Environmental, Social and Governance at a Glance
At NESR, we believe that our sustainability, business continuity and success are closely tied to the health of the economies, environments and communities in which we live and work. This belief drives our commitment to integrate Environmental, Social and Governance (“ESG”) into our practices, business processes, decisions, and strategic planning. We are dedicated to maintaining a sustainable and responsible company and strive to reduce our environmental footprint, deepen our social impact and strengthen our corporate governance everywhere we operate.
We continually endeavor to create shared value through pursuing ESG initiatives that are aligned with community needs, our business strategies and our customers’ priorities. We are also finalizing our long-term corporate ESG goals based on identified material ESG risks and opportunities in our operations. We believe that managing material ESG risks and opportunities in our business will produce operational efficiency, enhance our sustainability, and produce tangible and intangible value for our shareholders.
Our license to operate depends on our ability to adapt our practices and conform with global social and environmental expectations. We believe that conventional methods are not sustainable and that we need to constantly improve our operations and business practices to address environmental and social challenges. In 2020, corporate ESG targets were introduced and corporate ESG performance was linked to compensation. NESR is currently mapping out a plan to achieve net zero carbon emissions from our operations by 2050.
We believe that setting ESG key performance indicators across the company for different functions should allow us to achieve our ESG goals in an expedited manner.
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Oversight of ESG
NESR is built on a strong foundation of integrity, ethics, and social responsibility. Corporate governance principles are overseen by our Board of Directors (“BOD”) and instilled in our employees through our Code of Conduct (“Code”). At the BOD’s direction, ESG updates are presented to the BOD quarterly to ensure ESG considerations are factored into business decisions. In addition, the BOD reviews and monitors ESG risks and opportunities at Board and committee meetings as deemed necessary.
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Stakeholder Engagement
NESR’s Board of Directors and management are committed to transparency and open communication with all internal and external stakeholders. In 2020, our priorities include improving the quality and quantity of our public disclosures on ESG, collecting ESG data, and improving our ESG performance. We intend to produce our first Sustainability Report in 2021 to help our stakeholders better understand our ESG performance. We believe that public disclosure of our ESG performance through our different communication channels, and our proactivity in engaging with our stakeholders, will improve our competitiveness and enhance transparency in our business.
Generating Local Value
We pride ourselves on being the “National Champion” of the MENA region and the first company from the MENA region to be listed on the NASDAQ exchange. As a viable national alternative and a leading oilfield services provider in the region, we are steadfast in our commitment to contributing to the health of the economies in which we operate. We are guided by a strict mandate to align our local activities and investments with the visions and national priorities of the countries of the MENA region. As such, we participate in many local content programs intended to increase local employment, manufacturing, and procurement where we do business.
Our focus on enhancing our contribution to the communities in which we operate includes hiring and developing local talent, manufacturing locally, investing in cutting edge research and development, and supporting the growth of small and medium enterprises in the MENA region, particularly through contracting with local suppliers.
Our commitment to local content value creation is founded in the belief that creating shared social and economic value through local content programs will enhance our long-term sustainability and growth in the region.
Diversity, Equity and Inclusion
We believe that providing an empowering, inclusive, and diverse work environment enables us to attract and retain top employees who can drive the success of our business. We also believe that all people should be treated with dignity and respect and that our employees and contractors should adhere to the policies, guidelines, business ethics and values set in the NESR Code of Conduct. Our Code reaffirms our commitment to protect our employees from all forms of discrimination in the workplace. It applies to all directors, officers, and employees, and contractors of the Company, as well as third parties who do business with the Company, and can only be waived by written approval of NESR’s BOD.
We draw strength from the diversity of our employees and our inclusive culture. We employ more than 5,000 people representing more than 60 nationalities and working in 16 countries throughout the Middle East, Asia, Africa and the US. The gender, cultural, ethnic, and religious diversity of our workforce enriches and strengthens our culture and workplace and fosters innovation, creativity, tolerance and inclusiveness. This provides an environment where our employees can reach their full potential and bring their best to work every day. Our inclusive culture creates a common NESR identity that unites us in the pursuit of a common goal: providing best-in-class service to our clients.
Ensuring gender diversity in our workplace is key to our business. NESR’s Code includes anti-harassment and non-discrimination policies to ensure that our workplace is safe and our work environment is empowering to all. We are committed to providing equal opportunities and maintaining pay equity for all our employees. At our inception, NESR’s Board of Directors was 25% female and sourced its directors from 4 different continents. Our BOD today continues to be diverse by gender, nationality, age and experience.
NESR is an equal opportunity employer. We follow international best practices and the employment laws of the countries in which we operate. We do not discriminate based on race, color, gender, age, sexual orientation, ethnicity, disability, religion, union membership or marital status in hiring and employment practices such as promotions, rewards, and access to training. We are committed to conducting business in a manner that preserves and respects human dignity. It is our policy to provide equal employment opportunities and comply with all applicable immigration and employment laws.
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Health and Safety
Protecting the health and safety of our employees, contractors, and the communities in which we operate are major drivers for our business. Our goal is to deliver safe and compliant operations without harming individuals, while making a positive impact on the community. Our commitment to safety runs over to our contractors and society at large; not only do we want our operations to be safe, we want to influence others to follow safety procedures in their own operations. Ultimately, we want to play a key role in promoting a safety culture in our industry and beyond.
In 2018, we audited our safety practices and identified areas for development. These improvements were implemented in collaboration with our customers and cooperation of our employees. Similarly, we exhibited excellent progress in 2019 in our journey toward injury-free operations through strong leadership in implementing a new management system and a focused, risk-based approach, including extensive training of our employees and contractors to recognize and manage health and safety risks. In 2019, NESR was recognized as a best in class performer in health and safety in our two major countries of operation.
Our proactive response to the unprecedented health risks presented by the global spread of COVID-19 reaffirms our commitment to protecting the health and safety of our people and our operations. Our emergency response included actions and plans to address logistical concerns, customer engagement plans, supply chain sustainability, and inventory planning, among other things. We believe that it is our duty to support our employees and their families during these challenging times. We continue to closely monitor the situation and hold regular meetings to promptly address and adapt our business decisions to developing circumstances. Our priority is to keep our employees safe, keep our operations running without interruption, and to support local communities.
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Environmental Stewardship
We are committed to reducing our environmental footprint and aligning our environmental initiatives with the United Nations Sustainable Development Goals. We recognize that stewardship of the environment is necessary to ensure the long-term success and sustainability of our business. In order to understand our baseline and improve our environmental performance, we started tracking environmental data related to energy, water and natural resources consumption, air emissions and waste. As we embark on understanding and reducing our environmental footprint, we are conscious of the risks presented by climate change, evolving environmental regulations, and depleting natural resources.
We believe that deploying sustainable water strategies, implementing responsible energy consumption practices, and better waste management systems are essential to our ability to conduct our operations in the MENA region. In order to reduce our water consumption substantially, our goal is to recycle all water from the wash bays and the permanent man camps in our biggest operating locations by the end of 2023. We also started tracking our total energy consumption from different sources and the waste produced by our operations to understand the impact of our business on different ecosystems. We are dedicated to maintaining a sustainable and socially responsible company and strive to reduce our environmental footprint everywhere we operate.
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