National Oilwell Varco is proud of our position as a leader in the oil ...
Sustainability Report, please consider our efforts and perhaps consider how
sustainability ...
Table of Contents Company Profile
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What Sustainability Means to National Oilwell Varco 1 Scope and Boundaries
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Message from M.A. Miller, Jr. 2 How We Operate
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Our Employees Human Rights
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Energy Future Energy Challenge Green Products Climate Change
5 5 5 7
Environment Management
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Carbon Management Waste Minimization Water Management Water Mitigation Process Optimization
8 10 10 10 10
Social Responsibility
11
Path Forward
13
Making it Happen
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In business since 1841, National Oilwell Varco® is today a worldwide leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry.
What Sustainability Means to National Oilwell Varco Sustainability is the result of the pivotal connections of environmental stewardship, longterm company profitability and positive community impact. In addition, sustainability remains a multi-faceted and never-ending goal, encompassing, among other things, social responsibility, environment and financial stability, and NOV’s continued success. NOV has proven itself to be an innovator in our industry and we are utilizing the elements of sustainability to enhance and contribute to our company’s goals. By integrating elements of sustainability into daily operations, we enhance our ability to develop new technologies while reducing our environmental impact, and ultimately gain continued growth and prosperity. While we celebrate our successes, we also look toward evolving opportunities for improvement. In doing so, we set tangible, measurable goals that benefit our communities, our environment and our bottom line.
With headquarters in Houston, Texas, National Oilwell Varco (NOV®) is a multi-national corporation, publicly traded on the NYSE and employing over 40,000. NOV was recently named one of the World’s Most Admired Companies and is in the top five of most admired companies in the industry category of Oil and Gas Equipment, Services by Fortune Magazine (March 22, 2010).
The International Standards of Operation (ISO) for quality and environmental management both lend themselves well to sustainability efforts. The ISO 9001 standard looks at the process for manufacturing and encourages improved efficiencies and quality checking points for overall improvements. The ISO14000 standard series similarly outlines how to incorporate housekeeping, record maintenance, and overall operations to manage environmental impact. Together, these standards form the backbone for sustainability; creating a system to streamline operations while minimizing the environmental footprint of the operations. Scope and Boundaries The 2010 Sustainability Report is our first public report addressing our efforts in areas relating to environmental, social, and energy performance of NOV. The report describes the progress that we have made and opportunities for improvement. As this is the first year of public reporting, we will move forward and continue to focus on accuracy and improvements with time. The report covers NOV’s operations from January 1, 2010 to December 31, 2010. Qualitative descriptions and quantitative metrics are provided to demonstrate the effectiveness of our policies, programs, and practices.
NOV operates a network of over 800 facilities and distribution service centers worldwide to serve oil and gas companies across the globe. NOV Headquarters, Houston, Texas
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Message from Pete Miller National Oilwell Varco is proud of our position as a leader in the oil service industry. We’ve worked hard for it, and we continue to develop new technologies and persistently pursue innovation and improvement so NOV remains a leader in the industry. Without focusing on sustainability as an independent goal, National Oilwell Varco has, in fact, incorporated sustainable practices since our beginning. Today, with a globally deeper awareness and attention to sustainability, we find that not only does seeking sustainability fit into our company’s goals, but it contributes to and enhances our ability to meet those goals. There are challenges to pursuing sustainability; there are measurements to be made, hurdles to overcome, and standards to which we must hold ourselves. Meeting the challenges requires that we effectively address and engage in many complex issues while simultaneously meeting our customers’ needs and our stakeholders’ expectations. We are committed to ethical and transparent practices, respecting human rights and being a positive force for economic development in the communities where we operate. Further, we are committed to safe and environmentally sound operations in every aspect of what we do.
Statement of Strategic Intent National Oilwell Varco will exceed customers’ expectations, improve their economics and be an integral part of their strategies. Our
company will also be a leader in redesigning processes, managing information and providing quality products, services and solutions that deliver a competitive advantage to our customers. We
With future generations in mind, National Oilwell Varco continues to expand the bounds of clean innovation while offering diversified oilfield products and services. As you read through this inaugural Sustainability Report, please consider our efforts and perhaps consider how sustainability fits into your life. If you have any feedback for us, we are interested in hearing your thoughts. Please contact us at
[email protected].
will be a technically advanced,
Thank you for your continued support.
of this, we will operate globally and
enthusiastic and motivated team recognized and rewarded for customer service, innovation and financial performance. In doing all
be known for integrity and creating
Sincerely,
stakeholder value.
