Stepping Up in the Virus Crisis: Leaders in the Oil & Gas Sector

G&A Institute Team Note
We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency. This is post #16 in the series, “Excellence in Corporate Citizenship on Display in the Coronavirus Crisis”.

13 April 2020    #WeRise2FightCOVID-19 “Corporate Purpose – Virus Crisis”

By Sarah El-Miligy – Sustainability Reporting Analyst-Intern, G&A Institute

The Oil and Gas Sector has already taken strong hits due to the OPEC+ conflict and the Saudi-Russian oil price war prior to the outbreak of the novel coronavirus (COVID-19) Pandemic.

The worldwide pandemic was the second hit this year that has dramatically affected the oil and gas industry, causing significant disruption with long-term harmful consequences.

According to the IEA, for the 1st time since 2009 the global demand for oil is expected to fall by 2.5 million barrels per day in the 1st quarter of 2020.

These negative consequences are expected to extend out to 2022.

However, the industry’s recovery given the amount of damage caused by the virus can’t be predicted at this stage, given the evolving nature of the coronavirus and the widespread impact on the global society.

The oil and gas industry has had to take a major step back — as have many different industries across the globe – due to the COVID-19 pandemic.

The Largest of the Oil & Gas Companies

The top industry players are found to be ready to fight back and help to mitigate the drastic effects of the pandemic and to support their communities through a strong global response.

Despite being financially-affected due to the decline in production, travel restrictions, drop in oil demand and lower oil prices resulting from the pandemic, many companies in the industry have contributed to the global efforts taken in response to the coronavirus outbreak.

For example, some by directing considerable amount of funds to the World Health Organization’s (WHO) COVID-19 Solidarity Response Fund as a part of their demonstration of social responsibility towards their employees, customers and the communities where they operate.

Looking at the top 10 O&G companies, some of them have invested in research and innovation, even shifting their production lines and putting their technical knowledge and financial resources in use in order to help fighting the battle against the virus. Other companies had a quick response and supplied key protection products used by the healthcare professionals.

On the internal front, the oil and gas companies have shown immediate responses to guarantee the safety of their employees and customers.

This begins with updating their health and safety protocols and constantly introducing new, up-to-date protection policies in order to ensure the safety of their dispersed staff.

Social distancing measures have been one of the premier precautionary actions adopted and stressed upon industry-wide.

In response to the many negative impacts of the pandemic, the major players in the oil and gas industry — such as BP, ExxonMobil, Total, Chevron — have demonstrated significant Corporate Citizenship practices while dealing with the current crisis at all levels.

I’ve compiled 10 corporate examples for you:

1- ExxonMobil

ExxonMobil Global Response to the COVID-19 Crisis

According to the company’s official website the efforts by the Oil & Gas giant in fighting COVID-19 include:

  • Supporting vulnerable communities, specially in the most infected countries through financial donations, subsidized fuel supply and providing other significant products required to address the COVID-19 challenges.
  • Investing in research and development, producing an innovative reusable personal protection equipment to the healthcare staff and other consumers.
  • Taking a number of measures to slow the spread of the virus in many European and Asian countries.
  • Directing operations to focus on manufacturing ingredients such as isopropyl alcohol, which is used in the production of hand sanitizers, alcohol wipes and disinfectant sprays.
  • Implementing health and safety precautionary actions in order to protect the employees such as applying restrictions on business travel, as well as applying working from home and social distancing policies.
  • In terms of customer safety, ExxonMobil has increased the safety and hygiene levels in all their stations and stores. As well as applying online payment where available in order to limit the money transactions.
  • Implementing a 14-day work-from-home policy for individuals traveling from locations with sustained community transmission, as defined by the U.S. NIH and Centers for Disease Control and Prevention.

West Texas Food Bank Initiative
ExxonMobil is supporting hunger relief in the Midland-Odessa area and across West Texas with a US$100,000 donation to the West Texas Food Bank to help those facing difficult economic circumstances resulting from the COVID-19 pandemic.

Supporting Online Education
ExxonMobil supports Online Education with $100,000 funds for Carlsbad Municipal Schools in response to the distance-based education policies due to the coronavirus outbreak. 14 schools in the district have been closed affecting 7,000 students. This funding will support providing low-income students with the needed equipment and internet connectivity facilitating the transition to online learning.

