara, Delhi, Dehradun, and Mumbai provide support to the assets, basins and plants in E&P endeavours.
Company ONGC Stake (%)
Subsidiaries
ONGC Videsh Limited (OVL) 100
Mangalore Refinery and Petrochemicals Limited (MRPL) 71.62
Joint Ventures
ONGC Tripura Power Company Limited (OTPC) 50
ONGC TERI Biotech Limited (OTBL) 49
Pawan Hans Limited (PHL) 49
ONGC Mangalore Petrochemicals Limited (OMPL) 49 (shared with MRPL)
Petronet MHB Limited (PMHBL) 28.766
ONGC Petro-additions Limited (OPaL) 26
Mangalore Special Economic Zone Limited (MSEZ) 26
Dahej SEZ Limited (DSL) 23
Petronet LNG Limited (PLL) 12.5
06/07
E&P domesticoperations
Subsidiaries Joint Ventures Associates
Overseas E&P Refinery Petrochemicals Power LNG
Services
Logistics
Pipeline SEZ
(100%)
(71.62%) (26%) (49*%)
* ONGC: 46%, MRPL: 3%
(49%)
(50%)
(49%)
(28.766%)
(26%) (23%)
(100%)
(100%)
(100%)
(100%)
(100%)
(100%)
(49.98%)
ONGC (BTC) Ltd., Azerbaijan
ONGC Narmada Ltd., Nigeria
ONGC Amazon Alaknanda Ltd., Bermuda
Imperial Energy Ltd., Cyprus
Carabobo One AB, Sweden
ONGC Nile Ganga B.V, Netherlands
(12.5%)SubsidiariesJoint Ventures
ONGC-Mittal Energy Ltd.,Cyprus
Government of India
Ministry of Petroleum and Natural Gas Department of Public Enterprises
ONGC Board
Assets Basins Plants Services Institutes Centres of Delivery
Figure 1: Governance Structure
2 Information on our subsidiaries and joint ventures can be accessed from ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf
2Our Subsidiaries and Joint Ventures
ONGC has two subsidiaries – ONGC Videsh Limited (OVL) and
Mangalore Refinery and Petrochemicals Limited (MRPL). OVL, our
overseas arm to source equity oil and gas for energy security of the
country, is a wholly owned subsidiary of ONGC and is currently operating
in 16 countries on 32 projects with cumulative investment worth over USD
17 billion. Over the years OVL has increased its global presence
significantly and has emerged as the biggest Indian multinational.
The other subsidiary, MRPL, a “Mini Ratna” has around 7% of
India’s total refining capacity and is a state of the art refinery in India
with two units of Hydrocracking and Catalytic Conversions (CCR)
to produce Premium Diesel and Unleaded Petrol of High
Octane, respectively.
Apart from the two subsidiaries, ONGC has 9 Joint ventures also, as
listed below:
Table 2: Our Subsidiaries and Joint Ventures
Our investment in the subsidiaries and joint ventures is carefully structured to ensure our presence in the entire hydrocarbon value-chain.
Operational structure
Our company is the country’s most valuable Central Public Sector Enterprise (CPSE) with a majority stake held by the Government of India. The company is governed by the Companies Act 1956. Our financial performance and physical targets are determined on the basis of the Memorandum of Understanding (MoU) signed with the Ministry of Petroleum and Natural Gas (MoP&NG). The aspects such as the company’s functioning, performance management, corporate governance, corporate social responsibility and sustainable development are regulated as per the guidelines of the Department of Public Enterprise (DPE), under the Ministry of Heavy Industries and Public Enterprises.
ONGC has a pan India presence with business activities, spread across the length and breadth of the country, both on land (Onshore) and in sea (Offshore-shallow water and deepwater). We have assets, basins, and activity based organisational structures. We have 11 assets focusing on oil and gas production and 7 basins which are engaged in exploration of hydrocarbon in domestic basins. Three plants located in Uran, Hazira and Dahej are large scale oil and gas processing units involved in production of value added products. Our services located in Vadodara, Delhi, Dehradun, and Mumbai provide support to the assets, basins and plants in E&P endeavours.
Company ONGC Stake (%)
Subsidiaries
ONGC Videsh Limited (OVL) 100
Mangalore Refinery and Petrochemicals Limited (MRPL) 71.62
Joint Ventures
ONGC Tripura Power Company Limited (OTPC) 50
ONGC TERI Biotech Limited (OTBL) 49
Pawan Hans Limited (PHL) 49
ONGC Mangalore Petrochemicals Limited (OMPL) 49 (shared with MRPL)
Petronet MHB Limited (PMHBL) 28.766
ONGC Petro-additions Limited (OPaL) 26
Mangalore Special Economic Zone Limited (MSEZ) 26
Dahej SEZ Limited (DSL) 23
Petronet LNG Limited (PLL) 12.5
06/07
E&P domesticoperations
Subsidiaries Joint Ventures Associates
Overseas E&P Refinery Petrochemicals Power LNG
Services
Logistics
Pipeline SEZ
(100%)
(71.62%) (26%) (49*%)
* ONGC: 46%, MRPL: 3%
(49%)
(50%)
(49%)
(28.766%)
(26%) (23%)
(100%)
(100%)
(100%)
(100%)
(100%)
(100%)
(49.98%)
ONGC (BTC) Ltd., Azerbaijan
ONGC Narmada Ltd., Nigeria
ONGC Amazon Alaknanda Ltd., Bermuda
Imperial Energy Ltd., Cyprus
Carabobo One AB, Sweden
ONGC Nile Ganga B.V, Netherlands
(12.5%)SubsidiariesJoint Ventures
ONGC-Mittal Energy Ltd.,Cyprus
Government of India
Ministry of Petroleum and Natural Gas Department of Public Enterprises
ONGC Board
Assets Basins Plants Services Institutes Centres of Delivery
Figure 1: Governance Structure
CMD
COED
CEWELL
CEC-OG
Corporate Planning
Company Secretary
MD, ONGC Videsh Ltd.
Chief Vigilance Officer
Director(Offshore)
Ahmedabad
Ankleshwar
Mehsana
Assam
Karaikal
Rajahmundry
Tripura
HSE
MM
CM&SG
OnshoreEngineering
IPSHEM
Director(Onshore)
Director (T&FS)
Director (Finance)
Uran Plant
Hazira Plant
OffshoreEngineering
Mumbai High
Bassein & Satellite
Heera &Neelam
EasternOffshore
OffshoreLogistics
PSC-JVs
Marketing
IOGPT
IEOT
WesternOffshore
Assam &Assam Arakan
Cauvery
KG-PG
Frontier
MBP
IRS
GEOPIC
KDMIPE
INBIGS
E&D
Laboratories
CEDC
NMFD
Director (Exploration)
WesternOnshore
GeophysicalServices
Director (HR)
HRD
EmployeeRelations
ONGC Academy
Regional Training Institutes
Security
Legal
Medical
CorporateCommunication
CorporateAdministration
CSR
C2-C3-C4 Plant
CoporateFinance
Internal Audit
Commercial
CorporateAccounts
Budget/PAS
Treasury
RiskManagement
Direct Taxes
Indirect TaxesAssets
Basins
Plants
Services
Corporate Services
Institutes
TechnicalServices
Infocom
Project ICE
IDT
SMP
DG, ONGC Energy Centre
Figure 2: Operational Structure
thrust to the new plays viz CBM, Shale Gas, Deep water and High
Pressure/High Temperature (HP/HT) , essential to meet our aspirations,
as envisioned in PP2030.
In FY13, we have completed four major projects – Construction of new
Mumbai High North (MHN) platform; Revamping of Water Injection
North (WIN) platform; Low pressure gas processing and compression
facility in Rajahmundry Asset and Additional gas processing facility at
Hazira Plant.
We have not decommissioned/disposed-off fixed assets during FY13.
ABOUT THISREPORT“A New Paradigm in Sustainable Leadership” is ONGC’s fourth annual
sustainability report and presents the company’s sustainability st stperformance for FY13 (reporting period is from 1 April 2012 to 31
March 2013). The current report attempts to progressively build on our 3previous three sustainability reports of FY10, FY11 and FY12.
The boundary of this report includes our domestic exploration and
production operations (assets and basins) and processing plants, which
is in full control of management. Our office buildings (including institutes
and centres of delivery) and residential colonies have also been
included as part of our disclosures. The new C2-C3-C4 extraction plant
at Dahej is under preservation and periodic inspection of equipment is
continuing as per Preservation Plan. This report does not include the
sustainability performance of our subsidiaries and joint ventures. There
is no change in the reporting boundary in FY13.
Assets, Basins, Plants, and Services
11 Assets: Oil and gas producing properties
7 Basins: Oil and gas exploratory properties
3 Plants: Oil and gas processing and value added producing properties
13 Institutes: Applied research and development of oil and gas exploration
and production and knowledge support.
4 Centres of Delivery(COD): Providing renewed thrust to the new plays
viz CBM, Shale gas, Deep water and High Pressure/High Temperature
(HP/HT) , essential to meet PP2030 aspirations.
Services: Providing support, enabling facilities and resources to the
Assets and Basins towards the core functions of oil and gas exploration and
production; and production of related value added products.
3 ONGC previous year’s sustainability reports can be accessed at http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/4 ONGC’s first BRR can be accessed on pages 126-151 of annual report 2012-13 at http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf
This year’s sustainability report has been developed as per the GRI 3.0
Guidelines on Sustainability Reporting with Oil and Gas Sector
Supplement (OGSS) meeting the requirements of application level ‘A+’.
The content of the report has been developed on the principles of
materiality, stakeholder inclusivity and responsiveness as applicable to
ONGC’s current sustainability context. There is a change in the scope of
the report with the inclusion of oil and gas sector supplement in FY13.
This report has been developed with the commitment to disclosing our
sustainability performance transparently with the inclusion of our key
stakeholders. A robust sustainability governance structure continues to
manage and control the sustainability elements. We have tried to
integrate sustainable development organically in our core business of
exploration and production. The performance based data points are
generally collated from our robust Enterprise Resource Planning
system. However, some data points viz natural gas, electricity, water
and waste are collected by sending data collection templates to work
centres across assets, basins, plants and relevant services. We have
presented actual numbers in most cases and estimated numbers for
some data points.
The report has been independently assured by Det Norkse Veritas AS
(DNV) in accordance with AA1000AS (Type 1, moderate level
assurance) for validation of the reported contents and to enhance the
credibility. The GRI content index on page 63 onwards gives a detailed
reference on the GRI performance indicators and standard disclosures.
The report has also been mapped to the framework of Business 4Responsibility Report (BRR) as mandated by Securities and Exchange
of Board of India (SEBI). BRR is mandatory for the top 100 listed entities stbased on market capitalisation at BSE and NSE as on 31 March, 2012,
which requires company’s communication on its Environmental, Social
and Governance (ESG) performance along with the annual report. The
report is mapped as per UNGC principles as well.
With our Perspective Plan 2030 (PP2030), we are targeting a sustained
growth of 4-5% per annum in the next two decades. Based on this, we
are aligning our R&D with technology priorities, reviewing our risk
management systems and exploring investment opportunities to
enhance energy security through expansions and investment in
alternate energy.
We are working towards bringing out a sustainability report of ONGC
group of companies including subsidiaries OVL and MRPL by FY 2015.
We believe we can improve upon our sustainability
reporting process and consider your comments and
suggestions valuable to us.
We appreciate if you send your comments on
the report to: [email protected]
08/09
We have institutionalised Research and Development in E&P and related sectors with an aim to support business processes and promote indigenous research and innovation in technology. We have established 13 R&D institutions in critical areas of Exploration; Drilling; Reservoir Management; Production Technology; Ocean Engineering; Health, Safety and Environment (HSE) Management; and alternate sources of energy. Such institutes, located throughout India, are fully equipped and utilise specialised multi-disciplinary expert teams.
We have established four Centres of Delivery (COD) to provide renewed
DrillingServices
Drilling
Connenting
Mud
Workover
WSS
WellCompletion
Well Services
CMD
COED
CEWELL
CEC-OG
Corporate Planning
Company Secretary
MD, ONGC Videsh Ltd.
Chief Vigilance Officer
Director(Offshore)
Ahmedabad
Ankleshwar
Mehsana
Assam
Karaikal
Rajahmundry
Tripura
HSE
MM
CM&SG
OnshoreEngineering
IPSHEM
Director(Onshore)
Director (T&FS)
Director (Finance)
Uran Plant
Hazira Plant
OffshoreEngineering
Mumbai High
Bassein & Satellite
Heera &Neelam
EasternOffshore
OffshoreLogistics
PSC-JVs
Marketing
IOGPT
IEOT
WesternOffshore
Assam &Assam Arakan
Cauvery
KG-PG
Frontier
MBP
IRS
GEOPIC
KDMIPE
INBIGS
E&D
Laboratories
CEDC
NMFD
Director (Exploration)
WesternOnshore
GeophysicalServices
Director (HR)
HRD
EmployeeRelations
ONGC Academy
Regional Training Institutes
Security
Legal
Medical
CorporateCommunication
CorporateAdministration
CSR
C2-C3-C4 Plant
CoporateFinance
Internal Audit
Commercial
CorporateAccounts
Budget/PAS
Treasury
RiskManagement
Direct Taxes
Indirect TaxesAssets
Basins
Plants
Services
Corporate Services
Institutes
TechnicalServices
Infocom
Project ICE
IDT
SMP
DG, ONGC Energy Centre
Figure 2: Operational Structure
thrust to the new plays viz CBM, Shale Gas, Deep water and High
Pressure/High Temperature (HP/HT) , essential to meet our aspirations,
as envisioned in PP2030.
In FY13, we have completed four major projects – Construction of new
Mumbai High North (MHN) platform; Revamping of Water Injection
North (WIN) platform; Low pressure gas processing and compression
facility in Rajahmundry Asset and Additional gas processing facility at
Hazira Plant.
We have not decommissioned/disposed-off fixed assets during FY13.
ABOUT THISREPORT“A New Paradigm in Sustainable Leadership” is ONGC’s fourth annual
sustainability report and presents the company’s sustainability st stperformance for FY13 (reporting period is from 1 April 2012 to 31
March 2013). The current report attempts to progressively build on our 3previous three sustainability reports of FY10, FY11 and FY12.
The boundary of this report includes our domestic exploration and
production operations (assets and basins) and processing plants, which
is in full control of management. Our office buildings (including institutes
and centres of delivery) and residential colonies have also been
included as part of our disclosures. The new C2-C3-C4 extraction plant
at Dahej is under preservation and periodic inspection of equipment is
continuing as per Preservation Plan. This report does not include the
sustainability performance of our subsidiaries and joint ventures. There
is no change in the reporting boundary in FY13.
Assets, Basins, Plants, and Services
11 Assets: Oil and gas producing properties
7 Basins: Oil and gas exploratory properties
3 Plants: Oil and gas processing and value added producing properties
13 Institutes: Applied research and development of oil and gas exploration
and production and knowledge support.
4 Centres of Delivery(COD): Providing renewed thrust to the new plays
viz CBM, Shale gas, Deep water and High Pressure/High Temperature
(HP/HT) , essential to meet PP2030 aspirations.
Services: Providing support, enabling facilities and resources to the
Assets and Basins towards the core functions of oil and gas exploration and
production; and production of related value added products.
3 ONGC previous year’s sustainability reports can be accessed at http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/4 ONGC’s first BRR can be accessed on pages 126-151 of annual report 2012-13 at http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf
This year’s sustainability report has been developed as per the GRI 3.0
Guidelines on Sustainability Reporting with Oil and Gas Sector
Supplement (OGSS) meeting the requirements of application level ‘A+’.
The content of the report has been developed on the principles of
materiality, stakeholder inclusivity and responsiveness as applicable to
ONGC’s current sustainability context. There is a change in the scope of
the report with the inclusion of oil and gas sector supplement in FY13.
This report has been developed with the commitment to disclosing our
sustainability performance transparently with the inclusion of our key
stakeholders. A robust sustainability governance structure continues to
manage and control the sustainability elements. We have tried to
integrate sustainable development organically in our core business of
exploration and production. The performance based data points are
generally collated from our robust Enterprise Resource Planning
system. However, some data points viz natural gas, electricity, water
and waste are collected by sending data collection templates to work
centres across assets, basins, plants and relevant services. We have
presented actual numbers in most cases and estimated numbers for
some data points.
The report has been independently assured by Det Norkse Veritas AS
(DNV) in accordance with AA1000AS (Type 1, moderate level
assurance) for validation of the reported contents and to enhance the
credibility. The GRI content index on page 63 onwards gives a detailed
reference on the GRI performance indicators and standard disclosures.
The report has also been mapped to the framework of Business 4Responsibility Report (BRR) as mandated by Securities and Exchange
of Board of India (SEBI). BRR is mandatory for the top 100 listed entities stbased on market capitalisation at BSE and NSE as on 31 March, 2012,
which requires company’s communication on its Environmental, Social
and Governance (ESG) performance along with the annual report. The
report is mapped as per UNGC principles as well.
With our Perspective Plan 2030 (PP2030), we are targeting a sustained
growth of 4-5% per annum in the next two decades. Based on this, we
are aligning our R&D with technology priorities, reviewing our risk
management systems and exploring investment opportunities to
enhance energy security through expansions and investment in
alternate energy.
We are working towards bringing out a sustainability report of ONGC
group of companies including subsidiaries OVL and
MRPL by FY 2015.
We believe we can improve upon our sustainability
reporting process and consider your comments and
suggestions valuable to us.
We appreciate if you send your comments on
the report to: [email protected]
08/09
We have institutionalised Research and Development in E&P and related sectors with an aim to support business processes and promote indigenous research and innovation in technology. We have established 13 R&D institutions in critical areas of Exploration; Drilling; Reservoir Management; Production Technology; Ocean Engineering; Health, Safety and Environment (HSE) Management; and alternate sources of energy. Such institutes, located throughout India, are fully equipped and utilise specialised multi-disciplinary expert teams.
We have established four Centres of Delivery (COD) to provide renewed
DrillingServices
Drilling
Connenting
Mud
Workover
WSS
WellCompletion
Well Services
Figure 3: Reporting Boundary-Domestic E & P operations
Back to Contents
AWARDSAND ACCOLADES
5The Company was Ranked
nd• 22 Position in the Platts Top 250 Global Energy Company Ranking rd2012 and 3 position among E&P companies (October 2012).
th • 155 Position of world biggest companies in the Forbes Global 2000 rdlist for 2013 and 23 position globally under oil and gas operations
industry (April 2013).
th• 386 Position in the Newsweek Green Rankings 2012 Global 500 list (2012).
th• 36 Position in oil and gas companies based on Research and Development (R&D) expenditure as per 2012 EU Industrial R&D Scoreboard.
The Company was:
• Awarded Gold Trophy of SCOPE Meritorious Award for Corporate Social Responsibility and Responsiveness for FY12 (April 2013).
• Awarded 10 awards in the Oil Mines Category at the prestigious National Safety Awards (Mines) for the years 2008, 2009 and 2010 (November 2012).
• Bestowed with ‘Certificate of Recognition’ for adopting exemplary corporate governance practices, instituted by the Institute of Company Secretaries of India.
• Bestowed with two CII-ITC Sustainability Awards 2012 under ‘Commendation for Significant Achievement’ at corporate category and under unit category-Hazira Plant.
• Selected (jointly with GAIL) for the prestigious SCOPE Award for Excellence and Outstanding contribution to the public sector management.
• Awarded Randstad Award 2013 for being the Most Attractive Employer in the Energy Sector in India.
5 ONGC’s ranking can be accessed at http://top250.platts.com/Top250Rankings
http://www.forbes.com/global2000/list/#page:2_sort:0_direction:asc_search:_filter:All%20industries_filter:All%20countries_filter:All%20states
http://www.thedailybeast.com/newsweek/2012/10/22/newsweek-green-rankings-2012-global-500-list.html
https://www.google.co.in/webhp?source=search_app&gws_rd=cr&ei=C-UuUv_TEYHtrQfM0oHoCA#q=Research+and+development+expenditure+eu+industrial+r%26d+scoreboard+2012
10/11
Back to Contents
AWARDSAND ACCOLADES
5The Company was Ranked
nd• 22 Position in the Platts Top 250 Global Energy Company Ranking rd2012 and 3 position among E&P companies (October 2012).
th • 155 Position of world biggest companies in the Forbes Global 2000 rdlist for 2013 and 23 position globally under oil and gas operations
industry (April 2013).
th• 386 Position in the Newsweek Green Rankings 2012 Global 500 list (2012).
th• 36 Position in oil and gas companies based on Research and Development (R&D) expenditure as per 2012 EU Industrial R&D Scoreboard.
The Company was:
• Awarded Gold Trophy of SCOPE Meritorious Award for Corporate Social Responsibility and Responsiveness for FY12 (April 2013).
• Awarded 10 awards in the Oil Mines Category at the prestigious National Safety Awards (Mines) for the years 2008, 2009 and 2010 (November 2012).
• Bestowed with ‘Certificate of Recognition’ for adopting exemplary corporate governance practices, instituted by the Institute of Company Secretaries of India.
• Bestowed with two CII-ITC Sustainability Awards 2012 under ‘Commendation for Significant Achievement’ at corporate category and under unit category-Hazira Plant.
• Selected (jointly with GAIL) for the prestigious SCOPE Award for Excellence and Outstanding contribution to the public sector management.
• Awarded Randstad Award 2013 for being the Most Attractive Employer in the Energy Sector in India.
5 ONGC’s ranking can be accessed at http://top250.platts.com/Top250Rankings
http://www.forbes.com/global2000/list/#page:2_sort:0_direction:asc_search:_filter:All%20industries_filter:All%20countries_filter:All%20states
http://www.thedailybeast.com/newsweek/2012/10/22/newsweek-green-rankings-2012-global-500-list.html
https://www.google.co.in/webhp?source=search_app&gws_rd=cr&ei=C-UuUv_TEYHtrQfM0oHoCA#q=Research+and+development+expenditure+eu+industrial+r%26d+scoreboard+2012
10/11
FROM THE CHAIRMAN & MANAGING DIRECTOR’s DESK
Our sustainability focus has led to a robust presence in most of the
emerging green corridors including renewable and unconventional fuels
like Shale Gas and Coal Bed Methane. On climate change mitigation,
we embrace our responsibility proactively and voluntarily. Our
commitments are reflected in our unique successes in CDM project
development and Global Methane Initiative, which has helped us
improve our production bottom-line as well. Our corporate wide carbon
foot printing exercise is complete and has opened several avenues to
reduce our footprint. We have set specific targets for commercialization
of stranded cleaner gas and development of alternate energy sources
including solar, wind, and nuclear. It is our organizational objective to
progressively reduce our carbon footprint by working towards reduction
in both direct and indirect energy consumption.
We are working on a company-wide ‘Sustainable Water Management
Strategy’ to reduce fresh water consumption and reporting on the water
footprint based on internationally recognized standards and practices.
During FY13, we have been able to reduce GHG emission by 5%,
fresh water consumption by 15% and considerable reduction in the
bulk material consumption and this has been possible due to on-going
energy conservation measures and enhanced impetus to good
industry practices.
Our vision of sustainable growth drives both business decisions as well
as Corporate Social Responsibility (CSR) initiatives. Our CSR
interventions aim at an inclusive business paradigm with triple bottom-
line considerations and are well-integrated into the decision-making
processes of the organization. We have made significant strides in
engaging communities through a number of structured big-format
community-enrichment projects. These projects have strengthened the
community engagement, helping secure enduring stakeholder
cooperation in ONGC’s energy business.
I am pleased to introduce the ONGC Sustainability Report 2012-13.
Against the backdrop of a still struggling global economy and India’s
energy dependency on fossil fuel, we continue to operate in
economically, environmentally and socially responsible ways; and
invest for the future.
As India’s energy demand continues to rise with its economic growth,
and easy oil depletes at a faster rate, we endeavour to develop energy
resources that exist in a challenging environment, or are difficult to
produce. We face stiff challenges to maintain our bottom-line and
generate ample financial resources on account of steep and increasing
discounts to support the under-recoveries of the Oil Marketing
Companies (OMCs), which is beyond our control. However, we strive to
address the issue of under-recoveries through continuous engagement
with all stakeholders.
Our Perspective Plan 2030 (PP2030) aims at building a portfolio to
transform ONGC as a global energy company. We are investing toward
building unique ‘differentiating’ core capabilities through investment in
niche technology, physical and intellectual capacity building, applied
R&D capability and capital management capabilities to service our
future growth prospects in unconventional, deepwater and IOR/EOR, as
envisaged in PP2030.
Sustainable development remains firmly at the core of our business
strategy. Working with communities, governments, non-government
organisations and others help us to operate safely and responsibly. We
take effective steps to preserve the environment and ecological
diversity and to build trust with communities close to our operations.
Wherever we operate, we never cease in our efforts to ensure
everyone’s safety: our employees or contractors or the communities
near our operations alike.
Our commitment to sustainable development aimed at taking care of the planet and its people is organically integrated to our exploration and development of energy assets, which is automatically resulting in a robust bottom line…
We will continue to take up Sustainable Development projects for
conserving natural resources, energy, water and make all out
efforts to minimize environmental impacts of our projects on the
society. We will also continue to invest in community around our
work centres through various initiatives by providing access to
infrastructure, water, electricity, education, healthcare etc.
The issues related to environmental, community and economic
performance covered in my statement during FY12 have been
duly addressed under respective sections in this report.
Ever cognizant of the necessity of being accountable, responsive
and transparent to the wider body of stakeholders, we had
commenced sustainability reporting based on the globally
recognized Global Reporting Initiative (GRI-G3) guidelines in
FY10. We will continue to bring out externally assured
sustainability reports through which our company will strive to
improve the overall engagement with stakeholders, be
accountable for the triple bottom line performance and help
improve the same.
ONGC is the founding member of the Global Compact Network,
India through which we uphold and propagate the Ten Principles of
UNGC on human rights, labour, environment and anti-corruption.
In this report, our progress in these areas has also been duly
covered.
I invite your comments on the report.
Sudhir VasudevaChairman & Managing Director
12/13
“”
Back to Contents
FROM THE CHAIRMAN & MANAGING DIRECTOR’s DESK
Our sustainability focus has led to a robust presence in most of the
emerging green corridors including renewable and unconventional fuels
like Shale Gas and Coal Bed Methane. On climate change mitigation,
we embrace our responsibility proactively and voluntarily. Our
commitments are reflected in our unique successes in CDM project
development and Global Methane Initiative, which has helped us
improve our production bottom-line as well. Our corporate wide carbon
foot printing exercise is complete and has opened several avenues to
reduce our footprint. We have set specific targets for commercialization
of stranded cleaner gas and development of alternate energy sources
including solar, wind, and nuclear. It is our organizational objective to
progressively reduce our carbon footprint by working towards reduction
in both direct and indirect energy consumption.
We are working on a company-wide ‘Sustainable Water Management
Strategy’ to reduce fresh water consumption and reporting on the water
footprint based on internationally recognized standards and practices.
During FY13, we have been able to reduce GHG emission by 5%,
fresh water consumption by 15% and considerable reduction in the
bulk material consumption and this has been possible due to on-going
energy conservation measures and enhanced impetus to good
industry practices.
Our vision of sustainable growth drives both business decisions as well
as Corporate Social Responsibility (CSR) initiatives. Our CSR
interventions aim at an inclusive business paradigm with triple bottom-
line considerations and are well-integrated into the decision-making
processes of the organization. We have made significant strides in
engaging communities through a number of structured big-format
community-enrichment projects. These projects have strengthened the
community engagement, helping secure enduring stakeholder
cooperation in ONGC’s energy business.
I am pleased to introduce the ONGC Sustainability Report 2012-13.
Against the backdrop of a still struggling global economy and India’s
energy dependency on fossil fuel, we continue to operate in
economically, environmentally and socially responsible ways; and
invest for the future.
As India’s energy demand continues to rise with its economic growth,
and easy oil depletes at a faster rate, we endeavour to develop energy
resources that exist in a challenging environment, or are difficult to
produce. We face stiff challenges to maintain our bottom-line and
generate ample financial resources on account of steep and increasing
discounts to support the under-recoveries of the Oil Marketing
Companies (OMCs), which is beyond our control. However, we strive to
address the issue of under-recoveries through continuous engagement
with all stakeholders.
Our Perspective Plan 2030 (PP2030) aims at building a portfolio to
transform ONGC as a global energy company. We are investing toward
building unique ‘differentiating’ core capabilities through investment in
niche technology, physical and intellectual capacity building, applied
R&D capability and capital management capabilities to service our
future growth prospects in unconventional, deepwater and IOR/EOR, as
envisaged in PP2030.