M.A. Miller, Jr.
Chairman, President and Chief Executive Officer
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NOV is committed to and recognizes the importance of good corporate governance and high ethical standards. For further details, please refer to the Corporate Governance section discussed in detail on our website, http://www.nov.com/investor/inve storrelations.aspx.
do this, NOV must ensure that services and products comply with quality controls that govern NOV job duties. This includes applicable laws and regulations, as well as related internal control procedures. NOV holds suppliers to strict standards so that NOV can confidently warrant our products and services. For this reason, NOV only does business with suppliers that assure the quality of the products and services that they provide NOV.
Safety
Building Honest Relationships
By collectively bringing together NOV’s Strategic Intent, the Shared Values Statement and the Corporate Health, Safety and Environmental (HSE) policy, the result is one scope, whereby our systematic approach of leveraging the knowledge gained from industry best management practices and benchmarking, along with combining corporate strategies, ensures that each NOV facility is equipped with an effective HSE Management System. NOV consistently monitors safety to reduce on-the-job risks and be sure that no opportunity for improvement is lost.
NOV treats suppliers equitably, and engages in honest and fair supplier selection. We select suppliers objectively and based strictly on merit, and not because of any personal benefit, and we follow internal controls that govern our bidding processes and comply with all applicable sourcing policies and purchasing guidelines.
How We Operate Corporate Governance and Risk Management
Working with Suppliers and Partners To act with honesty and integrity, NOV will always deal fairly with customers, suppliers, and other business partners. NOV shares a responsibility to these stakeholders to conduct ourselves ethically within the marketplace. In doing so, NOV upholds our reputation as an industry leader and maintains our company’s commitment to quality and integrity. Providing Quality Products and Services NOV strives to provide exceptional value to our customers and business partners through the design and manufacturing of safe products. To
Ethics NOV is a single company with one standard of conduct across the many countries in which we operate. NOV’s Code of Business Conduct and Ethical Standards (the Code) offers guidance on the behaviors expected of NOV employees and demonstrates how it is everyone’s responsibility to uphold NOV’s values and Statement of Strategic Intent (See Page 2) in all that we do.
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NOV’s Code applies to everyone in the Company. As such, every employee, officer, director, and consultant who works for NOV or its subsidiaries must know and follow the Code. Failure to comply with NOV’s Code can have severe consequences for both the Company and those involved. In addition to damaging NOV’s good name, conduct that violates the Code may also violate the law. Such conduct may subject the individuals involved to criminal and civil liabilities. NOV fully supports employees who seek guidance and report concerns. By asking questions through hotlines and other established communication channels, and speaking up about their concerns, employees are encouraged to preserve NOV’s culture of business ethics. Commercial Bribery NOV does not make business decisions based on any personal benefit given or offered to us. In particular, we do not solicit, offer or accept bribes, kickbacks or other improper payments from anyone who does or is seeking to do business with the Company. We implemented improved requirements on anti-bribery and corruption in 2010, including strengthening due-diligence of suppliers, and contractors. Thus far, we have provided live and computer-based training on these revised requirements to more than 8,000 employees.
Protecting Third Party Information
Training and Development
NOV has a duty to protect the confidential information supplied to us by our customers, suppliers, and other business partners. In particular, this includes any nonpublic information that might impede our customers or business partners’ ability to compete if made available to the public. In addition, NOV does not misappropriate or misuse any proprietary information we are introduced to through our work.
Training and talent development are integral to NOV’s success. We have a number of programs that are in place to encourage excellence and provide learning opportunities for NOV employees. These are designed to train NOV employees in best practices and achieving business goals, and are open to any NOV employee who is interested in adding value in their area of business.
Recognizing and Dealing with Conflicts of Interest
Training and Development
To act with integrity, we strive to ensure that all of our business actions and decisions are in our company’s best interest. Therefore, we are very careful to avoid conflicts of interest, and fully vet even the appearance of a conflict of interest.
NOV Ventures is a course designed to address the needs of individual employees responsible and accountable for transitioning product concepts to market reality. The 12-month program was developed in NOV partnership with the University of Texas, and includes Engineering Management, Product Line Management and Business Development, among other disciplines.
Our Company’s Reputation NOV enjoys trusting and integrous relationships with our stakeholders. We strive to protect those relationships and our healthy reputation by making sure we consistently communicate publically with an open and honest picture of our operations. For more detailed information regarding stakeholder engagement, please visit our website, www.nov.com.
