Petrofac operates in challenging environments where human rights issues can become a source of risk, both for our business and for some of the people who work on our sites.
We’re committed to embedding and advancing respect for human rights throughout our business operations, including our extended supply chain. We aim to work in accordance with the United Nations Global Compact and its principles, as well as the core conventions of the International Labour Organization (ILO).
Strengthening our approach to protecting human rights
Understanding and addressing potential human rights issues is a matter of priority for Petrofac, and a Labour Rights Steering Group made up of relevant heads of department, which reports directly to executive management and has Board oversight of directors, has been leading our response.
Our newly developed Labour Rights Standard sets out the expectations and requirements of our people, subcontractors and suppliers. Meanwhile, our annual transparency statement, published in compliance with the UK Modern Day Slavery Act, sets out the steps that Petrofac Limited and its subsidiary companies (referred to collectively as ‘Petrofac’) took in the year ending December 31st 2017 to strengthen our approach and embed the underlying principles throughout our operations.
Checking the chain
Through our due diligence programmes, we know that our main exposure to potential human rights issues is through our supply chain and, more specifically, its employment of low-skilled migrant workers from ‘high risk’ countries.
We’re aware that the labour practices of agents used by some of our subcontractors potentially expose the company to labour rights risks. Many of these issues are not always immediately evident and we’re working with our subcontractors to map out our supply chain, and identify and address any recruitment violations and welfare infringements.
A further area of potential vulnerability is our use of contracted security providers. To better understand the related risks, we intend to conduct security and human rights risk assessments, and monitor compliance with our newly strengthened requirements and expectations.
Embedding a respect for human rights throughout our supply chain
Petrofac’s Ethical, Social and Regulatory Policy prevents us from engaging in any business activities that could implicate the Company in the breach of internationally recognised labour standards. Most human rights protections were implicitly covered through a range of Company policies and standards, however, in 2017, our priorities were to make our commitment more visible, make the protections more explicit, and make progress in embedding a respect for human rights throughout our supply chain.
Significant developments have included:
We continue to roll out and embed various initiatives and resources. We’re strengthening our subcontractor compliance assurance processes and extending our third-party due diligence programme, which will help us to adequately screen all new and newly contracted suppliers. We’ll also commence a series of project audits to assess the level of compliance in sites and address any issues encountered.