Sustainable development remains firmly at the core of our business
strategy. Working with communities, governments, non-government
organisations and others help us to operate safely and responsibly. We
take effective steps to preserve the environment and ecological
diversity and to build trust with communities close to our operations.
Wherever we operate, we never cease in our efforts to ensure
everyone’s safety: our employees or contractors or the communities
near our operations alike.
Our commitment to sustainable development aimed at taking care of the planet and its people is organically integrated to our exploration and development of energy assets, which is automatically resulting in a robust bottom line…
We will continue to take up Sustainable Development projects for
conserving natural resources, energy, water and make all out
efforts to minimize environmental impacts of our projects on the
society. We will also continue to invest in community around our
work centres through various initiatives by providing access to
infrastructure, water, electricity, education, healthcare etc.
The issues related to environmental, community and economic
performance covered in my statement during FY12 have been
duly addressed under respective sections in this report.
Ever cognizant of the necessity of being accountable, responsive
and transparent to the wider body of stakeholders, we had
commenced sustainability reporting based on the globally
recognized Global Reporting Initiative (GRI-G3) guidelines in
FY10. We will continue to bring out externally assured
sustainability reports through which our company will strive to
improve the overall engagement with stakeholders, be
accountable for the triple bottom line performance and help
improve the same.
ONGC is the founding member of the Global Compact Network,
India through which we uphold and propagate the Ten Principles of
UNGC on human rights, labour, environment and anti-corruption.
In this report, our progress in these areas has also been duly
covered.
I invite your comments on the report.
Sudhir VasudevaChairman & Managing Director
12/13
“”
OUR GOVERNANCEFRAMEWORKOur corporate governance is driven by adherence to the ethical
standards for effective management, distribution of wealth and
discharge of social responsibility for sustainable development of all the
stakeholders including customers, employees and society at large.
ONGC is governed by a Board of Directors. The Chairman and
Managing Director (CMD) is the Chairman of the ONGC Board. The
Board collectively formulates strategies, policies and periodically
reviews company performance.
stAs on 31 March 2013, the Board of Directors has 14 members,
comprising of 6 Functional Directors (including the CMD) and 8 Non-
Executive Directors. The Non Executive Directors comprise 2 part-time
official nominee Directors and 6 part-time non-official Directors
nominated by the Government of India. Managing Director, OVL is a
permanent invitee to the meetings of the Board. The Board has two
women Directors during the reporting period. The company being a
CPSE, Directors are appointed/nominated by the President of India.
Twelve Board meetings have been held during the reporting period.
st The composition of the Board of Directors as on 31 March 2013
complies with the provisions of Clause 49 of the Listing Agreement,
stexcept that for the period from 1 April 2012 to 21st May 2012, the Board
of Directors did not comprise of the required number of Independent
Directors as per the terms of the above mentioned Listing Agreement.
The Government of India was in the process of nominating the
Independent Directors during the mentioned period.
ONGC operates as per the guidelines of the MoU with the Ministry of
Petroleum and Natural Gas (MoP&NG) , which is governed by the
Department of Public Enterprises under the Ministry of Heavy Industries
and Public Enterprises.
Functional Directors are evaluated by the MoP&NG for their
performance as per the contract with MoP&NG. Non-executive 7 8Directors are not assessed formally . CRISIL have conducted a
study on Governance and Value Creation in ONGC and
recommended for formal appraisal process for Board as a whole.
Accordingly, ONGC Board approved in principle a policy on
“Performance Evaluation of Directors”, which is under consideration
of the Independent Directors.
In addition to the Board, ONGC also has various committees of the
Board, which oversee specific functions of the company and provide
their expertise in reviewing and supervising the overall affairs.
Company's guidelines relating to Board Meetings are applicable to
Committee Meetings as far as practicable. Both, the Board and
Committees of the Board function as per defined guidelines in order to
systematize decision-making process in the company.
6Table 3: Our Board Structure
9 For details on the roles and responsibilities of these committees, please refer to ONGC Annual Report FY13, which can be accessed at http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf
Information on mechanisms for shareholders and employees to provide recommendations to the Board and processes in place to ensure that conflicts of interest are avoided have been reported in ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also in ONGC’s previous sustainability reports - http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/
6 th thShri A K Hazarika, Director (Onshore) superannuated on 30 September, 2012. Shri U N Bose, Director (T&FS) superannuated on 30 November, 2012. Shri S V Rao, Director (Exploration) st nd thsuperannuated on 31 March, 2013. Shri A K Banerjee joined as Director (Finance) on 22 May, 2012. Shri P K Borthakur joined as Director (Offshore) on 30 October, 2012. Shri Shashi Shanker joined
stas Director (T&FS) on 1st December, 2012. Shri N K Verma joined as Director (Exploration) on 1 April, 2013.
rd thShri Sudhir Bhargava resigned from the ONGC Board on 3 August, 2012. Shri Bimal Julka was as a Government Nominee Director from 4th April, 2012 to 28 August, 2012. Shri A Giridhar joined as a rd th thGovernment Nominee Director on 3 August, 2012. Shri Shaktikanta Das joined as a Government Nominee Director on 28 August, 2012. Smt Anita Das resigned from the ONGC board on 4 August
st st 2012. Smt Sushama Nath resigned from the ONGC board on 21 January 2013. Shri K Narasimha Murthy joined as an Independent Director on 21 March, 2013.
7 Information on our process for determining the composition, qualifications, expertise, compensation of the members of the Board and its committees and precautionary approach have been reported in ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also in ONGC’s previous sustainability reports - http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/
8 CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services.
ONGC’s performance is evaluated by the Department of Public
Enterprises on the basis of the MoU that ONGC signs with the MoP&NG.
The entire MoU is on a 100 point scale and various activities of ONGC
with specific targets and percentage weightage form the MoU
parameters. At the end of the financial year, performance of ONGC is
evaluated on the basis of the target achieved against various
parameters. The performance related pay (PRP) of ONGC executives is
based on this MoU evaluation, which is decided by the DPE on a fixed
guideline for all CPSEs. The MoU has two parts—static financial
parameters and dynamic parameters—each with 50% weightage. SD
activities and CSR constitute 10% of the total MoU weightage under the
dynamic parameters. Thus, performance against the set targets under
the economic, environmental and social parameters of ONGC
constitute 60% of the total MoU target and hence are extremely critical
for its performance evaluation.
ONGC follows the Guidelines on Corporate Social Responsibility and
Sustainability for Central Public Sector Enterprises issued by the
Department of Public Enterprises. The core objective of these
guidelines is to make significant contribution to the socio-economic
growth of the country and environment protection.
At the corporate level in ONGC, we have a dedicated team, “Carbon
Management and Sustainability Group” for managing all sustainable
development projects. This team is supported onsite by Sustainable
Development Officers (SDOs) at various locations who oversee the
implementation of sustainable development projects in an effective
manner. Throughout the year, the core team ensures rigorous
interaction with the SDOs for training and awareness on sustainability
issues.
In various core sustainable development performance areas in ONGC,
we undertake an incrementally scalable, project based approach. In this
approach, the pilot projects are initiated at the representative locations
and they are eventually scaled up for the entire organisation.
In ONGC, our sustainability policy remains our guiding document in our
sustainability journey. It is periodically reviewed for the sustainability
goals and targets. The concerns of the external and internal
stakeholders have been addressed in this policy.
Governance for Sustainability
9Table 4: Our Board Committees
Committee Name Number of members
Chairman Number of meetings in
2012-13
Audit and Ethics Committee 7 Shri Arun Ramanathan 12
Remuneration Committee 5 Dr D Chandrasekharam 1
Shareholders’/ Investors’ Grievance Committee
7 Prof Deepak Nayyar 2
Human Resource Management Committee
11 Prof S K Barua 6
Project Appraisal Committee 11 Shri O P Bhatt 9
Financial Management Committee
11 Shri Arun Ramanathan 3
Committee on Dispute Resolution
10 Prof Deepak Nayyar 4
HSE and Sustainable Development Committee
12 Dr D Chandrasekharam 2
Functional Directors Official Nominee Directors Independent Directors Permanent Invitee
Shri Sudhir Vasudeva Shri Sudhir Bhargava Smt Anita Das Shri D K Sarraf
Shri A K Hazarika Shri Bimal Julka Dr D Chandrasekharam
Shri U N Bose Shri Aramane Giridhar Prof Deepak Nayyar
Shri S V Rao Shri Shaktikanta Das Shri Arun Ramanathan
Shri K S Jamestin Prof S K Barua
Shri A K Banerjee Shri O P Bhatt
Shri P K Borthakur Smt Sushama Nath
Shri Shashi Shanker Shri K Narasimha Murthy
Shri N K Verma
14/15
Back to Contents
OUR GOVERNANCEFRAMEWORKOur corporate governance is driven by adherence to the ethical
standards for effective management, distribution of wealth and
discharge of social responsibility for sustainable development of all the
stakeholders including customers, employees and society at large.
ONGC is governed by a Board of Directors. The Chairman and
Managing Director (CMD) is the Chairman of the ONGC Board. The
Board collectively formulates strategies, policies and periodically
reviews company performance.
stAs on 31 March 2013, the Board of Directors has 14 members,
comprising of 6 Functional Directors (including the CMD) and 8 Non-
Executive Directors. The Non Executive Directors comprise 2 part-time
official nominee Directors and 6 part-time non-official Directors
nominated by the Government of India. Managing Director, OVL is a
permanent invitee to the meetings of the Board. The Board has two
women Directors during the reporting period. The company being a
CPSE, Directors are appointed/nominated by the President of India.
Twelve Board meetings have been held during the reporting period.
st The composition of the Board of Directors as on 31 March 2013
complies with the provisions of Clause 49 of the Listing Agreement,
stexcept that for the period from 1 April 2012 to 21st May 2012, the Board
of Directors did not comprise of the required number of Independent
Directors as per the terms of the above mentioned Listing Agreement.
The Government of India was in the process of nominating the
Independent Directors during the mentioned period.
ONGC operates as per the guidelines of the MoU with the Ministry of
Petroleum and Natural Gas (MoP&NG) , which is governed by the
Department of Public Enterprises under the Ministry of Heavy Industries
and Public Enterprises.
Functional Directors are evaluated by the MoP&NG for their
performance as per the contract with MoP&NG. Non-executive 7 8Directors are not assessed formally . CRISIL have conducted a
study on Governance and Value Creation in ONGC and
recommended for formal appraisal process for Board as a whole.
Accordingly, ONGC Board approved in principle a policy on
“Performance Evaluation of Directors”, which is under consideration
of the Independent Directors.
In addition to the Board, ONGC also has various committees of the
Board, which oversee specific functions of the company and provide
their expertise in reviewing and supervising the overall affairs.
Company's guidelines relating to Board Meetings are applicable to
Committee Meetings as far as practicable. Both, the Board and
Committees of the Board function as per defined guidelines in order to
systematize decision-making process in the company.
6Table 3: Our Board Structure
9 For details on the roles and responsibilities of these committees, please refer to ONGC Annual Report FY13, which can be accessed at http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf
Information on mechanisms for shareholders and employees to provide recommendations to the Board and processes in place to ensure that conflicts of interest are avoided have been reported in ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also in ONGC’s previous sustainability reports - http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/
6 th thShri A K Hazarika, Director (Onshore) superannuated on 30 September, 2012. Shri U N Bose, Director (T&FS) superannuated on 30 November, 2012. Shri S V Rao, Director (Exploration) st nd thsuperannuated on 31 March, 2013. Shri A K Banerjee joined as Director (Finance) on 22 May, 2012. Shri P K Borthakur joined as Director (Offshore) on 30 October, 2012. Shri Shashi Shanker joined
stas Director (T&FS) on 1st December, 2012. Shri N K Verma joined as Director (Exploration) on 1 April, 2013.
rd thShri Sudhir Bhargava resigned from the ONGC Board on 3 August, 2012. Shri Bimal Julka was as a Government Nominee Director from 4th April, 2012 to 28 August, 2012. Shri A Giridhar joined as a rd th thGovernment Nominee Director on 3 August, 2012. Shri Shaktikanta Das joined as a Government Nominee Director on 28 August, 2012. Smt Anita Das resigned from the ONGC board on 4 August
st st 2012. Smt Sushama Nath resigned from the ONGC board on 21 January 2013. Shri K Narasimha Murthy joined as an Independent Director on 21 March, 2013.
7 Information on our process for determining the composition, qualifications, expertise, compensation of the members of the Board and its committees and precautionary approach have been reported in ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also in ONGC’s previous sustainability reports - http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/
8 CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services.
ONGC’s performance is evaluated by the Department of Public
Enterprises on the basis of the MoU that ONGC signs with the MoP&NG.
The entire MoU is on a 100 point scale and various activities of ONGC
with specific targets and percentage weightage form the MoU
parameters. At the end of the financial year, performance of ONGC is
evaluated on the basis of the target achieved against various
parameters. The performance related pay (PRP) of ONGC executives is
based on this MoU evaluation, which is decided by the DPE on a fixed
guideline for all CPSEs. The MoU has two parts—static financial
parameters and dynamic parameters—each with 50% weightage. SD
activities and CSR constitute 10% of the total MoU weightage under the
dynamic parameters. Thus, performance against the set targets under
the economic, environmental and social parameters of ONGC
constitute 60% of the total MoU target and hence are extremely critical
for its performance evaluation.
ONGC follows the Guidelines on Corporate Social Responsibility and
Sustainability for Central Public Sector Enterprises issued by the
Department of Public Enterprises. The core objective of these
guidelines is to make significant contribution to the socio-economic
growth of the country and environment protection.
At the corporate level in ONGC, we have a dedicated team, “Carbon
Management and Sustainability Group” for managing all sustainable
development projects. This team is supported onsite by Sustainable
Development Officers (SDOs) at various locations who oversee the
implementation of sustainable development projects in an effective
manner. Throughout the year, the core team ensures rigorous
interaction with the SDOs for training and awareness on sustainability
issues.
In various core sustainable development performance areas in ONGC,
we undertake an incrementally scalable, project based approach. In this
approach, the pilot projects are initiated at the representative locations
and they are eventually scaled up for the entire organisation.
In ONGC, our sustainability policy remains our guiding document in our
sustainability journey. It is periodically reviewed for the sustainability
goals and targets. The concerns of the external and internal
stakeholders have been addressed in this policy.
Governance for Sustainability
9Table 4: Our Board Committees
Committee Name Number of members
Chairman Number of meetings in
2012-13
Audit and Ethics Committee 7 Shri Arun Ramanathan 12
Remuneration Committee 5 Dr D Chandrasekharam 1
Shareholders’/ Investors’ Grievance Committee
7 Prof Deepak Nayyar 2
Human Resource Management Committee
11 Prof S K Barua 6
Project Appraisal Committee 11 Shri O P Bhatt 9
Financial Management Committee
11 Shri Arun Ramanathan 3
Committee on Dispute Resolution
10 Prof Deepak Nayyar 4
HSE and Sustainable Development Committee
12 Dr D Chandrasekharam 2
Functional Directors Official Nominee Directors Independent Directors Permanent Invitee
Shri Sudhir Vasudeva Shri Sudhir Bhargava Smt Anita Das Shri D K Sarraf
Shri A K Hazarika Shri Bimal Julka Dr D Chandrasekharam
Shri U N Bose Shri Aramane Giridhar Prof Deepak Nayyar
Shri S V Rao Shri Shaktikanta Das Shri Arun Ramanathan
Shri K S Jamestin Prof S K Barua
Shri A K Banerjee Shri O P Bhatt
Shri P K Borthakur Smt Sushama Nath
Shri Shashi Shanker Shri K Narasimha Murthy
Shri N K Verma
14/15
To ensure effective operational structure and governance for
sustainable development in ONGC, we re-designated our Health,
Safety and Environment (HSE) Committee as “HSE and Sustainable
Development Committee” during the year. The detailed terms of
references of the committee are as under:
Approve Sustainable Development policy and revise the same at
periodic intervals
Approve SD plan (short, medium and long term) in the context of the
SD guidelines
Provide apex level guidance for SD projects and targets
Oversee SD performance
Approve annual SD evaluation report
Approve annual SD budget
Help and oversee alignment of SD projects/activities with the
organizations business goals and the national and international
trends.
10 Information on our transparency structure can be accessed from ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also from ONGC’s previous sustainability reports - http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/
ONGC maintains its commitment on promoting transparency and
continues with its existing structure for ensuring transparency. The 10structure includes:
Conduct Discipline and Appeal (CDA) Rules: In ONGC, we have a
comprehensive code of conduct (CDA Rules) to guide the behaviour
of employees, maintain ethical conduct and discipline at the
workplace. We have proactively adopted the ‘Whistle Blower Policy’
voluntarily.
Vigilance Department: We have a strong vigilance department with
17 vigilance units spread across regions, assets, basins and plants.
This department ensures that our business procedures run in a
transparent manner. Some of the initiatives to maintain
transparency in our operations and dealings include e-procurement,
e-payment, invoice monitoring system and publishing tenders on
our corporate website. All units are regularly analysed for risks
related to corruption. In FY13, there were 4 reported cases of
corruption. Three cases have been registered under vigilance and
one case has been registered under CBI, Dehradun. We organize
various training and sensitization programs on anti-corruption and
participative vigilance for all employees.
Audit and Ethics Committee: Audit and Ethics is a board level
committee which observes and guides the findings of internal,
government and statutory auditors.
Integrity Pact by Transparency International: The pact guides us to
reduce risk of corrupt practices during our procurement process.
Through implementation of the guidelines of the pact we have seen
reduction in complaints from the vendors regarding
contract and procurement activities.
Grievance Management System (GMS): We
provide an easily accessible machinery to the
employees for redressal of their grievances,
either through an informal channel (open
Sustainable Development Policy
ONGC believes that Sustainable Development requires contribution from all societal players and significantly so from corporates. This policy is
aimed at driving efficient and effective implementation of Sustainable Development activities, initiatives and projects across ONGC.
We consider that sustainable management of water, materials and energy; addressing climate change through carbon management are our key
broad responsibilities towards environmental sustainability.
Our vision is to gradually work towards reducing our carbon and water footprint, innovative beyond compliance management of waste and
prudent energy management and biodiversity conservation.
Our approach for working on our Sustainable Development responsibilities will be through projects in the specified areas and will be driven by an
adequately empowered organizational structure in ONGC with a system of management oversight, review and control.
Figure 3: Our Sustainability Structure
Promoting Transparency
ONGC has taken structured initiatives towards Corporate Governance
and its practices, which revolve around multi-layered checks and
balances to ensure transparency. Apart from the mandatory measures
required to be implemented as a part of Corporate Governance, ONGC
has walked the extra mile in this regard and has implemented the
Whistle Blower Policy, published Annual Report on working of the Audit
and Ethics Committee, MCA Voluntary Guidelines on Corporate
Governance and Enterprise-wide Risk Management (ERM) framework.
Carbon Management & SustainabilityGroup (CM&SG) Corporate set
up to steer SD activities
Sustainable Development Officers (SDOs) at all work centers
(Assets, Basins, Plants and Services)
Executive Director Chief -Carbon Management & Sustainability Group
Director (Onshore)
In-charge Carbon Management & Sustainability Group
ONGC BoardBoard Committee HSE & SD
16/17
To ensure effective operational structure and governance for
sustainable development in ONGC, we re-designated our Health,
Safety and Environment (HSE) Committee as “HSE and Sustainable
Development Committee” during the year. The detailed terms of
references of the committee are as under:
Approve Sustainable Development policy and revise the same at
periodic intervals
Approve SD plan (short, medium and long term) in the context of the
SD guidelines
Provide apex level guidance for SD projects and targets
Oversee SD performance
Approve annual SD evaluation report
Approve annual SD budget
Help and oversee alignment of SD projects/activities with the
organizations business goals and the national and international
trends.
10 Information on our transparency structure can be accessed from ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also from ONGC’s previous sustainability reports - http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/
ONGC maintains its commitment on promoting transparency and
continues with its existing structure for ensuring transparency. The 10structure includes:
Conduct Discipline and Appeal (CDA) Rules: In ONGC, we have a
comprehensive code of conduct (CDA Rules) to guide the behaviour
of employees, maintain ethical conduct and discipline at the
workplace. We have proactively adopted the ‘Whistle Blower Policy’
voluntarily.
Vigilance Department: We have a strong vigilance department with
17 vigilance units spread across regions, assets, basins and plants.
This department ensures that our business procedures run in a
transparent manner. Some of the initiatives to maintain
transparency in our operations and dealings include e-procurement,
e-payment, invoice monitoring system and publishing tenders on
our corporate website. All units are regularly analysed for risks
related to corruption. In FY13, there were 4 reported cases of
corruption. Three cases have been registered under vigilance and
one case has been registered under CBI, Dehradun. We organize
various training and sensitization programs on anti-corruption and
participative vigilance for all employees.
Audit and Ethics Committee: Audit and Ethics is a board level
committee which observes and guides the findings of internal,
government and statutory auditors.
Integrity Pact by Transparency International: The pact guides us to
reduce risk of corrupt practices during our procurement process.
Through implementation of the guidelines of the pact we have seen
reduction in complaints from the vendors regarding
contract and procurement activities.
Grievance Management System (GMS): We
provide an easily accessible machinery to the
employees for redressal of their grievances,
either through an informal channel (open
Sustainable Development Policy
ONGC believes that Sustainable Development requires contribution from all societal players and significantly so from corporates. This policy is
aimed at driving efficient and effective implementation of Sustainable Development activities, initiatives and projects across ONGC.
We consider that sustainable management of water, materials and energy; addressing climate change through carbon management are our key
broad responsibilities towards environmental sustainability.
Our vision is to gradually work towards reducing our carbon and water footprint, innovative beyond compliance management of waste and
prudent energy management and biodiversity conservation.
Our approach for working on our Sustainable Development responsibilities will be through projects in the specified areas and will be driven by an
adequately empowered organizational structure in ONGC with a system of management oversight, review and control.
Figure 3: Our Sustainability Structure
Promoting Transparency
ONGC has taken structured initiatives towards Corporate Governance
and its practices, which revolve around multi-layered checks and
balances to ensure transparency. Apart from the mandatory measures
required to be implemented as a part of Corporate Governance, ONGC
has walked the extra mile in this regard and has implemented the
Whistle Blower Policy, published Annual Report on working of the Audit
and Ethics Committee, MCA Voluntary Guidelines on Corporate
Governance and Enterprise-wide Risk Management (ERM) framework.
Carbon Management & SustainabilityGroup (CM&SG) Corporate set
up to steer SD activities
Sustainable Development Officers (SDOs) at all work centers
(Assets, Basins, Plants and Services)
Executive Director Chief -Carbon Management & Sustainability Group
Director (Onshore)
In-charge Carbon Management & Sustainability Group
ONGC BoardBoard Committee HSE & SD
16/17
generally remain constant over short to medium term. We identified
seven critical business risks facing the organisation.
hearing day) or through a formal channel. In this regard, a new GMS
has been introduced in the Company in FY13.
Public Grievance Management System: All Key Executives of the
Company have designated a publicized time slot thrice in a week to
meet public representatives in order to speedily redress their
grievances. In addition to the above, at every work centre, Central
Public Information Officer (CPIO) has been appointed to redress the
issues under RTI Act.
Right to Information (RTI) response: We have established a system
to respond to the requirements of the Right to Information Act, 2005
and comply with all references to it within the stipulated time. An
elaborate mechanism has been set up throughout the organization
to deal with the requests received under the RTI Act. 40 applications
received in March, 2012 were carried forward to FY13. 1,552
applications have been received during the year making a total of
1,592 applications. 326 first appeals (6 were received in March,
2012 and 320 have been received in FY13) have been disposed of
by the appellate authority of ONGC and orders passed by the
authority have been compiled within stipulated timeframe.
Compliance to Voluntary Guidelines on Corporate Governance of
the Ministry of Corporate Affairs.
ONGC is a founder member of the United Nations Global Compact
(UNGC) India Network and over the years have strengthened the UNGC
movement amongst the businesses in India. We are committed to
aligning our operations and strategies with the ten universally accepted
principles of UNGC in the areas of human rights, labour, environment
and anti-corruption. Our Chairman and Managing Director is the Board
member of the United Nations Global Compact for a period of three
years w.e.f. FY13.
We are actively involved with the following key industry associations of
the country in different capacities for developing industry specific
standards, recommended practices, capacity and institution building
and sponsoring events.
Commitment to External Charters and Memberships in
Associations
Being a CPSE, ONGC supports the Government of India’s endeavours
and does not lobby on specific issues. We do not make any financial
contributions to any political party or related institutions. We have not
received any reported instances of anti-competitive behaviour, anti-trust
and monopoly practices in FY13.
Our operations emphasize risk management and abundant caution in
our E&P operational activities. We do not take lack of scientific
uncertainty as a reason for delaying action undertaken for risk
management, risk mitigation and safe operations, that would minimize
the impact on environment.
Energy business, particularly E&P business, has always been a very
dynamic business characterized by inherent uncertainties, geological
surprises, volatile markets and a number of external factors such as
geo-political uncertainties, fiscal and regulatory regime, etc., which
makes it a highly risky business. In such a scenario, where the
uncertainties are the rule, it becomes imperative to have a
comprehensive Enterprise-wide Risk Management.
The Risk Management Policy has been rolled out across the
organization in all Assets, Basins, Plants, Institutes and offices. We have
institutionalized robust internal control systems to continuously monitor
critical businesses, functions and operations, particularly field
operations. A set of standardised procedures and guidelines have been
issued for all facets of activities to ensure that best practices are adopted
right down to ground level. Performance of every business unit is
monitored by the respective directorates for suitable corrective
measures, if any, in time.
The Chief Risk Officer and Risk Management Committee review various
types of risks whether present or future and apprise the same to the
Board of Directors. Further, the Board of Directors effectively monitor,
evaluate and manage risks in the company. Our critical business risks
Precautionary Approach
Risk Management System
Member of Confederation of Indian Industries (CII)
Member of Federation of Indian Chambers of Commerce and
Industry (FICCI)
Founding Member of Petro –Tech Society
Member of Society of Petroleum Engineers and Society of
Petroleum Geologists (SPE and SPG)
Member of Standing Conference on Public Enterprises (SCOPE)
Member of Petroleum Federation of India (PetroFed) Leading Indo-
Africa Business Council (IABC) for the Oil and Gas sector
ONGC and PetroTech Society in collaboration with Oil Industry Safety Directorate
organized two day 6th National Health Safety & Environment Workshop at New Delhi
during March 2013. 168 delegates from 15 oil & gas companies in upstream and
downstream sectors participated in the workshop.
Also, ONGC organized two day programme on sustainable development with
PetroTech Society.
Government’s control over pricing of crude oil, natural gas, and petro-products
Global volatility in crude oil prices
Time and cost overruns in development of fields
Non discovery of oil/gas reserves in explored blocks
Accidents/ Incidents affecting employee and contractual safety
Inability to acquire exploration rights
Asset security in security sensitive operating areas
Inherent risks are associated with oil and gas field operations viz -
spillage, rupture, blowout of wells, earthquake, tsunami, terrorist
activities, sabotage and pilferage etc. Every possible attempt is taken to
mitigate these risks right from the design stage; however probability of
emergency situations cannot be totally eliminated. In the event of any
such unfortunate event the risk of significant liabilities increases
manifold. However in ONGC, we have implemented improved OISD
standards to improve contingency combat capabilities. Our offshore
assets have been rated under 'acceptable risk' by international
underwriters, enabling a lower-than-peer insurance premium for these
assets.
In ONGC, our Risk Management framework allows us to ensure that we
stay within the compliance of national laws and regulation.
18/19
generally remain constant over short to medium term. We identified
seven critical business risks facing the organisation.
hearing day) or through a formal channel. In this regard, a new GMS
has been introduced in the Company in FY13.
Public Grievance Management System: All Key Executives of the
Company have designated a publicized time slot thrice in a week to
meet public representatives in order to speedily redress their
grievances. In addition to the above, at every work centre, Central
Public Information Officer (CPIO) has been appointed to redress the
issues under RTI Act.
Right to Information (RTI) response: We have established a system
to respond to the requirements of the Right to Information Act, 2005
and comply with all references to it within the stipulated time. An
elaborate mechanism has been set up throughout the organization
to deal with the requests received under the RTI Act. 40 applications
received in March, 2012 were carried forward to FY13. 1,552
applications have been received during the year making a total of
1,592 applications. 326 first appeals (6 were received in March,
2012 and 320 have been received in FY13) have been disposed of
by the appellate authority of ONGC and orders passed by the
authority have been compiled within stipulated timeframe.
Compliance to Voluntary Guidelines on Corporate Governance of
the Ministry of Corporate Affairs.