Engaging in Fair Employment Practices At NOV, we uphold human rights in all our operations and facilities. We do not condone or permit the use of child, forced, indentured, or involuntary labor in any of our operations. In addition, we comply with fair wage and hour laws in all operations. NOV will not knowingly conduct business with – and will terminate business dealings with if discovered – any supplier or other business partner who violates these standards. Human Rights Discrimination and Harassment-Free Workplace To promote an inclusive work environment, NOV does not tolerate any form of discrimination. This means NOV makes employmentrelated actions and decisions based on merit alone. NOV does not tolerate any form of harassment from either employees or nonemployees. Non-Violent Workplace As a part of NOV’s commitment to workplace health and safety, we have a zero tolerance policy for acts or threats of violence. This includes acts and threats of violence on NOV premises, as well as off-site in connection with company-related activities.
Our Employees Diversity Diversity provides the strength NOV needs to thrive in a global, everchanging environment. NOV values the varied backgrounds and perspectives of each of our fellow employees. We value unique opinions, talents and perspectives in all operations, which we feel fosters a thriving and diverse workforce.
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Energy Future
Green Products
Energy challenge
Innovation is a key component to NOV’s Statement of Strategic Intent (See Page 2). NOV’s enthusiastic and motivated teams are recognized and rewarded for customer service, innovation, initiative and financial performance, and for working as an integral part of our customers’ strategies. Emphasis is on redesigning processes, managing information and providing quality products, services and solutions that deliver a safe, clean and competitive advantage to our customers.
Finding ways to reduce or recapture energy is a complex challenge that we all face. At NOV we are currently analyzing company-wide energy use and expenditures through the NOV Energy Use Survey. We are dedicated to our energy goals and continue to refine and develop the methods used for estimating energy consumption and our reduction practices. Meeting the Energy Challenge Many NOV facilities have implemented energy reduction programs, and additional efforts are in progress globally with support from NOV’s corporate resources. A global energy team is currently being developed to perform facility energy audits focusing on reducing short-term energy needs and looking towards sustainable methods of production. Initiatives, including process optimization, Heating, Ventilation and Air Conditioning (HVAC) setting adjustments, and lighting optimizations and upgrades, are considered on a facility-specific basis.
To illustrate NOV’s dedication to Green Product Innovations, we present the following innovations that are either currently on the market or in development. Green Product Innovation: Geothermal Drilling Solutions: Harnessing Renewable Energy NOV has increased its focus on the geothermal energy market with its business groups actively engaged with geothermal companies in the Americas and Australia.
Just like in oil and gas applications, contractors are utilized to drill for geothermal resources and have the option to drill with air, water, or drilling mud, depending upon formation characteristics. NOV product lines are capable of being used for these applications after making minor modifications to accommodate for the extremely high temperature and high pressure
NOV has set tangible goals for our sustainability focus areas: Energy Management, Waste Minimization, and Social Responsibility. To that end, we will strive to:
Through business cycles and market evolution, when we move into new locations or build new facilities, we put emphasis on adding energy saving and incorporating green technologies. Developments in Brazil, newer facilities in Scotland and the US, as well as the NOV Corporate office in Houston, all incorporate specifications with regard to energy management.
NOV offshore jack-up rig fitted with LED lighting, reducing the energy demand by over 35%.
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Mitigate carbon liabilities through a 10% reduction in carbon emissions by 2020; Manage products and wastes with zero spills; Divert existing waste streams appropriately, to move towards 100% recycling; Share local community outreach success stories company-wide to increase innovative and successful ideas; and Continue to develop innovative, socially responsible products for our customers.
These actions cover the scope of NOV’s goals but do not represent the full extent of our efforts. Focus areas, including select success stories and paths forward, are discussed in this report.
environment. In order to overcome challenges, drilling equipment is furnished with special coatings, heat shields, and elastomeric material to meet the demands of the drilling job. In addition to providing individual capital components to geothermal contractors, NOV also provides complete rig packages tailored to meet geothermal needs. NOV’s AC Ideal Rig System serves as a clean, technically advanced, and fieldproven solution. NOV’s geothermal portfolio is farreaching and continues to expand with the growth and development of technology to acquire renewable resources.
Success Story NOV UK: Carbon Standard Accreditation Mono® Pumps, Ltd., and ReedHycalog® UK, Ltd. (two of our entities in the United Kingdom) have been awarded Certificates of Achievement from the Carbon Trust Standard. This award is earned by making energy use reductions of at least 2% annually for two or more years with the use of an energy management program. Both entities are ISO 9001 and 14000 certified facilities, and the requirements set by ISO aided us in making the energy use reductions.
