Generally, we expect all our partners, including suppliers, to follow our standards or an equivalent set of standards. However, we also recognise that in many of the countries where we work, local suppliers may not currently meet these requirements, and in these cases we aim to work with our suppliers to improve their skills and capacity in these areas.

We recognise that managing and monitoring compliance with our standards in our supply chain is a challenging and complex task. We make every effort to implement our standards and principles throughout the procurement process - when evaluating and selecting suppliers, in tenders, contracts and agreements, through risk-based verification of goods and services, and through monitoring and follow-up. We take supplier performance in these areas into account when we award contracts.

Companies based in Norway or Denmark, or supplying our operations on the Norwegian or Danish continental shelves, also have to be prequalified through the Achilles Joint Qualification System (JQS).

Recently, we increased the requirements for business integrity and social responsibility that we ask of our suppliers. In 2008 we introduced stricter standards for integrity risks and human rights reputational screening of all potential business relationships, including those with suppliers.

In 2008 we introduced a "Supplier Declaration" in all new framework agreements and contracts with a value above NOK 7 million, where first-tier suppliers are required to sign and declare their commitment to a set of minimum standards relating to HSE, business integrity and social responsibility - including basic labour standards and employment conditions. Suppliers are also required to declare their intention to promote the principles in their own business relationships.

In 2008 we initiated a review of our supply chain management routines and systems to assess their effectiveness in protecting decent labour standards and working conditions. While we recognise the diversity of local conditions and practical limits on our sphere of impact throughout our supply chain, we are working towards a goal of continuous improvement in partnership with our suppliers based on the core principles of the International Labour Organisation and the UN Global Compact.