Social and Economic Impact
Living where we work, recruiting locally, and being a good neighbor have long been a part of the Schlumberger presence in any host country.
Our most significant socio-economic contributions are in providing employment and training for local workers and procuring goods and services locally. But we also have a role in building capacity and resilience at the local level to address social issues such as education and health – two key markers of community well-being and stability. By taking a long-term interest in our communities, we can often positively influence community development while at the same time manage operational risks. Our vision is to create shared value, where actions that generate business value can also generate social value.
Schlumberger’s philanthropic activities are chosen strategically to reflect the Company’s values and long-term interests and to enhance our communities. We focus on a limited range of social issues that call for strategic involvement and partnerships with community organizations.
Most of our donations are categorized as community investments. Our largest are through the Schlumberger Excellence in Education Development (SEED) and the Schlumberger Foundation’s signature Faculty for the Future programs. Both are strategically aligned to science, technology, engineering, and mathematics (STEM) education. We also pursue long-term partnerships with community organizations to address social issues and align with our corporate objectives.
Schlumberger Cares, which is currently being piloted in North America, allows employees to request a grant for any organization at which they volunteer. Grant requests must apply to the educational, health and wellness, and community organizations that are strategically aligned with our business and sustainability objectives.
Our business-related activities in the community are usually undertaken by our marketing communication departments in partnership with charities and community-based organizations to promote our corporate and brand identities and other policies and guidelines. Our largest commercial investments are donations made to academia for basic and applied research that we conduct in partnership with top universities. We also contribute millions of dollars annually in reservoir software, training, and support to these universities.
We offer support to specific causes in response to the needs and appeals of charitable and community organizations, requests from employees, and reactions to events such as emergencies. These donations occur regularly but are directed and recorded by local Schlumberger management and employees regionally. Two examples are the Orphan Day Program in Egypt and our employment program in Ecuador for people with special needs.
Our long-standing interest in the arts and art education began in the days of Dominique de Menil, Conrad Schlumberger’s daughter, whose passion for the arts led to the founding of the Menil Collection in Houston. We have continued a partnership with the Menil Collection and have assisted with its educational programming through the years.
Promoting Art within SEED
Schlumberger Excellence in Education Development (SEED) holds an annual artwork competition for students. Results of the competition have been featured in Schlumberger holiday cards, electronic greetings, SEED screensavers, notebooks, posters, and other promotional items as well as being exhibited in Schlumberger operation centers around the world and in an internationally acclaimed museum.
Schlumberger has committed itself publicly to supporting the Universal Declaration of Human Rights, adopted by the United Nations General Assembly in 1948. This commitment is articulated in the Schlumberger Blue Print in Action—Our Code of Conduct, which was revised and released in April 2014. It states, “Schlumberger endorses the aspirations of the International Bill of Rights and encourages work that augments the contributions that business can make to preserve and respect human dignity.”
In 2009, we established our social responsibility process and began conducting risk assessments of projects with large footprints in countries where we have new operations, in frontier countries, and in countries with emerging issues. These include Australia, Chad, China, Colombia, Ecuador, Ethiopia, Guatemala, India, Iraq, Kenya, Mexico, Mozambique, Papua New Guinea, Paraguay, Romania, Tanzania, Thailand, Uganda, and the United States.
In 2010, Schlumberger reviewed 400 statements of Company policy, standards, and guidelines against the Business and Human Rights Matrix developed by the Business Leaders Initiative on Human Rights, creating a comprehensive map of the relevant human rights issues and gaps to be addressed by Schlumberger.
In 2011, we completed a review of customer and peer human rights statements and policies to further our understanding of the United Nations’ “Protect, Respect and Remedy” Framework, a declaration clarifying the responsibilities of business in relation to human rights.
In today’s competitive global economy, we know that strong relationships with our suppliers are essential to meeting our own needs, the needs of our customers, and local content.
We procure goods and services only from financially stable, technically qualified, and reliable sources. Our preferred suppliers are those who work with us in a professional, ethical, competitive, and cost-effective manner consistent with Schlumberger policies, procedures, and business objectives. When evaluating potential suppliers, Schlumberger considers delivery price, reliability, operational costs, and after-sales support.
Schlumberger Supply Chain Services provides our field and manufacturing locations with supplier management, strategic sourcing, logistics, and inventory management. Supply chain processes are regularly reviewed to ensure quality in our services and products. Every supplier we select must comply with Schlumberger standards.
Schlumberger is committed to, and expects from its employees and suppliers, the highest ethical standards of business conduct and compliance with laws and regulations in the countries where we operate. These standards are incorporated into our Code of Conduct and our daily supply chain activities.
Prevention of accidental risk and loss from process failure is an integral part of our continuous improvement culture. Suppliers must provide all products and services to specified HSE standards and should monitor these standards using a quality assurance program. Supplier staff and delivery partners must comply with local HSE requirements and laws.