NOV is developing an installation process for offshore wind turbines, utilizing a combination of NOV’s hydraulic pipe handling equipment on existing jack-up rigs or jack-up vessels.
Success Story NOV Rolligon, Anderson Texas Lighting Fixture Upgrades
The standard installation process, a crane based technology, is heavily dependent on weather conditions and with only 30% utilization. The installation company often has to build expensive custom vessels that require a long lead time.
Through the utilization of preexisting jack-up and drilling vessels, NOV can develop efficient, safe and reliable offshore wind turbine installation equipment that will drastically improve current installation operations. Green Product Innovation: Solar Powered Water Pumps In developing countries nearly all surface water is contaminated and therefore not potable. The most commonly used safe water source is from underground boreholes, requiring a pump for water production.
Green Product Innovation: Offshore Turbine Installation Equipment
NOV's pipe handling equipment being used for offshore wind turbine installation projects.
are out-of-date and in need of an overhaul. The installation process combines several NOV technologies including cranes, riser handling tools, and winch and jacking systems. The combination of these technologies provides a solution which is safer, more reliable, more cost effective, and less dependent on weather condition.
By replacing 108 mercury vapor lights with 55% more efficient models in the facility’s welding shop, the facility is able to save an estimated $13,000 annually in energy costs, with a payback period of 1.8 years.
The NOV installation solution has the option to be added on to existing jack-up rig or jack-up vessels, particularly the aging jack-ups that
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Solar powered water pumps have been developed by NOV Mono for use where electric or diesel power is unavailable. These pumps are particularly appropriate for use in Mediterranean countries and Africa to meet the needs of rural village water supplies, livestock and irrigated agriculture. Reliability is the cornerstone of the NOV Mono solar pumping systems as they are designed to operate without any human interference in the remotest parts of the world. A Mono Solar Pumping system can run for years without maintenance.
One of Mono Energy's water projects utilizing maintenance-free, solar powered water pumps in Tanzania, Africa.
NOV Mono has collaborated with organizations such as Wateraid, CooperazioneInternazionale (COOPI), and The World Bank to transform communities and lives around the world by increasing accessibility to drinking water. Green Product Innovation: SPRED Rig NOV developed the Safe, Productive, Reliable, and Efficient Drilling (SPRED) Rig by redesigning the traditional land rig, focusing on increased efficiency and minimized rig footprint. The philosophy behind SPRED applies existing technology but changes the drilling process, enabling a three to four time improvement in the time to drill batch wells.
Green Product Innovation: Reduced Footprint Equipment On and off shore, the space limitations on a rig are a key factor in terms of footprint size and materials. For new developments in shales, moving the rig to its drilling location holds unique challenges such as narrow roads, space constraints on site and weather conditions. NOV is meeting these challenges on many fronts, including numerous products to reduce environmental impact, such as products line roughnecks, modular rigs, mud systems, and pipe handing complete with automation and smaller product footprints. Not only do these pieces of equipment reduce environmental impact, but the roughneck, for example, dramatically increases safety which not only benefits the entire drilling operation but also, the personal safety of the crew.
Whereas each hole usually requires its own rig, the SPRED Rig can drill multiple well centers utilizing one rig; thereby reducing resources needed to complete the project while also reducing the rig footprint.
NOV's SRED Rig – revolutionizing the drilling process
The next generation NOV Roughneck, one of many smaller footprint products.
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Climate Change NOV acknowledges climate change legislations in every region that we operate. In order to meet our obligations, we track environmental legislation, climate change and energy legislation, guidances and policies in the jurisdictions which we operate. Based on these changes, NOV implements or refines practices to comply with or exceed regulations.
responsible for energy audits. Based on audit results, a plan will be drafted to achieve energy reductions and presented to management.
