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"Knowing why you are doing it, helps to get it done"
MANAGEMENT STRATEGY
Determining an appropriate response
An appropriate response to the theoretical issue shown on the previous page would be to physically reduce the emission or discharge that presents the risk, while perhaps at the same time argue for less stringent performance standards. This because the performance standards seem to have been driven by risk perception rather than by scientific argument.
There are two main response strategies (see also Figure below):
Impact reduction Risk communication Reducing the physical environmental impact by reducing the use of resources, by reducing emissions or discharges or by reducing noise emissions. Also referred to as mitigation. Increase the acceptance of the risk by better explaining the acceptability of the risk, by challenging the motives of stakeholders or by sharing control with stakeholders.
Impact Reduction is an appropriate response strategy if such is required to meet environmental quality standards, specific legislative requirements, or if stakeholders are particularly motivated towards impact reduction.
Risk communication is an appropriate response strategy in all other cases.
Finding a balance
Environmental improvements beyond scientific necessity or legislative compliance need to be balanced against other business objectives and for the offshore oil and gas industry should be reviewed in the context of the overall societal mandate of that industry; i.e.:
- Support society by producing fossil fuels at low cost.
- Support society by helping to protect the environment.
The Figure below shows how societal expectations towards environmental protection change over time and that these expectations cover a wide range of individual expectations. The Figure also shows how this trend is followed by step-changes in legislation and company internal standards.
The key to effective environmental management lies in the correct interpretation of societal expectations and positioning the company where it can take advantage of these.
This requires the company to know where it stands in context of the expectations of its operating environment. That requires an understanding of its environmental performance and its opportunities for improvement. It also requires an understanding of the expectations of its stakeholders and the reasons for these.
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