Keynote Roman Dashkov

Your stakeholder engagement is based on the commitments set down in various documents. Can you explain this approach to us?

Dashkov: As the company is convinced that regular and meaningful engagement is an especially important element of successful operations, Sakhalin Energy has been proactively sharing information and consulting with stakeholders since the start of the Sakhalin-2 project.

The company’s stakeholder engagement is based on its commitments, as set forth in the Statement of General Business Principles – a key company document – and the Code of Conduct, which includes the rules and regulations necessary to observe said Principles. Detailed information about the commitments has been outlined in documents such as Sustainable Development Policy, Human Rights Policy, Commitments and Policy on HSE and Social Performance, and Social Performance Standard.

All these documents define the engagement strategy, principles, processes, mechanisms, and tools and are available to the general public. Our day-to-day operations are outlined in the annual Public Consultation and Disclosure Plan.

The strength of Sakhalin Energy is that all these documents are incorporated into the corporate management system and the performance of engagement activities is under close control by management. Moreover, general awareness on engagement is included in the mandatory corporate training program. In order to ensure compliance with the company’s requirements, special trainings are conducted for contractors as well.

The engagement outcomes are available in our annual Sustainable Development Report and Public Consultation and Disclosure Report.

Which mechanisms and tools do you use and what are your experiences with these?

Dashkov: Stakeholder engagement mechanisms and tools are selected based on the engagement goals and dependent on the stakeholder group. Special attention is given to affected communities and vulnerable groups.

We implement five basic complementary and interdependent mechanisms: impact assessment consultations; three-level system of direct communication with communities (including company, community liaison officers, and information centers); grievance mechanisms; partnerships; and public reporting. All of them have proved their efficiency and value, both for business and stakeholders during all phases of the Sakhalin-2 project development.

The particular tools include public, focus, and individual meetings; workshops; interviews; open hours, etc. Our tools are not something static – they are updated based on internal and external verifications and stakeholders’ feedback as well. We have implemented training workshops for suppliers and contractors about the company’s requirements in the area of corporate social responsibility. A few years ago, the company established a network of information centers in communities located near our facilities. Another example of following public recommendations is the arrangement of information tours to the company’s assets.

Invariably, we rely on respectful, fair, open, transparent, and culturally appropriate engagement as a key principle.

Your Indigenous Minority Program is a concrete example. Can you describe the plan?

Dashkov: The Sakhalin Indigenous Minorities Development Plan (SIMDP) is a classic tri-sector partnership implemented by civil society, business, and government. This program is based on international standards concerning indigenous peoples, for example the “free, prior and informed consent” principle provided in the UN Declaration on the Rights of Indigenous Peoples and in the Performance Standards of the International Finance Corporation.

Active participation of indigenous representatives in the Plan management as well as in its development and implementation is a critical component of the approach of the three partners. Such participation requires sensitivity toward indigenous people’s culture during engagement; recognition of the need for achieving consensus in the context of both traditional and innovative structures, values, and practices; and also the planning and use of a multi-aspect approach that considers ethnic, geographic, age-related, social, organizational, and gender characteristics. What is more, the partners put special emphasis on the transparency of actions, timely exchange of information, and shared responsibility. All that has resulted in the implementation of more than 400 projects in the areas of traditional economic activities, education and health, capacity-building, and the preservation of traditional culture and indigenous languages. In so doing, the decision to support projects is made directly by the indigenous representatives.

SIMDP has been successfully implemented for more than seven years, during which time we have gained tremendous knowledge and learned how to become much more flexible. The Plan is not an authoritative doctrine, it is a living mechanism that addresses the changing demands of society and develops itself accordingly.