The Global Center for Medical Innovation Partnership
ExxonMobil is aware of the scarcity of protective masks and responded by manufacturing reusable protective masks to help solve the problem, in collaboration with the Global Centre for Medical Innovation (GCMI).

The mask would use disposable cartridges containing filter fabrics and would withstand sterilization. Because of this, it would not need to be replaced. The company and center stated that the new mask design covered the mouth and nose even better than existing N95 masks.

Prototypes are currently being tested and reviewed by the U.S. Food and Drug Administration.

If/when approved, production will begin immediately, with ExxonMobil supporting the identification of manufacturers familiar with the materials and process to quickly deliver the masks to doctors, nurses and health care providers.

Once approved, manufacturers indicate they will be able to produce as many as 40,000 ready-to-use masks and filter cartridges per hour

Source

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2- BP

The Corporation Supporting Communities

  • The BP Foundation will donate $2 million USD to the WHO COVID-19 Solidarity Response Fund to support medical professionals and patients worldwide by providing critical aid and supplies. The Solidarity Response Fund also helps track and understand the spread of the COVID-19 virus and supports efforts to develop tests, treatments, and ultimately, a vaccine.
  • In Brazil, BP is following a different approach, allocating their own resources (ethanol from sugarcane used normally in fuel) to use them as a disinfectant, not only for their employees use but also distributing it to local health services to help close to 1.4 million people in danger and risk of infection.
  • BP also started offering free fuel to emergency service vehicles in the United Kingdom, as well as supplying free fuel to jets that serve as air ambulances there, along with their continuous support to the efforts in Australia, Spain, Turkey and Poland to control the pandemic.
  • In the UK, emergency service vehicles can refuel for free at BP retail stations as well as supplying free fuel to air ambulances. In additional, supporting similar efforts in Spain, Turkey, Poland, and Australia.
  • And in Germany where they have provided fuel cards to health care workers.

BP Turkey will provide free fuel to ambulances operated by the Ministry of Health Istanbul Directorate to support the fight against COVID-19

Source https://www.bp.com/en/global/corporate/news-and-insights/covid-19-bp-response.html

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3- Total Group

France today is one of the most affected countries with high numbers of coronavirus cases, and the nation’s companies are responding to the pandemic spreading.

The French oil & gas player “Total Group” has been consulting with the French health authorities to supply the healthcare staff in France with gasoline vouchers worth up to 50 million Euros that can be used at Total stations across the country.

The company has provided the hospitals’ professionals with a telephone number and an email published on their website in order to receive their vouchers.

“In this period of crisis, Total’s teams remain mobilized to enable French people to make all their necessary travel arrangements. With its nationwide network, Total is working alongside those who are fighting the epidemic everywhere. Which is why the Group has decided to make this practical gesture of support for our hospital staff, who are working to ensure the health of patients.” –  Patrick Pouyanné, Chairman and CEO of Total

Moreover, the Total Foundation will contribute €5 million to the Pasteur Institute and to hospital and health associations involved in the fight against COVID-19.

Source https://www.total.com

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4- Shell

Caring for the People

Shell is doing many things to keep their customers, colleagues and communities safe. These include carrying out enhanced cleaning operations, increasing stocks of sanitation products and other essential goods, social distancing, working from home policies and health monitoring for teams at retail sites

Caring for the community:

  • Shell has also increased the production of some of the key products which is used in manufacturing soaps and sanitizers in response to COVID-19
  • Shell Manufacturing plants in the Netherlands and Canada are diverting their resources to produce isopropyl alcohol (IPA) as fast as they can. IPA makes up about half the content of the hand-sanitizing liquids being used to keep the virus down around the world.
  • The Shell team is also working closely with governments to keep track of and help meet evolving needs. On March 20, Shell announced that it would make 2.5 million liters of IPA — roughly equivalent to an Olympic-sized swimming pool — available free of charge for the Dutch healthcare sector.

On March 31, the Government of Canada listed Shell Canada as one of the Canadian companies that has stepped up to help during this crisis. Shell is donating 125,000 litres of IPA to the Government of Canada free of charge over the next three months to help the Canadian healthcare sector.