ONGC is a founder member of the United Nations Global Compact
(UNGC) India Network and over the years have strengthened the UNGC
movement amongst the businesses in India. We are committed to
aligning our operations and strategies with the ten universally accepted
principles of UNGC in the areas of human rights, labour, environment
and anti-corruption. Our Chairman and Managing Director is the Board
member of the United Nations Global Compact for a period of three
years w.e.f. FY13.
We are actively involved with the following key industry associations of
the country in different capacities for developing industry specific
standards, recommended practices, capacity and institution building
and sponsoring events.
Commitment to External Charters and Memberships in
Associations
Being a CPSE, ONGC supports the Government of India’s endeavours
and does not lobby on specific issues. We do not make any financial
contributions to any political party or related institutions. We have not
received any reported instances of anti-competitive behaviour, anti-trust
and monopoly practices in FY13.
Our operations emphasize risk management and abundant caution in
our E&P operational activities. We do not take lack of scientific
uncertainty as a reason for delaying action undertaken for risk
management, risk mitigation and safe operations, that would minimize
the impact on environment.
Energy business, particularly E&P business, has always been a very
dynamic business characterized by inherent uncertainties, geological
surprises, volatile markets and a number of external factors such as
geo-political uncertainties, fiscal and regulatory regime, etc., which
makes it a highly risky business. In such a scenario, where the
uncertainties are the rule, it becomes imperative to have a
comprehensive Enterprise-wide Risk Management.
The Risk Management Policy has been rolled out across the
organization in all Assets, Basins, Plants, Institutes and offices. We have
institutionalized robust internal control systems to continuously monitor
critical businesses, functions and operations, particularly field
operations. A set of standardised procedures and guidelines have been
issued for all facets of activities to ensure that best practices are adopted
right down to ground level. Performance of every business unit is
monitored by the respective directorates for suitable corrective
measures, if any, in time.
The Chief Risk Officer and Risk Management Committee review various
types of risks whether present or future and apprise the same to the
Board of Directors. Further, the Board of Directors effectively monitor,
evaluate and manage risks in the company. Our critical business risks
Precautionary Approach
Risk Management System
Member of Confederation of Indian Industries (CII)
Member of Federation of Indian Chambers of Commerce and
Industry (FICCI)
Founding Member of Petro –Tech Society
Member of Society of Petroleum Engineers and Society of
Petroleum Geologists (SPE and SPG)
Member of Standing Conference on Public Enterprises (SCOPE)
Member of Petroleum Federation of India (PetroFed) Leading Indo-
Africa Business Council (IABC) for the Oil and Gas sector
ONGC and PetroTech Society in collaboration with Oil Industry Safety Directorate
organized two day 6th National Health Safety & Environment Workshop at New Delhi
during March 2013. 168 delegates from 15 oil & gas companies in upstream and
downstream sectors participated in the workshop.
Also, ONGC organized two day programme on sustainable development with
PetroTech Society.
Government’s control over pricing of crude oil, natural gas, and petro-products
Global volatility in crude oil prices
Time and cost overruns in development of fields
Non discovery of oil/gas reserves in explored blocks
Accidents/ Incidents affecting employee and contractual safety
Inability to acquire exploration rights
Asset security in security sensitive operating areas
Inherent risks are associated with oil and gas field operations viz -
spillage, rupture, blowout of wells, earthquake, tsunami, terrorist
activities, sabotage and pilferage etc. Every possible attempt is taken to
mitigate these risks right from the design stage; however probability of
emergency situations cannot be totally eliminated. In the event of any
such unfortunate event the risk of significant liabilities increases
manifold. However in ONGC, we have implemented improved OISD
standards to improve contingency combat capabilities. Our offshore
assets have been rated under 'acceptable risk' by international
underwriters, enabling a lower-than-peer insurance premium for these
assets.
In ONGC, our Risk Management framework allows us to ensure that we
stay within the compliance of national laws and regulation.
18/19
STAKEHOLDERENGAGEMENTAs an oil and gas major in India, ONGC has a large number of stakeholders who are important for its success. In ONGC, we emphasise on building
relationships with these stakeholders. To promote sustainability, we continuously engage with our employees, customers, suppliers, investors,
media, the government and the local community.
Engagement with employees for identification of stakeholder and key sustainability issues
For year 2012-13, a survey was conducted amongst the employees with the dual objective of
a) Identification of key stakeholders
b) Prioritization of key material issues by employees
The survey tool was discussed with over 200 employees in interactive sessions as well as through internal portal of ONGC. Responses received from the
employees were consolidated and ranked to derive the key stakeholders as well as key material issues of employees. The results were discussed with the
management and used to derive the overall material issues for the organization. The survey helped us understand the expectations of our employees and also
gave us an opportunity to engage and educate our employees on sustainability initiatives taken up by the management.
Obtaining inputs from our stakeholders is an important component of
our sustainable development journey. The engagement with the
stakeholders is carried out across business verticals through different
platforms and forums. The inputs of stakeholders help us to understand
their needs and expectations from ONGC. Addressing their concerns
help us building trust.
The key stakeholders are identified on the basis of the value and
expectations generated for them and their impact on our company. We
follow the GRI framework to ensure a structured, thorough and effective
stakeholder engagement process.
Following this framework, ONGC identified top 5 groups of stakeholders
who are most important to our organisation
To substantiate our stakeholder engagement, we are formulating a
“communication policy for Stakeholder Engagement”. The policy
focuses on integrating stakeholder engagement in its business process.
The goals of the Communications Policy for various Stakeholders are to
Connect, Listen, Respond, Sustain - leading to value creation in the
business with an overall Economic, Social and Environmental
sustainability in view. The policy is being put on ONGC Board for
consideration and once approved, it will be enforced in FY14.
The process for stakeholder engagement for each group of stakeholder is given below:
Stakeholders
Employees
National/State Governments/ Investors/Shareholders
Contractors/Suppliers
Customers
Local Community
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Basin/Plant
Facility
Shareholders and Investors
• Investors and Analyst Meet
• Three Quarterly Earnings Conference Call
• ONGC Annual General Meeting September 24, 2012
• 14 Domestic conferences and one overseas conference organized by Financial Institutions / Investment Bankers
• Large No. of meetings of Officers of Investor Relation Cell with representatives of Institutional Investors and Analysts
• Regular update of Quarterly / Annual results, annual reports, press releases and presentations to media, institutional investors, financial analysts on corporate website www.ongcindia.com
Concerns:Econom ic wo r t h o f t he company, value creat ion potential.
Actions: PP2030Venturing into shale gas, CBM, Creating sustainable wealth through renewables.
Government and Regulatory agencies such as DGH, OISD, DGMS, SPCBs, CPCB, OCC
Structured engagement through meetings with administrative Ministry-Ministry of Petroleum and Natural Gas (MoP&NG), Ministry of Heavy Industr ies and Publ ic Enterpr ises and Parliamentary Committees.
• Quarterly Performance Review Meetings (QPRM) with administrative Ministry
• Meetings with Consultative Committees of the administrative Ministry.
• Meetings with Standing Committee of Petroleum and Natural Gas, Government of India.
• Meetings with Committee on Science and Technology, Environment and Forest, Government of India.
• Meetings with Consultative Committee of Ministry of Heavy Industries and Public Enterprises, Government of India.
• Meetings with Standing Committee on Labour Government of India.
• Meeting with Committee on subordinate legislation, Government of India.
• Meeting with Committee on Government Assurance, Rajya Sabha, Government of India.
• Meetings with Committee on Official Language, Government of India.
Structured engagement through audits, inspections, and meetings with OISD, DGMS, CPCB, SPCBs.
Oil Spill Response Exercise and Workshop jointly organized by ONGC and Indian Coast Guard
th• 68 Onshore Security Coordination Committee Meeting
• Meetings with DGMS, Government of India.
Concerns: Energy Security, Connecting, Listening & getting Response from ONGC on other specific issues
Actions: Structured plan and program in the form of PP2030.Responding to the Govt through the implementation of various st ipulat ions, str ictures & guidelines.
20/21
Back to Contents
STAKEHOLDERENGAGEMENTAs an oil and gas major in India, ONGC has a large number of stakeholders who are important for its success. In ONGC, we emphasise on building
relationships with these stakeholders. To promote sustainability, we continuously engage with our employees, customers, suppliers, investors,
media, the government and the local community.
Engagement with employees for identification of stakeholder and key sustainability issues
For year 2012-13, a survey was conducted amongst the employees with the dual objective of
a) Identification of key stakeholders
b) Prioritization of key material issues by employees
The survey tool was discussed with over 200 employees in interactive sessions as well as through internal portal of ONGC. Responses received from the
employees were consolidated and ranked to derive the key stakeholders as well as key material issues of employees. The results were discussed with the
management and used to derive the overall material issues for the organization. The survey helped us understand the expectations of our employees and also
gave us an opportunity to engage and educate our employees on sustainability initiatives taken up by the management.
Obtaining inputs from our stakeholders is an important component of
our sustainable development journey. The engagement with the
stakeholders is carried out across business verticals through different
platforms and forums. The inputs of stakeholders help us to understand
their needs and expectations from ONGC. Addressing their concerns
help us building trust.
The key stakeholders are identified on the basis of the value and
expectations generated for them and their impact on our company. We
follow the GRI framework to ensure a structured, thorough and effective
stakeholder engagement process.
Following this framework, ONGC identified top 5 groups of stakeholders
who are most important to our organisation
To substantiate our stakeholder engagement, we are formulating a
“communication policy for Stakeholder Engagement”. The policy
focuses on integrating stakeholder engagement in its business process.
The goals of the Communications Policy for various Stakeholders are to
Connect, Listen, Respond, Sustain - leading to value creation in the
business with an overall Economic, Social and Environmental
sustainability in view. The policy is being put on ONGC Board for
consideration and once approved, it will be enforced in FY14.
The process for stakeholder engagement for each group of stakeholder is given below:
Stakeholders
Employees
National/State Governments/ Investors/Shareholders
Contractors/Suppliers
Customers
Local Community
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Basin/Plant
Facility
Shareholders and Investors
• Investors and Analyst Meet
• Three Quarterly Earnings Conference Call
• ONGC Annual General Meeting September 24, 2012
• 14 Domestic conferences and one overseas conference organized by Financial Institutions / Investment Bankers
• Large No. of meetings of Officers of Investor Relation Cell with representatives of Institutional Investors and Analysts
• Regular update of Quarterly / Annual results, annual reports, press releases and presentations to media, institutional investors, financial analysts on corporate website www.ongcindia.com
Concerns:Econom ic wo r t h o f t he company, value creat ion potential.
Actions: PP2030Venturing into shale gas, CBM, Creating sustainable wealth through renewables.
Government and Regulatory agencies such as DGH, OISD, DGMS, SPCBs, CPCB, OCC
Structured engagement through meetings with administrative Ministry-Ministry of Petroleum and Natural Gas (MoP&NG), Ministry of Heavy Industr ies and Publ ic Enterpr ises and Parliamentary Committees.
• Quarterly Performance Review Meetings (QPRM) with administrative Ministry
• Meetings with Consultative Committees of the administrative Ministry.
• Meetings with Standing Committee of Petroleum and Natural Gas, Government of India.
• Meetings with Committee on Science and Technology, Environment and Forest, Government of India.
• Meetings with Consultative Committee of Ministry of Heavy Industries and Public Enterprises, Government of India.
• Meetings with Standing Committee on Labour Government of India.
• Meeting with Committee on subordinate legislation, Government of India.
• Meeting with Committee on Government Assurance, Rajya Sabha, Government of India.
• Meetings with Committee on Official Language, Government of India.
Structured engagement through audits, inspections, and meetings with OISD, DGMS, CPCB, SPCBs.
Oil Spill Response Exercise and Workshop jointly organized by ONGC and Indian Coast Guard
th• 68 Onshore Security Coordination Committee Meeting
• Meetings with DGMS, Government of India.
Concerns: Energy Security, Connecting, Listening & getting Response from ONGC on other specific issues
Actions: Structured plan and program in the form of PP2030.Responding to the Govt through the implementation of various st ipulat ions, str ictures & guidelines.
20/21
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Basin/Plant
Facility
Employees
Through structured forum like Strategy meet, Vichar Vishleshan, Conclave, Change Agents meet and Open houses
th• 10 Strategy Meet Board members and senior officials of MoP&NG meets to discuss and deliberate the concerns and growth of the company.
th• Vichar Vishleshan (12 Key Executive meet) - An open session of Key Executives of Assets, Basins, Plants, Services, with CMD and Functional Directors to review performance and to formulate future plans.
th• 11 Conclave (Mantrana) - An open session of former and present members of Board to share the cumulative knowledge and experience.
• Change Agent’s meet - An open session of junior and middle level managers to engage and prepare them for taking up challenges and for realization of P2030 aspirations.
• Regular interaction in workshops, seminars, training and through internal web portal.
• Periodic workshops and capacity building programs on QHSE, CSR & sustainability
Concerns:Professional growth.Safe and Healthy working atmosphere, Welfare measures.
Actions:Sustained engagement through ONGC portals.Improved working conditions.Best in class welfare measures
Customers
Engagement through Crude Oil Sales Agreement (COSA), Gas Sales Agreement (GSA) and regular interactions with customers on supply of crude oil, gas allocation and pricing of value added products
Some of the issues discussed with customers and resolved:
• Settlement of payment, periodicity of billing
• Change in pattern of gas supply and availability of additional gas
• Flaring issue in case of unplanned tripping of plant at customers end
• Gas pool account surplus transfer
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Basin/Plant
Facility
Business partners, Contractors and Contractual Labour
Through contract agreement and direct interactions at work-centre level meets.
• Business partners meet and pre-bid conference
• Direct meetings with wide cross section at organizational level as well as Work centre level including functionally categorized specific meets.
• Contract worker training and workshops, SAHYOG scheme.
22 issues were raised by Business partners, ONGC has taken action on 8 pertinent issues and no action taken on 14 issues, as the existing procedures and system is adequate. The issues are:
• Rig mobilisation period for foreign and Indian bidders
• Qualifying criteria for Rigs
• Vintage for Supply Vessels and technical evaluation of Offshore Supply Vessel tenders
• Difficulty in uploading bids on e-portal
• T h r e s h o l d l i m i t f o r applicability of financial criteria, ascertaining annual Turnover and liquidated damage on taxes/duties
• Concerns for contractual labour: Workplace Safety
Actions:Structured customised training programs
Communities and NGOs
Direct engagement specifically at work-centre level through ONGC’s CSR and HR department.
• Corporate Social Responsibility Meet
• Stakeholder meetings across our Assets, Basins and Plants.
Concerns: Connecting, Listening and Responding
Actions:Engagement in CSR Projects as Partners.
Making them aware about ONGC CSR initiatives through s t r u c t u r e d e n g a g e m e n t program.
22/23
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Basin/Plant
Facility
Employees
Through structured forum like Strategy meet, Vichar Vishleshan, Conclave, Change Agents meet and Open houses
th• 10 Strategy Meet Board members and senior officials of MoP&NG meets to discuss and deliberate the concerns and growth of the company.
th• Vichar Vishleshan (12 Key Executive meet) - An open session of Key Executives of Assets, Basins, Plants, Services, with CMD and Functional Directors to review performance and to formulate future plans.
th• 11 Conclave (Mantrana) - An open session of former and present members of Board to share the cumulative knowledge and experience.
• Change Agent’s meet - An open session of junior and middle level managers to engage and prepare them for taking up challenges and for realization of P2030 aspirations.
• Regular interaction in workshops, seminars, training and through internal web portal.
• Periodic workshops and capacity building programs on QHSE, CSR & sustainability
Concerns:Professional growth.Safe and Healthy working atmosphere, Welfare measures.
Actions:Sustained engagement through ONGC portals.Improved working conditions.Best in class welfare measures
Customers
Engagement through Crude Oil Sales Agreement (COSA), Gas Sales Agreement (GSA) and regular interactions with customers on supply of crude oil, gas allocation and pricing of value added products
Some of the issues discussed with customers and resolved:
• Settlement of payment, periodicity of billing
• Change in pattern of gas supply and availability of additional gas
• Flaring issue in case of unplanned tripping of plant at customers end
• Gas pool account surplus transfer
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Basin/Plant
Facility
Business partners, Contractors and Contractual Labour
Through contract agreement and direct interactions at work-centre level meets.
• Business partners meet and pre-bid conference
• Direct meetings with wide cross section at organizational level as well as Work centre level including functionally categorized specific meets.
• Contract worker training and workshops, SAHYOG scheme.
22 issues were raised by Business partners, ONGC has taken action on 8 pertinent issues and no action taken on 14 issues, as the existing procedures and system is adequate. The issues are:
• Rig mobilisation period for foreign and Indian bidders
• Qualifying criteria for Rigs
• Vintage for Supply Vessels and technical evaluation of Offshore Supply Vessel tenders
• Difficulty in uploading bids on e-portal
• T h r e s h o l d l i m i t f o r applicability of financial criteria, ascertaining annual Turnover and liquidated damage on taxes/duties
• Concerns for contractual labour: Workplace Safety
Actions:Structured customised training programs
Communities and NGOs
Direct engagement specifically at work-centre level through ONGC’s CSR and HR department.
• Corporate Social Responsibility Meet
• Stakeholder meetings across our Assets, Basins and Plants.
Concerns: Connecting, Listening and Responding
Actions:Engagement in CSR Projects as Partners.
Making them aware about ONGC CSR initiatives through s t r u c t u r e d e n g a g e m e n t program.
22/23
High Importance-towards the centre
Low Importance- away from the centre
ooooEnvironment
Organization
Community
Workplace
Marketplace
Stakeholder
Stakeholder
Biodiversity
Climate Change and GHG
Resource Efficiency
Environment Footprint
Organization
Water and Waste
Energy Security &Reserve Accretion
Ethics
Innovation and Research & Development
Hiring and RetainingWorkforce
Worker Health, Safety& Asset Security
Transparency
Transparency
Supply Chain
Monetizing difficult andisolated hydrocarbon footprint
Transparency
UnconventionalHyderocarbon
Community
Effluents
Priortized Sustainability issues - High
Priortized Sustainability issues - Moderate
Energy Security and Reserve Accretion
ONGC is the largest producer of oil and oil equivalent gas (O+OEG) in
the country. With the ever increasing demand of petroleum products in
the country, ONGC plays a crucial role in ensuring energy security of the
country. At the same time, we are encountering natural decline in our
mature and aging fields, which is a global phenomenon.
To ensure energy security for our nation, ONGC has drawn up a
strategic roadmap “Perspective Plan 2030”, to address the energy
security needs of the country. In the plan, our focus is on reserve
accretion, brown field management, overseas E&P operations, value
chain integration and sound financial management to ensure sustained
growth. This Plan also provides us guidance in integrating sustainable
development with our business operations.
In our MoU targets for FY13, we assigned 12% weightage to Energy
Security and Reserve Accretion. We received a very good rating in our
achievement. In our MoU targets for FY14, we assigned 16% weightage
to Energy Security and Reserve Accretion. The targets assigned for
FY13 and FY14 are:
ONGC’s sustainability report is a disclosure of performance related to
economic, environmental and social aspects. To improve the
sustainability management, monitoring and reporting process and
progressively integrate sustainable development in the organizational
working, it is important to identify issues that are most important for our
stakeholders. For FY13, this has been done through a structured
engagement process as per the GRI framework. The engagement
process (formal and informal) has involved identification of key
stakeholders (employees of ONGC, Government of India, business
partners and community) and subsequently understanding major
sustainability issues. Considering the diverse nature of operations and
a concomitant diverse aspirational levels of the employees engaged
in those operations, it has been proposed that systematic
engagement with our employees be the focus for the purpose of the
current reporting.
Based on our materiality determination exercise for sustainability, a
macro level mapping of issues for the organization in the overall
business and sustainability context with relative priority in terms of
management attention, plans and work program during the reporting
period is presented below. Elements of this issue map, which have
found focused management attention and have moved up in the priority
hierarchy during the reporting period, are Energy Security and Reserve
Accretion; Worker Health, Safety and Asset Security; Water and Waste ;
Hiring and Retaining Workforce; and Community. The issues of
Innovation and R&D, and Ethics have also emerged as sustainability
issues this year and would be addressed after due diligence.
SUSTAINABILITY CHALLENGESAND RESPONSES
* Includes 2.08 MMT condensate ** includes 2.2 MMT condensate
Worker health, safety and asset security has been one of ONGC’s most
important focus areas and continues to remain so in the current year.
Every year we seek to mitigate health and safety risk for our entire
workforce - employees as well as contract workers. We have followed
best-in- class industry practices for ensuring safety of our workers as
well as security of our assets. ONGC have institutionalised internal and
external audits and are conducting them on a continuous basis to
ensure compliance.
Worker Health, Safety and Asset Security
24/25
Category FY13 FY14
Crude Production (MMT) 27.54 * 27.24 **
Gas Production (BCM) 25.73 25.19
Value Added Products (KTON) 3410 3463
Reserve Accretion (3P) (MTOE) 83.00 83.00
Table 5: Key targets for Energy Security and Reserve Accretion
Back to Contents
High Importance-towards the centre
Low Importance- away from the centre
ooooEnvironment
Organization
Community
Workplace
Marketplace
Stakeholder
Stakeholder
Biodiversity
Climate Change and GHG
Resource Efficiency
Environment Footprint
Organization
Water and Waste
Energy Security &Reserve Accretion
Ethics
Innovation and Research & Development
Hiring and RetainingWorkforce
Worker Health, Safety& Asset Security
Transparency
Transparency
Supply Chain
Monetizing difficult andisolated hydrocarbon footprint
Transparency
UnconventionalHyderocarbon
Community
Effluents
Priortized Sustainability issues - High
Priortized Sustainability issues - Moderate
Energy Security and Reserve Accretion
ONGC is the largest producer of oil and oil equivalent gas (O+OEG) in
the country. With the ever increasing demand of petroleum products in
the country, ONGC plays a crucial role in ensuring energy security of the
country. At the same time, we are encountering natural decline in our
mature and aging fields, which is a global phenomenon.
To ensure energy security for our nation, ONGC has drawn up a
strategic roadmap “Perspective Plan 2030”, to address the energy
security needs of the country. In the plan, our focus is on reserve
accretion, brown field management, overseas E&P operations, value
chain integration and sound financial management to ensure sustained
growth. This Plan also provides us guidance in integrating sustainable
development with our business operations.
In our MoU targets for FY13, we assigned 12% weightage to Energy
Security and Reserve Accretion. We received a very good rating in our
achievement. In our MoU targets for FY14, we assigned 16% weightage
to Energy Security and Reserve Accretion. The targets assigned for
FY13 and FY14 are:
ONGC’s sustainability report is a disclosure of performance related to
economic, environmental and social aspects. To improve the
sustainability management, monitoring and reporting process and
progressively integrate sustainable development in the organizational
working, it is important to identify issues that are most important for our
stakeholders. For FY13, this has been done through a structured
engagement process as per the GRI framework. The engagement
process (formal and informal) has involved identification of key
stakeholders (employees of ONGC, Government of India, business
partners and community) and subsequently understanding major
sustainability issues. Considering the diverse nature of operations and
a concomitant diverse aspirational levels of the employees engaged
in those operations, it has been proposed that systematic
engagement with our employees be the focus for the purpose of the
current reporting.
Based on our materiality determination exercise for sustainability, a
macro level mapping of issues for the organization in the overall
business and sustainability context with relative priority in terms of
management attention, plans and work program during the reporting
period is presented below. Elements of this issue map, which have
found focused management attention and have moved up in the priority
hierarchy during the reporting period, are Energy Security and Reserve
Accretion; Worker Health, Safety and Asset Security; Water and Waste ;
Hiring and Retaining Workforce; and Community. The issues of
Innovation and R&D, and Ethics have also emerged as sustainability
issues this year and would be addressed after due diligence.
SUSTAINABILITY CHALLENGESAND RESPONSES
* Includes 2.08 MMT condensate ** includes 2.2 MMT condensate
Worker health, safety and asset security has been one of ONGC’s most
important focus areas and continues to remain so in the current year.
Every year we seek to mitigate health and safety risk for our entire
workforce - employees as well as contract workers. We have followed
best-in- class industry practices for ensuring safety of our workers as
well as security of our assets. ONGC have institutionalised internal and
external audits and are conducting them on a continuous basis to
ensure compliance.
Worker Health, Safety and Asset Security
24/25
Category FY13 FY14
Crude Production (MMT) 27.54 * 27.24 **
Gas Production (BCM) 25.73 25.19
Value Added Products (KTON) 3410 3463
Reserve Accretion (3P) (MTOE) 83.00 83.00
Table 5: Key targets for Energy Security and Reserve Accretion
ONGC regularly organizes extensive training programmes and
awareness sessions for our workforce on health and safety practices.
We also work with other companies from the same sector to share
information and good practices on safety and security issues.
We conduct third party audits regularly for offshore and onshore
installations by established national and international HSE agencies
such as Oil Industry Safety Directorate (OISD), an organization under
the control of the MoP&NG, which issues safety guidelines. Further,
subject to the safety regulations prescribed by the Directorate General
of Mines and Safety (DGMS), each work center has teams dedicated to
HSE, which execute the safety guidelines prescribed by OISD as well as
DGMS. HSE teams are also responsible for obtaining necessary
licenses and clearances from the State Pollution Control Boards.
In our MoU targets for FY13, we assigned 0.5% weightage to HSE
(Process safety) audits. We received an excellent rating in our initiative.
In our MoU targets for FY14, we assigned 1% weightage to HSE audits
(Process safety). The initiative planned for FY14 is:
As we increase our exploration operations to find new sources of oil and
gas, particularly the non conventional sources like Coal bed Methane,
Shale gas and tertiary recovery from existing reserves, we expect the
demand for water to grow. This puts our operations at risk in areas where
there is a limited supply of water.
We have developed companywide ‘Sustainable Water Management
Strategy’ aimed to reduce fresh water consumption and have
developed action plans for baseline assessment of current water
consumption, location specific statement of purpose for water recycling
and reuse targets as appropriate in the medium to long-term. We have
reduced our fresh water consumption by 15% in FY13.
As a policy decision, we have made it mandatory to implement rain
water harvesting in all our future projects including the residential
complexes across the country.
Water foot printing and rain water harvesting were taken up as
Sustainable Water Management initiatives under our MoU targets
for FY13.
Water and Waste
We use fresh water for our E&P at offshore and onshore operations. The
geographic spread of our operations results in unique water challenges
for each of our assets, plants and installations. Our North Eastern assets
have an abundance of water, whereas our assets in Gujarat and
Rajasthan and Uran Plant face shortage of fresh water. Our offshore
installations face entirely different water challenges, where we have to
use desalination plants to meet our demand for fresh water.
Completion of water mapping study of Uran Plant and Mehsana Asset and
action plan thereof
Water mapping study at Cauvery and Tripura Assets
Rain water harvesting in Western Onshore Basin; Rajahmundry, Tripura
and Ahmedabad Assets
Key initiatives for Water Management :
Wastes generated during exploration and production operations are
primarily drilling mud and mud cuttings (non-hazardous), chemical
sludge and tank bottom sludge (hazardous). Chemical sludge is
collected in lagoons having leachate collection facility where water is
drained to reduce the quantity of sludge. This chemical sludge is
disposed of by land filling in accordance with the norms of the state
pollution control board. To treat tank bottom sludge, which is mainly
organic in content, bio-remediation techniques are employed. We
emulate best practices in the oil industry to manage our solid waste
arising from our operations. Drill mud and cuttings is disposed, re-used
in land filling or sold to authorized vendors as per industry practices. We
have an e-waste policy to manage our e-waste.
Our focus is to maintain a balance of technical expertise which comes
through experience and the innovative approach. To this effect, we have
increased our management and technical training across our new
divisions and are providing individuals with opportunity to grow
professionally by adapting our promotion policy.
In our MoU targets for FY13, we have assigned 5% weightage to Human
Resource Management (HRM). We have received an excellent rating in
our initiatives under HRM. The initiatives planned for FY14 are:
Talent Management
Key initiatives for Human Resource Management :
Competency and Leadership development
Training for all employees
Training on risk management to senior management
Development of future leaders for succession planning at each level
Performance Management
Linkage of development plan of employees with performance management and implementation of performance related pay
Recruitment, Retention and Talent Management
Implementation of systems for management of talent viz job rotation and transfer, reward system, growth opportunities
Employee Relations and Welfare
Effectiveness of grievance redressal system
Stress management and welfare scheme
HR Branding and Excellence
Review HR Policy for meeting changing business priorities
Organisation culture building initiatives
Community
The geographic spread of our operations takes us to the remotest parts
of our country and makes us engage with diverse cross sections of
societies. In many places, the company is the primary employer. We
consistently engage with the local communities to understand their
concerns which in turn help us run our operations in a safe manner.
