Statoil is committed through its climate policy to contribute to sustainable developments. We recognise that there is an accepted link between the use of fossil fuels and man-made climate change, and the climate policy takes into account the need for proactively combating global climate change in our operations, as well as evaluating the company's efforts on renewables and clean technology.

Statoil's climate policy sets out the principles for addressing the challenge of global warming and our ambition of maintaining the position as an industry leader in relation to sustainable development. Statoil's environmental management system is an integrated part of the overall management system and has been implemented in all our business planning and strategy development.

The most important group-wide indicators to measure environmental performance are emissions of oil spills, carbon dioxide and nitrogen oxides, energy consumption and the recovery rate for non-hazardous waste.

The volume of accidental oil spills was 44 cubic metres in 2011, the same as in 2010. The volume of other unintentional spills was 134 cubic metres in 2011, compared to 5,709 cubic metres in 2010. Several modification projects for further reductions are being implemented, and Statoil has established corporate wide principles for oil spill response in relation to our operations. The group also continued an extensive research and development program aimed at adapting its oil spill response to Arctic areas.

Carbon dioxide emissions have increased slightly from 13.4 million tonnes in 2010 to 13.7 million tonnes in 2011. Emissions from our international operations have increased in 2011 due to increased activities, mainly Leismer (Canada) and Peregrino (Brazil). The emissions from our midstream and downstream facilities have increased, mainly due to the first year of ordinary operation of the combined heat and power plant at Mongstad. Emissions on the Norwegian continental shelf have decreased due to lower production. CO2 emissions from flaring have decreased from 1.3 million tonnes in 2010 to 1.2 million tonnes in 2011.

Nitrogen oxides emissions were 41.4 thousand tonnes in 2011, a decrease since 2010 when nitrogen oxides emissions were 42.3 thousand tonnes.

Energy consumption has increased slightly from 64.5 TWh in 2010 to 66.5 TWh in 2011. The energy consumption in our international operations increased in 2011 mainly because of increased activity in connenction with the start-up on Leismer and Peregrino. The energy consumption at our land-based facilities increased, while energy consumption on the Norwegian continental shelf decreased due to lower production.

The recovery rate for non-hazardous waste has decreased from 51.9% in 2010 to 44.8% in 2011, mainly due to an increase in onshore drilling activity, with deposition of drilling waste to landfill. The hazardous waste recovery rate has decreased from 28.7% in 2010 to 17.2% in 2011. The decrease is due to an increase in onshore drilling activity, with deposition of drilling waste to landfill.