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5- Chevron Corporation

US operator Chevron has also donated $7 million to food banks, education and health services, and is matching employee donations two-to-one, in an initiative to integrate their employees in the world goal in fighting the pandemic.  Actions:

  • $500,000 has been allocated to purchase the required equipment of online learning to the Donors Choose program, “Keep Kids Learning”.
  • Helping to fund emergency services in remote parts of Western Australia and providing medical supplies to hospitals in Thailand.
  • More than $2 million has been granted to the American relief efforts in several U.S./ states and an additional $2 million to match 2:1 employee contribution to U.S.-based nonprofits.

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6- Valero
In a similar effort, the large refining company Valero has elected to donate $1.8m to fight the virus in the cities where it operates.

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7- OMV

Austrian oil, gas and petrochemical company OMV is donating $1.09m of fuel cards to the Austrian Red Cross and Caritas Austria, a food and shelter charity.

OMV Chairman and CEO Rainer Seele said: “These aid workers accomplish great things. We are helping them get around, which is an essential factor in delivering provisions and support to people in need as well as emergency aid”.

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8- Sinopec

Sinopec Corp., China’s leading energy and chemical company, has shown support and solidarity to the international community by supplying 10,256 tones of “much-needed bleaching powder” to more than 10 affected countries including Italy, France, Thailand, Australia, New Zealand and Vietnam.

The company has allocated limited time in their Yanshan Factory in Beijing to manufacture fabrics that are put in use to make the N95 disposable masks.  They got this assembly line running in just 12 days in order to cover the shortage in fabrics required to manufacture these masks to help give back to the society.

Source http://www.sinopecgroup.com/group/en/Sinopecnews/20200327/news_20200327_696607861362.shtml

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9- Southern Company Gas

Atlanta-based Southern Company Gas and its subsidiaries have committed a total of $4.85 million in support of communities affected by the coronavirus outbreak.

The Southern Company Gas Charitable Foundation will award $2.5 million in support of several human services organizations — including Meals on Wheels, American Red Cross, the Salvation Army, and United Way, in seven states,.

The Alabama Power Foundation and Georgia Power Foundation have each pledged $1 million and the Mississippi Power Foundation has pledged $350,000 to the effort.

Source https://www.webwire.com/ViewPressRel.asp?aId=257009
https://scgcares.org/

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10- Sempra Energy

In San Diego, California, Sempra Energy Foundation has established a $1.75 million Nonprofit Hardship Fund to provide expedited grants ranging from $500 to $50,000 to small and midsize nonprofits serving the health, education, welfare, or social services in response to COVID-19 to the individuals and families in California, Texas, and Louisiana impacted by the coronavirus.

Source https://www.sempraenergyfoundation.org/pages/areas-of-giving/health-and-safety.shtml

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CONCLUSION

This COVID-19 pandemic is an unprecedented worldwide crisis that not only affecting the oil & gas industry but every industry and household around the globe. In response, many of the top oil and gas players concluded that to help overcome the affects of this horrific crisis they have to give back to their communities, employees and customers and unit to do their part in supporting and mitigating these negative effects of the pandemic.

REFERENCES

  1. https://www.al-monitor.com/pulse/originals/2020/03/covid19-fear-oil-market-mideast-coronavirus.html
  2. https://www.offshore-technology.com/features/coronavirus-fight-charity-help-covid-19/

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About the Author
Sarah El-Miligy
is a Sustainability Reporting Analyst-Intern with G&A Institute. She was was graduated from the Faculty of Economic studies and Political science at Alexandria University, holding a bachelor degree in Political science and she is currently acting as a Teacher Assistant in scientific research methodologies and Diplomatic and Consular Relations in the political section department and a former international diplomacy coordinator with Ambassador Sameh Abu- El Enien – Deputy Foreign Minister and Director of the Egyptian Diplomatic Academy at Universidad Oberta de Cataluña.

Sarah El-Miligy is also a Sustainability Research Analyst in Egypt at DCarbon for Environmental and Sustainability Consultancy, the first and sole Certified Global Reporting Initiative Training Partner in Egypt and a member of the GRI Gold Community.

She has a broad experience in volunteering and working abroad with the European Union, United Nations and the League of Arab States — specifically in the fields of Sustainable Development, Climate Change, Peacebuilding and Women and Youth Empowerment.

G&A Institute Team Note
This is another in our series – “Excellence in Corporate Citizenship on Display in the Coronavirus:. We bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

New items will be posted at the top of the blog post and the items posted today will move down the queue.

We created the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag #WeRise2FightCOVID-19 for our Twitter posts. Do join the conversation and contribute your views and news.