Community engagement is important as it gives us the social license to
operate. This is especially true for our new exploration activities and our
coal-bed methane and shale gas projects that require acquisition of new
land. ONGC renewed its commitment to the developmental needs of the
communities in the areas where it operates across its 12 focus areas.
In our MoU target for FY13, we assigned 5% weightage to community
initiatives. We received an excellent rating in our community initiatives.
Improving Healthcare – Varishtajan Swasthya Seva Abhiyan
Improving IT Knowledge – Computer Education
Improving Environment – Harit Moksh
Improving Livelihood Opportunities – Project Utkarsh
Ecological Conservation – Eastern Swamp Deer
Key initiatives for Corporate Social Responsibility
Category FY13 FY14
Audits in critical installations 220 220
Key initiatives for HSE (Process Safety) Audits:
26/27
ONGC regularly organizes extensive training programmes and
awareness sessions for our workforce on health and safety practices.
We also work with other companies from the same sector to share
information and good practices on safety and security issues.
We conduct third party audits regularly for offshore and onshore
installations by established national and international HSE agencies
such as Oil Industry Safety Directorate (OISD), an organization under
the control of the MoP&NG, which issues safety guidelines. Further,
subject to the safety regulations prescribed by the Directorate General
of Mines and Safety (DGMS), each work center has teams dedicated to
HSE, which execute the safety guidelines prescribed by OISD as well as
DGMS. HSE teams are also responsible for obtaining necessary
licenses and clearances from the State Pollution Control Boards.
In our MoU targets for FY13, we assigned 0.5% weightage to HSE
(Process safety) audits. We received an excellent rating in our initiative.
In our MoU targets for FY14, we assigned 1% weightage to HSE audits
(Process safety). The initiative planned for FY14 is:
As we increase our exploration operations to find new sources of oil and
gas, particularly the non conventional sources like Coal bed Methane,
Shale gas and tertiary recovery from existing reserves, we expect the
demand for water to grow. This puts our operations at risk in areas where
there is a limited supply of water.
We have developed companywide ‘Sustainable Water Management
Strategy’ aimed to reduce fresh water consumption and have
developed action plans for baseline assessment of current water
consumption, location specific statement of purpose for water recycling
and reuse targets as appropriate in the medium to long-term. We have
reduced our fresh water consumption by 15% in FY13.
As a policy decision, we have made it mandatory to implement rain
water harvesting in all our future projects including the residential
complexes across the country.
Water foot printing and rain water harvesting were taken up as
Sustainable Water Management initiatives under our MoU targets
for FY13.
Water and Waste
We use fresh water for our E&P at offshore and onshore operations. The
geographic spread of our operations results in unique water challenges
for each of our assets, plants and installations. Our North Eastern assets
have an abundance of water, whereas our assets in Gujarat and
Rajasthan and Uran Plant face shortage of fresh water. Our offshore
installations face entirely different water challenges, where we have to
use desalination plants to meet our demand for fresh water.
Completion of water mapping study of Uran Plant and Mehsana Asset and
action plan thereof
Water mapping study at Cauvery and Tripura Assets
Rain water harvesting in Western Onshore Basin; Rajahmundry, Tripura
and Ahmedabad Assets
Key initiatives for Water Management :
Wastes generated during exploration and production operations are
primarily drilling mud and mud cuttings (non-hazardous), chemical
sludge and tank bottom sludge (hazardous). Chemical sludge is
collected in lagoons having leachate collection facility where water is
drained to reduce the quantity of sludge. This chemical sludge is
disposed of by land filling in accordance with the norms of the state
pollution control board. To treat tank bottom sludge, which is mainly
organic in content, bio-remediation techniques are employed. We
emulate best practices in the oil industry to manage our solid waste
arising from our operations. Drill mud and cuttings is disposed, re-used
in land filling or sold to authorized vendors as per industry practices. We
have an e-waste policy to manage our e-waste.
Our focus is to maintain a balance of technical expertise which comes
through experience and the innovative approach. To this effect, we have
increased our management and technical training across our new
divisions and are providing individuals with opportunity to grow
professionally by adapting our promotion policy.
In our MoU targets for FY13, we have assigned 5% weightage to Human
Resource Management (HRM). We have received an excellent rating in
our initiatives under HRM. The initiatives planned for FY14 are:
Talent Management
Key initiatives for Human Resource Management :
Competency and Leadership development
Training for all employees
Training on risk management to senior management
Development of future leaders for succession planning at each level
Performance Management
Linkage of development plan of employees with performance management and implementation of performance related pay
Recruitment, Retention and Talent Management
Implementation of systems for management of talent viz job rotation and transfer, reward system, growth opportunities
Employee Relations and Welfare
Effectiveness of grievance redressal system
Stress management and welfare scheme
HR Branding and Excellence
Review HR Policy for meeting changing business priorities
Organisation culture building initiatives
Community
The geographic spread of our operations takes us to the remotest parts
of our country and makes us engage with diverse cross sections of
societies. In many places, the company is the primary employer. We
consistently engage with the local communities to understand their
concerns which in turn help us run our operations in a safe manner.
Community engagement is important as it gives us the social license to
operate. This is especially true for our new exploration activities and our
coal-bed methane and shale gas projects that require acquisition of new
land. ONGC renewed its commitment to the developmental needs of the
communities in the areas where it operates across its 12 focus areas.
In our MoU target for FY13, we assigned 5% weightage to community
initiatives. We received an excellent rating in our community initiatives.
Improving Healthcare – Varishtajan Swasthya Seva Abhiyan
Improving IT Knowledge – Computer Education
Improving Environment – Harit Moksh
Improving Livelihood Opportunities – Project Utkarsh
Ecological Conservation – Eastern Swamp Deer
Key initiatives for Corporate Social Responsibility
Category FY13 FY14
Audits in critical installations 220 220
Key initiatives for HSE (Process Safety) Audits:
26/27
Our Annual Target
The government in its endeavor to increasingly mainstream
sustainability and corporate governance in the eco-system of CPSEs
has expanded the performance canvas and the related evaluation
criteria. Beginning FY14, work areas under the sustainability umbrella
have been increased, which include introduction of compliance to
Corporate Social Responsibility and sustainability guidelines. The
increased weightage of sustainability in our goals, targets and
performance evaluation mechanism sets the stage for sustainability to
gradually move up the work defining hierarchy of ONGC and will thus
help the organization to create increased sustainable value for all our
stakeholders.
In our MoU target for year FY14, Corporate Social Responsibility and
Sustainable Development have been combined as per revised DPE
Guidelines and 8% weightage has been given to CSR and SD related
parameters.
Key initiatives for Corporate Social Responsibility and SD :
Involvement of employees and management through workshops and
campaigns
Carbon management projects – Flare reduction and reduction of gas
consumption
Stakeholder engagement meetings
Akshay Patra and Varistha Jan Swasthya Seva Abhiyan
Installation of Large Wind Power project at Jaisalmer
Sector SpecificParameters- Crude Production- Gas Production- Value Added Products - Reserve Accretion (3P)
Static FinancialParameters- Gross Margin/Gross Block- Net Profit/Net Worth- Gross Profit/Capital Employed- Gross Sales- Gross Margin- PBDIT/Total Employment - Added Value/Gross Sales
SustainableDevelopment- Human Resource Management- R&D Activities- CSR and SD Activities- Corporate Governance- Energy Management- Carbon and Water Management- Energy Audits - HSE Audits
Dynamic Parameters- Plan Expenditure- Project Management
Enterprise Specific Parameters- Average Finding Cost- Average Cost of Production
12%16%
2%
50%20%
11MOU 2013-14
11 MoU of FY14 with MoP&NG can be accessed at http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Company/MoU_with_MoPNG_2013 14/ 28/29
Our Annual Target
The government in its endeavor to increasingly mainstream
sustainability and corporate governance in the eco-system of CPSEs
has expanded the performance canvas and the related evaluation
criteria. Beginning FY14, work areas under the sustainability umbrella
have been increased, which include introduction of compliance to
Corporate Social Responsibility and sustainability guidelines. The
increased weightage of sustainability in our goals, targets and
performance evaluation mechanism sets the stage for sustainability to
gradually move up the work defining hierarchy of ONGC and will thus
help the organization to create increased sustainable value for all our
stakeholders.
In our MoU target for year FY14, Corporate Social Responsibility and
Sustainable Development have been combined as per revised DPE
Guidelines and 8% weightage has been given to CSR and SD related
parameters.
Key initiatives for Corporate Social Responsibility and SD :
Involvement of employees and management through workshops and
campaigns
Carbon management projects – Flare reduction and reduction of gas
consumption
Stakeholder engagement meetings
Akshay Patra and Varistha Jan Swasthya Seva Abhiyan
Installation of Large Wind Power project at Jaisalmer
Sector SpecificParameters- Crude Production- Gas Production- Value Added Products - Reserve Accretion (3P)
Static FinancialParameters- Gross Margin/Gross Block- Net Profit/Net Worth- Gross Profit/Capital Employed- Gross Sales- Gross Margin- PBDIT/Total Employment - Added Value/Gross Sales
SustainableDevelopment- Human Resource Management- R&D Activities- CSR and SD Activities- Corporate Governance- Energy Management- Carbon and Water Management- Energy Audits - HSE Audits
Dynamic Parameters- Plan Expenditure- Project Management
Enterprise Specific Parameters- Average Finding Cost- Average Cost of Production
12%16%
2%
50%20%
11MOU 2013-14
11 MoU of FY14 with MoP&NG can be accessed at http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Company/MoU_with_MoPNG_2013-14/ 28/29
ECONOMICPERFORMANCE
30/31
ECONOMICPERFORMANCE
30/31
Assuming an economic growth rate of 8% per annum for India in the next two decades, primary energy consumption is projected to increased from
537 million tonne oil equivalent (MTOE) in 2012 to 1856 MTOE in 2032. Out of this, oil consumption is projected to rise from 166 MMTPA to 486 12MMTPA and gas consumption will go up from 44 MTOE to 197 MTOE . Making oil and gas available for future requirement would be a daunting task
given the prognosticated domestic reserves of these resources in the country.
ONGC recognises that exploring the poorly explored Indian sedimentary basins (78% of the 26 sedimentary basins still remain unexplored) with low
drilling density require technology and capital intensive accelerated exploration. Strategies have been formulated to ensure energy security and
converting these strategies into action will determine to what extent we are going to achieve our goals.
In response to limitations and the accompanying challenges, ONGC chalked out a Perspective Plan 2030 (PP2030) to address the energy security
needs of the country. This Perspective Plan will give the organization a sense of long-term direction through its clear demarcation of priorities and
challenges that are pertinent to the growth strategy and business objectives of ONGC.
PP2030 aspires for 2 fold increase in hydrocarbon production, 3 fold revenue growth and EBITDA (Earnings before interest, taxes, depreciation and
amortization) in real terms, 4 fold increase in market capitalization (real terms), 5 verticals from non-E&P business, and 6 times international growth
with a planned capital expenditure of INR 11 trillion. PP2030 has also identified 5 shaping moves - grow OVL six-fold to 60 MTOE/yr production by
2030, unlock 400 to 700 MTOE of domestic YTF (Yet To Find) production from domestic exploration, accelerate 300-400 MTOE of cumulative
production by redevelopment, secure alliances to develop new resource types and build non-E&P business to 30% of group revenue.
ECONOMICPERFORMANCE
MANAGEMENT APPROACH &PERFORMANCE – ECONOMIC
Perspective Plan 2030
PP2030 charts the roadmap for ONGC's growth over the next two
decades. It aims to double ONGC's production over the plan period with
4-5% growth against the present growth rate of 2%. In physical terms the
aspirations under Perspective Plan 2030 aims for –
• Production of more than 130 MTOE of oil and oil equivalent gas (O +
OEG) per year (50% from international assets)
• Accretion of over 1,300 MTOE of proved reserves.
• Over 6.5 GW power generations from alternate energy and 9 MTPA
of LNG.
• Full downstream value capture in petrochemicals.
12 Source: Integrated Energy Policy of GOI and World Energy Outlook 2011 32/33
Back to Contents
Assuming an economic growth rate of 8% per annum for India in the next two decades, primary energy consumption is projected to increased from
537 million tonne oil equivalent (MTOE) in 2012 to 1856 MTOE in 2032. Out of this, oil consumption is projected to rise from 166 MMTPA to 486 12MMTPA and gas consumption will go up from 44 MTOE to 197 MTOE . Making oil and gas available for future requirement would be a daunting task
given the prognosticated domestic reserves of these resources in the country.
ONGC recognises that exploring the poorly explored Indian sedimentary basins (78% of the 26 sedimentary basins still remain unexplored) with low
drilling density require technology and capital intensive accelerated exploration. Strategies have been formulated to ensure energy security and
converting these strategies into action will determine to what extent we are going to achieve our goals.
In response to limitations and the accompanying challenges, ONGC chalked out a Perspective Plan 2030 (PP2030) to address the energy security
needs of the country. This Perspective Plan will give the organization a sense of long-term direction through its clear demarcation of priorities and
challenges that are pertinent to the growth strategy and business objectives of ONGC.
PP2030 aspires for 2 fold increase in hydrocarbon production, 3 fold revenue growth and EBITDA (Earnings before interest, taxes, depreciation and
amortization) in real terms, 4 fold increase in market capitalization (real terms), 5 verticals from non-E&P business, and 6 times international growth
with a planned capital expenditure of INR 11 trillion. PP2030 has also identified 5 shaping moves - grow OVL six-fold to 60 MTOE/yr production by
2030, unlock 400 to 700 MTOE of domestic YTF (Yet To Find) production from domestic exploration, accelerate 300-400 MTOE of cumulative
production by redevelopment, secure alliances to develop new resource types and build non-E&P business to 30% of group revenue.
ECONOMICPERFORMANCE
MANAGEMENT APPROACH &PERFORMANCE – ECONOMIC
Perspective Plan 2030
PP2030 charts the roadmap for ONGC's growth over the next two
decades. It aims to double ONGC's production over the plan period with
4-5% growth against the present growth rate of 2%. In physical terms the
aspirations under Perspective Plan 2030 aims for –
• Production of more than 130 MTOE of oil and oil equivalent gas (O +
OEG) per year (50% from international assets)
• Accretion of over 1,300 MTOE of proved reserves.
• Over 6.5 GW power generations from alternate energy and 9 MTPA
of LNG.
• Full downstream value capture in petrochemicals.
12 Source: Integrated Energy Policy of GOI and World Energy Outlook 2011 32/33
Contributing towards India’s energy security
Majority of the company’s domestic production comes from matured oil
fields, both offshore and onshore, which are about 30-50 years old. We
have taken structured initiatives (IOR/EOR schemes) to arrest decline in
15 major domestic fields through capital intensive technology infusions.
In FY13, we produced 46.11 MTOE oil and oil equivalent gas (O+OEG),
a decline of 1.95% over FY12 (47.03 MTOE) from the domestic field
operated by us. The major reason for lower production has been the
natural decline from the ageing matured oil fields.
We produced 22.56 MMT of crude oil in FY13, a decline of 4.85% over
FY12 (23.71 MMT) and 23.55 BCM of natural gas, 1% higher over FY12
(23.32 BCM). During FY13, our natural gas production is the highest in
last nine years. We maintained our position as the largest producer
of O+OEG in the country contributing 69% of Crude oil and 62% of
Gas production.
During FY13, our plants at Uran and Hazira produced 1.006 MMT of
LPG (a decline of 2.9% over FY12), 1.534 MMT of Naphtha (a decline of
1.4% over FY12), 4,28,000 MT of Ethane/Propane (a decline of 7.5%
over FY12)and 1,08,000 MT of SKO (36% higher over FY12).
During FY13, we made 22 oil and gas discoveries (9 discoveries in
NELP blocks and 13 in the nomination blocks) in domestic fields: 12 new
prospects discoveries (4 offshore, 8 onshore) and 10 new pool
discoveries (5 offshore, 5 onshore). We accreted 265.65 MTOE of in-
place volume of hydrocarbon with ultimate reserves accretion of 84.84
MTOE which is the highest in last 22 years. As on Mar 31, 2013, we have
balance reserves of 741.00 MTOE (1P), 1021.24 MTOE (2P) and
1290.52 MTOE (3P).
The new pool discovery (D-1-D-1) in N.B. Prasad (D-1) field has been a
significant discovery and with this, oil and gas in-place volume of the
field has increased to 149 MTOE; making it the third largest field after
Mumbai High and Neelam-Heera fields. During FY13, four more
We have taken up intensive exploration to locate hydrocarbon reserves
even in challenging locales viz deep-water and ultra-deepwater regions,
basement plays and High Pressure/High Temperature reservoirs and
subtle traps. Exploration and development in these regions is not only
cost intensive but technologically challenging as well.
We have forayed into unconventional sources viz CBM, UGC and Shale
gas. We are the first to establish shale gas presence in India. We have
planned three pilots for shale gas exploration, one in Cambay Basin in
FY14 and one each in KG Basin and Cauvery Basin in FY15. Land
acquisition and overlapping of CBM blocks with the mining blocks for
exploration and development projects remains a major constraint.
We are waiting for the award of mining lease (ML) for our UCG pilot
project in 'Vastan block' for the last three years. As such, policy
framework for exploration and exploitation of new sources of
energy remains a concern and it affects our endeavours for
unconventional sources.
During FY13, the company earned the highest ever turnover of INR
833.09 billion, an increase of 8.35% over turnover of INR 768.87 billion
63.82 68.9082.98 83.56 84.13 84.84
48.28 47.85 47.73 47.51 47.03 46.11
2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13
Ultimate Reserve Accretion (MTOE) Domestic Production (MTOE)
Figure 4: Our Production and Reserve Accretion
Table 6: Ultimate Reserve Accretion vis-à-vis Productionvis-à-vis Reserve Replacement ratio
Year Ultimate ReserveAccretion (MTOE)
Production(MTOE)
ReserveReplacement Ratio
2008-09 68.90 47.85 1.44
2009-10 82.98 47.78 1.74
2010-11 83.56 47.51 1.76
2011-12 84.13 47.03 1.79
2012-13 84.84 46.11 1.84Table 7: Our achievements vs. targets 2012-13
12Criteria Units Our targets
Our achievements
% achievements
Crude oil production MMT 27.54 26.13 94.88
Natural gas production BCM 25.73 25.34 98.48
VAP production KTON 3,410 3,150 92.38
Reserve accretion MMTOE 83.00 84.84 102.22
Expenditure on R&D(1% of PAT of previous year)
Million INR 2,512.30 6002.02 238.91
Expenditure on CSR (0.5% of PAT of previous year)
Million INR 1,256.15 2,621.30 208.68
Expenditure on SD (INR5 million + 0.095% of PAT of previous year)
Million INR 243.67 369.00 151.44
discoveries (Anklav-9, Motera-36, Mandapeta West-12 and Phulani-1)
have put on production and one discovery (Mansa-36) is under trial
production. In addition, we are developing a number of small and
marginal fields. Cost of production from these fields is going to be higher
than the current net realised crude price of INR 2522/bbl due to tailor-
made facilities and short life of these fields, coupled with the increased
OID Cess, which will affect the viability of future projects for monetisation
of discoveries.
We have made voluntary disclosures in respect of oil and gas reserves,
conforming to SPE classification 1994 and US Financial Accounting
Standards Board (FASB)-69.
Our Reserve Replacement Ratio (RRR) of 1.84 (signifying addition of
84% more oil and natural gas reserves than what we produced in the thfiscal year) marks the 8 consecutive fiscal with RRR more than one,
establishing the strength of our sustainable business model.
We have attained a significant level of expertise and success in
IOR/EOR schemes which are expected to pay rich dividends in arresting
decline in matured fields. During FY13, two more IOR projects,
development of Western Periphery of Mumbai High South field and B-
173A field have been taken up. We have made an incremental oil gain of
7.94 MMT from the fields under IOR/EOR/Redevelopment in FY13 and
cumulative incremental gain oil gain of 79.94 MMT so far. We have
made an investment of INR 310.81 billion towards IOR/EOR
schemes.16 out of 24 IOR/EOR and development projects has been
completed.
Such calibrated capital and technology infusion for best-in-class
reservoir management maintained production in 15 major fields, which
contribute 73% of our crude production. Seven of these matured fields
registered more production than the last fiscal year. This positions
ONGC in the league of the world’s best brownfield managers.
in FY12. The company’s net profit is INR 209.26 billion, down by 16.7%
over net profit of INR 251.23 billion in FY12 because of sharing of
highest ever under-recoveries of INR 494.21 billion and increase in oil
industry development cess of INR 42.14 billion. Our company’s net profit
is impacted by INR 284.13 billion in FY13 (INR 255.35 billion in FY12)
and by INR 1254.77 billion cumulatively due to subsidy since inception.
34/35
During FY13, we did not receive any financial assistance from the
government.
In line with Government directives on subsidy on petroleum products
viz. High Speed Diesel (HSD), Superior Kerosene Oil (SKO) and
Liquefied Petroleum Gas (LPG), our share of under-recoveries with the
oil marketing companies has increased from INR 444.66 billion in FY12
to INR 494.21 billion in FY13, an increase of 11.14%. The adhoc
mechanism of sharing, resulting in increasing burden of share of under-
recoveries is a major concern for our company. Since adoption of the
mechanism cumulatively we have shared under-recovery of INR
2163.36 billion.
We have raised our concern for reforms on subsidies in various public
forums and are taking up the issue with the Government of India. In
volatile oil market and devaluation of Rupees against Dollars has the
potential to increase price of Indian crude basket. In case the
mechanism continues, it will be constraint for future investment.
Our primary focus is on current and future energy security for the country
and our strategic goals of enhancing recovery factor, increasing
Sharing of Under – Recoveries
Risk and Opportunities due to Climate Change
We treat all employees equally and do not discriminate them on the
basis of caste creed, religion and gender. There is no difference in
wages and equal opportunities available to all employees based on
gender. We comply with the minimum wage requirement as per the
applicable regulations at all our locations.
Our Post Retirement Benefit Schemes (PRBS) Trust manages the
pension scheme of the employees. During FY13, Trust paid INR 445.70
million net commutations to separating employees and purchased
annuity of INR 1373.50 million from Insurance Companies for the
separating employees.
We have ventured in geographical areas, which are considered
logistically remote and challenging and therefore had seen no or very
little socio- economic development. With our advent of our operations in
such areas we have generated jobs, built infrastructure and led to
growth of such areas.
Our procurement practices are designed to promote procurement from
technically competent vendors through competitive bidding and as such
we give preference to the local suppliers. Vendors are selected purely
Indirect Economic Impact on Community
Table 9: Employee Benefit Plans
Some of the key benefits provided to our employees are:
63.82 68.9082.98 83.56 84.13 84.84
48.28 47.85 47.73 47.51 47.03 46.11
2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13
Ultimate Reserve Accretion (MTOE) Domestic Production (MTOE)
Figure 5: Economic Value Generated (Billions INR)
47.40 57.19 67.28 67.96103.30
282.25
115.54
248.92
444.66494.21
68.44 70.58 74.86 83.42 81.28
280.50 280.98317.76
382.87408.81
2008-09 2009-10 2010-11 2011-12 2012-13
Employee Benefits Subsidy shared with OMCs Dividends Contribution to Exchequer
Figure 6: Economic Value Distributed (Billions INR)
reserves and equity oil and gas from overseas assets are fully geared to
achieving this. Carbon is at the centre of our business and we are aware
of the implications of pursuing a low carbon high growth strategy. We are
guided by the National Action Plan on Climate change and its missions
on energy efficiency and renewable energy in chartering our future low
carbon footprint. This is reflected in our endeavours within our
operations to become energy and resource efficient as well as in the
pursuit of alternative sources of energy through research. Our
registered CDM projects amply demonstrate that. Through our
corporate policy of greening the vendor chain, we have boldly taken on
the role of looking at life cycle impacts on carbon and resource
management beyond the fence line of our facilities and assets. We are
envisaging in developing 6.5 GW renewable by 2030, which would
contribute to our diversified energy portfolio and reduce our carbon
footprint.
ONGC has always been one of the best employers in our country and
currently employs 32988 permanent employees (as on 31.03.2013) and
provides one of the best overall compensation and benefits package to
its employees. These benefits serve as a motivator, help attract and
retain quality human resource.
Employee Benefits
36/37
Table 8: Financial Performance.
Financials (Billions INR) 2008-09 2009-10 2010-11 2011-12 2012-13
Total Assets 1074.06 1230.28 1480.18 1717.28 1781.27
Income from Operations 650.49 619.83 695.32 768.87 833.09
Retained Earnings (Domestic Operations) 81.19 85.48 102.22 154.53 114.97
Total Revenue - - 720.56 813.40 887.45
Net Profit 161.26 167.68 189.24 251.23 209.257
Operating Expenses 123.81 126.29 142.38 139.81 173.92
Expenses on Employees 47.40 57.19 67.28 67.96 103.30
Interest Payments 1.19 0.69 0.25 0.35 0.28
Contribution to Exchequer (Payments to Government) 280.50 280.98 317.76 382.87 408.81
Dividends to Shareholders 68.44 70.58 74.86 83.42 81.28
Under-recoveries shared with OMCs 282.25 115.54 248.92 444.66 494.21
Economic Value Added (EVA) 17.22% 22.12% 19.79% 21.36% 15.21%
Employee benefit plan Offered to Offered to
permanent Part-time
employees Workers
Medical coverage, Education Assistance No Yes
(through ONGC Sahyog Trust)
Assistance for marriage of girl child, Livelihood No Yes
Assistance (through ONGC Sahyog Trust)
Group Insurance Scheme Yes Yes
Comprehensive medical facilities Yes No
to employees and their dependents
Contributory Provident Fund (CPF), Gratuity, Yes No
Comprehensive Social Security Scheme (CSSS),
Post Retirement Benefit Scheme (PRBS)
Maternity/paternity/child care Leave Yes No
House Building Advance, Conveyance Yes No
Advance, Education Advance
Furniture and House Hold Goods purchase scheme Yes No
Company Accommodation at work centres Yes No
Figure 9: Community Expenditure Category wise
14.42
3.75 0.41
29.25
1.811.961.440.42
5.941.16
1.11
38.34
Education
Health Care
Entrepreneurship
Infrastructure developmentEcological conservation &protection of heritage sites
Promotion of artisans, craftsman,musicians, artists
Empowerment to women &challenged
Water management
Sponsorship of media, cultural,sports, conferences
Grant of Financial aid/assistance
Promoting sports/sports personsand agencies
Rajiv Gandhi Gramin LPGVitranYojana (RGGLVY)
Figure 10: Beneficiaries Category wise
EducationHealthcareEntrepreneurshipPromotion to artisans, craftsman, musicians, artistsEmpowerment to women & challengedSponsorship of media, cultural, sports, conferencesPromoting sports/sports persons and agenciesRajiv Gandhi Gramin LPG Vitran Yojana (RGGLVY)
2151
278249
717786
464
9500327511500
750
on meeting the requirements of the contract and location is generally not
a deciding factor. However, we do encourage local suppliers to
participate in our tender process.
Peoples are inducted in the company purely on merit and the
Government mandated reservation criteria for specified sections of the
community. However, we do provide employment opportunities to local
people as recruitment of non-executives are carried out locally.
Community and Environmental Investments
Our community investment increased to INR 2.62 billion in FY13, an
increase of 116.5% over FY12 (INR 1.21 billion in FY12). We have spent
38% of our community expenditure into the Rajiv Gandhi Gramin LPG
Vitaran Yojana.
Figure 7: Community expenditure (Billions INR)
1.69
2.68
2.20
1.21
2.62
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13
Our environmental expenditure has also seen a consistent increase
over the past five years. Our environment expenditure increased to INR
5.90 billion, an increase of 19.2% over FY12 (INR 4.95 billion in FY12).
Our environmental expenditure consists of procuring new technology or
intervention related to environmental protection; training, consultancy
and awareness workshops; biodiversity conservation such as
mangrove and Ringal plantation.
Figure 8: Environmental expenditure (Billion INR)
3.754.38
5.10 4.95
5.90
2008-09 2009-10 2010-11 2011-12 2012-13
38/39
Rajiv Gandhi Gramin LPG Vitaran Yojana (RGGLVY)
“Rajiv Gandhi Gramin LPG Vitaran Yojana (RGGLVY)” was launched on October 16, 2009. The Scheme aims at setting up small size LPG distribution agencies in order to increase rural penetration and to cover remote as well as low potential areas (locations having potential of 600 cylinders (refill sales) per month).
Coverage
The scheme is currently being launched in all states across the country.
Salient features of the scheme
• The agencies under the RGGLV will be of small size requiring lesser finance/infrastructure. These agencies would be viable with monthly refill sales of 600 against 2,500 at present.
