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Maersk Drilling’s
SustainabilityReport 2010
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Maersk Drilling
Maersk Drilling as an employer . . . . . . . . . . . . . 19
Health for all . . . . . . . . . . . . . . . . . . . . . . . . 21
Safety on our minds . . . . . . . . . . . . . . . . . . . . 22
Safety initiatives in 2010 . . . . . . . . . . . . . . . . . 24
Dealing with piracy and armed robbery . . . . . . . . 25
Climate change and environment . . . . . . . . . . . 27
Community involvement . . . . . . . . . . . . . . . . . 31
Facts on our Sustainability Performance in 2010 . . 33
Appendix A: GRI Standard Disclosure . . . . . . . . 34
Appendix B: The Maersk Principles of Conduct . . . 37
Appendix C: Impact on the environment
caused by offshore activities . . . . . . 38
Appendix D: Industry practice impacts
performance . . . . . . . . . . . . . . . . 39
Introduction
Company profile . . . . . . . . . . . . . . . . . . . . . . 5
Main impacts and risks . . . . . . . . . . . . . . . . . . 5
Deep dive into sustainability
– a message from the CEO . . . . . . . . . . . . . . . . 7
About the report . . . . . . . . . . . . . . . . . . . . . . 8
Governance . . . . . . . . . . . . . . . . . . . . . . . . . 10
Globally Committed . . . . . . . . . . . . . . . . . . . . 11
Our approach to sustainability . . . . . . . . . . . . . . 13
Stakeholder engagement . . . . . . . . . . . . . . . . 17
Working with sustainability
Performance and policies
Appendices
Contents
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Maersk Drilling’s offshore operation aim to go beyond compliance in regards to local and international rules and regulation and in regards to requirements from customers within environmental footprint, our community presence and the way we conduct our business with customers, suppliers and other business partners.
Sustainability Report 2010.indd 4 02-03-2011 14:55:35
Introduction Sustainability Report 2010 5
Maersk Drilling
Company profile
In addition we manage two mid water
semi-submersibles for two Chinese
companies; Sinopec and COSL.
Maersk Drilling is also a 50 % partner
in Egyptian Drilling Company (EDC)
– a joint venture with Egyptian Gen-
eral Petroleum Corporation. EDC owns
and operates a fleet of more than
55 land rigs and 5 jack-up rigs in the
Middle East.
GeoGraphic reach
Maersk Drilling currently has offices
in Australia, Azerbaijan, Brunei,
Mauritania, Norway, UAE, UK, USA,
Venezuela and Denmark. From these
locations, we operate 26 drilling
rigs and two management rigs. The
rigs currently operate in Denmark,
Norway, USA, UAE (Dubai), Brunei,
Australia, Venezuela, Kazakhstan,
Azerbaijan, Vietnam and off the
coast of a number of countries in
West Africa.
Our revenue in 2010 was USD 1,627
million, increasing by 27 % compared
to 2009.
We employ approximately 3,200
people of whom 2,700 work offshore,
and 500 work onshore. Our customers
include both major oil companies as
well as national and independent oil
companies.
assets
Our drilling rigs prepare well sites for
oil companies to extract fossil fuels
at sea. We command an extensive
and technologically advanced fleet,
consisting of:
• Six harsh environment jack-up rigs. • One mid water semi-submersible. • Three deepwater semi-submersi-
bles. • Four 350 ft & two 375 ft jack-up
rigs. • Ten cantilevered drilling barges.
Maersk Drilling supports global oil and gas production by providinghigh-efficiency drilling services to oil companies around the world. We are part of the A.P. Moller - Maersk Group, and headquarteredin Copenhagen, Denmark.
Main iMpacts and risks
Our material sustainability challenges
are health, safety, environment and
local community involvement. Without
the advanced safety procedures, risk
management and safety culture in
Maersk Drilling, rig operations bear
inherent hazards, a responsibility which
is always our first priority. Our main risks
and concerns all relate to losing control
of a drilling operation which could
potentially lead to loss of lives, environ-
mental disaster and huge economic
consequence for us and the community.
This is why we focus on safeguarding
our work from such loss of control.
Drilling rigs primarily impact the
environment through greenhouse
gas emissions and waste. In terms of
local community involvement – and
besides our own efforts in this area –
we often find ourselves contractually
obliged to invest in the societies of
the countries granting the conces-
sions for drilling.
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Without the advanced safety procedures, risk management and safety culture in Maersk Drilling, rig operations bear inherent hazards, a responsibility which is always our first priority.
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Introduction Sustainability Report 2010 7
Maersk Drilling
Deep diveinto sustainability
this will only lead to a safer and more
sustainable industry.
In 2010 several initiatives for driving a
sustainable business saw the light of
the day:
Special attention was given to finalise
the roll out of our new Management
System, SIRIUS, which was imple-
mented on all our rigs and in most of
our onshore locations.
Finalising and commencing imple-
mentation of our CSR strategy was
another milestone reached in 2010.
With the CSR strategy, we will be able
to better support and drive a sustain-
able business.
We have re-focused our safety award
system by further focusing on the
less serious incidents, including
environmental and health related
incidents.
We have improved our HSE focus
by introducing a new safety metric
which, besides safety, now fully en-
compasses environment and health.
In Maersk Drilling the safety of our
crew as well as our customers’ and
third parties’ crew has always been
and will continue to be a top priority.
Therefore, I am also pleased to report
that we again this year have reached
a lost time incident frequency (LTIF)
well below industry average. With
five LTIs in 2010, we have managed to
reduce the number of LTIs from 2009
to 2010, with 50 %. It goes without
saying that five, is five too many. In
2011 we will continue the pursuit of
our goal of zero LTIs.
Unfortunately, we still experience too
many dropped objects and although
special attention was paid to this
important area throughout 2010, we
did not manage to improve the perfor-
mance. In 2011 even more focus will
be given to this and a comprehensive
DROPS campaign will be launched in
spring 2011.
2011 will also see the implementation
of vastly improved well-control train-
ing for our drill crews and Offshore In-
stallation Managers – both individual
and team-based training. We expect
to make significant further direct
investments into this area.
With the above and many more initia-
tives to come in 2011, I look forward to
continue creating an even better foun-
dation for Maersk Drilling to perform in
a safe, secure and sustainable way.
Claus V. HemmingsenCEO of Maersk Drilling
Dear Reader,
I am proud to present Maersk Drilling’s
Sustainability Report for 2010.
For the oil industry, 2010 was regret-
tably characterised by the tragic Ma-
condo accident in the Gulf of Mexico
in April. The accident caused the
entire industry, from oil companies
through contractors, to suppliers and
authorities, to review and consider
enhancing standards for both safety
and environmental procedures. The
accident also led to an intense focus
on our industry from the media and
general public and to an increased
governmental focus which we believe
will result in enhanced and stricter
regulations in 2011. In Maersk Drilling
we welcome any such reviews and
considerations as we firmly believe
a message from our Ceo
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Sustainability Report 2010Introduction 8
Maersk Drilling
We report according to Global
Reporting Initiative. GRI, grade C. A
full overview including references to
relevant sections of the GRI report-
ing indicators included in this report
can be found in appendix A, together
with indicators on witch we report
in full, and which are only partially
included, together with information
on which indicators witch we report
in full due to lack of relevance to
our operations or lack of available
data. Furthermore, we have aimed
to align with the AA1000 principles
of materiality, completeness and
responsiveness. As for the latter, we
have not had any direct or indirect
requests from stakeholders, except
for the industry organisations and
regulatory bodies integrated into
our ongoing HSE management
process globally. We also rely on
the stakeholder feedback received
through our recent strategy process
which so far has not led to any
change in the reporting scope.
Our previous report was published
in the summer of 2010. The annual
reporting cycle follows the fiscal year,
1 January to 31 December, and the re-
port should be considered as a supple-
ment to the A.P. Moller - Maersk Group
financial and sustainability reporting.
One vital change compared to last
year is a change in the account-
ing principles from operational to
financial control leading to another
split on emissions regarding scope
1, 2 and 3 in the Greenhouse Gas
protocol. This has a significant
impact on the data presented. The
A.P. Moller - Maersk Group will only
present scope 1 and 2 data whereas
this report will feature all data to
accommodate our customers and
industry practice.
topics included
We report on sustainability issues
material to our business. These were
initially selected in an internal process
in 2009, and consolidated through the
preparation of our new, comprehen-
sive CSR-strategy launched in 2010,
comprising the analysis of external
trends and external stakeholders.