Whenever possible, Schlumberger hires workers where we work. Hiring locally helps to ensure that we invest in the regional economy through local employment and vendor opportunities, and it helps local economies expand their business opportunities while fostering our involvement with the community. Moreover, foreign nationals working in their home countries better understand the challenges of doing business there. This local hiring practice establishes a hospitable and receptive environment for our businesses in foreign markets and it helps our Company expand its global footprint in a competitive marketplace. In addition, it is in line with the United Nations Sustainable Development goals to end poverty in all its forms everywhere, and to promote full and productive employment and decent work for all.
We invest time and resources to help our local suppliers meet our stringent quality and HSE standards (QHSE). Our investment in things such as safety training, driver training, installation of in-vehicle monitors, and vehicle maintenance standards helps build the competitiveness of local vendors. All of our social investments in local suppliers are underpinned by core principles: they must be connected to our business and rooted in the communities where we work; and they must be focused, streamlined, and accountable.
Schlumberger Supply Chain Services distributes detailed information about procurement policies and guidelines, processes, and the procedure for becoming an approved supplier. We share this information with potential suppliers to ensure mutually supportive relationships.
Schlumberger maintains a Supplier Management Dashboard that analyzes our spending by supplier, commodity, geography, business segment, legacy company, and trend over time. Schlumberger supplier managers are responsible for evaluating suppliers against our established performance metrics in order for them to be included in our approved supplier list.
At Schlumberger, we require that our suppliers support relationships promoting responsible, collaborative, social, environmental, and economic practices. We seek suppliers who can demonstrate these commitments:
- implementing risk-based due diligence processes to gauge actual or potential adverse impacts associated with labor and working conditions
- establishing similar guidelines for their own suppliers concerning labor and working conditions
- complying with the laws, rules, and regulations of the countries where they operate
- adhering to existing industry guidelines, in particular, those that are more stringent than local laws.
Identifying New Local Capacity
Schlumberger is investigating the feasibility of supplier capacity-building programs in several countries. In Mexico, for example, we have worked extensively with local suppliers to bring their HSE and quality standards to a level that permits them to compete in the U.S. oilfield services sector.
Schlumberger Talent Assessment and Recognition Program Fosters Supply Chain Candidates
The Schlumberger Talent Assessment and Recognition (STAR) Supply Chain Program in Africa focuses on identifying and recognizing African talent, from students to professionals, with industry supply chain experience. Selected students receive sponsorships and internships. Recent graduates join a structured learning and development program for as long as 12 months and then gain access to supply chain job postings around the world. For experienced supply chain professionals, we offer individual training programs and career plans.
Expanded Supplier Network
Schlumberger has examined the quality of suppliers over the past to qualify critical new suppliers in countries such as Argentina, Oman, Egypt, India, and Brazil. As a result, our deeper understanding has revealed previously unforeseen opportunities in local and international markets for projects ranging from the sourcing of raw materials such as sand, guar, and cement to the manufacture and machining of equipment and parts, including cabins, tanks, pressure vessels, and casing accessories.
Battery Recycling Programs—Designed for Supply Chain
Liquid cathode lithium metal batteries are commonly used in the oil and gas industry to power sensors in remote downhole applications.
Schlumberger manufactures custom battery packs made with different liquid cathode lithium chemistries and unique cell electrode constructions, and we recycle almost 100% of the lithium metal batteries we manufacture, which minimizes the environmental impact of our lithium metal battery usage. This high standard is consistently achieved and documented through an ongoing program to routinely audit our waste battery collection points and contracted recycling facility.
Registration Evaluation, Authorisation, and Restriction of Chemicals (REACH) is an EU regulation [(EC) No. 1907/2006] on chemical substances that covers manufacturing, importing, placing, and use in the EEA. This regulation provides a high level of protection to human health and the environment by making people responsible for understanding and managing the risks associated with chemical use.
For many decades, we controlled and rigorously managed the purchase, storage, and use of chemicals. With the release of the REACH regulation, we launched a proactive program with our suppliers to precisely identify the source and composition of purchased chemicals and to improve compliance.
Schlumberger recognizes that there are serious human rights abuses associated with the extraction, transportation, and trade in minerals in the covered countries. We have always supported responsible sourcing of materials from suppliers that share our values, and we commit to avoiding contributing to the conflict through our sourcing activity.
As expressed in our Blue Print in Action—Our Code of Conduct, Schlumberger does not tolerate any corruption of any kind in dealings with our suppliers, and we expect our suppliers to adhere to the same standard. We work with our suppliers in a socially responsible and ethical manner. A potential supplier is selected and retained only after it has evidenced in writing its adherence to our Code of Conduct and other internal compliance requirements, including health, safety, and environmental. In addition, we audit our top suppliers every 2 years to ensure adherence to our Code of Conduct. To supplement this, we have developed a Conflict Minerals Policy.