• The agencies would penetrate deeper into the rural areas where regular distributorships become unviable due to the scale of operation and investment. RGGLV distributors may be viable for around 1,500 customers in the cluster of villages being served.
• These agencies will be self-operated: The distributorship himself will manage the agency, with the help of his family member and one or two employees.
• There will be no arrangement for home delivery.
• Age limit for the distributor is being kept as between 21 and 45 years leading to new employment opportunities for the rural youth.
• Distributor under the scheme will have to be a permanent resident of the village(s) covered by particular location.
• Under this scheme, all agencies will be in the joint name of husband and wife. In case of applicants who are single, an undertaking will be obtained that after marriage, 'Spouse' will automatically deem to become 'partner'. This will be a step towards empowerment of rural womenfolk.
• The likely capital expenditure for setting up of a new RGGLV distributorship will be about ` 3.21 lakh with land measuring 20 meter X 24 meter being owned by the candidate being an essential requirement.
• The distributor will be able to recover the capital expenditure by the time 1,800 new LPG connections are released. The indicative net income of the distributor would be about ̀ 7,500 per month.
• An important feature of the scheme is that no interviews would be conducted and selection of the distributors would be by draw of lots from amongst all candidates who have secured more than 80% marks on the criteria of financial capability and educational qualifications.
• 25% of the locations would be reserved for SC/ST categories in the respective states. 25% reservation for the categories of Defense Personnel/Para Military Personnel/Physically Handicapped/ Outstanding Sports persons would be clubbed under one common category. In the common category, if no candidate is found, then the advertisement next time would be under open category.
Figure 9: Community Expenditure Category wise
14.42
3.75 0.41
29.25
1.811.961.440.42
5.941.16
1.11
38.34
Education
Health Care
Entrepreneurship
Infrastructure developmentEcological conservation &protection of heritage sites
Promotion of artisans, craftsman,musicians, artists
Empowerment to women &challenged
Water management
Sponsorship of media, cultural,sports, conferences
Grant of Financial aid/assistance
Promoting sports/sports personsand agencies
Rajiv Gandhi Gramin LPGVitranYojana (RGGLVY)
Figure 10: Beneficiaries Category wise
EducationHealthcareEntrepreneurshipPromotion to artisans, craftsman, musicians, artistsEmpowerment to women & challengedSponsorship of media, cultural, sports, conferencesPromoting sports/sports persons and agenciesRajiv Gandhi Gramin LPG Vitran Yojana (RGGLVY)
2151
278249
717786
464
9500327511500
750
on meeting the requirements of the contract and location is generally not
a deciding factor. However, we do encourage local suppliers to
participate in our tender process.
Peoples are inducted in the company purely on merit and the
Government mandated reservation criteria for specified sections of the
community. However, we do provide employment opportunities to local
people as recruitment of non-executives are carried out locally.
Community and Environmental Investments
Our community investment increased to INR 2.62 billion in FY13, an
increase of 116.5% over FY12 (INR 1.21 billion in FY12). We have spent
38% of our community expenditure into the Rajiv Gandhi Gramin LPG
Vitaran Yojana.
Figure 7: Community expenditure (Billions INR)
1.69
2.68
2.20
1.21
2.62
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13
Our environmental expenditure has also seen a consistent increase
over the past five years. Our environment expenditure increased to INR
5.90 billion, an increase of 19.2% over FY12 (INR 4.95 billion in FY12).
Our environmental expenditure consists of procuring new technology or
intervention related to environmental protection; training, consultancy
and awareness workshops; biodiversity conservation such as
mangrove and Ringal plantation.
Figure 8: Environmental expenditure (Billion INR)
3.754.38
5.10 4.95
5.90
2008-09 2009-10 2010-11 2011-12 2012-13
38/39
Rajiv Gandhi Gramin LPG Vitaran Yojana (RGGLVY)
“Rajiv Gandhi Gramin LPG Vitaran Yojana (RGGLVY)” was launched on October 16, 2009. The Scheme aims at setting up small size LPG distribution agencies in order to increase rural penetration and to cover remote as well as low potential areas (locations having potential of 600 cylinders (refill sales) per month).
Coverage
The scheme is currently being launched in all states across the country.
Salient features of the scheme
• The agencies under the RGGLV will be of small size requiring lesser finance/infrastructure. These agencies would be viable with monthly refill sales of 600 against 2,500 at present.
• The agencies would penetrate deeper into the rural areas where regular distributorships become unviable due to the scale of operation and investment. RGGLV distributors may be viable for around 1,500 customers in the cluster of villages being served.
• These agencies will be self-operated: The distributorship himself will manage the agency, with the help of his family member and one or two employees.
• There will be no arrangement for home delivery.
• Age limit for the distributor is being kept as between 21 and 45 years leading to new employment opportunities for the rural youth.
• Distributor under the scheme will have to be a permanent resident of the village(s) covered by particular location.
• Under this scheme, all agencies will be in the joint name of husband and wife. In case of applicants who are single, an undertaking will be obtained that after marriage, 'Spouse' will automatically deem to become 'partner'. This will be a step towards empowerment of rural womenfolk.
• The likely capital expenditure for setting up of a new RGGLV distributorship will be about ` 3.21 lakh with land measuring 20 meter X 24 meter being owned by the candidate being an essential requirement.
• The distributor will be able to recover the capital expenditure by the time 1,800 new LPG connections are released. The indicative net income of the distributor would be about ̀ 7,500 per month.
• An important feature of the scheme is that no interviews would be conducted and selection of the distributors would be by draw of lots from amongst all candidates who have secured more than 80% marks on the criteria of financial capability and educational qualifications.
• 25% of the locations would be reserved for SC/ST categories in the respective states. 25% reservation for the categories of Defense Personnel/Para Military Personnel/Physically Handicapped/ Outstanding Sports persons would be clubbed under one common category. In the common category, if no candidate is found, then the advertisement next time would be under open category.
ENVIRONMENTALPERFORMANCE
40/41
ENVIRONMENTALPERFORMANCE
40/41
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MANAGEMENT APPROACH &PERFORMANCE – ENVIRONMENTOur exploratory and production activities are spread across more than 400
operational establishments on-land and in the high seas. Processing of
crude oil and natural gas is carried out at the Uran, Hazira and Ankleshwar
plants. Operations at the on-land exploration and production installations
[drilling rigs, Group Gathering Stations (GGS) and Central Tank Farms
(CTF)] are different in nature and scale from those at Uran, Hazira.
Offshore installations have their typical operational requirements owing to
their specific logistical and locational environments.
Input materials for the exploration and production activities include
industry specific mud, water, cement, tubular and chemicals and various
engineering devices. Exploration and production activities produce
primary products-crude oil and natural gas. In addition to crude oil and
natural gas, we produce value added products - LPG, Naphtha,
Kerosene, ATF, HSD, LSHS and C2-C3 (Ethane-Propane). We maintain
strict government guidelines to keep the harmful ingredients in our VAP
such as benzene and sulphur within the prescribed limit.
The marketing policy and practices are governed by the existing
government guidelines. We market our products through OMCs
however, some product we market on our own.
We have promoted a joint venture with The Energy Research Institute
(TERI), ONGC TERI Biotech Ltd for utilization of cutting edge
biotechnology in oil & gas applications to help reduce environmental
impacts as well as enhance production without adverse environmental
impact. All our major projects factor considerations in the design stage
to minimize environmental impact and in subsequent stages of project
expansion, modernization etc. We have dedicated institutions at
Mumbai and Goa (IEOT, IOGPT & IPSHEM) to continually assess
needs for environmental tools, and accordingly identify, design and
implement the initiatives effectively.
We have our robust process of internal audit and management review
for QHSE management system and regularly review our QHSE policy
and map our risks. We have developed our corporate guidelines on
incident reporting, investigation and monitoring of recommendations
and have implemented it uniformity throughout the organization in line
with international practices. Some of the standout features of the
Company's exemplary HSE practices are – Regular QHSE internal
audits, Fire safety measures, regular fire and earthquake mock drills,
Health Awareness programs, water and electricity conservation,
Material Safety Data Sheets (MSDS), Personal Protective Equipment
(PPE), and identification and implementation of Environment
Management Programmes (EMP) and Occupation Health and Safety
(OHS) programs as per need of the units, near miss and Governance,
Risk and Compliance (GRC) reporting.
Given the nature of our operations, we often use mobile
installations/tools viz drilling rigs, seismic crew, logging units etc. The
varying size, scale and nature of operations of these installations/tools
result in varying patterns of energy, material usage and environmental
footprints. Uran and Hazira are akin to large scale petro-chemical
complexes. The scale and heterogeneity of our operations presents
unique challenges for data capture across a universal set of
environmental performance indicators.
We are conscious of the extreme and unpredictable conditions that we
operate in. Ever cognizant to the effects of incident of oil spill
internationally, we have renewed our resolve to strengthen our
processes, technology and human resources to meet the challenges of
operating in some of the most hostile environments. We realize the
importance of retaining the integrity of our production
infrastructure in order to obviate situations leading
to oil spillage in offshore operations that are usually
accompanied with serious damage to life and
property, besides disruption of operations.
Insight from Director (Exploration) -Director I/C Carbon Management & Sustainability Group*
“We firmly believe sustainable development solutions can be
evolved into a business model of a company, thereby creating
value for the company and its stakeholders. At ONGC we are
working towards solutions that will lead to a sustainable and
prosperous future, ensuring business continuity and the
wellbeing of environment, society and the nation.”
ONGC demonstrates its commitment toward sustainability through
carefully designed functions and acts. The most prominent act is to
create an independent corporate group for Sustainable Development,
called Carbon Management Group, in 2007. The Group has since
been rechristened as Carbon management & sustainability group
(CM&SG) with a wider and more encompassing mandate. The
bouquet of activities, projects and initiatives across the organisation is
steered by a Board Level Committee on CSR & Sustainability at the
apex level and by Carbon Management & Sustainability Group at the
corporate level.
This demonstration of commitment starts best with customised policies to
steer plans and action. We are one of the few organisations of our size in the
country to have an umbrella policy on Sustainable development. Besides, we
have a policy on “Sustainable Water Management and one on “Greening the
vendors chain” towards greening the procurement process.
Our aim is to achieve sustainable growth through proper eco
management. ONGC has undertaken Eco Foot Printing (Water, Carbon
& Waste) of the entire operations to develop a comprehensive eco
inventory of the organization. As a knowledge and technology driven
company ONGC's approach towards sustainable growth is primarily
through carbon management and low carbon growth. ONGC is inspired
by the Prime Minister's “National Action Plan on Climate Change”, which
calls for environmental sustainability through Indian corporate and has
undertaken some path breaking initiative. ONGC has 10 registered
CDM projects with an accruable CERs of 1.9 Million per annum. ONGC
has also been undertaking Methane Reductions Projects across its
production facilities in association with the United States Environmental
Protection Agency (USEPA). Our effort towards sustainable growth has
started bringing result. In 2012-13 the GHG consumption reduced by
5% and fresh water consumption by 15%.
Besides, our strength in Sustainable development lies in the R&D on
renewable energy sources, newer GHG mitigation through algae,
collaboration with global leaders in this area and also in the transparent
reporting through annual sustainability report.
It is becoming increasingly necessary for organisations to work on the
path of sustainable development and also communicate with
organisational stakeholders in the sustainability context. ONGC has
started sustainability reporting four years back which has now been thinternalised. This is ONGC's 4 such report with its TBL performance.
42/43* Director (Exploration) holds an additional responsibility of Carbon Management & Sustainability Group in the absence of regular Director (Onshore).
Wind Power:
Our target is to have 2 GW wind power generation capacity (onshore
and offshore) by 2030.
We have commissioned 51 MW wind power project in Jhakau, Gujarat
and is operational since 2009 and have generated 94.04 Million Unit. We
are installing a 102 MW wind power project in Rajasthan, with an
investment of INR 6,780 million, which is scheduled to be commissioned
by mid-2014. In addition, a Hybrid power system (Solar panel and Micro
wind turbine) on 16 unmanned platforms in western offshore is also
under implementation.
• Continued replacement of existing conventional fluorescent tube
light fittings with energy efficient T-5 type fluorescent fittings with
electronic ballasts.
• 12 numbers of compressor houses lighting has been made on auto
mode (Timer mode) with in-house efforts, led to a saving of 273,312
KWh of electricity.
Uran
• Implemented energy conservation project “Recovery of Additional
Rich Gas from CSU through stripping by Rich Gas.”, led to a saving
of INR 59 million per year.
• Replacement of RGT with a synchronous motor of 3.35 MW in
LPG-1, led to gas saving of 4.8 MMSCM.
• Installation of Steam based VAM at Cogen Plant, led to a saving of
342,000 KWh.
• Improvement of power factor in Uran Plant led to savings of INR
3.12 million.
Hazira
• Provision to make up LP gas to KRIBHICO gas from MP header,
instead of HP header with an aim to increase capacity utilization of
LPG plant. Expected saving will be INR 210 million per year.
• Replacement of 24 number of old 160 watt MLL light fittings with
energy efficient 125 watt HPMV fitting, resulted in energy savings
of 3.68 MWh.
• Replacement of nine air handling units with more energy efficient
led to savings of 249,660 KWh of electricity.
• Replacement of lighting with more energy efficient auto mode has
led to savings of 273,312 KWh.
Our energy saving for the last two years is:
2012-13: 779.72 million units
2011-12: 743.63 million units
Energy Saving Initiatives
These moves are perfectly in sync with our aim of generating 30% of our
revenue from non-exploration and production business by 2030.
In addition, other renewable projects have been initiated at various
locations:
• 25 KW solar power plants for street lighting in KDMIPE campus.
• 15 KW solar power plants at GEOPIC.
• 12 KW solar power plants at IRS, led to a saving of 20,000 units
(KWh).
• Solar Street light for illumination of remotely located CBM wells, led
to reduction of diesel consumption.
Energy Savings through Energy Efficiency and other Measures
14We have saved over 714,750 MWh , by adopting different energy
conservation measures at various installations, resulted in reduction of
significant quantity of natural gas consumption. Energy conservation
measures were primarily focused on energy audits, gas flaring reduction
measures, use of bi-fuel technology, and use of efficient lighting
systems.
Reduction in Gas Flaring
Gas flaring has been reduced to 631 MMSCM in FY13, a reduction of
22% over FY12 (807 MMSCM in FY12). This has been done primarily
through installation and updation of facilities and technological
interventions such as installation of compressors and pipelines, better
utilization and marketing of low pressure gas, isolated low volume gas
and adopting innovative measures as GTW (Gas to Wire). Considering
FY02 as the base year, these measures have resulted in meaningful
utilization of 467 MMSCM of gas in FY13 alone.
We have identified a key position at corporate level who works in tandem
with Head – HSE and Safety Officers across our assets, basins and
plants constituting the operational layer of the organization structure for
effectively managing and reporting safety performance. Chief HSE
reports to Director I/C HSE. The Board level committee on HSE and SD
reviews the performance on HSE.
The following other measures were taken towards energy conservation:
• Pilot project of Bi-fuel technology for utilization of associated gas
@1,000 SCMD from the well MSAA for running drilling rig power
packs deployed at MSDB (cluster well). This has resulted in 40%
reduction of HSD consumption and additionally helped in reduction
of gas flaring.
• Conducted 208 energy audits in the year as against our MoU target
of 195 audits.
Solar Power:
We are targeting 1.5 GW in solar power generation by 2030. We have
taken up a project to convert solar energy directly into grid quality
electricity using sterling technology. We are acquiring equity stake in
promising solar photo voltaic technology for further development.
Nuclear Power:
We are targeting 3 GW of nuclear power generation in collaboration with
Nuclear Power Corporation Limited, India by setting up six nuclear plants,
each with a capacity of 1,740 MW. We plan to explore and harness sub-
surface uranium sources through in-situ Leaching (ISL) in technical
collaboration with Atomic Mineral Directorate (AMD), Hyderabad.
0.09 0.07 0.07 0.12 0.10
0.710.57 0.56
0.690.53
2008-09 2009-10 2010-11 2011-12 2012-13
Onshore Flaring Offshore Flaring
Figure 12: Flaring (BCM) 2008-12 Figure 13: Specific Flaring (BCM/MMTOE) 2008-12
0.007 0.005 0.006 0.009 0.007
0.0210.017 0.016
0.0200.016
2008-09 2009-10 2010-11 2011-12 2012-13
Onshore Flaring Offshore Flaring
14 Total savings are ` 4,288.5 Million, These have been converted in MWh by taking unit cost as `6/KWh. 46/47
Environmental Impact from our Emissions
Our Carbon Footprint
A critical area of environmental sustainability is mitigation of global greenhouse gas from operations. It is an organizational objective for us to progressively reduce our carbon footprint, by working towards reduction in both direct and indirect GHG mitigation. We have conducted a comprehensive, organization wide Greenhouse gas emissions
15inventory assessment . As per the study, our significant emissions are Carbon -dioxide (88%) and Methane (11%).
The major sources of emissions are flaring of natural gas, exhaust from running of DG sets, use of heavy equipment, construction activities, movement of vehicles, etc. We have achieved reduction in our absolute Greenhouse gas emissions first time in past six years. We have reduced our direct emissions by 5.93% although our indirect emissions has increased marginally. This reduction has been possible due to the savings in energy consumption viz natural gas, reduction in flared gas, capturing of fugitive methane and increased use of renewable energy in our overall energy mix.
16Our emissions from air and rail travel (SCOPE 3) are 23443 tCO e in 2
FY13, a reduction of 0.53% over FY12 (23568 tCO e in FY12). We have 2
deployed Video Conferencing systems across significant locations for
meetings and conferences to mitigate our business travel related
emissions.
CDM Projects
Sustainable development in ONGC, as a formally structured corporate
initiative, had a modest beginning in 2005 for developing CDM projects.
The initiative tasted early success with the identification of a number of
CDM projects across ONGC and securing host country approval. The
first CDM project was registered in February 2007. Since then 8 CDM
projects have been registered by March 2013, largest in terms of the
number of projects by an Indian company. More projects have been
offered for development. 132417 CERs were credited in FY13.
Figure 14: Savings due to energy conservation measures(Billion INR) - 2008-12
16 The air travel emissions were measured as per guidelines provided by DEFRA and for rail travel we used emission factors published by World Bank
15 We use Greenhouse Gas Protocol and GHG Compendium by American Petroleum Institute.
Figure 15: Emissions from direct & Indirect energy consumption
2008-09 2009-10 2010-11 2011 -12 2012-13
0.22 0.24 0.46 0.470.52
Direct Emissions Indirect Emissions
7.93 8.03 8.13 9.21 8.59
Figure 16: Emissions from various Sources
5.98
0.880.02
0.46
1.88
0.47
5.81
0.910.02 0.40
1.450.52
0.00
2.00
4.00
6.00
8.00
Natural Gas High Speed Diesel Air Turbine Fuel Fugitive Emissions Flaring Indirect Emissions
2011-12 2012-13
1.67
3.50 3.75 4.09 4.29
0.00
1.00
2.00
3.00
4.00
5.00
2008-90 2009-10 2010-11 2011-12 2012-13
48/49
stCDM Project (as on 31 March 2013) Date of Registration CER per annum Methodology
thWaste heat recovery from Process Gas Compressors 5 Feb 07 5,320 AMS-II.D. ver. 7(PGCs), Mumbai high south (offshore platform) Energy efficiency and fuel switching
stUp-gradation of Gas Turbine 1 (GT 1) and Gas Turbine 2 1 Mar 07 7,802 AMS-II.D. ver. 8(GT 2) at co-generation plant of Hazira Energy efficiency and fuel switching Gas Processing Complex (HGPC) measures for industrial facilities
thFlare gas recovery project at Uran plant 14 Dec 07 97,740 AM0037Flare reduction and gas utilization at oil and gas processing facilities
thFlare gas recovery project at Hazira Gas 16 May 08 8,793 AM0037 ver. 1 Processing Complex (HGPC) Flare reduction and gas utilization at
oil and gas processing facilities
rdEnergy Efficiency of Amine Circulation 23 Sep 09 4,043 AMS-II.D. ver. 11Pumps at Hazira plant Energy efficiency and fuel switching
measures for industrial facilities
st51 MW wind power project of ONGC at Surajbari 1 Mar 10 85,762 ACM0002 ver. 7Consolidated methodology for grid-connected electricity generationfrom renewable sources
thEnergy efficient green building at Mumbai 5 Oct 12 544 AMS-II.E. ver. 10Energy efficiency and fuel switchingmeasures for buildings
thGreen Building at Dehradun 9 Oct 12 735 AMS-II.E. ver. 10Energy efficiency and fuel switchingmeasures for buildings
area of 730 hectares. Under Phase I and II, 0.7 million plants in Upper
Himalayas were planted in the area of 280 Hectares forest area. We
signed a project agreement with Hemwati Nandan Bahuguna Garhwal
University, Srinagar, for third party verification of Ringal Plantation under
phase II. Phase III of Ringal plantation is already launched for planting
0.375 million plants in 150 Hectare in upper Himalayas.
Mangrove Plantation: ONGC has undertaken massive mangrove
plantation drive in operational areas. In Phase I of the project, 1.2 million
saplings and about 0.5 million seeds and propagules were planted in the
soil erosion-prone area along the coast of the Dhadar river at
Ankleshwar. Following the success of the Phase I of 'Mangrove
Restoration and Conservation Education Project' at Ankleshwar, ONGC
has gone for the continuation of the mangrove plantation at Ankleshwar
and Hazira. Mangrove Plantation in Phase II envisages plantation of 0.1
million mangroves in Hazira and 0.5 million mangroves in Ghandhar
region.
The oil and gas industry relies heavily on technological innovations to
continually enhance productivity in the context of gradually depleting
production from matured producing fields. We have collaborative
partnership in various facets of products and services, which helped us to
reduce the environmental impacts. Some of the partnership initiatives are:
Technology Partnership
• High Resolution Molecular Stratigraphy in depositional sequences
with mature source rocks in key wells in Indian sedimentary basins.
• Assessment of Disproportionate Permeability Reduction (DPR) by
various pore filling polymer gels for rig-less water shut off jobs.
• Degrading Bacterial (PDB), mitigation of Wax deposition problem
and field trial of high temperature (96ºC) microbial system for
enhanced oil recovery.
• Developing of composite material down hole casing for highly
corrosive wells and fiberglass pipelines for oil field applications in
onshore.
• Studies on Binary Hydrates for application in storage and
transportation of methane gas and on the effects of gas hydrate
dissociation on sea floor stability.
• Development of Viscoelastic Surfactants Based Self-diverting Acid
(VSDA), Low Temperature Demulsifier and Gelled emulsified acid
system, Eco-friendly solvent for removal of organic deposits
• Development of Baryte free Non Damaging
Drilling Fluid (NDDF) System, suitable shale
stabil izers and lubricants for low
permeability/HT/HP reservoir.
ONGC personnel along with resources like long booms, oil skimmers,
dispersant chemicals and OSVs / MSVs take part in oil spill exercises
conducted by Indian Coast Guard regularly as per National Oil Spill
Disaster Contingency Plan (NOS-DCP).
In FY13, there is no reported case of oil spills as per the tier I, II and III.
In the reporting period our cement and tubular consumption have
marginally increased. This is due to our increased drilling activities.
Our Chemicals and Lube Oil consumption have been reduced
substantially by (26% and 20 %) in the reporting period. This is due
to increased recycling of drilling fluid (mud) and the use of latest
best in class power packs across our operations. We are the first to
establish shale gas presence in India. As such being a beginner in
the shale gas exploitation arena, we are not prolific user of
chemicals used in hydraulic fracturing such as acids, biocides,
breakers, clay stabilizers, corrosion inhibitors, cross-linkers, friction
reducers, gelling agents, iron controllers, scale inhibitors,
surfactants. Our use is limited to the extent of our exposure to such
condition, where hydraulic fracturing is a requirement.
Environmental impacts of fraking are the issues being dealt by us
with technology enabled mitigation techniques with global partners
experienced in shale plays.
Materials
Our key material consumptions are as under:
Recycle of Materials
ONGC is committed to recycling of materials and do so wherever
feasible. ONGC’s Mehsana asset has established effective
infrastructure to control the expenses, non-optimal usage of costly
materials, ground water and also to effectively manage the waste
disposal and has upgraded the existing mud preparation plant through
enhancing the mud preparation and storage capacity.
Mehsana Asset is now transporting the costly polymer based mud from
drill sites to centralized mud plant for treatment and storage and
thereafter sent to other drill sites, where new wells are under drilling.
Drilling being our most water intensive operation, recycling of drilling
mud has effectively reduced our water consumption 120 million litre of
ground water.
Ecosystem Services and Biodiversity
ONGC does not own, lease, manage in, or is adjacent to, protected
areas and areas of high biodiversity value outside protected areas. As
such we do not have activities, products and services that have
impacted on biodiversity. For each of our operational site, we have
Environmental Management Plans in compliance to the environmental
regulations, which includes forest, biodiversity and marine ecosystem
conservation. However, we have not assessed and monitored the bio-
diversity risk across our operational areas.
ONGC has always given great importance to tree plantation with
emphasis on survival of planted saplings. ONGC has commitment to
protect environment and arrest climate change agents in the written
documented form of HSE policy as well as Climate Change and
Sustainability Policy. Forests are great preserver of land biodiversity and
are not just trees, but part of ecosystems that underpin life, economies
and societies. However, we have taken up projects for conservation of
bio-diversity:
Ringal Plantation: We are working on a long-term project to plant
Ringal Bamboo in the fragile Upper Himalayan Region which is also
focus area outlined in National Action Plan for Climate Change by Prime
Minister. This project extends over a period of 5 years and covers an
Oil Spill Categories
Tier I: Pertains to facilities to combat oil spills of a minimum of 100 to 700 tons
Tier II: Pertains to combined total facilities to combat oil spills up to 10,000 tons
Tier III: Pertains to capability of responding to oil spills of more than 10,000 tons
Oil Spill Management exercise
Indian Coast Guard conducted fourth national level pollution
response exercise NATPOLREX-IV during December 13-14, 2012
at Kochi. The first ever exercise at Kochi involved one day table top
exercise on Dec 13, 2012 by creating a mock scenario of oil spill from
a tanker Motilal Nehru off Kochi with consequence of spilled oil
reaching various sensitive location nearby including beaches and
port. The stake holders, including Oil Spill Response Limited (OSRL)
participated in Table Top exercise followed by Mock drill.
54/55
Material 2010-11 2011-12 2012-13
Cement (MT) 53,793.52 54,642 59443
Tubular (M) 1,420,321.34 1,255,206 1,422,757
Chemicals (MT) 60,094.29 70,477.63 52,303
Lube Oil (L) 1,545,197.2 36,76,626 29,31,534
area of 730 hectares. Under Phase I and II, 0.7 million plants in Upper
Himalayas were planted in the area of 280 Hectares forest area. We
signed a project agreement with Hemwati Nandan Bahuguna Garhwal
University, Srinagar, for third party verification of Ringal Plantation under
phase II. Phase III of Ringal plantation is already launched for planting
0.375 million plants in 150 Hectare in upper Himalayas.
Mangrove Plantation: ONGC has undertaken massive mangrove
plantation drive in operational areas. In Phase I of the project, 1.2 million
saplings and about 0.5 million seeds and propagules were planted in the
soil erosion-prone area along the coast of the Dhadar river at
Ankleshwar. Following the success of the Phase I of 'Mangrove
Restoration and Conservation Education Project' at Ankleshwar, ONGC
has gone for the continuation of the mangrove plantation at Ankleshwar
and Hazira. Mangrove Plantation in Phase II envisages plantation of 0.1
million mangroves in Hazira and 0.5 million mangroves in Ghandhar
region.
The oil and gas industry relies heavily on technological innovations to
continually enhance productivity in the context of gradually depleting
production from matured producing fields. We have collaborative
partnership in various facets of products and services, which helped us to
reduce the environmental impacts. Some of the partnership initiatives are:
Technology Partnership
• High Resolution Molecular Stratigraphy in depositional sequences
with mature source rocks in key wells in Indian sedimentary basins.
• Assessment of Disproportionate Permeability Reduction (DPR) by
various pore filling polymer gels for rig-less water shut off jobs.
• Degrading Bacterial (PDB), mitigation of Wax deposition problem
and field trial of high temperature (96ºC) microbial system for
enhanced oil recovery.
• Developing of composite material down hole casing for highly
corrosive wells and fiberglass pipelines for oil field applications in
onshore.
• Studies on Binary Hydrates for application in storage and
transportation of methane gas and on the effects of gas hydrate
dissociation on sea floor stability.
• Development of Viscoelastic Surfactants Based Self-diverting Acid
(VSDA), Low Temperature Demulsifier and Gelled emulsified acid
system, Eco-friendly solvent for removal of organic deposits
• Development of Baryte free Non Damaging
Drilling Fluid (NDDF) System, suitable shale
stabil izers and lubricants for low
permeability/HT/HP reservoir.
