Corporate Social Responsibility (CSR)

Introduction

Fugro’s Corporate Social Responsibility reporting follows the framework of the Global Reporting Initiative (GRI). In the longer term Fugro will endeavor to increase the consistent and accurate measurement around key performance indicators at holding level, provided these measurements will add value to our stake holders.

Implementation is phased and based on selected key focus areas. This will allow the organization to collectively direct their CSR effort to these focus areas and accelerate the impact. Once certain focus areas are becoming an integral part of our company values, new key focus areas will be selected.

A critical part of Fugro’s sustainable success is its people, being the enabler to bring technology, equipment and expertise to our clients. This theme has been guiding in the selection of the 2011-2012 key focus areas, which can be summarized as follows:

• Providing a healthy and safe work environment has a direct impact on the wellbeing of our employees, their families, friend and communities. Fugro considers this a differentiator for the recruitment and retainment of experienced staff.
• Maximising local content is critical to maintain and/or reinforce our position in relation to the competition. Focus on this area will also create sustainable development, through the direct interface with local communities and suppliers.
• Continuous development of our staff through the the human resource initiative, Partnership for Growth program and the focused training through the Fugro Academy, will provide a personal growth environment during all stages of an employee’s career.

CSR works when implemented from within the operating company. In line with Fugro’s decentralized structure, the Executive Committee is responsible to set the key focus areas, with the operating companies taking responsibility for the implementation taking, local practice and standards into account.

Vision and ambition
Fugro strives for strong but controlled growth in revenue and net result. The organisation aims for an optimized and balanced synergy between its various activities in order to realise its goals while maintaining a broad activity portfolio on a geographic and product basis. Fugro aims to deliver improved added value to its clients by a combination of specialised staff and technologies, and associated high-quality services. In addition to growth in revenue and net result, the organisation’s policies on human resources, health, safety and the environment are also of great importance. Sustainability, transparency and reliability are the key themes of Fugro’s central policy.

It is realised that the impacts of Fugro’s specific local activities and the international nature of its services place great demands on its staff. The organisation is aware of its role in society, particularly in an international and multicultural environment, and understands the importance of paying constant attention to corporate social responsibility (CSR). Fugro strives to meet the expectations of all the stakeholders in the company by balancing regard for the environment, social awareness and financial results.

Resulting from a continuously developing CSR policy, Fugro operating companies and employees put the principles of CSR into daily practice in a wide range of areas. Fugro’s CSR policy is inextricably linked with the course of business and should, therefore, be considered to be an integral part of other corporate aspects.

Fugro strives towards growth, both organically and through acquisition. Geographical expansion is a component of Fugro’s ability to continue to capitalise on the world’s rising prosperity. Growth also means attracting more local staff, and it enables the organisation to offer opportunities for training and education to its employees. The presence of local operating companies and a focus on maximising local content is an important spearhead for the integration of Fugro’s services within communities in general.

The growing demand for energy is partly offset by the use of alternative energy sources such as solar, wind, bio fuels, tidal and nuclear energy. This presents Fugro with opportunities in new markets. For instance in the North Sea wind farm market, where Fugro is involved in offshore geotechnical and offshore survey activities.

When managing its investments, the organisation considers the balance between improving the quality of its equipment and the issues of fuel use, emissions and cost management. Good examples are the latest additions to the seismic fl eet, the Geo Caspian and the Geo Coral, which are designed in accordance with DNV ‘Clean Class’ standards.

Fugro aims to strengthen the coherence of its CSR policy by providing a framework to its subsidiaries on how to implement the various aspects of CSR. This framework will be based on the ISO 26000 guidance standard on corporate social responsibility, which was published in November 2010.

Organisational structure
The organisation is divided into three divisions: Geotechnical, Survey and Geoscience. These divisions work together worldwide in focusing on the right solution for the relevant market. The Board of Management is responsible for Group policies, including corporate social responsibility, strategy, acquisitions, investments, risk management, finance and internal coordination. This includes matters that are best handled centrally, for reasons such as efficiency, advanced specialisation or financing.
Fugro’s philosophy is that the operating companies in the divisions should be able to operate autonomously as much as possible within the framework of the Group’s policy, business principles and internal risk management systems. This enhances the quality of the operating companies’ management and the development opportunities available for employees. Delegation is closely entwined in the corporate culture. The increasing cooperation between or within the different divisions creates synergy, especially for complex and integrated projects, which increases earning capacity. Thus creativity and involvement within the whole organisation are increased while employees’ opportunities for professional challenges and career development are considerably enhanced.

Management approach

Market presence
The Fugro decentralised organisational structure facilitates a strong regional market presence, which leads to the use of local suppliers and procedures for the recruitment and training of local staff.

Human resource policy
The organisation’s decentralised nature is also reflected in its staff policy. The operating companies are responsible for local staff policies, which take into account local customs and regulations, within the guidelines set out by Fugro in areas such as salaries, pensions, safety and health and the general business principles. Most of the employees in Fugro’s worldwide network of offices are nationals, including the managerial staff.

Energy
By increasing the awareness of the use of energy and sustainable materials, the impact on the environment can be minimised. Fugro considers this when purchasing or ordering new equipment, and when expanding its fleet of vessels and airplanes.

Fugro’s general business principles
Fugro works on the principle that every employee shares responsibility for the company’s reputation. For all staff, this means that it is not enough to just do the right thing; things must also be done correctly. Fugro’s employees support the social values of reliability, integrity, openness, and respect for fellow employees and the environment. These common values form the foundation of Fugro’s general business principles (Business Principles), which apply to all operating companies and thus to all employees. Application of these values in Fugro’s business conduct creates a sense of trust between the organisation and its partners. The local management, under supervision of the Board of Management, has responsibility for ensuring that all employees at all levels of the company adhere to these Business Principles. These requirements determine the way in which Fugro’s staff treat each other, its customers and subcontractors, and anyone else who may be affected by its activities. Fugro believes in free and fair competition based on value for money and suitability for purpose. It supports free enterprise within the framework of applicable laws, and works closely with those companies that endorse comparable Business Principles. All employees are expected to report any breach of the Business Principles or any suspicion thereof to the Board of Management or senior management and are required to avoid any personal activities or financial interests that may conflict with their responsibilities towards the company. Fugro has a whistleblowing procedure which encourages employees to report any (suspected) violation of the Business Principles and other relevant policies and standards. Responsibility for compliance rests principally with the management of each company. Fugro has requested its (senior) managers to confirm awareness and compliance with the Business Principles and to report noncompliance. Since 2009, Fugro has instituted the Business Partner Code, which requires suppliers and subcontractors to comply with this code. Fugro recognises that the way it conducts business towards clients, partners and the environment has an impact on the organisation’s productivity and success. The Business Principles and the Business Partner Code are available on Fugro’s website. In 2011, the Business Principles, the Business Partner Code and other relevant policies and standards will be integrated in a Corporate Social Responsibility Management System.

Health and safety policy
Providing its employees with a safe and healthy working environment is one of Fugro’s highest priorities. The vision for the health and safety policy is maintained by the holding company. Fugro aims to create safe and healthy working conditions for all its employees and subcontractors. Because the organisation attaches such great importance to safety, this subject is reported in more detail in a separate section.

For more information on CSR we refer to the CSR chapter in the 2010 Annual Report.