Do send us news about your organization – info@ga-institute.com so we can share. Stay safe – be well — keep in touch!

Important Crisis Talk About PPE – Personal Protective Equipment – Excellence in Corporate Citizenship #3

by Hank Boerner – Chair & Chief Strategist – G&A Institute and the G&A team   — continuing a new conversation about the corporate and investor response the coronavirus crisis…continuing the second week of the conversation…   Post #3 – March 23 – first of two 

Introduction
These are the times when actions and reactions to crisis helps to define the character of the corporation and shape the public profiles of  each of the corporate citizens. For companies, these are not easy times.

Many important decisions are to be made, many priorities set in an environment of unknown unknowns — and there are many stakeholders to be taken care of.

The good news:  Corporations are not waiting to be part of the solution – decisions are being made quickly and action is being taken to protect the enterprise.  This is no easy task while protecting the corporate brand, the reputation for being a good corporate citizen, watching out for the investor base and the employee base — and all stakeholders.

What are companies doing? How will the decisions made at the top in turn affect the company’s employees, customers, hometowns, suppliers, other stakeholders? Stay tuned to our continuing commentary.

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Important Crisis Talk About PPE – Personal Protective Equipment

About those face masks…”PPE’s” for this conversation include protective clothing, gowns, face shields, goggles, face masks, gloves, and other equipment designed to protect the wearer.

These could be those PPEs especially designed for medical use (such as for use in surgery or dentistry) that are fluid-resistant, loose-fitting and disposable, for example. Many of the devices are regulated such as by FDA, or reviewed and registered with the agency.

Or the N95 that many refer to could be the ubiquitous industrial mask, tye disposable type, used in many industries.  It’s important to note that the medical version (“S”) is desperately needed in the medical crisis, of course.

And the corporate sector is stepping up to fill the gaps.

Many PPE items are in short supply. Right now, FDA is collaborating with manufacturers of surgical masks and gowns to “better understand” the supply chain issues related to the outbreak, and to deal with widespread shortages of products.

The U.S. government has strategic stockpiles of surgical (medical) N95s filtering facepiece respirators that exceed the manufacturers’ recommended “shelf life” — and so the Agency is considering whether or not to release the equipment during the crisis.

The good news is that many of the devices tested should provide the expected level of protection to the user. This varies by manufacturer and shelf life.

Manufacturers identified by CDC in its communications include 3M, Gerson, Medline/Alpha Portech, Kimberly-Clark, and Moldex. Other makers include Cardinal Health, Ansell, DACH, CM, Hakugen, Shanghai Dasheng, Yuanqin, and Winner. The CDC is providing guidance at: https://www.cdc.gov/coronavirus/2019-ncov/release-stockpiled-N95.html 

(Note: Kimberly-Clark also produces toilet paper, towels and diapers – items flying off consumer shelves these days.)

The N95 industrial mask is a different situation than the “s” model designed for medical use, since the N95 model is made for industrial and construction use (as examples) and not for medical care.

In a crisis such as this one, “something” would be better than nothing, or having medical workers fashion masks out of materials to try to be safe.

The “perfect” solution here would be the enemy of the good, as the saying goes. And so millions of N95 are pressed into action and industry is responding with donations.  And companies are in high gear to produce masks.

Background: With the masks generally in short supply, the Centers for Disease Control (CDC) is saying that the usual N95 respirators are not recommended for use by the general public to try protect themselves from respiratory diseases, including COVID-19. Also, people who are well should not be using surgical (face) masks to protect themselves from the virus.

Worn properly, the surgical mask (the “s”) can help to block large-particle droplets, splashes, sprays or splatter containing viruses or bacteria – but not small particles in the air transmitted by coughs, sneezes or medical procedures because of the loose fit (face mask, on the face). And the masks are suggested to be used just once and then discarded.

N95 Respirators generally are protective devices designed to achieve a fit tight and serve to filtrate airborne particles, exceeding the protection of the face mask. The design forms a seal around nose and mouth – as explained, there are both industrial and surgical version.

The industrial version is used in construction, food preparation, manufacturing, etc. The surgical version is the N95s, tested for various medical applications. Manufacture of these devices is regulated.

The N95s is in great demand for healthcare workers and the CDC is urging “conservation” of surgical masks and gowns (such as use of reusable gowns vs. single use) while supplies are being made available to medical professionals.