ONGC personnel along with resources like long booms, oil skimmers,
dispersant chemicals and OSVs / MSVs take part in oil spill exercises
conducted by Indian Coast Guard regularly as per National Oil Spill
Disaster Contingency Plan (NOS-DCP).
In FY13, there is no reported case of oil spills as per the tier I, II and III.
In the reporting period our cement and tubular consumption have
marginally increased. This is due to our increased drilling activities.
Our Chemicals and Lube Oil consumption have been reduced
substantially by (26% and 20 %) in the reporting period. This is due
to increased recycling of drilling fluid (mud) and the use of latest
best in class power packs across our operations. We are the first to
establish shale gas presence in India. As such being a beginner in
the shale gas exploitation arena, we are not prolific user of
chemicals used in hydraulic fracturing such as acids, biocides,
breakers, clay stabilizers, corrosion inhibitors, cross-linkers, friction
reducers, gelling agents, iron controllers, scale inhibitors,
surfactants. Our use is limited to the extent of our exposure to such
condition, where hydraulic fracturing is a requirement.
Environmental impacts of fraking are the issues being dealt by us
with technology enabled mitigation techniques with global partners
experienced in shale plays.
Materials
Our key material consumptions are as under:
Recycle of Materials
ONGC is committed to recycling of materials and do so wherever
feasible. ONGC’s Mehsana asset has established effective
infrastructure to control the expenses, non-optimal usage of costly
materials, ground water and also to effectively manage the waste
disposal and has upgraded the existing mud preparation plant through
enhancing the mud preparation and storage capacity.
Mehsana Asset is now transporting the costly polymer based mud from
drill sites to centralized mud plant for treatment and storage and
thereafter sent to other drill sites, where new wells are under drilling.
Drilling being our most water intensive operation, recycling of drilling
mud has effectively reduced our water consumption 120 million litre of
ground water.
Ecosystem Services and Biodiversity
ONGC does not own, lease, manage in, or is adjacent to, protected
areas and areas of high biodiversity value outside protected areas. As
such we do not have activities, products and services that have
impacted on biodiversity. For each of our operational site, we have
Environmental Management Plans in compliance to the environmental
regulations, which includes forest, biodiversity and marine ecosystem
conservation. However, we have not assessed and monitored the bio-
diversity risk across our operational areas.
ONGC has always given great importance to tree plantation with
emphasis on survival of planted saplings. ONGC has commitment to
protect environment and arrest climate change agents in the written
documented form of HSE policy as well as Climate Change and
Sustainability Policy. Forests are great preserver of land biodiversity and
are not just trees, but part of ecosystems that underpin life, economies
and societies. However, we have taken up projects for conservation of
bio-diversity:
Ringal Plantation: We are working on a long-term project to plant
Ringal Bamboo in the fragile Upper Himalayan Region which is also
focus area outlined in National Action Plan for Climate Change by Prime
Minister. This project extends over a period of 5 years and covers an
Oil Spill Categories
Tier I: Pertains to facilities to combat oil spills of a minimum of 100 to 700 tons
Tier II: Pertains to combined total facilities to combat oil spills up to 10,000 tons
Tier III: Pertains to capability of responding to oil spills of more than 10,000 tons
Oil Spill Management exercise
Indian Coast Guard conducted fourth national level pollution
response exercise NATPOLREX-IV during December 13-14, 2012
at Kochi. The first ever exercise at Kochi involved one day table top
exercise on Dec 13, 2012 by creating a mock scenario of oil spill from
a tanker Motilal Nehru off Kochi with consequence of spilled oil
reaching various sensitive location nearby including beaches and
port. The stake holders, including Oil Spill Response Limited (OSRL)
participated in Table Top exercise followed by Mock drill.
54/55
Material 2010-11 2011-12 2012-13
Cement (MT) 53,793.52 54,642 59443
Tubular (M) 1,420,321.34 1,255,206 1,422,757
Chemicals (MT) 60,094.29 70,477.63 52,303
Lube Oil (L) 1,545,197.2 36,76,626 29,31,534
SOCIALPERFORMANCE
56/57
SOCIALPERFORMANCE
56/57
SOCIALPERFORMANCE
MANAGEMENT APPROACH &PERFORMANCE – SOCIAL
In ONGC, we believe that we can achieve sustainable growth only by integrating our business approach with the expectations of our stakeholders,
conducting our business with integrity and providing our workforce with a safe environment and opportunity for growth. Our belief is translated into
action through various policies, plans and work programs.
Being one of the largest CPSE of India, we endeavour to achieve highest level of business ethics and transparency in our organization. Our Vigilance
department is empowered to ensure our operations and procurements are conducted in an utmost transparent and ethical manner.
Our CSR projects are selected taking into account needs of the stakeholder in our operational areas as well as regions of backward districts identified
by planning Commission for Backward Region Grant Fund. Additionally, our CSR projects are designed in alignment with the Guidelines on
Corporate Social Responsibility for Central Public Sector Enterprises issued by the Department of Public Enterprises. Our Chief of Corporate Social
Responsibility is the senior most person responsible for community development projects. He is supported by Head of Human Resources / Employee
Relations at plant level. The operational activities are looked upon by full time CSR co coordinators at the various units.
To ensure safety of our employees, we have robust management systems in place. Our HSE department is working extensively to ensure safe
working conditions for our workforce. Our workforce is provided training on safety measures on regular basis. We closely monitor our injury rates and
constantly work towards ensuring safer working environment for our workforce.
We believe quality of talent is defining force for our success. To ensure we attract and retain best talents of the country, we provide our employees with
a motivating and at the same time challenging work environment. Training to employees has been one of the consistent parameter in the annual MoU
targets of ONGC. We believe in providing equal opportunity to our employees as well as our contract workers through fair wage policy. We also sign
an integrity pact with our vendors and suppliers to ensure commitment to ethical practices and no violation to human rights.
Safety and health of our employees and security of our assets has been consistently identified as one of our key material issue. We ensure strict
adherence to globally recognized and industry accredited best practices in its domain. We have implemented Quality Health Safety and Environment
(QHSE) Management System.
Safety of our People and Assets
The Health, Safety and Environment management system is driven through our Integrated HSE Policy and Risk Management Policy. For
implementation of these policies separate HSE department with dedicated manpower and financial budget is institutionalized in ONGC. The team is
steered at the Apex level by a Director of the ONGC Board.
Some of the standout features of the Company’s exemplary HSE practices are - Regular QHSE internal audits, Fire safety
measures, regular fire and earthquake mock drills, Health Awareness programs, water and electricity conservation, Material
Safety Data Sheets (MSDS), Personal Protective Equipment (PPE), and identification and implementation of
Environment Management Programmes (EMP) and Occupation Health and Safety (OHS) programs as per need of the
units, near miss and Governance, Risk management and Compliance (GRC) reporting.
58/59
Back to Contents
SOCIALPERFORMANCE
MANAGEMENT APPROACH &PERFORMANCE – SOCIAL
In ONGC, we believe that we can achieve sustainable growth only by integrating our business approach with the expectations of our stakeholders,
conducting our business with integrity and providing our workforce with a safe environment and opportunity for growth. Our belief is translated into
action through various policies, plans and work programs.
Being one of the largest CPSE of India, we endeavour to achieve highest level of business ethics and transparency in our organization. Our Vigilance
department is empowered to ensure our operations and procurements are conducted in an utmost transparent and ethical manner.
Our CSR projects are selected taking into account needs of the stakeholder in our operational areas as well as regions of backward districts identified
by planning Commission for Backward Region Grant Fund. Additionally, our CSR projects are designed in alignment with the Guidelines on
Corporate Social Responsibility for Central Public Sector Enterprises issued by the Department of Public Enterprises. Our Chief of Corporate Social
Responsibility is the senior most person responsible for community development projects. He is supported by Head of Human Resources / Employee
Relations at plant level. The operational activities are looked upon by full time CSR co coordinators at the various units.
To ensure safety of our employees, we have robust management systems in place. Our HSE department is working extensively to ensure safe
working conditions for our workforce. Our workforce is provided training on safety measures on regular basis. We closely monitor our injury rates and
constantly work towards ensuring safer working environment for our workforce.
We believe quality of talent is defining force for our success. To ensure we attract and retain best talents of the country, we provide our employees with
a motivating and at the same time challenging work environment. Training to employees has been one of the consistent parameter in the annual MoU
targets of ONGC. We believe in providing equal opportunity to our employees as well as our contract workers through fair wage policy. We also sign
an integrity pact with our vendors and suppliers to ensure commitment to ethical practices and no violation to human rights.
Safety and health of our employees and security of our assets has been consistently identified as one of our key material issue. We ensure strict
adherence to globally recognized and industry accredited best practices in its domain. We have implemented Quality Health Safety and Environment
(QHSE) Management System.
Safety of our People and Assets
The Health, Safety and Environment management system is driven through our Integrated HSE Policy and Risk Management Policy. For
implementation of these policies separate HSE department with dedicated manpower and financial budget is institutionalized in ONGC. The team is
steered at the Apex level by a Director of the ONGC Board.
Some of the standout features of the Company’s exemplary HSE practices are - Regular QHSE internal audits, Fire safety
measures, regular fire and earthquake mock drills, Health Awareness programs, water and electricity conservation, Material
Safety Data Sheets (MSDS), Personal Protective Equipment (PPE), and identification and implementation of
Environment Management Programmes (EMP) and Occupation Health and Safety (OHS) programs as per need of the
units, near miss and Governance, Risk management and Compliance (GRC) reporting.
58/59
Emergency Preparedness
Process Safety
All the installations both in offshore and onshore areas have emergency and disaster management plans. Mock drills as per annual plan are conducted by these installations to keep up the readiness of plan by improving the response time. ONGC has a well-documented Regional Contingency Plan (RCP) which is vetted by Western Naval Command of the Indian Navy. It contains emergency response for emergencies like blow-out, fire, search and rescue, vessel hitting installation, oil spill, helicopter crash etc. Standard Operating Procedures for various contingencies have been prepared and documented. There is also a dedicated fire control group in place.
ONGC has developed SMS based on OHSAS 18001 which is third party certified. Significant hazards are identified and associated risks are evaluated, quantified and brought to acceptable level through relevant work procedure and management plans for our business. ONGC follows five basic steps to manage its operational risk.
Identified hazards are analyzed using Fault Tree and Event Tree methodology. Subsequently risks are prioritized using risk matrix to sort through a large number of risks and plan for contingency plan and safe measure and control. The above studies are essential to bring down the overall risk of a facility to ALARP level (As Low As Reasonably Practicable).
We have mapped the safety events in terms of business activity and conduct safety events which cover all the business processes. In FY13, We have done the pilot study for Asset Integrity for six installations including oil & gas process complex and drilling rigs.
Safety and health is publicized through Safety awareness programmes
to enhance awareness among the employees. Safety quiz, safety
poster competition , slogan, lectures on safety aspects by industry
experts were organized for employees and their family at corporate level
and across work centres. Apart from these, workcentres level activities,
organizational level big events/programmes with identified THEME are
launched every year, like this year 2013 has been dedicated as “Year of
Safety of Contract Workers”. Some of other initiatives are:
• Safety Training Centre for Contractual Employees going to offshore
“2013- Year of Safety of Contract Workers”
The petty job contract workers constitute a significant number of contractual workers engaged in ONGC. The contractors engage them for
unskilled or semi-skilled jobs for short duration and put them directly to work in absence of dedicated training institutes available for
contractual workers. The lack of awareness about the job related hazards put them to increased risk of accident. This is a special drive to
address and take up on priority various safety issues with petty contract workers.
All these measures have resulted in considerable reduction in our incident rates for injuries (22.52%), fatalities (55.56%) and lost days (12.75%) in
FY13 over FY12.
• Contractor Safety Workshop
• ONGC-IADC Workshop on Drilling Safety
• Workshop on Finger Safety with focus on finger safety in drilling
operations
• HSE orientation Training
• Behavioural Based Safety Training to bring about positive
reinforcements to change unsafe individual behaviours and
encourage safe behaviours.
0.00 0.05 0.10 0.15 0.20
2008-09
2009-10
2010-11
2011-12
2012-13
0.00
0.03
0.01
0.01
0.01
0.18
0.15
0.16
0.11
0.04
0.08
0.08
0.08
0.06
0.03
Total Contractual Permanent
Figure 19: Incidents involving injuries (per million man hours)
Total Contractual Permanent
0.00 0.50 1.00 1.50 2.00 2.50 3.00
2008-09
2009-10
2010-11
2011-12
2012-13
0.94
1.19
0.66
0.66
0.72
2.86
2.01
0.92
0.88
0.47
1.72
1.57
0.78
0.77
0.26
Manday lost (Days) Nearmiss
0 2000 4000 6000
2008-09
2009-10
2010-11
2011-12
2012-13
381
370
362
345
301
3120
3660
5244
4902
5756
ONGC-IADC Workshop on Drilling SafetyOne day workshop was organized in association with International Association of Drilling Contractors (IADC) at Mumbai, where more than 150 delegates of drilling fraternity of oil and gas industry discussed and deliberated on safety while drilling operations. Our management has decided to arrange such event periodically and asked the employees to integrate the learnings from theevent.
Pilot Study for Asset Integrity Management (AIM)Safety Critical Elements (SCEs) are highly essential for the integrity of any installation. SCEs can either be equipment or a procedure of an installation whose purpose is to prevent, control or mitigate major accident hazards. AIM helps in providing assurance that all identified SCEs will operate with the required reliability and they be able to prevent incidents by developing a maintenance management strategy of these SCEs. Considering the importance of this safety management tool, the following 6 installations have been identified for Asset Integrity:• BHS Process Complex, Mumbai Offshore• HEERA Process Complex, Mumbai Offshore• Sagar Vijay Rig, Mumbai Offshore• CPF Ghandhar, Ankleshwar Asset• South Santhal, Mehsana Asset• Electrical Rig, Rajahmundry Asset
Assess
Risk
Decide
Control
Measures
ImplementControl
Measures
Mon
itors
& R
evie
ws
Iden
tify
Haz
ard
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We realize that loss incidents resulting in injuries and fatalities to our
workmen and those belonging to our contractors are one of the
challenging issues. To better understand the causes responsible for
these loss incidents, we have aggressively increased awareness across
the organization to report all injury causing incidents including first aid
injuries since the past two years.
To contain the fatalities in the contractual workforce, we are taking steps
to strengthen contract management, work supervision including
educating contractual personnel on work safety through tool box talks
and ensuring work appropriate medical fitness for them.
To ensure safe living conditions for our employees and their families we
ensure there is no exposure to excessive amount of hazardous
substances. We conduct regular air and water quality tests as well as
provide regular health check-ups, counselling and treatment to
employees, workers and their families. We have occupational health
centres at all major locations. These centres are equipped with trained
health specialists and modern medical equipment.
We have a comprehensive policy on periodic medical examination
(PME) for all our regular employees, employees on deputation,
tenure/term based employees and casual/contingent workers. General
PME is done every 2 to 5 years based on age group of employees.
Specific PME is conducted for employees identified as having hazard
based profiles. The periodicity is clearly mentioned in our Periodic
Medical Examination Policy. We also conduct PME workshops for our
contractual workers time and again. As per the data, it is concluded
that there has been no reported case of occupational disease in the
reporting period.
Keeping our Employees and Workforce Healthy
Talent Management
In the wake of rising superannuation trends and an aggressive growth
trajectory embraced by the Company in its PP-2030, the issue of
attracting, building and retaining domain expertise has gained sharp
focus. ONGCs talent management edifice rests upon three broad areas
of focus-Talent Replenishment, Skill and Competencies development
and Retention.
A. Within talent replenishment paradigm, ONGC has embarked
upon a host of measures, which include:
An increased rate of regular induction, which is based on a long term
perspective, to replenish the talent pool to sustain future leadership
roles and address the concerns of the graying of workforce and
qualification imbalances.
On boarding of retired E&P professionals in the capacity of Advisors and
Consultants, whose services are being remunerated through payment
of honorarium. Such measures are directed to create a platform for
transfer of knowledge, mentorship and guidance in order to insulate
from vacuum that may arise due to increased rates of superannuation.
Lateral inductions at E2, E4 and E6 levels as a hedge to bridge the
competency gaps that may occur as the result of midstream employee
turnovers that are part and parcel of a competitive business
environment.
Contractual engagement of Domain expert’s equivalent to E6 level
executive to create a platform for inflow of contemporary competencies,
expertise and knowledge transfer.
B. Skill and Competency Building paradigm rests upon two basic
pillars of Job Rotations and Training and Succession Planning. The task
cut out for HR is to “manage the leadership pipeline with succession
planning and a next generation leaders program. In this regard, a
Succession Planning Application Module- “DISHA”-(Developing
Inspired Successors for Higher Achievement), has been successfully
launched. It is a tool to spot likely successors early on so that efforts can
be directed to providing developmental experiences that align with the
challenge encounters en route to senior executive roles and rigorous
management of careers based on individuals’ potential to progress
through the talent pipeline
C. Retention and Motivation paradigm is built on number of initiatives
have been launched to address employee retention concerns. One such
endeavor is the formulation of ‘Per formance Related Pay’ scheme, the
purpose of which is to embed a high performance culture across the
organization. It is a scheme directed to safe-guard the expectations of
the high performers. It affords differentiated monetary pay-outs based
on annual performance appraisals. This encourages and motivates the
employees to improve performance. The PRP algorithm integrates
overall Company performance at the macro level with Individual
performance at the micro level.
To better aid employee development, we ensure that 100% of our
employees receive a formal performance appraisal.
Skill up-gradation is a vital component for driving excellence through
Human Resource. ONGC has recently branded the spectrum of its
training activities as EXPONENT- a comprehensive program which
nurtures the energy leaders of tomorrow. The program is facilitated by
the ONGC Academy, Regional Training Institutes (RTIs), other in-house
Institutes and through tie-ups with globally recognized trainers.
In FY13, 691 Graduate Trainees in five batches were imparted induction
training. In order to keep the executives abreast of the latest
advancements in cutting edge concepts and technologies in oil and gas
exploration and production, 84 programs were organized, including
foreign faculty programs. 175 senior level executives were exposed to
Senior Management and Advanced Management Program with
overseas learning component through tie-ups with leading B-schools of
the country. Total number of training hours is 207447 man-days
in FY13. The average training hours of male is 52.48 and of female
are 5.18.
Training
We regularly have formal, structured consultation-led meetings to
review, discuss, and take-up improved measures to promote
occupational health and safety of employees at our workplace. Our
relationship with our employees (including unionized category) does not
necessitate formal agreements on HSE topics.
Planning for Superannuation
Employee Headcount and Turnover
We have specially designed training programs to assist our employees
who are in the retirement zone. In the reporting period, a total of 150
employees were assisted in superannuation. Several programs were
conducted which covered topics like:
• Understanding retirement and the processes involved
• Managing the change - Retiring to purposeful activity
• Investment avenues
• Tax planning
• Implications of WILL
• Change in mental attitude
• Enriching relationships
• Discovering own potential - Never too old to work
• Time management, Leading a healthy life
• Topics on EPS and PRBS
We saw a marginal increase in our workforce mainly due to increase in
non- executive employees. All our employees, who were on parental
leave, have returned to work and as such no employees have left the job
after availing parental leave.
89.3%
10.7%
Figure 21: Training-man-days Institute wise in FY13
Figure 20: Training-participants 2008-12
7510
7000
5000
2008-09 2009-10 2010-11 2011-12 2012-13
76478107 8269
7754
Health and Safety Aspect
Provision of protective equipment
Joint-management health and safety committees
Participation of worker representatives in health and safety inspections, audits, and accident investigations
Training and education
Complaints mechanism
Right to refuse unsafe work
Periodic Inspections
Male
Female
Figure 22: Training-participants by gender in FY13
158561, 77%
15921, 8%
4984, 2%
10872, 5%6990, 3% 10119, 5%
ONGC AcademyRTIsIOGPTIPSHEMSMPIDT
62/63
Assistance Programs
Education/training Counseling Prevention Treatment/ Risk Control
Workers
Worker Families
Community Members
We have an aggressive growth plan to meet the challenge of greying
workforce. Our projected plan for next three years is:
Women Empowerment
Work-Life Balance
Women constitute 6.37 per cent of ONGC’s employees. During the
year, programs on women empowerment and development, including
programs on gender sensitization were organized. We actively support
and nominate our female employees for programs organized by
“Women in Public Sector (WIPS)” and “Women in Leadership Roles
(WILR)”. Also, a new award, ‘Woman Executive of The Year’, was
introduced by the Company during the year, as part of its Annual Award
Scheme.
In the reporting period, this training was attended by 453 employees and
conducted 13 programs covering topics such as
We provide our employees opportunities and assistance to ensure a
balanced work life. Most of our employees live in townships where they
are provided facilities like gymnasiums, music rooms etc.
Our “Nav-Utsah” programme aims at educating senior executives on
stress management, conflict resolution, good parenting, Yoga and other
personality development initiatives. We routinely organize outbound
team building programmes like family events at work centres,
celebrations at all major festivals to engage with our employees and
their families. We have various Mahila Samiti and Resident Welfare
Associations (RWA) for organizing various social and cultural events at
ONGC work centres.
Our employee turnover numbers are:
Diversity and Equal Opportunity
We ensure that all individuals are accorded equal opportunities to develop knowledge, skills and competencies that are relevant to the job he or she performs. We recruit employees with diverse background covering SC, ST, OBC and minorities as well as those who are differently abled. Gender equality is one area where we have stressed upon leading to strict compliance of the law relating to Equal Remuneration. Women representation at ONGC is spread across all the levels of organization, across all major disciplines and cadres, both in technical and non-technical areas of work. We have evolved a working environment that is devoid of gender discrimination or bias. Other supportive and nurturing initiatives include focused training and development programs for women and the setting up of the Women Development Forum.
The ratio of basic salary of men to women for the same position across all employee categories is 1.
Ms Kavita Raut and Ms Aswini Ponnappa were conferred with Arjuna Award for Athletics and Badminton respectively in 2012-13. Today we have fifteen Arjuna Awardees besides one Khel Ratna and two Padamshrees.
We were the principal sponsor for the Indian Contingent for the Olympics
Games 2012. 15 ONGCians were part of the Indian contingent. Our
Chairman was selected as the president of All India Public Sector Sports
Promotion Board (AIPSSPB), the largest conglomerate of public sector
undertaking, in July 2012.
Our HRM policy covers the human rights aspect and as such there is no
separate human rights policy. All suppliers/contractors who undertake to
provide services enter into a comprehensive formal agreement with
ONGC, which contains stipulations and conditions requiring them to
ensure the compliance of various applicable labour statutes in respect of
their employees/ workers. These include the Payment of Wages Act,
1936, the Minimum Wages Act, 1948, Equal Remuneration Act, 1976,
the Industrial Disputes Act, 1947, the Employees State Insurance Act,
1948, the Employees Provident Fund and Misc. Provisions Act, 1952,
the Child Labour (Prohibition and Regulation) Act, 1986 and the
Contract Labour (R&A) Act, 1970. As a responsible Principal Employer,
ONGC ensures that contractor’s labour is treated fairly as per the law
and for complaints or disputes, the contractors are advised to settle the
issue in accordance with the law.
The organization proposes to meet future economic, environmental and
Human Right Practices
A spirit that has transcended its boundaries
First time in the history of ONGC, three graduate women executives were
posted at Offshore on regular shift operation. The male dominance is no
more a bastion at Offshore in ONGC rather in India. It is matter of pride for
ONGC and the country that the women are now proactively and
combatively working for securing energy needs of the nation at the very
frontiers of oil field technology.
Well the oil and gas industry worldwide is a male dominated industry.
Similar norms prevail in ONGC too but with a difference. Women are
recruited in the company not just for allied functions but also in core jobs
like exploration and production. It is a level playing field here in ONGC.
It’s the performance which counts. Women have ample opportunities to
start and helm important initiatives within the company. There is no
dearth of challenging assignments and postings if one is up for it and no
special concessions are made on the basis of gender. It is the delivery of
those counts.
social challenges by making efforts to establish and ensure fair
practices/ethics in its supply chain. We organize Business partners
Meet since April 2002, where our Board of Directors share the strategic
goals with all leading vendors in the oil field business.
We are committed to the principles of the United Nations Global
Compact on Human Rights and subscribe to the international
agreements/conventions such as Kyoto Protocol, Montreal Protocol,
UNCLOS (MMD), SOLAS, and MARPOL etc. within the frame work of
our Government directives.
We are fully committed to respect human rights across our operations
and this reflects in our dealing with our different stakeholders. We have
strict guidelines on non – discrimination and prohibition of child labour
and forced labour across all our operation. All our investment
agreements include a clause asking commitment from our suppliers,
contractors and vendors to uphold human rights as per Indian laws and
regulations. They are expected to ensure with all applicable labour laws
of the country such as minimum and equal wages, prohibition of child
labour and forced labour.
Awareness on human rights is included in our training programmes. All
our graduate trainees are provided training on human right during their
induction training. Our security personnel across the operations are
trained on human rights issues. This year, a special training was held on
“treatment of Juvenile caught while theft “ at Silchar.
In FY13, we don’t have any reported case of discrimination on caste,
creed, sex and religion. In FY13, We have not received any grievance on
human rights violations.
All ONGC operations are subject to human rights reviews and/or impact
assessments.
Safety Training Center for Contractual WorkersWe have set-up free Safety Training Center for Contractual workers going to offshore. This training centre has been pitched as a stepping stone towards 'Operation Zero' for ONGC, as a sign of our commitment to the cause of overseeing the overall safety of all men and processes as a responsible corporate citizen and the principal employer.
Table 15: Employee Headcount 2009-12
Table 16: Employee Diversity 2009-12
Table 17: Employee turnover 2009-12
AGE GROUP GENDER (M/F) 2009-2010 2010-2011 2011-2012 2012-13
21-30 F 0 2 1 7
21-30 M 51 42 36 42
21-30 51 44 37 49
31-40 F 0 1 1 2
31-40 M 50 9 12 7
31-40 50 10 13 9
41-50 F 0 0 2 1
41-50 M 22 22 18 16
41-50 22 22 20 17
51-55 F 0 0 0 1
51-55 M 10 8 5 8
51-55 10 8 5 9
56-60 F 2 0 0 1
56-60 M 4 2 2 0
56-60 6 2 2 1
Overall Turnover 139 86 77 85
8991057
1368
702
1297
2333
0
500
1000
1500
2000
2500
2012-13 2013-14 (Projected) 2014-15(Projected)
Retirements
Recruitments
Promoting Sports
ONGC continues to extend its support for all the sportsperson under its
employment. They are provided financial assistance and encouraged
for training and participation in tournaments across the globe. We have
scholarship programme for promoting these sports person across 23 st sports categories. On 31 March 2013, we have 178 sportsperson as
employees of ONGC. 64/65
(Workforce Type) 2009-10 2010-11 2011-12 2012-13
Permanent 32,826 33,273 32,909 32,988
Executive 24,484 24,995 24,697 24,680
Non-Executive 8,342 8,278 8,212 8,308
Others – Tenure/Term based 1,838 1,681 1,481 1,772
Contract 17,458 16,080 18,770 18,088
Daily Wage Workers 683 686 645 613
Employee Diversity 2009-10 2010-11 2011-12 2012-13
Female 1,990 2,056 2,054 2,100
Male 30,790 31,173 30,808 30,888
Product Responsibility
Health and Safety
ONGCs product line consists of three broad product categories: Crude
Oil, Natural Gas and value added products. All the above products are
produced in bulk and sold in unpacked condition to downstream entities,
who further distribute them to retail consumers. Our products are placed
in "storage, distribution and supply" stage of the hydrocarbon value
chain, and comply with stringent quality standards, laws and
regulations.
Due to the limited scope of company’s operations in the products’
complete lifecycle, a formal system of assessment for improvement of
health and safety across the products entire lifecycle has not been felt
necessary.
We intend to progressively carry out limited assessment of the health
safety and environment impacts of the products over the company
relevant life-cycle element.
safety
compliance. As such, ONGC has environment management systems,
quality management systems and occupational health and safety
management systems, custody transfer management, which is in
accordance with international standards.
The storage, distribution and supply of our products are regulated by
means of well-defined laws and require environmental and
Udaan: This is a special Initiative taken up by the Ministry of Home
Affairs, Govt. of India for the educated youth of Jammu and Kashmir in
association with National Skill Development Corporation (NSDC). The
project aims to train Graduates/ Post Graduates from J&K to improve
their technical knowledge and soft skills and enhance their scope for
employability.
