Robert A. Ridge, Vice President, Health, Safety and Environment

Health, Safety and Environment
Committed to Sustainable Development

In 2003, ConocoPhillips outlined its position on sustainable development. At the heart of this position are nine commitments that lead to measurable actions. The company also developed a position on climate change, a key issue of concern to stakeholders. 

For ConocoPhillips, sustainable development is a commitment to conduct business to promote economic growth, a healthy environment and vibrant communities, now and into the future.

“We take pride in doing the right things in the right way,” says Bob Ridge, vice president of Health, Safety and Environment (HSE). “As we incorporate sustainable development into our business planning, we draw from the many pockets of excellence in our company around environmental, social and broader economic issues.” 

For example, ConocoPhillips is increasing the availability of cleaner motor fuels through products such as S Zorb™ Sulfur Removal Technology, which provides a cost competitive means for reducing sulfur content in gasoline to well below 10 parts per million, easily meeting regulations in the United States and Europe. 

ConocoPhillips strives to be energy efficient when designing new installations and takes steps wherever possible to avoid the venting or flaring of gases. Designing the company’s new liquefied natural gas facility planned for Darwin, Australia, to reduce flaring means a higher equipment cost, but the company will benefit from lower energy costs and added income derived from selling captured gas that might have been flared in more traditional designs.

Before beginning a new construction project, ConocoPhillips carries out social and environmental impact surveys and discusses plans with local stakeholders to ensure that development is in tune with their needs. Engaging in this upfront planning for the Surmont oil sands project in Alberta, Canada, has helped build local communities’ confidence in the company and facilitated the permitting and approval process for the project. It also resulted in locating the project away from sensitive ecosystems and identifying ways to support local employment needs.

ConocoPhillips promotes sustainable development in South Sumatra, Indonesia, by loaning money to farmers to start rubber tree plantations. Because rubber trees take five to six years to mature, the farmers also receive loans to plant banana trees that mature within months, providing a source of income until the rubber trees are ready to be “tapped.” The program has assisted 100 farmers since it began in 2002.

ConocoPhillips employee Sean Helton and his son, Beau, pick up litter at Surfside Beach on the Texas Gulf Coast south of Houston. ConocoPhillips’ Sweeny, Texas, refinery sponsors two beach cleanups every year as part of its environmental outreach program.

“Sustainable development provides an overarching framework for how we work,” says Ridge. “That includes taking pragmatic action on key stakeholder concerns, such as climate change. While the debate on the science behind climate change continues, ConocoPhillips has made a proactive commitment to reducing our greenhouse gas emissions in a way that is aligned with both environmental and economic objectives.”

ConocoPhillips has established a sound measurement system and completed an inventory of greenhouse gas emissions based on 2002 data, focusing on carbon dioxide and methane, which are the major contributors to total greenhouse gas emissions from crude oil and natural gas operations. This provides a benchmark for comparison as ConocoPhillips develops a comprehensive future program for cost-effective management of greenhouse gases. 

“Articulating our positions on sustainable development and climate change is just the first step,” explains Ridge. “In 2004, we will prioritize issues, establish plans for action with clear goals and monitor our performance in order to deliver on our commitments.”

Safety
ConocoPhillips is committed to protecting the health and safety of everybody who works at its facilities, lives in the communities where the company operates or uses the company’s products. Safety milestones for 2003 include:

	Strengthening the companywide culture of safety by focusing on HSE management systems and targeted safety-improvement efforts. ConocoPhillips’ employee total recordable rate (TRR) improved 23 percent compared with the full-year 2002 pro forma rate. Contractor TRR improved 20 percent for the same period. However, there were three employee fatalities and one contractor fatality during the year.
	Eight ConocoPhillips facilities received 26 safety awards from the National Petrochemical & Refiners Association.

Environment
Wherever ConocoPhillips operates, the company conducts business with respect and care for the environment and systematically manages risks to drive sustainable business growth. The company’s environmental initiatives in 2003 resulted in:

	Reducing the number of significant liquid hydrocarbon spills (more than 100 barrels) by 33 percent and the amount of hydrocarbons spilled from these events by 55 percent, compared with pro forma 2002 performance.
	Certification of the entire U.K. Exploration and Production (E&P) organization operating in the North Sea under the internationally recognized ISO 14001 environmental management system. Other ConocoPhillips sites already certified include: E&P operations in China; the Humber refinery in the United Kingdom; the Alliance refinery in Belle Chasse, La.; and lubricants plants in Hartford, Ill., and Sulphur, La.
	Launching of the third Endeavour Class tanker, the Polar Discovery. With double hulls and other state-of-the-art environmental and safety features, the Endeavour Class is the most advanced class of tanker transportation. Two additional Endeavour Class tankers are scheduled for delivery, one each in 2004 and 2005.