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Cairn Energy PLC

Corporate Responsibility Report 2010
OVERVIEW

MANAGING CR

STAKEHOLDER ENGAGEMENT

KEY ISSUES

ENVIRONMENT

PEOPLE

COMMUNITIES AND SUPPLIERS

Key issues
Materiality analysis
Cairn India
Greenland
Legal and regulatory compliance
Environment and climate change
Health and safety
Preventing major accidents
Business ethics
Human rights
Supply chain

MATERIALITY ANALYSIS
Materiality reviews are an important way of communicating with stakeholders on
CR matters and assessing the key economic, social and environmental issues
our business faces, as well as their relevance to our business and our
stakeholders.

RELATED LINKS
In this report:
Independent Assurance Statement
Stakeholder engagement

Cairn invests in projects at different stages in the value chain, from the early stages of
exploration through to production, and in vastly different operating environments, from the
deserts of Rajasthan in India to the waters around Greenland.
The issues faced in each location are very different, and their relevance to our stakeholders
varies considerably. The materiality process is therefore an amalgam of different views and
represents an attempt to define a complex position for the Group as a whole.
Once established, these key issues are plotted on a materiality matrix, ranging from low to
high relevance to our business on one axis, and to our stakeholders on the other. Those
appearing in the top-right of the matrix (i.e., of high relevance to both Cairn and to our
stakeholders) are discussed in detail in the following pages of this section.
These key issues cover country-specific issues across the business:
Cairn India
Local communities
Access to water
Security of installations
Human rights and security
Greenland
Protecting the environment
Spills
Waste management
Local communities
Legal and regulatory compliance
Environment and climate change
Health and safety
Preventing major accidents
Business ethics
Human rights
Supply chain

Stakeholder Input
The key internal and external inputs to the development of the matrix, which has been
endorsed by Cairn's Group CR Committee, are summarised below.

Internal Factors:
Cairns Core Values, CR Policies and Business
Principles
Group 2010 work programmes
CR assessments performed in accordance with the
Group CRMS
Cairn and Cairn India Business Risk Matrices
Post-project lessons learnt exercises
Feedback from CR departments in Edinburgh, India
and Bangladesh
Findings from employee surveys

External Factors:
Formal stakeholder assessments
Feedback from EIAs and SIAs
Feedback from regulators, e.g. BMP in Greenland and the Safety and
Environmental Regulators in India
Changes to international standards and guidance, e.g. IFC performance standards
Changes to legislation, e.g. UK Bribery Act
Participation in industry bodies, e.g. OGP
Communications with NGOs, e.g. WWF
Investor meetings and feedback
External advisory agency feedback
External independent assessments of our CR approach and performance, e.g. ISO
26000 gap analysis
Findings from external audits, e.g. IFC audits in Rajasthan

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