This report includes health, safety
and environmental issues, being the
historical backbone of our sustain-
ability efforts. Furthermore, the report
includes input from engineering, com-
mercial and operations departments.
Also here the main involvement is
within HSE, but the inclusion of these
activities in the reporting process is
an expansion of the report, compared
to the scope of previous reporting.
scope of report
Performance data is reported for all
assets under the direct operational
control of Maersk Drilling, regardless
of ownership. Operational control
implies an asset being subject to our
This report covers the activities of Maersk Drilling in 2010, and provide a balanced and comprehensive view of our operations and other activities.
Aboutthe report
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Introduction Sustainability Report 2010 9
Maersk Drilling
health, safety and environmental
management systems.
Data for this report has been compiled
based on internal reporting from North
Sea drilling operations in Denmark and
Norway, the Caspian Sea drilling op-
erations off Azerbaijan, the American
drilling operations from Venezuela and
the USA, the Middle East drilling opera-
tions in the United Arab Emirates, the
African drilling operations off the coast
of West Africa, the South East Asian
drilling operations off Brunei, and the
Australian drilling operations off West-
ern Australia.
Not included in this report are
performance data originating from
assets or construction work that
are not under our operational con-
trol, i.e. Egyptian Drilling Company,
the mobile offshore drilling unit
MAERSK ENDURER, which is on a
bareboat charter to EDC, and con-
struction projects in Singapore.
principles of data reportinG
The majority of the data in the report
is compiled from the Maersk Drilling
global HSSE performance monitoring
programme with recorded incidents in
our reporting system, Synergi.
For GHG performance, the baseline
data stems from 2008 with the ad-
dition of continuous data collection
from quarterly reports submitted by
each operational area.
The environmental data presented in
this report has been aligned with the
practices of the ‘Oil and Gas Industry
Guidance for Voluntary Sustainabil-
ity Reporting’ by the International
Petroleum Industry Environmental
Conservation Association (IPIECA)
and the American Petroleum Insti-
tute (API).
The consolidated data provides a fair
and accurate picture of our perfor-
mance, with the majority of the data
in this report having been validated in-
ternally as part of the data collection
for the A.P. Moller - Maersk Group
Sustainability Report. The data col-
lection methodology has undergone
significant improvements compared
to last year by means of process
improvement, internal control and,
as a significant contributing factor,
through validation by the account-
ing function. The internal validation
of data serves to add robustness
of data collection. This has been
achieved by a requirement for lo-
cal management sign off on data,
descriptions of data collection
processes, and submission of data
samples from each rig.
Variations in local measurement
and data collection methodologies
exist in the data collection process.
Aligned capture of data, reporting and
consolidation is constantly improved
and these efforts will serve to further
reduce uncertainties.
Safety comes first: Safety is a top priority in Maersk Drilling and we constantly strive to improve our HSE efforts
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Sustainability Report 2010Working with sustainability 10
Maersk Drilling
Maersk Drilling’s CEO, in cooperation with the senior management team, is the highest governance body in Maersk Drilling responsible for setting our strategy and for organisational supervision.
Governance
Our activities and leadership are guided
by the A.P. Moller - Maersk Group values
and Principles of Conduct, which outline
our commitment to responsible busi-
ness practices and align expectations
to the conduct of business under the
Maersk name. The principles of conduct
are found in the back of this report.
Both business and sustainability goals
in Maersk Drilling are aligned with the
strategy, priorities and targets set by
the A.P. Moller - Maersk Group. In 2010,
the Group has approved and com-
menced implementation of a Sustain-
ability Strategy which strengthens
and supports the Maersk Drilling CSR
strategy set out.
sustainaBilitY GoVernance
Beyond this overall governance,
Maersk Drilling’s sustainability work is
governed through a sustainability gov-
ernance structure using a set of policies,
strategies, processes and manuals.
Responsibility for sustainability lies
with Maersk Drilling’s CEO, and is
executed through a CSR function and
a CSR steering committee, approving
strategies and assessing progress
at bi-annual meetings. The company
Head of CSR sets strategies and man-
ages implementation, relying on a CSR
network to ensure coordination and
commitment across departments
and the rigs. Implementation of
strategies and activities takes place
through the Maersk Drilling manage-
ment system and operations.
policies and strateGies
At the beginning of 2009, a framework
of three policies covering the areas
of safety and security, health and
environment was issued. Later in
2009, a policy and guidance on anti-
corruption were provided.
Throughout 2009, a CSR strategy
was developed and prepared for
Maersk Drilling and was approved
early in 2010. As a consequence, a
CSR action plan with targets for areas
relevant hereto has been initiated,
including a process to create a CSR
policy and a policy on philanthropy.
These initiatives created the basis for
the first Sustainability Steering Com-
mittee meeting in the fall. The two
before mentioned policies have been
finalised and awaits approval.
In Maersk Drilling, the mapping of
risk, is ongoing and is to be included
in Maersk Drilling’s management
system, Sirius. Through three sepa-
rate yet interlinked processes, we
systematically identify and manage
operational and HSE risks, commercial
risks and strategic risks, all with an
integrated CSR perspective.
At the end of 2010 the following initia-
tives were ongoing for the integration
of sustainability locally and globally.
• Mapping CSR conditions and risks
for each operation, requesting a
materiality analysis as a basis for a
local plan. A tool is currently being
developed and has been tested in
Brazil and Venezuela.
• The formalisation of high level
commercial and strategic decision
support, including which markets to
enter, rig purchase and cooperation
with customers in an internal CSR
consultation perspective has been
subject to further work.
• Furthermore, development of an
awareness campaign on the eight
Maersk principles of conduct has
taken place. The campaign will be
launched in early 2011, as a means
of driving CSR implementation and
making the principles relevant and
operational for daily use.
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Working with sustainability Sustainability Report 2010 11
Maersk Drilling
As part of the A.P. Moller - Maersk Group,
Maersk Drilling is committed to the
UN Global Compact, and has been
part of a group initiative in 2008
to identify gaps versus the require-
ments in the UN Global Compact,
leading to Group initiatives on anti-
Globally Committed
corruption, responsible procurement
and global labour principles.
The group-wide anti-corruption
policy has been implemented
including training of key personnel.
Furthermore, during 2010 initia-
tives on responsible procurement
and global labour standards have
been set out. Combined with the
HSE efforts, these initiatives will
be a platform for basic compliance
and business conduct and will help
us to go beyond.
Drilling efficiency: Maersk Drilling offers world class drilling efficiency through our world class product solutions
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Integrating sustainability in all business processes is the ultimate goal for us, as it is for most business units in the A.P. Moller - Maersk Group.
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Working with sustainability Sustainability Report 2010 13
Maersk Drilling
The integration of sustainability
aspects in all relevant business
processes was reinforced and for-
malised through the finalisation of a
full CSR strategy for Maersk Drilling
in 2010.
Maersk Drilling already has an HSE
strategy and with the new CSR
strategy, we cover the full area of
sustainability comprised of HSE
and CSR in combination.
The strategy states our intent to
strengthen our CSR potential and
performance in order to support our
position in the drilling market, through
continuously improving our environ-
mental performance and involvement
in the communities in which we
operate.
The strategy is based on analysis of
external trends and internal dialogue.
Reputation and compliance are
important focus areas with most
external stakeholders, specifically
with regards to how the exploration
of oil fields impacts the environment
and local communities. Furthermore,
there is continued emphasis on risk
management on safety, emissions
and spills.
iMpleMentation actiVities
The launch of the strategy has
taken place internally through our
senior management team and
involved functions and generally
communicated through our intranet
and printed employee magazine.
In future issues this magazine will
include at least one CSR feature, lo-
cating the best examples from local
operations on sustainability work.