Environment Management Carbon Management Beginning in 2007, NOV has undertaken an annual global assessment of carbon emissions, as well as to continue to track changes to environmental, energy and climate change legislation. This annual effort, coupled with operational knowledge, has identified opportunities for energy reduction, which in turn may potentially reduce the cost of providing goods and services. To leverage this information, a team was assembled to address and coordinate both energy efficiency and compliance efforts. Over the next ten years, reduction and efficiency efforts will spread across NOV’s global operations to reduce annual energy demand company-wide, with a goal for reducing the global company’s annual energy consumption set at 10%. Meeting this goal means NOV can manage our climate change obligations as well as realize substantial savings in operating costs. By December 2011, each facility should complete several action items, including completing the NOV Energy Use survey and inventory, and scheduling an energy use audit. If the resources are available, facilities are also encouraged to create a Facility Energy Team that will be
Number of Facilities Number of Countries in which NOV operates Number of employees Estimated Carbon Emissions (MTe CO2e)
CO2e Emissions (Metric tons) Millions
NOV continues to meet regulatory obligations in jurisdictions where we operate. In the United Kingdom (UK), our carbon reduction commitment is underway. NOV’s energy reduction strategy is to continue efforts initiated in the UK in response to the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme (the UK’s mandatory climate change and energy saving scheme). Beginning in July 2011, NOV will begin reporting UK emissions to the UK Environmental Agency.
3.0 2.0 1.0 0.0 2007 2008 2009 2010
In May 2010, the United States Environmental Protection Agency (US EPA) promulgated the Greenhouse Gas (GHG) Tailoring Rule, which establishes thresholds for GHG emissions for new and existing industrial facilities meeting certain requirements. NOV has completed our applicability evaluation, which compared this rule against our existing facilities. The outcome of this evaluation shows that NOV does have an obligation under this program for certain facilities. The annual energy usage for the facilities that this rule applies to is due to the EPA September 2011.
2007 785
1
2008 830
2009 845
2010 885
47
54
54
55
35,300
39,000
37,000
39,000
2.3
1.9
1.9
2.1
2
1. Includes Grant PrideCo and Reed Hycalog (Does not include other acquisitions in 2007). 2.
As the company has grown, so has the calculation approach. Some of the larger, more recent acquisitions have expanded NOV’s operations into more energy intensive manufacturing processes. NOV continues to assess and monitor ways to reduce emissions in these newly acquired operations.
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Carbon Emissions As an international company with over 800 facilities and over 40,000 employees, carbon emissions are at the forefront in our collective minds. As written earlier, beginning in 2007, NOV has undertaken an annual exercise to quantify our energy use and emissions. Annual energy use and associated carbon dioxide equivalent emissions data are collected, calculated and reported in accordance with GHG Protocol, the Carbon Registry and ISO 14000 guidelines. NOV has grown significantly since its inception. Since 2005, we almost tripled in size and scope and we continue to grow. As the company has grown, so has the emissions calculation approach. Some of the larger, more recent acquisitions have expanded NOV’s operations into more energy intensive manufacturing processes. We continue to assess and monitor ways to optimize reduction opportunities in these newly acquired operations.
CO2e by Regions & Countries
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Waste Minimization
Process Optimization
NOV is transitioning to a proactive model of minimizing waste through integrating sustainability principles to mitigate liabilities at the source.
NOV’s Lean Initiatives Group improves process optimization by focusing on the basic factors of production or a service. The group aims to increase productivity through well-established, efficient business processes and innovative methods that can be sustained by those with which we work.
Efforts in progress include good housekeeping practices, materials diversion from waste streams to recycling streams when possible (solvent, scrap, paper), proper storage and containment areas specifically designed for each facility and operation, and collection from wash water and onsite treatment where appropriate. Current compliance obligations for Superfund Amendments and Reauthorization Act (SARA) Title II annual waste reporting (local and federal governments), National Pollutant Release Inventory (NPRI) & Registration Evaluation Authorization and Restriction of Chemical Substances regulation (REACH) inventories necessitate monitoring and documentation of proper storage and disposal of chemicals and wastes at our facilities. Training and support for these activities are provided on a regular basis from the Environmental Risk Group and the Corporate HSE and the Business Unit HSE Groups. In addition, audits of the facilities are conducted regularly in an effort to assure environmental compliance. NOV’s HSE Management System is moving to support waste minimization efforts through electronic benchmarking, measuring, tracking progress, and reporting. Ultimately, we will manage all waste information and chemical inventories through our EMS to support our global reporting requirements.
Success Story Water Recycling System Water Management NOV respects that fresh water is a precious resource. In the manufacturing industry, much of the water used is for plant and equipment cooling, cleaning, preparing, and cooling products, and washing down equipment and work sites. While much of this cannot be avoided altogether, we are looking at smarter and more conservative water usage. For example, identifying and eliminating leaks or other inefficiencies in a process, pursuing alternatives to water for minor cleaning, continually maintaining and upgrading equipment, and recycling wastewater, are a few of the methods that NOV incorporates in its efforts to keep necessary water usage at a minimum. As part of our general operations, wastewater treatment and recycling systems are being installed to conserve water and save on monitoring and disposal costs. These systems are already in place in many of our facilities worldwide. Water Mitigation At many NOV facilities Waste Minimization Plans have been written and put into place as a best management practice in an effort to reduce waste and manage costs.
