UN Global Compact is the largest international voluntary initiative to promote corporate social responsibility of business.

Some 8000 companies, social and labour organisations from 135 countries participate in the Global Compact, including 46 companies from Russian Federation.

Sakhalin Energy joined the Global Compact in November 2009. By joining the Global Compact companies and organisations commit to align its operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption.

The main objective of the UN Global Compact is to mainstream the ten principles in business activities around the world and contribute to achieve broader UN goals, such as the Millennium Development Goals.

For Sakhalin Energy these principle are nothing new. During the many years of working on the Sakhalin-2 project, we have been guided by our General Business Principles, many of which practically quote the language of the Global Compact.

One of the main points of the Global Compact is that joining it means a commitment not simply for the company but mostly for its management. Personal involvement of senior managers is seen by company staff and other stakeholders as a vital sign that the company’s commitment to corporate responsibility is a strong strategic priority. In this context, it is clear why Sakhalin Energy was represented at the UN Global Compact Leaders Summit, which was held in June of this year in New-York, by its Chief Executive Officer, Andrei Galaev.

The UN Global Compact Leaders Summit 2010 provided the platform for business to convene, collaborate and commit to building a new era of sustainability. “Although we joined the Global Compact less than a year ago, at the Summit the company was less of a beginner and more of a guru, - commented Andrei Galaev as part of his summary of the Summit results. In addition Sakhalin Energy was the only Russian company and one of a few companies of oil and gas industry. It has a vast experience in developing and implementing environmental and social projects, partnership programmes, managing labour issues and respecting human rights. The Summit proved that today sustainable development principles are fundamental for conduct of business. More and more companies worldwide, regardless an economic sector, size and location care about corporate social responsibility. A great input to this process is made by initiatives of international organisations and companies’ executives”.

UNGC Network, Russia. Corporate Social Responsibility Practices.

July 2010.