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3M – 24/7 Production Lines In Action

The company is the largest producer of the N95 respirator face mask – the global output was just upped to the target of 1.1 billion or 100 million monthly. Inside the U.S. the company makes 400 million-plus N95’s in a year. Investment is now being directed to produce 30% more over the next 12 months.

The company is advising consumers not to show up in stores for the masks  – production should be directed to the front lines, those caring for coronavirus-infected patients.

In response to the crisis, 3M is striving to produce 100 million masks per month going forward (the global output). Current production is 35 million per month. Healthcare workers will receive 90% of the production, and the rest will go to other sectors of the economy (like food, energy, pharm companies).

This week 500,000 respirators are going to sent to New York State/City and Seattle. The company also produces hand sanitizers, disinfectants and filtration solutions, and is working with government officials, customers and distributors worldwide to address the supply issue.

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Honeywell is expanding production of masks at its Smithfield, Rhode Island eye protection products plan to make N95 masks – and hiring 500 workers immediately to support the effort. The products will go to the U.S. Department of Health and Human Services for the national stockpile. (VP Michael Pence talked about this in the weekend briefing – orders for “hundreds of millions of masks” were placed through the Federal Emergency Management Agency.)

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Dr. Anthony Fauci (head of NIH Allergy and Infectious Disease) said fresh supplies of masks will be reaching medical professionals in days, not weeks.

Note that the U.S. Congress expanded the U.S. PREP Act to ensure both types of N95 respirators will be available to hospitals and healthcare workers.

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Challenge: Mike Bowen, principal of Prestige Ameritech (a mask maker in Texas), told The New York Times that 95% of face masks are made outside of the U.S. including by U.S.-headquartered companies that moves production offshore. He’s getting 100 calls a day now for his products.

Challenge: Even for those companies making masks in the United States, we cite the example of Strong Manufacturing in Charlotte, North Carolina, making of 9 million masks each month. The raw materials come from Wuhan, China – ground zero of the coronavirus outbreak. The materials are not arriving (yet) – the boxes are on the dock in China.

Challenge: Just one facility here in New York City (the Columbia-Presbyterian system typically would use 4,000 N95 makes per day — and is now using 40,000 per day and expecting to double that in the crisis.

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And so — the Corporate Sector Responds

Apple:  CEO Tim Cook is going to donate millions of masks to healthcare workers in the U.S. and Europe (according to his weekend Tweet) – Vice President Michael Pence said that on the weekend White House Task Force briefing and the company CEO then confirmed this:

“Our teams at Apple have been working to help source supplies for healthcare providers fighting COVID-19. We’re donating millions of masks for health professionals in the US and Europe. To every one of the heroes on the front lines, we thank you” (CEO Tim Cook).

Tesla – CEO Elon Musk donated a truckload of PPEs (masks, gowns etc) to a UCLA Health center in California. We know this from Twitter tweeting. Musk told California Governor Gavin Newsom that 250,000 masks will be donated to California hospitals.

Hanes Brands – President Donald Trump at the weekend briefing talked about Hanes, the clothing maker, that is retrofitting factories to make face masks. The goal is to make 1.5 million masks a week, and working with Parkdale Mills America (they make the yarn for Hanes) and a consortium of companies, will ramp up to 5-to-6 million makes every week.

The company’s experts in supply chain and product development worked with the U.S. Department of Health and Human Services to develop the products and FDA has given its approval to masks that are not the traditional N95 but a prototype that can be used in N95s are not available.

The Hayner Hoyt Corp, a local company doing construction work at St. Joseph Health, in Syracuse (upstate New York) donated 1,200 face masks to the hospital. “I encourage other construction businesses and construction supply companies to see if they have any PPE that they can give to our healthcare providers during this critical time,” says the firm president, Jeremy Thurston. The hospital itself has reached out to doctors, dentists and vet offices to ask for donations of masks, gowns, eyewear, thermometers and other PPEs – something we will be seeing all over the nation to help to meet local shortages.

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G&A Institute team note: We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

The new items will be posted at the top of the blog post and the items today will move down the queue.

We created the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag #WeRise2FightCOVID-19 for our Twitter posts.  Do join the conversation and contribute your views and news.

Send us news about your organization – info@ga-institute.com so we can share.   Stay safe – be well — keep in touch!