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The new Downhole bit refurbishing facility in Rosenberg, Texas, houses a completely automated wash water recycling system, including Ozone Treatments. The system is a highly advanced and efficient, selfcontained wash water recycling system with an automatic maintenance control, using digital sequencing to automatically backwash filters, dispense sludge and monitor and adjust pH and oxidizer levels. The benefits of the new system include cleaner water, reduced odor, lower maintenance costs and a smoother operation. Further, the system diminishes the cost of water and wastewater disposal costs.
Social Responsibility
Brazil
NOV believes that whether a corporation or an individual, each of us has a responsibility to act or conduct business in a manner which does not cause harm. Being a good corporate citizen means conducting our business ethically and in accordance with all applicable laws, including our own high standards of governance. It means providing a safe working environment for our employees, pursuing environmental solutions, operating with an eye towards fiscal responsibility and growth, and making a positive impact on the communities in which we live and work.
Following the recent floods and mudslides in the state of Rio de Janeiro, NOV’s Brazilian facilities organized and donated to the Brazilian State Fund for Disaster Relief. The goal was to provide assistance to the thousands of people whose homes and lives were negatively affected by the flood and mudslides that killed over 800 people and left more than 500 missing. NOV was also committed to repairing the local school and headed up an initiative to contract a professional teacher to instruct preschool aged children. In addition to instructing the young children, the teacher helped some of the NOV hands who were illiterate to learn to read.
Community Involvement All over the world, NOV offices and employees have joined together to raise funds and awareness for a multitude of local and national charitable organizations, causes and individuals. From beach clean-up activities to fundraisers and races, NOV employees make a difference in the communities in which they live and work. Some particularly outstanding efforts are discussed below. Norway NOV’s Norwegian operations support 15 local and national organizations and four global organizations. Recipients include United Children’s Fund, the Norwegian Handicap Association, and the Norwegian Association for the Blind.
United States At NOV’s headquarters in Houston, Texas, a multitude of volunteer and charity campaigns are underway annually. MS 150 – The NOV Cycling Team participated in the BP MS150 bike ride from Houston to the State Capital, Austin. This particular race is the largest North American charity event to help raise funds for the National Multiple Sclerosis Society. The NOV team raised over $400,000 in the past six years. United Way – The United Way is a national organization with local efforts to identify and resolve pressing community needs including education, income and health. Since 2007, NOV employees have donated $1 million annually to this organization.
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Derricks and Diamonds –Derricks and Diamonds is an annual NOVhosted softball tournament to assist Texas Children’s Hospital Charity Care Center to provide quality healthcare to children battling pediatric cancer. Since its inception in 2005, NOV has raised close to $1 million for this charity.
United Kingdom The UK Cycle to Work Scheme encourages and rewards employees for riding a bike to work. NOV buys the bicycle and leases it to the employee for a set period as a taxfree benefit. The lease charge is deducted from the employee’s monthly salary, and at the end of the lease period, the bike is sold to the employee for a nominal amount. This initiative not only supports community health, but employee’s health as well.
NOV and our employees contribute to hundreds of charitable organizations around the world. From grassroots local efforts to supporting local, national and global causes, including Unicef and the Red Cross, NOV is proud to be a supporting member of the communities in which we operate.
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Path Forward As a global company, NOV adheres to many federal and local rules and regulations and strives to maintain environmental standards that are compliant with all jurisdictions in which we operate. Moving forward, and beginning with areas with existing or impending regulations, NOV will roll out a schedule with benchmarks for the next several years, and then apply the benchmarks to all locations such that they meet or exceed the regulations of the countries in which they operate. Moving through 2011, NOV will implement sustainability initiatives through the following efforts:
Increase efforts to support the energy management program’s annual goal to reduce energy use by 1% per facility for the next ten years; Integrate waste minimization and recycling into daily office and machine shop operations; Increase best management practices and success stories transfer; Expand sustainable and recycled products purchasing as part of our responsible purchasing efforts; and Incorporate sustainability principles into existing and planned built environments.
Making it Happen NOV is currently undertaking the challenge of energy reduction and liability minimization throughout our facilities. In 2010, the Environmental Risk Management Group travelled to the UK and performed initial audits of 11 locations, primarily in and around Aberdeen, