We monitor compliance through an annual assurance letter process. It requires the relevant senior manager to report to the Chief Executive on the performance of his or her business or function in following our Business Principles and Group Standards. Results are reported to the Audit Committee of the Board.

We also regularly audit our facilities’ HSE management systems. All our major plants are required to be externally certified to international environmental standards, for example ISO 14001. Our Code of Conduct provides detailed guidance on the behaviour required from our staff by our Business Principles.

In addition, external panels and observers help us monitor environmental and social performance. For example, a panel of scientific experts reviews compliance with our animal testing standard.

Community panels at a number of downstream facilities track and advise us on our social performance. Independent experts are monitoring Sakhalin Energy’s pipeline construction and the joint venture’s efforts to avoid harm to the western gray whales.

Sustainable development also contributes to performance appraisals and pay. In 2006, it again accounted for 20% of the company-wide scorecard.