Preservation of heritage monuments: We are working on conservation
and development of four Ahom monuments at Sibsagar, Assam through
Archaeological survey of India and National Culture Fund. Project was
inaugurated in March 2012 and first phase of project is under execution.
Comprehensive Conservation and Development Plan is ready for 3
monuments; the same for 4th monument is under development.
Beneficiaries form the project will be local population through
conservation of culture and heritage in addition to creation of tourism
avenues and job opportunities
This year we have conducted an impact assessment analysis for some
of our key projects.
Product and Service Labeling
For crude oil sale, batch wise certificates are issued for the product,
which includes various quality parameters including BS&W. Product
labeling related to storage procedures and safety precautions are
clearly indicated in the ONGC installation holding the crude.
All VAPs are supplied with batch wise test reports and standard handling
procedures to be followed in line with OISD/other statutory standards.
Relevant BIS specifications (if applicable) and quality certificates with
parameters are issued while dispatching. Product labeling related to
storage procedures and safety precautions are clearly indicated in the
ONGC installation holding the VAP product.
Regarding the sale of gas from small/isolated and marginal fields as per
MoP&NG guidelines, ONGC has implemented e-tender route following
which bid documents specifying tender terms and conditions, which
inter-alia includes details of the product, its specification, likely uses are
available to prospective bidders.
There are no incidents this year for non-compliance with regulations
concerning advertising, promotion, and sponsorship. We have been
complying with laws and regulations concerning the provision of our
products and services and have not been imposed any fines for non-
compliance this year.
As such, we are not required to purchase any biofuels to meet the
sustainability criteria and therefore we did not produce any biofuels
in FY13.
Marketing Communications
In case of natural gas, regular meetings are held with main customers (97%)
of gas sales at Corporate, Zonal and Site levels. Gas supplies are maintained
on a round-the-clock basis and customer’s concern on product are
addressed on an immediate basis. In view of constant interaction and
feedbacks through meetings, no need has been felt presently to undertake
separate surveys to measure customer satisfaction.
Being an upstream E&P organisation, we do not go for branding
of products and services. However, ONGC have actualized
corporate branding.
There have not been any instance of non-compliance with regulations or
with voluntary codes concerning marketing communications in FY13.
There have not been any instance of substantiated complaints
regarding breaches of customer privacy and losses of customer data
in FY13.
Impact Assessment of our CSR activities
ONGC has taken CSR initiatives in a big way in the field of elderly health, environment, and livelihood creation through vocational training, ecological conservation & improvement of IT skills among the youths. Over the last few years, ONGC has been implementing CSR activities around its various areas of operation with an aim to realise maximum social & environmental benefits as designed in the CSR projects objectives. Evaluation and impact assessment plays an important role in social sector’s projects to assess whether the project is going in right direction and also yielding the desired outcome in the line of set objectives or not. In order to be able to judge the effectiveness of CSR project & its process of implementation regular impact assessment studies are carried out by the company.
During the year a third party impact assessment study has been carried out to assess the relevance, effectiveness, sustainability
context & reliability of the on-going projects and to assess the overall impact of the CSR projects. The specific objectives of the assessment of CSR activities put emphasis on
• CSR project implementation in terms of the need of project area.
• Efficiency of project in terms of achieved output and activities plan.
• Effectiveness of project in terms of goal achievement in terms of input & process.
• Positive and Negative affects on socio-economic and environmental aspects of the project areas.
• Nature of project sustainability and provide suggestion for further improvement.
The impact assessment was carried out for following projects:
• Varisthjan Swasthya Seva Abhiyan (VSSA)
• Computer Education Project
• Project Utkarsh
• Project Eastern Swamp Deer
• Project Mangrove Restoration and Conservation Education Unit
• Project Harit Moksha
The assessment shows a good correlation with its intended objective
ONGC-The Akshaya Patra Foundation: This unique CSR initiative
aims at setting up of a centralized fully automated mechanized kitchen
with a capacity to provide mid-day meals to two lakh school going
children (enrolled in Govt. schools) per day in the District of Surat,
Gujarat.
68/69
Product Responsibility
Health and Safety
ONGCs product line consists of three broad product categories: Crude
Oil, Natural Gas and value added products. All the above products are
produced in bulk and sold in unpacked condition to downstream entities,
who further distribute them to retail consumers. Our products are placed
in "storage, distribution and supply" stage of the hydrocarbon value
chain, and comply with stringent quality standards, laws and
regulations.
Due to the limited scope of company’s operations in the products’
complete lifecycle, a formal system of assessment for improvement of
health and safety across the products entire lifecycle has not been felt
necessary.
We intend to progressively carry out limited assessment of the health
safety and environment impacts of the products over the company
relevant life-cycle element.
safety
compliance. As such, ONGC has environment management systems,
quality management systems and occupational health and safety
management systems, custody transfer management, which is in
accordance with international standards.
The storage, distribution and supply of our products are regulated by
means of well-defined laws and require environmental and
Udaan: This is a special Initiative taken up by the Ministry of Home
Affairs, Govt. of India for the educated youth of Jammu and Kashmir in
association with National Skill Development Corporation (NSDC). The
project aims to train Graduates/ Post Graduates from J&K to improve
their technical knowledge and soft skills and enhance their scope for
employability.
Preservation of heritage monuments: We are working on conservation
and development of four Ahom monuments at Sibsagar, Assam through
Archaeological survey of India and National Culture Fund. Project was
inaugurated in March 2012 and first phase of project is under execution.
Comprehensive Conservation and Development Plan is ready for 3
monuments; the same for 4th monument is under development.
Beneficiaries form the project will be local population through
conservation of culture and heritage in addition to creation of tourism
avenues and job opportunities
This year we have conducted an impact assessment analysis for some
of our key projects.
Product and Service Labeling
For crude oil sale, batch wise certificates are issued for the product,
which includes various quality parameters including BS&W. Product
labeling related to storage procedures and safety precautions are
clearly indicated in the ONGC installation holding the crude.
All VAPs are supplied with batch wise test reports and standard handling
procedures to be followed in line with OISD/other statutory standards.
Relevant BIS specifications (if applicable) and quality certificates with
parameters are issued while dispatching. Product labeling related to
storage procedures and safety precautions are clearly indicated in the
ONGC installation holding the VAP product.
Regarding the sale of gas from small/isolated and marginal fields as per
MoP&NG guidelines, ONGC has implemented e-tender route following
which bid documents specifying tender terms and conditions, which
inter-alia includes details of the product, its specification, likely uses are
available to prospective bidders.
There are no incidents this year for non-compliance with regulations
concerning advertising, promotion, and sponsorship. We have been
complying with laws and regulations concerning the provision of our
products and services and have not been imposed any fines for non-
compliance this year.
As such, we are not required to purchase any biofuels to meet the
sustainability criteria and therefore we did not produce any biofuels
in FY13.
Marketing Communications
In case of natural gas, regular meetings are held with main customers (97%)
of gas sales at Corporate, Zonal and Site levels. Gas supplies are maintained
on a round-the-clock basis and customer’s concern on product are
addressed on an immediate basis. In view of constant interaction and
feedbacks through meetings, no need has been felt presently to undertake
separate surveys to measure customer satisfaction.
Being an upstream E&P organisation, we do not go for branding
of products and services. However, ONGC have actualized
corporate branding.
There have not been any instance of non-compliance with regulations or
with voluntary codes concerning marketing communications in FY13.
There have not been any instance of substantiated complaints
regarding breaches of customer privacy and losses of customer data
in FY13.
Impact Assessment of our CSR activities
ONGC has taken CSR initiatives in a big way in the field of elderly health, environment, and livelihood creation through vocational training, ecological conservation & improvement of IT skills among the youths. Over the last few years, ONGC has been implementing CSR activities around its various areas of operation with an aim to realise maximum social & environmental benefits as designed in the CSR projects objectives. Evaluation and impact assessment plays an important role in social sector’s projects to assess whether the project is going in right direction and also yielding the desired outcome in the line of set objectives or not. In order to be able to judge the effectiveness of CSR project & its process of implementation regular impact assessment studies are carried out by the company.
During the year a third party impact assessment study has been carried out to assess the relevance, effectiveness, sustainability
context & reliability of the on-going projects and to assess the overall impact of the CSR projects. The specific objectives of the assessment of CSR activities put emphasis on
• CSR project implementation in terms of the need of project area.
• Efficiency of project in terms of achieved output and activities plan.
• Effectiveness of project in terms of goal achievement in terms of input & process.
• Positive and Negative affects on socio-economic and environmental aspects of the project areas.
• Nature of project sustainability and provide suggestion for further improvement.
The impact assessment was carried out for following projects:
• Varisthjan Swasthya Seva Abhiyan (VSSA)
• Computer Education Project
• Project Utkarsh
• Project Eastern Swamp Deer
• Project Mangrove Restoration and Conservation Education Unit
• Project Harit Moksha
The assessment shows a good correlation with its intended objective
ONGC-The Akshaya Patra Foundation: This unique CSR initiative
aims at setting up of a centralized fully automated mechanized kitchen
with a capacity to provide mid-day meals to two lakh school going
children (enrolled in Govt. schools) per day in the District of Surat,
Gujarat.
68/69
70/71
GRI INDEX - Oil and GasSector SupplementSTANDARD DISCLOSURE PART-I: Profile Disclosure
Profile Disclosure
Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
1. Strategy and Analysis
1.1 Statement from the most senior decision - maker of the organization.
Fully 12-13 Statement of Continuing Support
1.2 Description of key impacts, risks, and opportunities
Fully 18-19, 24-29
2. Organisational Profile
2.1 Name of the organization Fully Cover Page, 2
Section A: General Information about the Company
2.2 Primary brands, products, and/or services
Fully 2 Section A: General Information about the Company
2.3 Operational structure of the organization
Fully 7-8 Section C: Other Details
2.4 Location of organization’s headquarters
Fully Back Cover Section A: General Information about the Company
2.5 Number of countries where the organization operates
Fully 6 Section A: General Information about the Company
2.6 Nature of ownership and legal form Fully 4 Section C: Other Details
2.7 Markets served Fully 4 Section A: General Information about the Company
2.8 Scale of the reporting organization Fully 4
2.9 Significant changes during the reporting period
Fully 9
2.10 Awards received in the reporting period
Fully 10-11
3. Report Parameters
3.1 Reporting period Section A: General Information about the Company
3.2 Date of most recent previous report (if any)
Fully 9
3.3 Reporting cycle Fully 9 Section D: BR Information
3.4 Contact point for questions regarding the report or its contents.
Fully 9 Section A: General Information about the Company
3.5 Process for defining report content Fully 9
3.6 Boundary of the report Fully 9 Section C: Other Details
3.7 Specific limitations on the scope or boundary of the report
Fully 9
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations
Fully 9
3.9 Data measurement techniques and the bases of calculations
Fully 9
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
Fully 9
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report
Fully 9
3.12 GRI Content Index Fully 70-81
3.13 Policy and current practice with regard to seeking external assurance for the report
Fully 9 Section D: BR Information
4. Governance, Commitments, and Engagement
Governance Actions Taken to Implement Principles
1-10
4.1 Governance structure of the organization
Fully 5, 7-8 " Section D: BR Information
4.2 Indicate whether the Chair of the highest governance body is also an executive officer
Fully 14 "
4.3 State the number of members of the highest governance body that are independent and/or non-executive members
Fully 14 "
4.4 Mechanisms for shareholders and employees to provide recommend-ations or direction to the highest governance body
Fully 15 "
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives
Fully 14 "
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Fully 15 "
4.7 Process for determining the qualifications and expertise of the members of the highest governance body
Fully 14 "
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.
Fully 2.3, 16-17 "
4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental and social performance
Fully 15-16 " Section D: BR Information
4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance
Fully 15-16 " Section D: BR Information
Profile Disclosure
Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
Back to Contents
70/71
GRI INDEX - Oil and GasSector SupplementSTANDARD DISCLOSURE PART-I: Profile Disclosure
Profile Disclosure
Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
1. Strategy and Analysis
1.1 Statement from the most senior decision - maker of the organization.
Fully 12-13 Statement of Continuing Support
1.2 Description of key impacts, risks, and opportunities
Fully 18-19, 24-29
2. Organisational Profile
2.1 Name of the organization Fully Cover Page, 2
Section A: General Information about the Company
2.2 Primary brands, products, and/or services
Fully 2 Section A: General Information about the Company
2.3 Operational structure of the organization
Fully 7-8 Section C: Other Details
2.4 Location of organization’s headquarters
Fully Back Cover Section A: General Information about the Company
2.5 Number of countries where the organization operates
Fully 6 Section A: General Information about the Company
2.6 Nature of ownership and legal form Fully 4 Section C: Other Details
2.7 Markets served Fully 4 Section A: General Information about the Company
2.8 Scale of the reporting organization Fully 4
2.9 Significant changes during the reporting period
Fully 9
2.10 Awards received in the reporting period
Fully 10-11
3. Report Parameters
3.1 Reporting period Section A: General Information about the Company
3.2 Date of most recent previous report (if any)
Fully 9
3.3 Reporting cycle Fully 9 Section D: BR Information
3.4 Contact point for questions regarding the report or its contents.
Fully 9 Section A: General Information about the Company
3.5 Process for defining report content Fully 9
3.6 Boundary of the report Fully 9 Section C: Other Details
3.7 Specific limitations on the scope or boundary of the report
Fully 9
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations
Fully 9
3.9 Data measurement techniques and the bases of calculations
Fully 9
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
Fully 9
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report
Fully 9
3.12 GRI Content Index Fully 70-81
3.13 Policy and current practice with regard to seeking external assurance for the report
Fully 9 Section D: BR Information
4. Governance, Commitments, and Engagement
Governance Actions Taken to Implement Principles
1-10
4.1 Governance structure of the organization
Fully 5, 7-8 " Section D: BR Information
4.2 Indicate whether the Chair of the highest governance body is also an executive officer
Fully 14 "
4.3 State the number of members of the highest governance body that are independent and/or non-executive members
Fully 14 "
4.4 Mechanisms for shareholders and employees to provide recommend-ations or direction to the highest governance body
Fully 15 "
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives
Fully 14 "
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Fully 15 "
4.7 Process for determining the qualifications and expertise of the members of the highest governance body
Fully 14 "
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.
Fully 2.3, 16-17 "
4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental and social performance
Fully 15-16 " Section D: BR Information
4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance
Fully 15-16 " Section D: BR Information
Profile Disclosure
Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
72/73
Commitments to External Initatives
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization
Fully 18 Actions Taken to Implement Principle 7
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
Fully 18 Actions Taken to Implement Principles
1-10
4.13 Memberships in associations Fully 18 "
Stakeholder Engagement
4.14 List of stakeholder groups engaged by the organization
Fully 20 -23 Sharing the COP with the Company's Stakeholders
Section D: BR Information
4.15 Basis for identification and selection of stakeholders with whom to engage.
Fully 20 -23 " Section E: Principle 4- Stakeholder Engagement
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
Fully 20 -23 " Section D: BR Information ; Section E: Principle 4- Stakeholder Engagement
4.17 Key topics and concerns that have been raised through stakeholder engagement
Fully 20 -23 " Section D: BR Information ; Section E: Principle 4- Stakeholder Engagement ; Section E: Principle 5- Human Rights
STANDARD DISCLOSURE PART II: Disclosures on Management Approach (DMAs)
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
DMA EC Disclosure on Management Approach EC
Actions Takento Implement
Principles 1,4,6 and 7
Aspects Economic Performance Fully 32-39 Section D: BR Information
Market Presence Fully
Indirect Economic Impacts Fully
DMA EN Disclosure on Management Approach EN
Actions Takento Implement Principles
7, 8 and 9
Aspects Materials Fully 42-55 Section D: BR Information ; Section E: Principle 6- Environment
Energy Fully Principle 7, Principle 8
Biodiversity Fully
Emissions, Effluents and Waste Fully
Products and Services Fully
Compliance Fully
Transport Fully
Overall Fully
DMA LA Disclosure on ManagementApproach LA
Actions Taken to Implement Principles
1, 3 and 6
Aspects Employment Fully 62-64 Principle 6 Section D: BR Information
Labour/Management Relations Fully 66 Principle 3
Occupational Health and Safety Fully 58-52 Principle 1
Training and Education Fully 61, 63
Diversity and Equal Opportunity Fully 64 Principle 6
DMA HR Disclosure on Management Approach HR
Actions Taken to Implement Principles
1, 2, 3, 4, 5 and 6
Aspects Investment and Procurement Practices
Fully 37-38 Principle 1 to Principle 6
Section D: BR Information
Non-discrimination Fully 64 Principle 1, Principle 2, Principle 6
Freedom of Association and Collective Bargaining
Fully 66 Principle 1, Principle 2, Principle 3
Child Labour Fully 65 Principle 1, Principle 2, Principle 5
Forced and Compulsory Labour Fully 65 Principle 1, Principle 2, Principle 4
Security Practices Fully 65 Principle 1, Principle 2
Indigenous Rights Fully 67 Principle 1, Principle 2
DMA SO Disclosure on Management Approach SO
Actions Taken to Implement Principle
10
Aspects Community Fully 66-67 Principle 1, Principle 2 Section D: BR Information ; Section E: Principle 8- Inclusive growth ; Section E: Principle 1-Ethics,Transparency and Accountability
Corruption Fully 17-18, 58 Principle 10
Public Policy Fully 18, 58
Anti-Competitive Behavior Fully 18
Compliance Fully 58, 66
DMA PR Disclosure on Management Approach PR
Actions Taken to Implement Principles
1 and 8
Aspects Customer Health and Safety Fully 68 Section D: BR Information
Product and Service Labelling Fully 69
Marketing Communications Fully 69
Customer Privacy Fully 68-69 Principle 1
Compliance Fully 68-69
Profile Disclosure
Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI) G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
72/73
Commitments to External Initatives
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization
Fully 18 Actions Taken to Implement Principle 7
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
Fully 18 Actions Taken to Implement Principles
1-10
4.13 Memberships in associations Fully 18 "
Stakeholder Engagement
4.14 List of stakeholder groups engaged by the organization
Fully 20 -23 Sharing the COP with the Company's Stakeholders
Section D: BR Information
4.15 Basis for identification and selection of stakeholders with whom to engage.
Fully 20 -23 " Section E: Principle 4- Stakeholder Engagement
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
Fully 20 -23 " Section D: BR Information ; Section E: Principle 4- Stakeholder Engagement
4.17 Key topics and concerns that have been raised through stakeholder engagement
Fully 20 -23 " Section D: BR Information ; Section E: Principle 4- Stakeholder Engagement ; Section E: Principle 5- Human Rights
STANDARD DISCLOSURE PART II: Disclosures on Management Approach (DMAs)
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
DMA EC Disclosure on Management Approach EC
Actions Takento Implement
Principles 1,4,6 and 7
Aspects Economic Performance Fully 32-39 Section D: BR Information
Market Presence Fully
Indirect Economic Impacts Fully
DMA EN Disclosure on Management Approach EN
Actions Takento Implement Principles
7, 8 and 9
Aspects Materials Fully 42-55 Section D: BR Information ; Section E: Principle 6- Environment
Energy Fully Principle 7, Principle 8
Biodiversity Fully
Emissions, Effluents and Waste Fully
Products and Services Fully
Compliance Fully
Transport Fully
Overall Fully
DMA LA Disclosure on ManagementApproach LA
Actions Taken to Implement Principles
1, 3 and 6
Aspects Employment Fully 62-64 Principle 6 Section D: BR Information
Labour/Management Relations Fully 66 Principle 3
Occupational Health and Safety Fully 58-52 Principle 1
Training and Education Fully 61, 63
Diversity and Equal Opportunity Fully 64 Principle 6
DMA HR Disclosure on Management Approach HR
Actions Taken to Implement Principles
1, 2, 3, 4, 5 and 6
Aspects Investment and Procurement Practices
Fully 37-38 Principle 1 to Principle 6
Section D: BR Information
Non-discrimination Fully 64 Principle 1, Principle 2, Principle 6
Freedom of Association and Collective Bargaining
Fully 66 Principle 1, Principle 2, Principle 3
Child Labour Fully 65 Principle 1, Principle 2, Principle 5
Forced and Compulsory Labour Fully 65 Principle 1, Principle 2, Principle 4
Security Practices Fully 65 Principle 1, Principle 2
Indigenous Rights Fully 67 Principle 1, Principle 2
DMA SO Disclosure on Management Approach SO
Actions Taken to Implement Principle
10
Aspects Community Fully 66-67 Principle 1, Principle 2 Section D: BR Information ; Section E: Principle 8- Inclusive growth ; Section E: Principle 1-Ethics,Transparency and Accountability
Corruption Fully 17-18, 58 Principle 10
Public Policy Fully 18, 58
Anti-Competitive Behavior Fully 18
Compliance Fully 58, 66
DMA PR Disclosure on Management Approach PR
Actions Taken to Implement Principles
1 and 8
Aspects Customer Health and Safety Fully 68 Section D: BR Information
Product and Service Labelling Fully 69
Marketing Communications Fully 69
Customer Privacy Fully 68-69 Principle 1
Compliance Fully 68-69
Profile Disclosure
Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI) G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
74/75
Economic Performance
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
Fully 36 Section B: Financial Details of the Company
EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.
Fully 36 Principle 7
EC3 Coverage of the organization's defined benefit plan obligations.
Fully 36-37
EC4 Significant financial assistance received from government.
Fully 36
Market Presence
EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.
Fully 37
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
Fully 37-38 Section E: Principle 2- Products Life Cycle Sustainability
EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
Fully 37-38 Principle 6
Indirect Economic Impacts
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
Fully 37-39
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.
Fully 37-38
OG1 Volume and type of estimated proved reserves and production.
Fully 34-35
Environmental
Materials
EN1 Materials used by weight or volume. Fully 54 Principle 8
EN2 Percentage of materials used that are recycled input materials.
Partially 54 We are developing a system in place to cover the recycled
material.To be reported by
2017
Principle 8, Principle 9 Section E: Principle 2- Products Life Cycle Sustainability
Energy
EN3 Direct energy consumption by primary energy source.
Fully 45 Principle 8
EN4 Indirect energy consumption by primary source.
Fully 45 Principle 8
OG2 Total amount invested in renewable energy.
Fully 45-46 Principle 8, Principle 9 Section E: Principle 6- Environment
OG3 Total amount of renewable energy enerated by source.
Fully 45-46 Principle 8, Principle 9 Section E: Principle 6- Environment
EN5 Energy saved due to conservation and efficiency improvements.
Fully 46-50 Principle 8 Section E: Principle 6- Environment
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
Fully 46-50 Principle 8, Principle 9 Section E: Principle 6- Environment ; Section E: Principle 2- Products Life Cycle Sustainability
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
Fully 46-50 Principle 8 Section E: Principle 6- Environment ; Section E: Principle 2- Products Life Cycle Sustainability
Water
EN8 Total water withdrawal by source. Fully 51-52 Principle 8 Section E: Principle 2- Products Life Cycle Sustainability
EN9 Water sources significantly affected by withdrawal of water.
Fully 26, 50 Principle 8
EN10 Percentage and total volume of water recycled and reused.
Fully 53 Principle 8 Section E: Principle 2- Products Life Cycle Sustainability
Biodiversity
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
Fully 54-55 Principle 8
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
Fully 54-55 Principle 8
EN13 Habitats protected or restored. Fully 54-55 Principle 8
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.
Fully 54-55 Principle 8
OG4 Number and percentage of significant operating sites in which biodiversity risk has been assessed and monitored.
Fully 54-55 Principle 7, Principle 8
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
74/75
Economic Performance
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
Fully 36 Section B: Financial Details of the Company
EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.
Fully 36 Principle 7
EC3 Coverage of the organization's defined benefit plan obligations.
Fully 36-37
EC4 Significant financial assistance received from government.
Fully 36
Market Presence
EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.
Fully 37
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
Fully 37-38 Section E: Principle 2- Products Life Cycle Sustainability
EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
Fully 37-38 Principle 6
Indirect Economic Impacts
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
Fully 37-39
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.
Fully 37-38
OG1 Volume and type of estimated proved reserves and production.
Fully 34-35
Environmental
Materials
EN1 Materials used by weight or volume. Fully 54 Principle 8
EN2 Percentage of materials used that are recycled input materials.
Partially 54 We are developing a system in place to cover the recycled
material.To be reported by
2017
Principle 8, Principle 9 Section E: Principle 2- Products Life Cycle Sustainability
Energy
EN3 Direct energy consumption by primary energy source.
Fully 45 Principle 8
EN4 Indirect energy consumption by primary source.
Fully 45 Principle 8
OG2 Total amount invested in renewable energy.
Fully 45-46 Principle 8, Principle 9 Section E: Principle 6- Environment
OG3 Total amount of renewable energy enerated by source.
Fully 45-46 Principle 8, Principle 9 Section E: Principle 6- Environment
EN5 Energy saved due to conservation and efficiency improvements.
Fully 46-50 Principle 8 Section E: Principle 6- Environment
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
Fully 46-50 Principle 8, Principle 9 Section E: Principle 6- Environment ; Section E: Principle 2- Products Life Cycle Sustainability
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
Fully 46-50 Principle 8 Section E: Principle 6- Environment ; Section E: Principle 2- Products Life Cycle Sustainability
Water
EN8 Total water withdrawal by source. Fully 51-52 Principle 8 Section E: Principle 2- Products Life Cycle Sustainability
EN9 Water sources significantly affected by withdrawal of water.
Fully 26, 50 Principle 8
EN10 Percentage and total volume of water recycled and reused.
Fully 53 Principle 8 Section E: Principle 2- Products Life Cycle Sustainability
Biodiversity
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
Fully 54-55 Principle 8
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
Fully 54-55 Principle 8
EN13 Habitats protected or restored. Fully 54-55 Principle 8
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.
Fully 54-55 Principle 8
OG4 Number and percentage of significant operating sites in which biodiversity risk has been assessed and monitored.
Fully 54-55 Principle 7, Principle 8
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
76/77
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.
Not Not applicable
Emissions, Effluents and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight.
Fully 48, 84 Principle 8
EN17 Other relevant indirect greenhouse gasemissions by weight.
Fully 48, 84 Principle 8
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.
Fully 47-50 Principle 8 Section E: Principle 6- Environment
EN19 Emissions of ozone-depleting substances by weight.
Fully 51 Principle 8
EN20 NOx, SOx, and other significant air emissions by type and weight.
Fully 51 Principle 8
EN21 Total water discharge by quality and destination.
Fully 53 Principle 8
EN22 Total weight of waste by type and disposal method.
Partially 53 We are developing a system in place to
capture the waste by type and disposal
method.To be reported by
2017
Principle 8 Section E: Principle 2- Products Life Cycle Sustainability
EN23 Total number and volume of significant spills.
Fully 53, 54 Principle 8
OG6 Volume of flared and vented hydrocarbon.
Fully 46 Principle 8 Section E: Principle 2- Products Life Cycle
Sustainability
OG7 Amount of drilling waste (drill mud and cuttings) and strategies for treatment and disposal.
Fully 52 Principle 8 Section E: Principle 2- Products Life Cycle
Sustainability
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
Not Not Applicable
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff.
Fully 54-55 Principle 8
Products and Services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
Fully 54-55 Principle 8, Principle 9 Section E: Principle 6- Environment ; Section E: Principle 2- Products Life Cycle Sustainability
EN27 Percentage of products sold and their packaging materials that are reclaimed by category.
Not Not Applicable
OG8 Benzene, Lead and Sulfur content in fuels.
Fully 42 Principle 8, Principle 9 Section E: Principle 2- Products Life Cycle Sustainability
Compliance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.
Fully 44
Transport
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce.
Partially 48 Material transportation is not covered under scope 3 emissions.
We are developing a system to capture
scope 3 emissions for transportation of
material.To be reported by
2017
Overall
EN30 Total environmental protection expenditures and investments by type.
Partially 38 Not fully available. We are developing a
system in place to capture the to capture
the environmental expenses.
To be reported by 2017
S o c i a l :
Employment
LA1 Total workforce by employment type, employment contract, and region, broken down by gender.
Fully 63-64 Section E: Principle 3- Employee's well being
LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region.
Fully 63-64 Principle 6
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
Fully 37
Labour/Management Relations
LA4 Percentage of employees covered by collective bargaining agreements.
Fully 66 Section E: Principle 3- Employee's well being
LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.
Fully 66 Principle 8
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI) G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
76/77
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.
Not Not applicable
Emissions, Effluents and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight.
Fully 48, 84 Principle 8
EN17 Other relevant indirect greenhouse gasemissions by weight.
Fully 48, 84 Principle 8
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.
Fully 47-50 Principle 8 Section E: Principle 6- Environment
EN19 Emissions of ozone-depleting substances by weight.
Fully 51 Principle 8
EN20 NOx, SOx, and other significant air emissions by type and weight.
Fully 51 Principle 8
EN21 Total water discharge by quality and destination.
Fully 53 Principle 8
EN22 Total weight of waste by type and disposal method.
Partially 53 We are developing a system in place to
capture the waste by type and disposal
method.To be reported by
2017
Principle 8 Section E: Principle 2- Products Life Cycle Sustainability
EN23 Total number and volume of significant spills.
Fully 53, 54 Principle 8
OG6 Volume of flared and vented hydrocarbon.
Fully 46 Principle 8 Section E: Principle 2- Products Life Cycle
Sustainability
OG7 Amount of drilling waste (drill mud and cuttings) and strategies for treatment and disposal.
Fully 52 Principle 8 Section E: Principle 2- Products Life Cycle
Sustainability
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
Not Not Applicable
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff.
Fully 54-55 Principle 8
Products and Services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
Fully 54-55 Principle 8, Principle 9 Section E: Principle 6- Environment ; Section E: Principle 2- Products Life Cycle Sustainability
EN27 Percentage of products sold and their packaging materials that are reclaimed by category.
Not Not Applicable
OG8 Benzene, Lead and Sulfur content in fuels.
Fully 42 Principle 8, Principle 9 Section E: Principle 2- Products Life Cycle Sustainability
Compliance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.
Fully 44
Transport
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce.
Partially 48 Material transportation is not covered under scope 3 emissions.
We are developing a system to capture
scope 3 emissions for transportation of
material.To be reported by
2017
Overall
EN30 Total environmental protection expenditures and investments by type.
Partially 38 Not fully available. We are developing a
system in place to capture the to capture
the environmental expenses.
To be reported by 2017
S o c i a l :
Employment
LA1 Total workforce by employment type, employment contract, and region, broken down by gender.
Fully 63-64 Section E: Principle 3- Employee's well being
LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region.
Fully 63-64 Principle 6
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
Fully 37
Labour/Management Relations
LA4 Percentage of employees covered by collective bargaining agreements.
Fully 66 Section E: Principle 3- Employee's well being
LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.
Fully 66 Principle 8
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI) G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
78/79
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
Fully 62 Principle 1 Section E: Principle 3- Employee's well being
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.
Fully 61, 84 Principle 1
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
Fully 62 Principle 1
LA9 Health and safety topics covered in formal agreements with trade
Fully 62 Principle 1
Training and Education
LA10 Average hours of training per year per employee by gender, and by employee category.
Fully 63 Section E: Principle 3- Employee's well being
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
Fully 63 Section E: Principle 3- Employee's well being
LA12 Percentage of employees receiving regular performance and career development reviews, by gender.
Fully 63
Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
Fully 14-15 Principle 6 Section E: Principle 3- Employee's well being
LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.
Fully 64 Principle 6
Social: Human Rights
Investment and Procurement Practices
HR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.
Fully 65 Principle 1 to Principle 6
HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.
Fully 65 Principle 1 to Principle 6
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
Fully 65 Principle 1 to Principle 6
Non-discrimination
HR4 Total number of incidents of discrimination and corrective actions taken.
Fully 65 Principle 1, Principle 2, Principle 6
Freedom of Association and Collective Bargaining
HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.
Fully 65 Principle 1, Principle 2, Principle 3
Child Labour
HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.
Fully 65 Principle 1, Principle 2, Principle 5
Forced and Compulsory Labour
HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.
Fully 65 Principle 1, Principle 2, Principle 4
Section E: Principle 3- Employee's well being
Security Practices
HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations.
Fully 65 Principle 1, Principle 2
Indigenous Rights
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.
Fully 65 Principle 1, Principle 2
OG9 Operations where indigenous communities are present or affected by activities and where specific engagement strategies are in place.
Fully 67 Principle 1, Principle 2 Principle 5
Social: Society
Community
SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs.
Fully 66-68 Section E: Principle 8- Inclusive growth
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI) G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
78/79
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
Fully 62 Principle 1 Section E: Principle 3- Employee's well being
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.
Fully 61, 84 Principle 1
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
Fully 62 Principle 1
LA9 Health and safety topics covered in formal agreements with trade
Fully 62 Principle 1
Training and Education
LA10 Average hours of training per year per employee by gender, and by employee category.
Fully 63 Section E: Principle 3- Employee's well being
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
Fully 63 Section E: Principle 3- Employee's well being
LA12 Percentage of employees receiving regular performance and career development reviews, by gender.
Fully 63
Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
Fully 14-15 Principle 6 Section E: Principle 3- Employee's well being
LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.
Fully 64 Principle 6
Social: Human Rights
Investment and Procurement Practices
HR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.
Fully 65 Principle 1 to Principle 6
HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.
Fully 65 Principle 1 to Principle 6
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
Fully 65 Principle 1 to Principle 6
Non-discrimination
HR4 Total number of incidents of discrimination and corrective actions taken.
Fully 65 Principle 1, Principle 2, Principle 6
Freedom of Association and Collective Bargaining
HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.
Fully 65 Principle 1, Principle 2, Principle 3
Child Labour
HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.
Fully 65 Principle 1, Principle 2, Principle 5
Forced and Compulsory Labour
HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.
Fully 65 Principle 1, Principle 2, Principle 4
Section E: Principle 3- Employee's well being
Security Practices
HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations.
Fully 65 Principle 1, Principle 2
Indigenous Rights
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.
Fully 65 Principle 1, Principle 2
OG9 Operations where indigenous communities are present or affected by activities and where specific engagement strategies are in place.
Fully 67 Principle 1, Principle 2 Principle 5
Social: Society
Community
SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs.
Fully 66-68 Section E: Principle 8- Inclusive growth
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI) G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
80/81
OG10 Number and description of significant disputes with local communities and indigenous peoples.
Fully 66 Principle 1, Principle 2 Principle 5
OG11 Number of sites that have been decommissioned and sites that are in the process of being decommissioned.
Fully 8 Principle 5
Corruption
SO2 Percentage and total number of business units analyzed for risks related to corruption.
Fully 17 Principle 10
SO3 Percentage of employees trained in organization's anti-corruption policies and procedures.
Fully 17 Principle 10
SO4 Actions taken in response to incidents of corruption.
Fully 17 Principle 10 Section E: Principle 1-Ethics, Transparency and Accountability
Public policy
SO5 Public policy positions and participation in public policy development and lobbying.
Fully 18
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
Fully 18
Anti-Competitive Behaviour
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.
Fully 18 Section E: Principle 9- Customer Value
Compliance
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
Fully 66
OG12 Operations where involuntary resettlement took place, the number of households resettled in each and how their livelihoods were affected in the process.
Fully 66
OG13 Number of process safety events, by business activity.
Fully 60
Social: Product Responsibility
Customer Health and Safety
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.
Fully 68
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
Fully 68 Section E: Principle 2- Products Life Cycle Sustainability
Product and Service Labelling
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.
Fully 69 Section E: Principle 9- Customer Value
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
Fully 69 Section E: Principle 9- Customer Value ; Section E: Principle 2- Products Life Cycle Sustainability
PR5 Practices related to customer satisfacqtion, including results of surveys measuring customer satisfaction.
Fully 69 Section E: Principle 9- Customer Value
Marketing Communications
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.
Fully 69
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
Fully 69
Customer Privacy
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
Fully 69 Principle 8
Compliance
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.
Fully 69
OG14 Volume of biofuels produced and purchased meeting sustainability criteria.
Fully 69 Principle 8
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
80/81
OG10 Number and description of significant disputes with local communities and indigenous peoples.
Fully 66 Principle 1, Principle 2 Principle 5
OG11 Number of sites that have been decommissioned and sites that are in the process of being decommissioned.
Fully 8 Principle 5
Corruption
SO2 Percentage and total number of business units analyzed for risks related to corruption.
Fully 17 Principle 10
SO3 Percentage of employees trained in organization's anti-corruption policies and procedures.
Fully 17 Principle 10
SO4 Actions taken in response to incidents of corruption.
Fully 17 Principle 10 Section E: Principle 1-Ethics, Transparency and Accountability
Public policy
SO5 Public policy positions and participation in public policy development and lobbying.
Fully 18
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
Fully 18
Anti-Competitive Behaviour
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.
Fully 18 Section E: Principle 9- Customer Value
Compliance
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
Fully 66
OG12 Operations where involuntary resettlement took place, the number of households resettled in each and how their livelihoods were affected in the process.
Fully 66
OG13 Number of process safety events, by business activity.
Fully 60
Social: Product Responsibility
Customer Health and Safety
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.
Fully 68
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
Fully 68 Section E: Principle 2- Products Life Cycle Sustainability
Product and Service Labelling
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.
Fully 69 Section E: Principle 9- Customer Value
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
Fully 69 Section E: Principle 9- Customer Value ; Section E: Principle 2- Products Life Cycle Sustainability
PR5 Practices related to customer satisfacqtion, including results of surveys measuring customer satisfaction.
Fully 69 Section E: Principle 9- Customer Value
Marketing Communications
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.
Fully 69
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
Fully 69
Customer Privacy
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
Fully 69 Principle 8
Compliance
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.
Fully 69
OG14 Volume of biofuels produced and purchased meeting sustainability criteria.
Fully 69 Principle 8
G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)G3 DMA Description Reported Cross-reference/
Direct answer
For partially reported disclosures, reasons for omission & to be
reported in
UNGC COP Element BRR (SEBI)
1Sustainability Reporting . As part of the verification we have challenged
the sustainability related statements/claims made in the Report and
assessed the underlying systems and processes for adherence against
the three AccountAbility Principles AA1000 APS as referred under the
‘Scope of Assurance and Limitations’ of this Statement. We have:
• Conducted desk review of ONGC’s sustainability systems,
processes and outputs, and other relevant information and
documentation made available to us by ONGC as requested by DNV;
• Conducted interviews with the core team involved in preparing the
Report and key decision-makers of ONGC;
• Performed sample-based reviews of the mechanisms for
implementing the company’s policies, as described in the report,
and for determining material issues to be included in the Report;
• Reviewed the documents of stakeholder engagement process
specifically undertaken for the purpose of the sustainability
reporting exercise.
In our opinion, the Report is an appropriate representation of the
ONGC’s sustainability-related policies and management systems. The
report has disclosed its sustainability performance on material aspects
from GRI 3.0 and Oil and gas sector supplement, however the
performance disclosures could be further improved by fully reporting all
core indicators for the application level A as per the GRI 3.0. We have
evaluated the Report’s adherence to the following principles on a scale
of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’.
Inclusivity: The Company, within its reporting boundary, has further
improved its stakeholder engagement process and has engaged with
selected stakeholders through different channels and the key concerns
and actions have been fairly responded in the report. In our view, the
level at which the Report adheres to this principle is ‘Good’.
Materiality: The Company has developed the structured process to
identify significant material issues at macro level and in our opinion has
not missed out any significant, known material issues/topics. In our view,
the level at which the Report adheres to this principle is ‘Acceptable’.
Conclusion
AA1000AS 2008 Principles
Introduction
Scope of Assurance and Limitations
Verification Methodology
Det Norske Veritas AS (DNV) has been commissioned by the
management of Oil and Natural Gas Corporation Limited (‘ONGC’ or
‘the Company’) to carry out an assurance engagement (Type 1,
Moderate) on the Corporate Sustainability Report (the Report) for the
year 2012-13 in its printed format, against the Global reporting Initiative
(GRI) 2006 Sustainability Reporting Guidelines Version 3.0 (G3) and
AccountAbility’s AA1000 Assurance Standard 2008 (AA1000AS 2008).
The intended users of this assurance statement are the readers of the
ONGC’s Sustainability Report 2012-13. The management of ONGC is
responsible for all information provided in the Report as well as the
processes for collecting, analysing and reporting that information.
DNV’s responsibility regarding this verification is to ONGC only, in
accordance with the agreed scope of work. The assurance engagement
is based on the assumption that the data and information provided to us
is complete and true. DNV expressly disclaims any liability or co-
responsibility for any decision a person or entity would make based on
this Assurance statement.
The scope of work agreed upon with ONGC included the following:
• Evaluation of the disclosed information in the Report, including the
systems and the processes ONGC has in place for adherence to
the three Accountability Principles (Inclusivity, Materiality and
Responsiveness) as required for a Type 1, moderate level of
assurance, in accordance with AA1000AS 2008.
• Evaluation of the additional principles of Completeness and
Neutrality, as set out in DNV’s Protocol for Verification of
Sustainability Reporting.
The assurance engagement (Type 1, Moderate) was carried out at the
ONGC office in New Delhi and did not involve any site visits. No external
stakeholders were interviewed as part of this assurance engagement.
DNV has not verified the accuracy and reliability of quantitative data and
sustainability performance information stated in the Report.
Our assurance engagement was planned and carried out in August –
September 2013, in accordance with the DNV Protocol for Verification of
Responsiveness: Within the reporting boundary, the Report has fairly
responded to key stakeholder concerns. In our view, the level at which
the Report adheres to this principle is ‘Good’.
Completeness: The reporting boundary is limited to domestic
exploration and production operations (assets and basins) and
processing plants, which is in under full control of management and
does not cover the entirety of ONGC group. Within the reporting
boundary, we do not believe that the Report omits relevant information
that would influence stakeholder assessments or decisions. The level at
which the Report adheres to this principle is ‘Acceptable’.
Neutrality: The Company has reported its sustainability aspects in
terms of content and presentation a neutral tone; in our view, the level at
which the Report adheres to this principle is ‘Good’.
The following is an excerpt from the observations and opportunities for
improvement reported to the Management of ONGC and are considered
for drawing our conclusion on the report; however, they are generally
consistent with the Management’s objectives:
Additional Parameters as per DNV’s Protocol
Opportunities for Improvement
• The sustainability performance may be reported for the complete
boundary i.e. the future Report’s to include all the entities under its
sphere of control and influence i.e. Joint ventures and subsidiaries.
• Strengthen the existing stakeholder engagement and materiality
determination process i.e. evolve an issue-based multi-
stakeholder engagement process to fully map expectations and
needs and arrive at the all material aspect in the sustainability
context and incorporate these as inputs into the strategic planning
process;
• The Report may bring out responses to all material issues and
respond to stakeholder expectations i.e. incorporate these as
inputs into the strategic planning process;
DNV is a global provider of sustainability services, with qualified
environmental and social assurance specialists working in over 100
countries. The DNV assurance team were not involved in the
preparation of any statements or data included in the Report except for
this Assurance Statement. DNV maintains complete impartiality
towards any people interviewed.
DNV’s Competence and Independence
ASSURANCESTATEMENT
Bangalore, India, 22 September, 2013 AA1000Licensed Assurance Provider000-10
Vadakepatth Nandkumar Project ManagerHead-SBE & ACS ServicesDet Norske Veritas AS, India.
Kundu PrasunTechnical Reviewer,Det Norske Veritas AS, India.
For Det Norske Veritas AS,
82/831 Order for copy at - http://www.dnvba.com/Global/sustainability/reporting-communication/Pages/sustainability-reporting.aspx
Back to Contents
1Sustainability Reporting . As part of the verification we have challenged
the sustainability related statements/claims made in the Report and
assessed the underlying systems and processes for adherence against
the three AccountAbility Principles AA1000 APS as referred under the
‘Scope of Assurance and Limitations’ of this Statement. We have:
• Conducted desk review of ONGC’s sustainability systems,
processes and outputs, and other relevant information and
documentation made available to us by ONGC as requested by DNV;
• Conducted interviews with the core team involved in preparing the
Report and key decision-makers of ONGC;
• Performed sample-based reviews of the mechanisms for
implementing the company’s policies, as described in the report,
and for determining material issues to be included in the Report;
• Reviewed the documents of stakeholder engagement process
specifically undertaken for the purpose of the sustainability
reporting exercise.
In our opinion, the Report is an appropriate representation of the
ONGC’s sustainability-related policies and management systems. The
report has disclosed its sustainability performance on material aspects
from GRI 3.0 and Oil and gas sector supplement, however the
performance disclosures could be further improved by fully reporting all
core indicators for the application level A as per the GRI 3.0. We have
evaluated the Report’s adherence to the following principles on a scale
of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’.
Inclusivity: The Company, within its reporting boundary, has further
improved its stakeholder engagement process and has engaged with
selected stakeholders through different channels and the key concerns
and actions have been fairly responded in the report. In our view, the
level at which the Report adheres to this principle is ‘Good’.
Materiality: The Company has developed the structured process to
identify significant material issues at macro level and in our opinion has
not missed out any significant, known material issues/topics. In our view,
the level at which the Report adheres to this principle is ‘Acceptable’.
Conclusion
AA1000AS 2008 Principles
Introduction
Scope of Assurance and Limitations
Verification Methodology
Det Norske Veritas AS (DNV) has been commissioned by the
management of Oil and Natural Gas Corporation Limited (‘ONGC’ or
‘the Company’) to carry out an assurance engagement (Type 1,
Moderate) on the Corporate Sustainability Report (the Report) for the
year 2012-13 in its printed format, against the Global reporting Initiative
(GRI) 2006 Sustainability Reporting Guidelines Version 3.0 (G3) and
AccountAbility’s AA1000 Assurance Standard 2008 (AA1000AS 2008).
The intended users of this assurance statement are the readers of the
ONGC’s Sustainability Report 2012-13. The management of ONGC is
responsible for all information provided in the Report as well as the
processes for collecting, analysing and reporting that information.
DNV’s responsibility regarding this verification is to ONGC only, in
accordance with the agreed scope of work. The assurance engagement
is based on the assumption that the data and information provided to us
is complete and true. DNV expressly disclaims any liability or co-
responsibility for any decision a person or entity would make based on
this Assurance statement.
The scope of work agreed upon with ONGC included the following:
• Evaluation of the disclosed information in the Report, including the
systems and the processes ONGC has in place for adherence to
the three Accountability Principles (Inclusivity, Materiality and
Responsiveness) as required for a Type 1, moderate level of
assurance, in accordance with AA1000AS 2008.
• Evaluation of the additional principles of Completeness and
Neutrality, as set out in DNV’s Protocol for Verification of
Sustainability Reporting.
The assurance engagement (Type 1, Moderate) was carried out at the
ONGC office in New Delhi and did not involve any site visits. No external
stakeholders were interviewed as part of this assurance engagement.
DNV has not verified the accuracy and reliability of quantitative data and
sustainability performance information stated in the Report.
Our assurance engagement was planned and carried out in August –
September 2013, in accordance with the DNV Protocol for Verification of
Responsiveness: Within the reporting boundary, the Report has fairly
responded to key stakeholder concerns. In our view, the level at which
the Report adheres to this principle is ‘Good’.
Completeness: The reporting boundary is limited to domestic
exploration and production operations (assets and basins) and
processing plants, which is in under full control of management and
does not cover the entirety of ONGC group. Within the reporting
boundary, we do not believe that the Report omits relevant information
that would influence stakeholder assessments or decisions. The level at
which the Report adheres to this principle is ‘Acceptable’.
Neutrality: The Company has reported its sustainability aspects in
terms of content and presentation a neutral tone; in our view, the level at
which the Report adheres to this principle is ‘Good’.
The following is an excerpt from the observations and opportunities for
improvement reported to the Management of ONGC and are considered
for drawing our conclusion on the report; however, they are generally
consistent with the Management’s objectives:
Additional Parameters as per DNV’s Protocol
Opportunities for Improvement
• The sustainability performance may be reported for the complete
boundary i.e. the future Report’s to include all the entities under its
sphere of control and influence i.e. Joint ventures and subsidiaries.
• Strengthen the existing stakeholder engagement and materiality
determination process i.e. evolve an issue-based multi-
stakeholder engagement process to fully map expectations and
needs and arrive at the all material aspect in the sustainability
context and incorporate these as inputs into the strategic planning
process;
• The Report may bring out responses to all material issues and
respond to stakeholder expectations i.e. incorporate these as
inputs into the strategic planning process;
DNV is a global provider of sustainability services, with qualified
environmental and social assurance specialists working in over 100
countries. The DNV assurance team were not involved in the
preparation of any statements or data included in the Report except for
this Assurance Statement. DNV maintains complete impartiality
towards any people interviewed.
DNV’s Competence and Independence
ASSURANCESTATEMENT
Bangalore, India, 22 September, 2013 AA1000Licensed Assurance Provider000-10
Vadakepatth Nandkumar Project ManagerHead-SBE & ACS ServicesDet Norske Veritas AS, India.
Kundu PrasunTechnical Reviewer,Det Norske Veritas AS, India.
For Det Norske Veritas AS,
82/831 Order for copy at - http://www.dnvba.com/Global/sustainability/reporting-communication/Pages/sustainability-reporting.aspx
ADI- Adivasi Development InitiativeAIPSSPB- All India Public Sector Sports Promotion BoardALARP- As low as Reasonably PracticableATF- Aviation Turbine FuelBCM- Billion Standard Cubic MeterBD&JV- Business Development and Joint ventureBIS- Bureau of Indian StandardsBRR- Business Responsibility ReportBSE- Bombay Stock ExchangeBS&W- Basic Sediment & WaterBTOE- Billion Tonnes of Oil & Oil Equivalent GasCCR- Catalytic ConversionsCOD- Centre of DeliveryCEO- Chief Operating OfficerCIRM- Centre for Insurance and Risk ManagementCPCB- Central Pollution Control BoardCPSE- Central Public Sector EnterpriseCSR- Corporate Social ResponsibilityDGH- Directorate General of HydrocarbonsDGMS- Directorate General of Mines and SafetyDNV- Det Norske VeritasDPE- Department of Public EnterpriseEBITDA- Earnings before Interests, Taxes, Depreciation and
AmortizationEMP- Environmental Management ProgrammeESG- Environmental, Social and GovernanceERP- Enterprise Resource PlanningETP-Effluent Treatment PlantFY- Financial YearGAIL- Gas Authority of India Ltd.GDP- Gross Domestic ProductGHG- Greenhouse GasGMI- Global Methane Initiative GRI- Global Reporting InitiativeGRC- Governance, Risk Management and ComplianceHSD- High Speed DieselHSE- Health, Safety & EnvironmentHGPC- Hazira Gas Processing ComplesHVAC- Heating Ventilation & Air conditioningHP/HT- High Pressure/High TemperatureINR- Indian RupeeISO- International Organisation of StandardIOR/EOR- Improved Oil Recovery/ enhanced Oil RecoveryJV- Joint VentureKRA- Key Result AreaLNG- Liquefied natural GasLPG- Liquefied Petroleum GasLSHS- Low Sulphur Heavy StockMCA- Ministry Of Corporate affairsMMSCM- Million Metric Standard Cubic MetersMMT- Million Metric TonnesMMTPA- Million Metric Tonnes per annumMoP&NG- Ministry of Petroleum and Natural GasMRPL- Mangalore Refinery and Petrochemicals Ltd.
MS- Motor SpiritMSDS- Material Safety Data SheetsMTOE- Million Tonnes of Oil & Oil Equivalent GasMoEF- Ministry of Environment and ForestsML- Mining LeaseMW- Mega WattsMWH- Mega Watt HourNDDF- Non Damaging Drilling FluidsNELP- National Exploration licensing PolicyNFPA- National Fire Protection AssociationNGO- Non Governmental OrganisationNRI- Non Resident IndianNSDC- National Skill Development CorporationNSE- National Stock ExchangeO+OEG- Oil+Oil Equivalent to Gas OCC- Oil Coordination CommitteeOISD- Oil Industry Safety DirectorateOHS- Occupational Health and SafetyOMC- Oil Marketing CompaniesOHSAS- Occupational Health, safety and Advisory TechniquesOGSS- Oil & Gas Sector SupplementOSRL- Oil Spill Response LimitedOVL- ONGC Videsh LimitedPAT- Profit after taxPBDIT- Profit before depreciation interest and TaxesPSU- Public Sector UnitPPM- Parts Per MillionPP- Perspective PlanPPE- Personal Protective EquipmentQHSE- Quality Health Safety and EnvironmentR&D- Research & DevelopmentRWA- Resident Welfare AssociationRCP- Regional Contingency PlanRRR- Reserve Replacement RatioSCADA- Supervisory Control and data acquisitionSMS- Short Message ServiceSKO- Superior Kerosene OilSCOPE-Standing Committee of Public EnterprisesSPCB- State Pollution Control BoardSPV- Special Purpose VehicleSTD- Subscriber Trunk CallingSEBI- Securities & Exchange Board of IndiaTJ- Terra JoulesUTI- Unit Trust of IndiaVATMS- Vessel and Air Traffic Management SystemVRU- Vapour Recovery UnitVAP-Value Added productVOH – Village of HopeVSDA- Viscoelastic Surfactants Based Self Diverting AcidWIPS- Women in Public SectorWIN- Water Injection NorthWILR- Women in Leadership RolesYTF- Yet to find
GLOSSARY OF TERMSOUR PERFORMANCEstFinancial Year (1 April-31 March)st 2007 2008 2009 2010 2011 2012
Safety Unit
Recordable Incidents-employees Nos 117 204 291 86 90 162
Recordable Incidents-contractors Nos 181 163 125 135 93 55
Incidents involving injuries-employees Nos/Million hours worked 0.28 0.94 1.19 0.66 0.66 0.72
Incidents involving injuries-contractors Nos/Million hours worked 3.10 2.86 2.01 0.92 0.88 0.47
Fatalities-employees Nos 0 0 2 1 1 1
Fatalities-contractors Nos 15 9 9 11 8 3
Hours worked- employees Million hours 71.27 71.36 72.21 73.20 72.39 72.57
Hours worked- contractors Million hours 49.01 49.01 62.04 68.26 71.69 71.70
Man Days Lost-employees 17 Mandays 570 381 370 362 345 301
Man Days Lost-contractors Mandays Not recorded because the nature of our contracts guarantees the availability of man-days.
Energy, Water and Environment
Natural gas (NG) Terra joules 83127.73 85205.23 91890.28 95746.70 105523.01 103626.35
High speed diesel (HSD) Terra joules 11111.03 11919.96 12964.74 12124.59 11845.79 12229.86
Aviation fuel (ATF) Terra joules 253.93 250.34 271.76 254.55 239.04 255.17
Electricity purchased from grid Terra joules 1083.81 955.50 1048.94 2013.67 2075.05 2272.7
Total Consumption Terra joules 95576.50 98331.04 106175.72 110139.51 119682.89 117259.64
Fossil fuel - Direct emissions Million tCO2e 7.55 7.93 8.03 8.13 9.21 8.59
Electricity - Indirect emissions Million tCO2e 0.24 0.22 0.24 0.46 0.47 0.52
Business Travel - Indirect emissions Million tCO2e 0.02 0.02
Total Green House Gas (GHG) emissions Million tCO2e 7.79 8.15 8.27 8.59 9.70 9.13
Fresh water (Ground water sources) Billion litres 4.29 4.43 5.18 3.88 7.65 4.15
Fresh water (Municipal sources) Billion litres 5.16 5.03 3.92 6.26 5.25 4.23
Fresh water (Surface sources) Billion litres 13.46 13.85 12.31 20.68 17.00 17.29
Fresh water supplied for offshore installations
Billion litres 0.09 0.09 0.09 0.09 0.08 0.12
Sea water desalination for potable use at offshore installations
Billion litres 0.19 0.20 0.18 0.22 0.28 0.00
Total water usage Billion litres 23.19 23.60 21.68 31.14 30.26 25.79
Environmental expenditure Billion INR 2.90 3.78 4.38 5.10 4.95 5.90
People
Number of employees Nos 32996 33035 32826 33273 32909 32998
Turnover of employees Nos 363 280 139 86 77 85
Benefits to employees-including salaries, benefits and others
Billion INR 60.48 47.40 57.19 67.28 67.96 103.30
Performance
Crude oil production MMT 25.94 25.37 24.63 24.42 23.72 22.56
Natural gas production BCM 22.34 22.48 23.10 23.10 23.32 25.34
*All other value added product sales to be referred to Annual Report
Reserve Accretion MTOE 63.82 68.90 82.98 83.56 84.13 84.84
Community investments Billion INR 1.69 1.69 2.68 2.20 1.21 2.62
Economic Value Added (EVA) % 21.70 17.22 22.12 19.79 21.36 15.21
*All other economic figures to be referred to Annual Report
Six-year performance data
17 Lost days begin 48 hours after the accident and disclosure as per national safety guidelines Recordable incidents does not include minor (first-aid level) injuries
Back to Contents
A NEW PARADIGM IN SUSTAINABLE LEADERSHIP
SustainabilityReport2012-13
GRI G3.0 Compliant+A Level Report
Regd. office: Jeevan Bharti Bldg., Tower-II, 124, Indira Chowk, New Delhi - 110001.Tel: 23301000, 23310156, 23721756 Fax: 011-23316413 www.ongcindia.com
Oil and Natural Gas Corporation Ltd.