As a further initiative, our business
process improvement team has been
involved and requested to challenge
the mindset of business process
owners to integrate triple bottom line
thinking into new or ongoing develop-
ment of processes.
a sYsteM Based inteGration
Integrating sustainability in all busi-
ness processes is the ultimate goal
for us, as it is for most business units
in the A.P. Moller - Maersk Group. This
serves to support operational excel-
lence, reduce inefficiencies and hidden
costs, build client relations as well as
Our approachto sustainability
Maersk Drilling strives to exceed the compliance requirements with local and international rules and regulations for safety, environmental performance, community involvement and our business conduct with customers, suppliers and other industri partners.
Sustainability Report 2010.indd 13 02-03-2011 14:55:51
Sustainability Report 2010Working with sustainability 14
Maersk Drilling
Our CSR Strategy
other vital partnerships, and reinforce
our team spirit and our brand as a
value driven and sustainability minded
employer.
As a main tool for the achievement
of this goal, Maersk Drilling uses the
web-based management system,
Sirius. All business processes mapped
in the system have been reviewed for
the inclusion of sustainability issues
where relevant. The work of integrat-
ing sustainability in the system at a
practical level will be ongoing through-
out 2011. Sirius is compliant with ISO
9001, ISO 14001, OHSAS 18001, ISM
and ISPS.
Sirius was rolled out to the organisa-
tion in 2010. This included training of
all relevant rigs through courses and
e-learning. 350 people were trained
in seven locations, corresponding to
over 15 % of all employees. The inten-
tion is for those trained to cascade
training to their colleagues locally and
serve as super users.
It is the firm conviction of
Maersk Drilling that Sirius will
provide both employees and
customers with a more consistent
management system quality as
well as higher safety and environ-
mental performance in all the work
performed.
As for tracking our CSR perfor-
mance, we shall , in addition to our
HSE metrics on LTIs, TRCF, spills,
waste recycled and emissions,
implement CSR measures in 2011.
These measures are aimed at track-
ing progress while also serving to
diagnose and adjust the initiatives
in the CSR strategy. The measures
will be based on:
We will strengthen our CSR poten-
tial and performance in order to
support our success in the market-
place whilst improving our impact
on the environment and the com-
munities in which we operate.
Our ambitiOn
We will build upon our values, our
principles of conduct, our manage-
ment system and the business
integration of key initiatives.
Our resOurces
This will be achieved by :
• Improving our environmental
performance through technical
improvements, commercial part-
nerships and vigilant operational
behaviour.
• Strengthening our community
involvement through increased
understanding, managed pro-
cesses and a shared toolbox.
• Securing consistent and high
standards on how we conduct
our business in relation to human
rights, labour standards and anti-
corruption through our manage-
ment system.
• Promoting and enabling triple
bottom line thinking (people,
planet and profits) and stake-
holder engagement at local and
corporate level.
• Communicating transparently,
internally and externally, to
document and promote our CSR
profile and ambition.
• Driving continuous progress
and improvements through a
designated CSR management
process, reporting and CSR port-
folio management.
Our apprOach
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Working with sustainability Sustainability Report 2010 15
Maersk Drilling
• a CSR risk and mitigation survey
which measures exposure to risks
and strengths of mitigations, asset
by asset, • specific questions in our annual
Employee Engagement Survey to
monitor CSR visibility and culture,• a customer satisfaction survey
including CSR specific questions as
for 2010, • and finally, more specific measures
in relation to anti-corruption, human
rights monitoring and supplier as-
sessment and audits.
awardinG sustainaBilitY
perforMance
In line with the Maersk Drilling policies
of encouraging health and safety in
the workplace and protecting the
external environment, an HSE Award
scheme has been developed, widen-
ing the scope of a previous award
scheme which focused on zero LTI
performance only. This approach is
part of an initiative in our strategy
which outlines that our work on
environmental issues should be inte-
grated into our strong safety perfor-
mance and management structures.
The HSE Award scheme, promoted
and effective from 1 January 2011,
will recognise the achievement, by
both personnel and rigs, of mile-
stones not onlyregarding safety
but also health and environmental
protecting performance.
An HSE Award Certificate will be
awarded to a rig upon completion of a
period of 90 Operating Days without
any Recordable HSE Event, defined as:
• ZERO TRC (Total Recordable Cases,
including Medical Treatment Cases,
Restricted Work Cases, Lost Time
Incidents and Fatalities), irrespec-
tive of personnel category involved
in the TRCs,• ZERO dropped object over 40 Joules,• and ZERO spills to the external
environment.
These changed conditions for achiev-
ing the certificate allow us to reinforce
the increasing focus on environmen-
tal performance from customers,
regulators and employees. We can
also support the goals set to ensure
a safer workplace for our employees
and to contribute to environmental
improvement. Just as we will chal-
lenge ourselves, after having achieved
a very low and improving trend in
LTI frequency and having achieved a
performance outranking the industry
benchmark for over 10 years.
No external awards was given to Mae-
rsk Drilling in 2010.
Sustainability Report 2010.indd 15 02-03-2011 14:56:09
Sustainability Report 2010Performance and policies 16
Maersk Drilling
Our stakeholder engagement approach and process is designed in accordance with the AA1000-SES standard
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Working with sustainability Sustainability Report 2010 17
Maersk Drilling
Stakeholder engagementOur work to engage with stakeholders
was initiated in 2010, both globally
and locally to enhance our under-
standing of stakeholder and commu-
nity needs.
Dialogue meetings have been initiated
with major customers, specifically
aimed at identifying how we as a drill-
ing contractor can work with the oil
companies in terms of CSR. Contrary
to safety and environmental require-
ments, which are an integral part of
tender processes and contracts in
this field of business, CSR is relatively
novel to the drilling community and
this is a necessary first step.
Maersk Drilling also participated in
a global stakeholder mapping and
scanning project conducted by the
A.P. Moller - Maersk Group. The final
and aggregate results of this will not
be available until later in 2011, but the
process in itself has aided us in defining
our stakeholders. The generic segments
surveyed were: authorities, suppliers,
international bodies, NGOs, labour or-
ganisations, media and our employees.
local enGaGeMent
MoVes up the aGenda
Part of our CSR strategy is a priority
focus on community involvement.
For this we are preparing a set of
shared guidelines and a tool for
community involvement. Each rig
or department will be requested to
map stakeholders and analyse their
interrelation with Maersk Drilling to
improve how we handle and respond
to stakeholders. Entered into the web-
based tool currently being developed,
this process will provide the rig with a
plan grouping stakeholders into three
segments: engage, monitor and re-act.
The process is designed in accordance
with the AA1000-SES standard and
will be implemented early in 2011. The
entire organisation, both headquarters
and local units, will be involved in this
exercise, providing us with an overview
of both opportunities for dialogue and
risk management needs.
Each rig in Maersk Drilling is already
responsible for identifying and
managing stakeholders in relation
to regulatory requirements. The
identification of stakeholders is an
integrated part of our operation and
commercial set-up, as environmental
and safety processes have specific
steps where rigs are required to map
external requirements.
Finally, Maersk Drilling is involved in a
number of industry related organisa-
tions and initiatives, i.e. IADC and
IPIECA and works together with the
UN Global Compact office. Please
refer to the respective homepages for
further information.
Maersk Drilling does not define public
policy positions or participate in public
policy development or lobbying. These
responsibilities reside with the A.P.
Moller - Maersk Group.
eMploYees and
custoMers surVeYs
To gauge the opinion of our most
important stakeholder groups,
Maersk Drilling carries out two annual
surveys: a Customer Satisfaction
Survey of current and potential cus-
tomers, and the A.P. Moller - Maersk
Employee Engagement Survey.
The customers are questioned on a
range of topics covering; People & Ap-
proach, Project Management, Units &
Equipment, Operational Performance,
Safety & Environment and Price &
Quality, all on a 1 – 7 scale. In 2010, 48
customers responded to the survey
giving an overall response rate of 29 %.
The overall satisfaction score for
Maersk Drilling in 2010 was 4.9,
ranking slightly below the 5.0 result
achieved in 2009.
Maersk Drilling performs well on
“other CSR activities” receiving a high
score of 5.7 rated second best in the
survey. With the scores of 5.4 and 5.3
for commitment to the protection
of the environment and strength
of safety culture in Maersk Drilling
respectively; these topics also appear
on the top ten list of questions with
the highest score outcomes.
