The Environmental Impact Assessment’s (EIA’s) sets the foundation for our established report structure. We monitor risk, sensitivities, procedures and our key performance indicators.
The Company’s business management and corporate governance system govern other quantitative and qualitative issue. This happens through weekly, monthly and quarterly meetings. The administration informs the Board of Directors and key stakeholders accordingly.
The precautionary principle
To improve and systematize risk management, DNO utilises a system – to identify, evaluate, control, and follow up, report and monitor risk. This enables DNO to handle uncertainty, risks and opportunities efficiently. Additionally, the DNO Risk Management system allows us to compare risks, providing a solid basis for decision making, increase risk awareness and transparency throughout the company.
The Board has the overall responsibility for control and risk management. The business units are responsible for the management of their own risk exposure and report status quarterly to the corporate management and Board of Directors.
Payments to host governments – EITI and Transparency International
Our industry makes a major contribution to government finance, often one of the main sources of government revenue. We are supporting transparency in the payments we make to governments and helping them to better manage oil and gas revenues.
We encourage and support government efforts to use energy revenues effectively. In developing countries, oil and natural gas revenues can bring widespread benefits through funding, schools and hospitals, for instance.
If the revenue is poorly managed it can stimulate corruption, social inequality and conflicts. Whilst, Governments are ultimately responsible for the usage of these funds for social benefits, we believe we can participate. We believe that it starts with openness on how much we pay governments and of course, from the governments’ standpoint, how they distribute these funds.
It is therefore natural for DNO to support internationally acclaimed initiatives such as the Extractive Industries Transparency Initiative (EITI) and Transparency International (TI). These initiatives provide useful advice and information that are important to DNO’s operations, and they enable us to meet with other extractive companies and local governments.
Extractive Industries Transparency Initiative (EITI)
Established in 2002, EITI is a coalition of governments, companies, and civil society that aims to strengthen governance by improving transparency and accountability in the extractives sector.
EITI sets forth global principles for companies to report what they pay to governments and for governments to disclose what they receive from companies.
Since 2009, DNO has reported to the EITI in member countries where we conduct exploration and production activities. We will continue to report on our payments to governments, and we will participate in national EITI projects in countries where we have activities.
Transparency International (TI)
TI is a world-spanning organization that works to fight corruption. TI has placed the fighting of corruption on the agenda, and works in relation to governments, organizations and business and industry alike.
For DNO this means that TI is a highly valuable stakeholder, providing the company with tools for up to date risk assessment procedures and serves as a dialogue partner.
A more comprehensive disclosure of how DNO is governed (with respect to GRI-indicators 4.1–4.3, 4.5, 4.7–4.8, 4.10) can be found in the Corporate Governance section.