Talisman's corporate responsibility initiatives are integrated into its day-to-day operations and decision making processes. Talisman recognizes corporate responsibility as a tool to help the Company manage risks, including maintaining its social license to operate, its employee recruitment and retention efforts and the need for access to capital.
Governance of Talisman's corporate responsibility issues is guided by the Company's Policy on Business Conduct and Ethics (PBCE) and the Company's commitment to a number of international standards, including the Universal Declaration of Human Rights and the Global Compact, and initiatives such as the Extractive Industries Transparency Initiative (EITI) and the Voluntary Principles on Security and Human Rights.
Responsibility for Talisman's social, health, safety and environmental performance rests with the Board of Directors. Comprehensive corporate responsibility reviews and country-specific updates are provided to the Board annually. Health, safety and environmental and other reports are provided throughout the year as appropriate. Talisman's approach and commitment to corporate responsibility and ethical business conduct is clearly stated in its PBCE.
Talisman's Global Corporate Responsibility Framework
Talisman has maintained and updated its PBCE since becoming an independent company in 1992. The PBCE is a statement of principles to which Talisman is committed and is designed to direct all employees, officers and directors of the Company and its subsidiaries in determining ethical business conduct. All employees of Talisman worldwide, as well as its directors, are required to complete a certificate of compliance with the PBCE on an annual basis.
Talisman regularly solicits community, NGO and government feedback on potential risks associated with a project before entering into contractual arrangements or commencing operations.
Multi-departmental risk assessments, both technical and non-technical, are completed for new investments or new country entries.
The objective of Talisman's Security Policy is to assist in creating a safe work environment for its employees and operations and to promote respect for human rights and advancing best practices with governments, joint venture participants and third parties. One of the most fundamental principles in the Security Policy obligates Talisman to conduct itself in accordance with the Voluntary Principles on Security and Human Rights. In accordance with the Company's joint operating agreement (JOA) guidelines, Talisman endeavours to include its Environmental and Community Relations guidelines and a commitment to the Talisman Security Policy or the Voluntary Principles on Security and Human Rights in all new international JOAs.
Talisman also participates in global multi-stakeholder initiatives such as the Global Compact and the EITI to learn from and share information with a broad spectrum of stakeholders.
Third party verified reporting of corporate responsibility initiatives and impacts are undertaken annually.
2007 Impacts and Outcomes
Some of the impacts and outcomes discussed in Talisman's Corporate Responsibility report, "Going Further", are:
- the first Canadian company to join the Voluntary Principles for Security and Human Rights Plenary Group;
- introduction of global environmental objectives as a first step in Talisman"s efforts to set and publicly report corporate performance targets;
- recording one fatality and 18 high potential incidents;
- initiation of a review process of safety management across its global operations;
- introduction of a new company-wide incident alert system;
- achieving full operations at the Beatrice Wind Farm Demonstrator Project;
- investing approximately $6.2 million in education, health, safety and environment-related community initiatives worldwide; and
- receiving all required community and regulatory approvals to conduct an exploration program in Peru.
"Going Further"
This year, rather than mail a separate Corporate Responsibility Summary to shareholders, Talisman has integrated its discussion on corporate governance and corporate responsibility into our Annual Report Summary.
Talisman also produces a full-length Corporate Responsibility Report, which is available online and in hard copy. Entitled "Going Further", this comprehensive, third party verified report details the Company"s corporate responsibility initiatives and impacts to assist stakeholders to better understand and evaluate the Company"s corporate responsibility performance.
"Going Further" is about building on Talisman"s foundation and further integrating corporate responsibility commitments into the Company"s decision-making and day-to-day activities, ultimately resulting in more profitable and sustainable operations around the world.
For more information on Talisman"s corporate governance and corporate responsibility initiatives, see: Talisman"s corporate governance statement in Schedule A to the Company"s Management Proxy Circular dated March 7, 2008; terms of reference of the Board and each of its committees; and, Talisman"s 2007 Corporate Responsibility Report, "Going Further". All of these documents are available in electronic format on the Company"s website at www.talisman-energy.com. They are also available in print to any shareholder upon request.