For the annual survey of employee en-
gagement we were pleased to see that
the overall score for Maersk Drilling was
maintained despite our restructuring.
For further information see page 20.
Results of the survey led to defining
two main focus areas in 2011, namely
improved communication on the link
between pay and performance, and im-
proved visibility on career development
opportunities. 84 % of the employees
in Maersk Drilling participated in the
survey.
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Maersk Drilling operates in most regions of the world and employs a diverse group of employees. We see diversity as a benefit to the organisation.
Sustainability Report 2010.indd 18 02-03-2011 14:56:22
Performance and policies Sustainability Report 2010 19
Maersk Drilling
MD Nationality
Africa
Asia
North America
Other Europe
South America
Oceania
Norway
United Kingdom
Denmark
37 %
19 %
18 %
7 %
6 %
5 %0 %
0 % 8 %
Maersk Drilling as an employer
Maersk Drilling is focused on building
the competencies of our workforce.
A new Human Resources system
was implemented in 2010, SAP HR,
providing employees with a better
overview of learning opportunities
within their position. Additionally, the
system gives the manager a clear
overview of competency gaps in his or
her team. This will assist in providing
better service to our customers, as
well as in creating cost-efficiencies in
our HR-function.
In 2010, each offshore employee
had 69.8 hours of instructor-led
courses, equivalent to 8.7 work days.
The course days are split between
technical training, safety training
and personal development. For 2010
our data does not cover onshore
employees.
diVersitY
Maersk Drilling operates in most
regions of the world and employs a
diverse group of employees. We see
Maersk Drilling employs approximately 3,200 persons, excluding our joint venture operations in Egypt. The workforce composition shows a split of 84 % offshore employees and 16 % onshore.
diversity as a benefit to the organisa-
tion. The distribution of nationalities
for both the onshore and offshore
workforce can be viewed below.
At present, we do not have valid data
to show nationality distribution at
managerial level, but it remains a
fact that women and non-Danes are
underrepresented in management in
Maersk Drilling.
Historically, the workforce in
Maersk Drilling has been dominated
by men, and as evident from below
graphs, this is still the case today, par-
ticularly in the offshore segment.
As part of the global roll-out of the
the A.P. Moller - Maersk Group’s diver-
sity project, Maersk Drilling is inves-
tigating the root-causes for the low
number of women in management.
Sustainability Report 2010.indd 19 02-03-2011 14:56:23
Sustainability Report 2010Performance and policies 20
Maersk Drilling
Gender onshore
Female
Male
67 %
33 %
Gender offshore
Female
Male
99 %
1 %
The focus is on recruitment, work-life
balance, promotion and employee
development. The investigation aims
to challenge established myths on
and commonplace explanations to
gender underrepresentation.
restructurinG onshore
In 2010 Maersk Drilling finalised the
restructuring of the onshore organisa-
tion, and as a consequence approxi-
mately 100 onshore positions were
made redundant leading to 52 per-
sons being affected. The redundancy
process was handled in accordance
with relevant national law, mostly
Danish law, requiring the company to
organise formal representation for all
employees made redundant and each
person was offered a suitable sever-
ance arrangement, including external
job counselling.
Locations outside of Copenhagen
saw the most significant changes,
as the organisational set-up was
altered to improve the support of rig
operations. The organisation is now
structured in rig teams managing the
daily tasks within human resources,
health, safety and environment as
well as operational tasks. Each team
is headed by a Rig Manager. Due to
the size of our operations in Norway
and Australia, a Location Manager
with responsibility for legislative and
administrative tasks has also been
appointed at these locations.
Sustainability Report 2010.indd 20 02-03-2011 14:56:27
Performance and policies Sustainability Report 2010 21
Maersk Drilling
Health for all
Working offshore can be strenu-
ous due to several factors. Hard
weather, heavy machinery, high
noise levels and long shifts all affect
the daily life. Not to mention the
week-long separation from family
and friends.
In this setting, sound working envi-
ronments and healthy choices are
important. We seek to provide breaks
in offshore working life by establishing
relaxation rooms, fitness facilities and
healthy, nutritious meals. With regards
to health, our work is guided by the
A.P. Moller - Maersk Group Health
Strategy and the Maersk Drilling
Health Policy.
The management of our working
environment is integrated in the
overall management system which
complies with the principles of the
international standard of OHSAS
18001.
As a vital part of the system, we
measure and assess a wide range of
factors, e.g., noise, vibrations, light
and psycho-social impacts. These
are compiled into a Work Place As-
sessment (WPA), which forms the
basis for an occupational health and
working environment programme for
each rig, under the custody of a WPA
manager.
offshore work and
its iMpact on health
Maersk Drilling Norway has joined
‘PUSSH’, a longitudinal survey with the
purpose of examining how different
types of shift rosters are related to
work environment factors, such as
sleeping patterns, circadian rhythm,
health and from the impact of isolation
in work life, including both onshore and
offshore workers in the oil industry.
The project is a collaboration between
the National Institute of Occupational
Health (NIOH), the University of Bergen,
and the International Research Insti-
tute of Stavanger (IRIS).
While we feel an extended respon-
sibility for the health of our workers
offshore, we also want to promote a
sound life style at our office facilities.
wholesoMe food policY at Md
In 2010, several locations set up initia-
tives to improve health through better
diets. This included Lyngby headquar-
ters where a Galley Council and a Food
Policy were established, covering the
approx. 300 onshore employees to en-
sure a holistic and engaging approach
to food and drink offered at the head-
quarters. The Food Policy will ensure
that we constantly strive for our can-
teen and the food offered to be healthy
by nature and preparation and to offer
Our health pOlicy
It is the objective of Maersk Drilling to
provide a healthy work place promoting
healthy work practices with the aim to
continuously improve occupational health
and support a healthy lifestyle among
the company’s employees as well as con-
tracted and third party personnel.
This is achieved by:
• Management commitment.
• Compliance with the principles of
OHSAS 18001.
• Compliance with applicable occupa-
tional health laws and regulations.
• Positive promotion of health and well
being at work and supporting a healthy
lifestyle of the individual.
• Systematic management and control of
health risks.
• Monitoring health management through
surveys and reporting for improvement
purposes.
• Fostering continuous improvement
of occupational health by promoting
best practices and by establishing clear
objectives and targets.
a pleasant and appealing break from
work. The food should also embrace
diversity and observe ethnic balances,
and provide an inspiring and relaxed
atmosphere and meeting place.
Sustainability Report 2010.indd 21 02-03-2011 14:56:27
Sustainability Report 2010Performance and policies 22
Maersk Drilling
Our sAfETy POliCy
Maersk Drilling is committed to conduct-
ing our activities in a safe and secure work-
ing environment that prevents harm both
to our personnel as well as contracted
and third party persons working under
the direction of our companies. Safety
and security are top priorities. We focus
on protecting our personnel, assets and
operations.
This is achieved by:
• Management’s active demonstration
and commitment to safety and security.
• Promoting and driving a strong safety
culture and a secure environment in
which all employees share this commit-
ment.
• Compliance with the principles of OH-
SAS 18001, ISPS and ISM.
• Set ting targets for improvements
and through measuring and apprais-
ing achieving continuous improve-
ment.
• Compliance with or exceeding ap-
plicable safety and security laws and
regulations.
• Encouraging employees to freely report
ways and means to improve our overall
safety performance.
• Operating a “target zero” principle for
unsafe acts and conditions actively us-
ing lessons learned.
• Measurement and benchmarking per-
formance internally and against market
leaders.
• Systematic identification of risks and
hazards against clear acceptance
criteria.
Safety is by far the most important sustainability issue for Maersk Drilling. High safety standards and performance are essential for our licence to operate and to be in compliance with our policies and management system.
The defining moment in the offshore
industry in 2010 was the fire and
explosion on the Deepwater Horizon
drilling rig on 20 April. Eleven people
died, 17 were injured. No one in our
industry will be left untouched by this
terrible accident, which later turned
out to be one of the biggest acciden-
tal marine oil spills in history.
Maersk Drilling is well-positioned to
meet any new demands potentially
emanating from the accident, including
strengthened equipment requirements
and changes to drilling procedures.
The incident spurred a review of the
rights and responsibilities of senior
staff to stop an unsafe operation. This
led to Claus V. Hemmingsen sending
a letter to all senior staff, reminding
them of their right and obligation to
enforce their mandate to stop any job
if considered potentially dangerous.
Safety on our minds
Sustainability Report 2010.indd 22 02-03-2011 14:56:28
Performance and policies Sustainability Report 2010 23
Maersk Drilling
LTIF’s
Furthermore, as the magnitude of the
Macondo disaster became clear, Mae-
rsk Drilling, in cooperation with Maersk
Oil, formed a task force to investigate
and recommend actions to safeguard
us from similar risks.
safetY perforMance 2010
In 2010, Maersk Drilling maintained
another year with lower Lost Time
Incident Frequency (LTIF) of 0.61,
compared to both the figure in
Maersk Drilling 2009 (1.57) and the
figure in the drilling industry 2010
by Q4 was 1.95 for land and water.
21 of our 26 operating rigs achieved
the entire calendar year without an
Lost Time Injury.
The table on this page contains the
information of LTIF’s in each group
Asset type LTI frequency Working hours No. of LTIs
Midwater semi-submersible 0.00 953,771 0
International Jack-up 0.64 1,568,281 1
Deepwater semi-submersible 0.66 1,524,276 1
Harsh environment Jack-up 0.91 1,096,914 1
Drilling barges 1.14 1,746,784 2
Maersk Drilling (offshore only) 0.72 6,949,475 5
of assets and for Maersk Drilling off-
shore in total for 2010.
In 2010 we introduced third party
e-learning, requiring that all contrac-
tors and visitors boarding our rigs
are instructed in the Maersk Drilling
safety policies and culture prior to
starting work. The goal is to create
a shared safety culture and mindset
with all personnel working at our
premises.
Safety related incidents are also
subject to external scrutiny and
we systematically report any non-
compliance within HSE to the relevant
authorities.
The fatal accident onboard the
MÆRSK RESOLUTE, causing the
death of a third party employee as
reported in 2009, is currently under
investigation by the authorities.
Our goal is to create a shared safety culture and mindset with all personnel working at our premises
“It is our belief that oil companies in-
creasingly will look to rig contractors
with modern equipment and good
safety procedures that comply with the
new regulatory environment. We have
that,” says Claus V. Hemmingsen,
CEO of Maersk Drilling
Sustainability Report 2010.indd 23 02-03-2011 14:56:30
Sustainability Report 2010Performance and policies 24
Maersk Drilling
Continuous improvement of
our safety performance and the
elimination of accidents by growing
a strong safety culture is key to
reaching our goal of zero accidents.
These are some of our activities in
2010:
• In 2010, we rolled out our second-
generation management system,
Sirius, to 15 rigs worldwide.
2011 will see continued roll out and
implementation. It is our belief that
ensuring easier access to safety
processes will generate a safer
working environment.
• The safety organisation was
re-structured and strengthened
worldwide. A new operational
safety section was established as
part of the new rig team structure.
With this structure we are able to
provide quicker and more dedicated
advice and service to frontline
operations. This will improve our
safety performance.
• We have applied two complimen-
tary safety survey methodologies.
One is a global safety climate survey
to gain an overall picture of the
status of our safety climate. We
intend to use this survey score as
a benchmark for tracking develop-
ments from year to year. Another
is a safety culture survey system in
which we interview 15 – 20 persons
representing a range of employee
groups on a rig and examine related
findings. These surveys result in a
set of recommendations and action
plans for the rig in question. The
concept of safety culture surveys
was developed in 2009 and three
surveys were conducted in 2010.
• Risk management was brought up
in both the internal Macondo task
force and in our safety surveys as
an area with improvement poten-
tial. The risk management process
is under revision to improve ease
of use and understanding of the
process. The process will be final-
ised in 2010 and training will be
provided throughout 2011. In 2010
we mapped the relevant places
for hazard management to tie in
to our management system Sirius.
• Prevention of dropped objects was
again in focus in 2010, and a com-
prehensive campaign is planned for
roll-out in 2011.
• In October 2010, we held our Global
HSE Seminar with over 60 partici-
pants from around the world. Many
safety initiatives were discussed and
priorities set for 2011, leading to the
three focus areas compliance, com-
petence and management of risk.
In Maersk Drilling we focus on
health and safety in all aspects.
Many chemical products are used
on board our rigs. Prior to use, all
chemicals are risk assessed in
accordance with the chemical
management process in SIRIUS.
Chemicals are managed in SAP
EH&S. As part of the chemical
management process, all material
safety data sheets (MSDS) are to
be kept up to date. During the last
months, we have been working
with the Chemical Management
process in SAP EH&S, developing
an online catalogue where end-
users can log in and find any MSDS
required for any product used
offshore. We expect the online
catalogue to be rolled out globally
in the first quarter of 2011.
managing the risks frOm chemicals
Safety initiatives in 2010
Sustainability Report 2010.indd 24 02-03-2011 14:56:30
Performance and policies Sustainability Report 2010 25
Maersk Drilling
The A.P. Moller - Maersk Group contin-
ued the close collaboration with naval
forces and industry association to
maintain a high level of awareness and
preparedness when transiting piracy
infested waters, notably areas of the
Indian Ocean. In 2010, Somali pirates
adapted to changing circumstances
by attacking and hijacking merchant
ships in areas previously thought un-
reachable further into the Indian Ocean
and along the East African coast by us-
ing hijacked fishing vessels and dhows
as mother vessels. Armed robbery has
also become more frequent particu-
larly in West Africa, Latin America and
South East Asia.
Maersk Drilling operates the
MÆRSK DELIVERER in West Africa
and requires alertness to the risk of
piracy and armed robbery. Our crew
and assets are also at risk whenever a
rig passes Somalia as it is towed from
Asia to Europe or the US.
These assets were only sporadically
affected due to a high awareness level
coupled with training and prompt
alerting.
All ships in the A.P. Moller - Maersk
Group follow industry and naval rec-
ommendations set out in ´Best Man-
Dealing with piracyand armed robbery
agement Practices’ (BMP3) and group
activities. In addition, during the last
part of 2010, security assessments
for Maersk Drilling have been carried
out in high risk areas to have a pru-
dent approach to security. Logistics
& project support surveys describe
the current security environment in
the areas of interest. The assess-
ments were conducted to prepare
for potential future assignments and
operations and to warrant the peace
of mind of Maersk Drilling employees
and their relatives.
The assessments outline facts and
recommendations concerning security
management procedures, risk mitiga-
tion strategies, health issues, logistics
and support. Audits and assessments
of main suppliers, such as local airlines,
in the same areas have also been
initiated at the end of 2010 and will
continue into 2011 as required.
Sustainability Report 2010.indd 25 02-03-2011 14:56:31
Maersk Drilling continues being committed to finding ways of reducing our environmental footprint, both in terms af greenhouse gas emissions and other environmental impacts.
Sustainability Report 2010.indd 26 02-03-2011 14:56:36
Performance and policies Sustainability Report 2010 27
Maersk Drilling
EnvirOnMEnTAl POliCy
Maersk Drilling is committed to protecting
the environment. This is reflected in the
emphasis we place on the environmental
aspects of managing our business off-
shore and onshore. By means of target
setting, awareness and training combined
with monitoring, we aim to continuously
reduce emissions, to avoid harm to the
environment and to find innovative im-
provement solutions.
This is achieved by:
• Management commitment to the
environmental performance.
• Conducting activities so as to meet or
exceed applicable environmental laws,
regulations and standards.
• Compliance with the principles of
ISO 14001.
• Protecting the environment with
the use of modern environmental
protective equipment.
• Coaching employees to understand
how their own activities can influence
the environmental impact of our
work.
• Environmental improvement activities
based on sustainable, cost beneficial
and proven principles relying on best
available technology as well as innova-
tion.
• Cooperation with external partners
regarding innovation and improvement
projects.
Climate change and environment
As global attention to climate change remains high on the agenda, and in the aftermath of the Deepwater Horizon accident in the Gulf of Mexico, Maersk Drilling is reinforcing its focus on environmental performance.
Maersk Drilling continues being com-
mitted to finding ways of reducing
our environmental footprint, both
in terms of greenhouse gas (GHG),
emissions and other environmental
impacts. This is a requirement of our
main stakeholders, regulators and
customers, as well as of our internal
policies and management systems.
We work together with the rest of the
industry in the IADC Environmental
Policy Advisory Panel (EPAP) to
improve both our own and industry
environmental performance.
GHG emissions, together with waste
management, are our primary environ-
mental impacts. We work to improve
our environmental performance in
accordance with our environmental
policy, which can be seen on this
page, and have recently renewed our
ISO14001 certificate, demonstrating
a comprehensive environmental man-
agement system. Read more on our
environmental aspects in appendix C.
Sustainability Report 2010.indd 27 02-03-2011 14:56:36
Sustainability Report 2010Performance and policies 28
Maersk Drilling
Reduce relative amount of CO2
co2 eMissions in 2010
In accordance with
A.P. Moller - Maersk Group strategy,
we have set a target of reducing our
CO2 emissions relative to production
by 10 % by 2012.
Maersk Drilling’s objective is to reduce
the relative amount of CO2 emitted
according to the following plan:
2010 2011 2012
Percent 2 % 5 % 10 %
We emitted 341 tonnes CO2 equiva-
lent in 2010 compared to 246 for
2009. As a rough relative measure,
the intensity expressed through CO2
equivalent per million man hours
shows an increase from 35 tonnes
CO2/mill man hours in 2009 to 42
tonnes CO2/mill man hours in 2010,
which equals an increase of 19 % and
7 % compared to our 2008 baseline.
This figure is highly influenced by a
number of factors i.e. drilling depth,
weather conditions, density of the
formations drilled etc. Most of these
factors are outside our control and
emphasise why developing a more
precise metric for measuring our rela-
tive GHG-intensity is vital for our work
to consistently track and document
improvements on our impact/emis-
sion. In 2010 we commenced work
with the Danish Technical University
as well as the IADC EPAP to reach this
goal.
From the beginning of 2010, measur-
ing the amount of external spills has
been included as a key performance
indicator for our operation. Unfortu-
nately, we had an increase of 5 exter-
nal spill incidents compared to 2009
and doubled the volume spilled. Inves-
tigation on causes of leaks and spills
is highlighted in our 2011 HSE Action
Plan. Furthermore, performance re-
garding external spills is also included
in our new HSE Award system.
The total waste generated last year
has reduced 35 % compared to 2009,
from 32 thousand tonnes in 2009
to 21 thousand tonnes in 2010. The
total amount of hazardous waste has
been reduced 16% and the volume of
recycled waste has gone up from 12 %
in 2009 to 14 % in 2010.
Appendix D describes how our envi-
ronmental performance is directly
influenced by the specific drilling con-
tract and the customer requirements.
strateGY proVides new focus
As part of our CSR strategy, we
have determined our way of work-
ing within the strategy priority area
entitled ‘Emissions and hazardous
materials’.
Our primary means to improve our
environmental performance will be
technical improvements on the rigs,
commercial partnerships and vigilant
operational behaviour.
We work to reduce air pollution by in-
stalling electronic equipment on our rigs
Protecting the environment: We constantly strive to go beyond compliance in environmental matters
Sustainability Report 2010.indd 28 02-03-2011 14:56:38
Performance and policies Sustainability Report 2010 29
Maersk Drilling
to achieve fuel savings. This will also
reduce our emissions of CO2 and NOX.
Drilling operations are characterised
by rapidly varying electrical loads at
which the equipment is operated. The
majority of equipment is driven by
large electric motors normally in the
range up to 1 megawatt. The older
drilling rigs with Direct Current (DC)
drilling motors operate in a manner
conducive to energy waste.
These issues are mitigated by use
of modern active electric filters,
resulting in a reduction in load current
supplied by generators which in turn
leads to a reduction in emissions by
10 % on our G-type rigs. In 2011, the
MAERSK GUARDIAN will be fitted with
electronic filters for fuel reduction
during its planned yard stay.
enerGY surVeY
Together with the A. P. Moller - Maersk
Group technology function and with
a 50 % financing by Maersk Oil, we
have in 2010 performed an offshore
energy survey on MAERSK RESOLVE,
one of our high-efficiency jack-up
rigs. Several modifications were
suggested to ventilation and cooling
systems, water systems and fuel
oil purifiers. While the survey was
related to the high-efficiency-rig type,
the findings have relevance for all our
rigs.
Performing these modifications is
estimated to give an annual fuel
saving of more than 8 % of total
consumption. Furthermore, all find-
ings have been transferred to our
newbuilding programme for imple-
mentation.
Metrics and targets• Comply with and go beyond legisla-
tive and regulative requirements
including performance permits
owned by customers. • Establish environmental KPI’s and
benchmarking.
leadership & commitment• Through management support,
training and awareness cam-
paigns promote an environmental
culture that matches our current
safety culture. • Finalise improvements from the
Green Rig project. • Establish an environmental group
in all locations.• Perform process excellence meth-
ods on relevant environmental
processes.
stakeholder management• Establish partnerships with se-
lected customers and other
A. P. Moller - Maersk business units.• Promote environmental innova-
tion projects through cooperation
with selected customers.
Marketing & communication• Initiate environmental campaign
following same patterns as safety
campaigns. • Yearly sustainability report.• Increase media coverage to pro-
mote our profile.
Technical Operation
and innovation• Initiate green technologies and in-
novation through dedicated senior
staff.• Improvement projects following
Green Rig project.
ecO – efficiency strategy 2009 – 2013
pursuinG our
enVironMental strateGY
Environmental improvement is part of
the company strategy and built into
the management system. We work
according to a comprehensive envi-
ronmental programme, which forms
the basis for our initiatives to reduce
the total impact on the environment
from offshore operations.
The Maersk Drilling objectives in the
eco-efficiency strategy for 2009 – 2013
can be seen in the table below.
Certain initiatives have been put on
hold this year including the Green
Rig project and establishing envi-
ronmental groups at all office loca-
tions. This is due to organisational
changes that have either reduced
available resources or changed the
relevance of the activity. Both these
initiatives will be resumed in 2011.
We work to develop an environmen-
tal culture that matches our strong
safety culture through new metrics
and awards and integration of the
environment into established safety
tools and processes. Progress in
other areas will be found in relevant
sections in this report i.e. technical
improvements and campaigning.
Sustainability Report 2010.indd 29 02-03-2011 14:56:38
Maersk Drilling aims to maximise the use of local services and bring value to the community through our business
Sustainability Report 2010.indd 30 02-03-2011 14:56:43
Performance and policies Sustainability Report 2010 31
Maersk Drilling
Community involvement
Local content demands are often
high and focus on anything from local
staffing and sourcing to community
engagement through donations and
capacity building. Maersk Drilling aims
to maximise the use of local services
and bring value to the community
through our business. However,
requirements differ from area to area
and a specific approach is therefore
necessary for each area.
All sourcing in the future will be sub-
ject to the A.P. Moller - Maersk Group’s
Responsible Procurement initiative
the pilot was initiated in 2010 and still
ongoing and is mainly concerned with
testing and adjusting an e-tool for
on-boarding and assessment of sup-
pliers. Furthermore, we have a draft
3rd party Code of Conduct and legal
clauses ready to be implemented
after the pilot. In relation to this initia-
tive, audits of three shipyards were
carried out in 2010 and follow-up on
the findings is included in ongoing
business with the shipyards.
Investing in the local community is an integral part of tender processes and contractual agreements in the oil industry, known as ‘local content’.
For issues not related to sourcing,
Maersk Drilling is pursuing a sys-
tematic and sustainable approach,
and in 2010 we began drafting an
internal policy on philanthropy.
The policy will lead to activities
supporting both overall community
development and Maersk Drilling’s
long term business environment.
We will secure this by splitting our
local investments, contractual or
voluntary, for the majority to go
into development and capacity
building for local communities while
a minor percentage is to be ear
marked for donations.
Examples of capacity develop-
ment are investment in education,
health care and vocational training
relevant to the oil industry, often in
partnership with customers. Another
opportunity is the investment in the
development of local businesses
to support our logistical needs at a
level that meets our standards i.e. on
waste management.
VisiBle coMBat of corruption
The A.P. Moller - Maersk Group’s
anti-corruption policy and supporting
guidelines were launched in 2009,
and 2010 was in this respect dedi-
cated to further implementation.
Standard clauses were inserted in
contracts, due diligence material es-
tablished for entering into contracts
with agents and contractors and
counselling for managers and other
key personnel exposed to the risks
of corruption was carried out. No
additional training was made during
2010 as staff in the target audience
remained the same but for a few
exceptions.
Maersk Drilling has implemented the
A. P. Moller - Maersk Group whistle-
blower system using intranet
announcements and briefings to
introduce the system. For Maersk
Drilling no specific incidents of corrup-
tion have been suspected or identified
in 2010.
Sustainability Report 2010.indd 31 02-03-2011 14:56:43
In Maersk Drilling we welcome any governmental and regulatory reviews and considerations as we firmly believe this will only lead to a safer and more sustainable industry.
Sustainability Report 2010.indd 32 02-03-2011 14:56:55
Performance and policies Sustainability Report 2010 33
Maersk Drilling
Social performance
Social performance
Our employees
Safety b
2009 2010Number of employees 2,867 3,198Gender (female/total) % 6 8Employee engagement % 70 70Performance appraisals % 91a 87
2009 2010Revenue USD million 1,285 1,627Electricity cost USD million 0.26 0.48
Lost time injury frequency (LTIF) industry benchmark 1.23 c 1.57 0.61Total recordable case frequency (TRCF) industry benchmark 4.38 c 6.58 5.13Lost time injury number 11 5Fatality d number 2 0
Environmental performance e
Other air emissions
Other environmental impacts
Energy consumption
Greenhouse gas (GHG) emissions
2009 2010Diesel (Scope 1 : off contract) 1,000 tonnes 6 5Diesel (Scope 3 : Client responsible) 1,000 tonnes 70 100Diesel Total (Scope 1 + Scope 3) 1,000 tonnes 76 104Fuel gas (Scope 3 : Client responsible) f 1,000 tonnes 0 1Electricity (Scope 2 : onshore offices only) g 1,000 MWh 4 5Direct energy consumption by primary energy source GJ 3,375,660 4,597,914Energy intensity MJ/USD turnover 2.0 2.8
GHG emissions 1,000 tonnes CO2 eq 246 341Direct GHG emissions (Scope 1 GHG Protocol) h
CO2 1,000 tonnes CO2 eq 19 15CH4 1,000 tonnes CO2 eq 0 0N2O 1,000 tonnes CO2 eq 0 0Indirect GHG emissions (Scope 2 GHG Protocol) i
CO2 j 1,000 tonnes CO2 eq 1 2CH4 j 1,000 tonnes CO2 eq 0 0N2O j 1,000 tonnes CO2 eq 0 0Direct GHG emissions (Scope 3 GHG Protocol) k
CO2 1,000 tonnes CO2 eq 224 318CH4 1,000 tonnes CO2 eq 0 0 N2O 1,000 tonnes CO2 eq 0 0GHG intensity kg CO2 / USD turnover 0.2 0.2
Waste total 32 21- recycled (composting, reused, recycled) 1,000 tonnes 4 3- solid (landfill, on-site storage, incineration) 1,000 tonnes 13 5- hazardous (controlled deposit) 1,000 tonnes 15 13Waste consumption- municipal water supplies/water utilities l 1,000 m3 12 11- drill water 1,000 m3 104 104SpillsNumbers of external spills (≥ 100 liters) 8 13 Numbers of external spills (< 100 liters) 10 12Total amount of external spills 1,000 liters 21 43
SOX 1,000 tonnes 0 0NOX 1,000 tonnes 6 9VOCs 1,000 tonnes 1 1
a Based on rough esti-mated.
b Following the IADC Incident Statistics Programe guidelines, Maersk Drilling should report only work-related incidents happened to our own employees and to our own subcontrac-tors during actual working hours when the premises is/are under the control of MD’s management system. According to this meth-odology of reporting, Maersk Drilling’s safety performances in 2009 and 2010 are presented as below:
c International Associa-tion of Drilling Contrac-tors Incidents Statistics Program 2010 Year to Date Summary Report by Category 3rd Quarter Numbers (water only).
d 1 fatality took place at a facility not controlled by MD and 1 fatality oc-cured to a 3rd personnel onboard MD offshore unit.
e No record of HFC, PFC, SF6, Particulate matters and Steel consumption.
f Fuel gas is only used for well testing on drilling units.
g Electricity consumption was only counted for onshore offices. The consumptions of the onshore offices shared between MD and MF were estimated based upon the split of MD/MF head counts.
h Off contract period only.i Only from electricity
purchased for onshore offices.
j Different conversion factors were applied according to regional locations. Please refer to “CO2 Emissions From Fuel Combuston” pub-lished by International Energy Agency.
k On contract period only.l Only from onshore office
consumption.
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Sustainability Report 2010Appendices 34
Maersk Drilling
Appendix A:
GRI Standard Disclosure
Italic indicates that the indicator is only partly covered by the report.
GRI Standard Disclosures
section in report
Strategy and Analysis
1.1 Foreword by CEO Deep dive into sustainability – a message from the CEO
1.2 Description of key impacts, risks, and opportunities. Main impacts and risks
Organisational profile
2.1 Name of the organisation Company profile
2.2 Primary brands, products, and/or services Company profile; list of assets
2.3 Operational structure of the organisation Governance
2.4 Location of organisation’s headquarter Company profile
2.5 Number of countries where the organisation operates Company profile; geographic reach
2.6 Nature of ownership and legal form. Company profile
2.7 Markets served Company profile; geographic reach
2.8 Scale of the reporting organisation Company profile
2.9 Significant changes during the reporting period regarding size, structure, or ownership. Maersk Drilling as an employer
2.10 Awards received in the reporting period.
Report Parameters
3.1 Reporting period About the report
3.2 Date of most recent previous report (if any). About the report
3.3 Reporting cycle About the report
3.4 Contact point for questions regarding the report or its contents Colophon (back cover flap)
3.5 Process for defining report content About the report; topics included
3.6 Boundary of the report About the report; scope of the report
3.7 Specific limitations on the scope or boundary of the report About the report; scope of the report
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations etc. About the report; scope of the report
3.9 Data measurement techniques and the bases of calculations About the report; principles of data reporting
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, About the report and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).
3.11 Significant changes from previous reporting periods in the scope, boundary, About the report or measurement methods applied in the report.
3.12 Table identifying Standard Disclosures in the report This table, Appendix A.
3.13 Policy and current practice with regard to seeking external assurance for the report. About the report
Governance, Commitment and Engagement
4.1 Governance structure of the organisation Company profile, Governance
4.2 Indicate whether the Chair of the highest governance body is also an executive officer. Governance
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Appendices Sustainability Report 2010 35
Maersk Drilling
4.3 For organisations that have a unitary board structure, state the number of members Group Sustainability Report
of the highest governance body that are independent and/or non-executive members.
4.4 Mechanisms for shareholders and employees to provide recommendations or direction Group Sustainability Report to the highest governance body.
4.8 Internally developed statements of mission or values, codes of conduct, and principles Governance, Our approach relevant to economic, environmental, and social performance and the status of their to sustainability implementation
4.9 Procedures of the highest governance body for overseeing the organisation’s identification Governance, Our approach and management of economic, environmental, and social performance, including relevant to sustainability risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.
4.12 Externally developed economic, environmental, and social charters, principles, or other Governance, Our approach to initiatives to which the organisation subscribes or endorses. sustainability, Stakeholder engagement
4.13 Memberships in associations and advocacy organisations Our approach to sustainability, Stakeholder engagement
4.14 List of stakeholder groups engaged by the organisation. Stakeholder engagement
4.15 Basis for identification and selection of stakeholders with whom to engage. Stakeholder engagement; local engagement moves up the agenda
Management Approach and Performance Indicators
EC1 Economic performance Fact sheet
EN3 Direct energy consumption by primary energy source. Factsheet
EN4 Indirect energy consumption by primary source. Factsheet
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, Climate change and environment; and reductions in energy requirements as a result of these initiatives. Eco-efficiency strategy 2009 – 2013
EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Climate change and environment
EN8 Total water withdrawal by source. Factsheet
EN16 Total direct and indirect greenhouse gas emissions by weight Factsheet
EN17 Other relevant indirect greenhouse gas emissions by weight. Factsheet
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Climate change and the environment; Reduced CO2 emissions in 2010
EN19 Emissions of ozone-depleting substances by weight. Factsheet
EN20 NOX, SOX, and other significant air emissions by type and weight Factsheet
EN23 Total number and volume of significant spills. Factsheet
EN26 Initiatives to mitigate environmental impacts of products and services, and extent Climate change and environment of impact mitigation.
LA1 Total workforce by employment type, employment contract, and region. Maersk Drilling as an employer
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number Safety performance, Factsheet of work-related fatalities by region.
LA8 Education, training, counselling, prevention, and risk-control programs in place to assist Health for all workforce members, their families, or community members regarding serious diseases.
LA12 Percentage of employees receiving regular performance and career development reviews. Factsheet
SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage Community involvement the impacts of operations on communities, including entering, operating, and exiting.
SO3 Percentage of employees trained in organisation’s anti-corruption policies and procedures. Governance; globally committed
SO4 Actions taken in response to incidents of corruption. Visible combat of corruption
SO5 Public policy positions and participation in public policy development and lobbying. Governance
SO8 Monetary value of significant fines and total number of non-monetary sanctions Safety performance 2010 for non-compliance with laws and regulations.
PR2 Total number of incidents of non-compliance with regulations and voluntary codes Safety performance 2010 concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
PR5 Practices related to customer satisfaction, including results of surveys measuring Stakeholder engagement, customer satisfaction. Employees and customers surveyed
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The management of our working environment is integrated into the overall management system which complies with the principles of the international standard of OHsAs 18001.
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Appendices Sustainability Report 2010 37
Maersk Drilling
In Maersk Drilling we are commit-
ted to conducting our business in a
sustainable way and we therefore
adopt and adapt the overall Maersk
principles of Conduct.
supporting and respecting interna-
tionally proclaimed human rights• We respect human rights and
endeavour to ensure that we do not
contribute to human rights viola-
tions.
responsible business behaviour• We conduct our business in an
ethical and lawful manner, and we
will promote the same business
behaviour within our sphere of
influence.• We work against all forms of cor-
rupt practices, including bribery and
extortion.• We compete fairly everywhere we
do business.• We are committed to promoting
sustainable business practices in
our supply chain.
a good place to work• We treat every employee with
respect and dignity and are com-
mitted to creating a working envi-
ronment free from discrimination
and harassment, and one in which
diversity is encouraged.• We respect our employees’ rights
to associate freely – to form and to
join, or not to join, trade unions – and
to bargain collectively.• We do not tolerate any form of
forced or compulsory labour.• We prohibit the use of child labour.
protecting health and safety• We are committed to providing all
people working under our direction
with a healthy and safe work envi-
ronment, and continuously strive to
improve our performance.
Maintaining high security standards• We endeavour to take all precautions
necessary to maintain high security
standards and security awareness
within our organisation at all times.
supporting our customers• We wish to be recognised as a reli-
able, trusted and engaged partner
in all our business dealings.
protecting the environment• We protect the environment by
exercising constant care and
optimising our operations, and
endeavour to use natural resources
responsibly and reduce our environ-
mental impact.• We are committed to countering
climate change by striving to mini-
mise greenhouse gas emissions
from our business activities.
engaging with society• We strive to improve the ways
in which we contribute directly
or indirectly to the sustainable
development of the communities
in which we work and society at
large.• We are committed to being ac-
countable to our stakeholders and
report publicly on our performance.
Appendix B :
The Maersk Principles of Conduct
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Sustainability Report 2010Appendices 38
Maersk Drilling
atMospheric eMissions
Primary gas released into the atmos-
phere include carbon dioxide (CO2),
methane (CH4), sulphur oxides (SOX),
nitrogen oxides (NOX) and volatile
organic compound (VOC). Carbon
dioxide and methane are green house
gasses leading to global warming,
SOX creates acid rain, while NOX has a
negative effect on health.
Among these gasses, CO2 is the one
with highest influence due to a high
volume of emission. The other gas-
ses are considered less significant
in relation to drilling and gas and oil
production due to low volumes of
emissions. Gas emissions are the
result of onboard combustion of fuel
for power production or flaring of
excess gas.
Drilling rigs consume marine diesel oil
for the main engines driving the power
generators and, to a lower extent,
diesel driven deck cranes and well
cementing units.
discharGes
Discharges of effluents originate in
drilling operations as well as oil and
gas production.
Maersk Drilling has some drilling
operations where drill cuttings are
processed and mixed with waste
drilling fluids and re-injected into the
formation (rock in the underground
surrounding the borehole). The process
is known as ‘slurry reinjection’ and ena-
bles a drilling operation to minimise the
discharge. Other aqueous drill cuttings
are discharged to the sea – depending
on the chemical composition of the
drill fluid. Prior to the discharge, the
cuttings will undergo a process of
cleaning and drying out the cuttings.
All offshore units produce other dis-
charges that originate from disposal
of sanitary water (sewage), bilge wa-
ter from engine room compartments
and deck bilge. Chemicals are used
offshore for various purposes mainly
in drilling mud and for processing
reservoir fluids. The use and discharge
of chemicals is performed under the
customer’s discharge permit, as it is
for produced water and drill cutting
discharges.
waste Generation
Regardless of type of operation, a
large variety of waste products are
generated and segregated on board
for further onshore treatment and
disposal. In some areas recycling is
performed.
Main waste products are drilling waste
(non fluid cuttings), household waste,
scrap metals, electrical waste, packing
materials and chemical waste (paints,
oils production and drilling chemicals)
which are normally managed in accord-
ance with contractual requirements
stipulated by the operator.
Aqueous drill cuttings are discharged
to the sea or re-injected into the for-
mation, while non-fluid drill cuttings
are shipped to shore for further treat-
ment and disposal. This is normally
the responsibility of the operator. In
certain areas, the cuttings are further
crushed and treated on board and re-
injected back into the reservoir.
resource consuMption
Maersk Drilling depends on fossil fuels
to power the drilling operations and
hydrocarbon production. Fresh water
and drill water (used for onboard
mixing of drilling fluid) are other vital
resources, however, in most opera-
tions this is water produced onboard
by means of water makers. Poor
onshore water resources will thus not
be affected in the first instance.
Appendix C :
Impact on the environment caused by offshore activities
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Appendices Sustainability Report 2010 39
Maersk Drilling
As general practice within the
offshore drilling industry, the legal en-
vironmental requirements are divided
between contractors and operators
which to a great extent influences the
way operation is conducted. There-
fore, the environmental performance
of Maersk Drilling is dependent on
close cooperation with the operators.
Compliance with environmental regu-
lations and requirements are divided
between contractual requirements
and general maritime environmental
regulations. The general maritime
regulations primarily focus on compli-
ance with the MARPOL Convention
dealing with oily water and sewage
discharges, waste management and
atmospheric emission control.
In the North Sea, drilling and produc-
tion related discharges are regulated
through the North East Atlantic
OSPAR Convention.
Drilling related discharges (re. drill
cuttings, see the description of our
environmental aspects in appendix
C) to the marine environment take
place in accordance with govern-
ment licensed discharge permits
which are always owned by the
operator. As a general rule, fuel oil,
drilling fluids and production chemi-
cals are provided by the operator for
a particular operation. This provides
the contractor with the foundation
to comply with the discharge permit,
but with limited room for influencing
the type of fuel, fluids or chemicals
used.
Shipment of waste products to
shore for final treatment and
disposal is managed in accordance
with contractual requirements
stipulated by the operator in order
to meet local landfill capacities and
opportunities for recycling of waste
products.
Appendix D :
Industry practice impact performance
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we value your feedbackIf you have any questions, comments or suggestions about this report or our performance, we welcome your feedback. You can send your comments to:
Maersk drillingEsplanaden 501098 Copenhagen KDenmark
E-mail: [email protected]: +45 3363 1851
Print: This publication is send by mail to protect the environment
Editor: Michael Frederik Ellekjaer
Contributing writer: Eva Harpøth Skjoldborg
Layout: Hertz bogtrykkergården a/s
Colophon
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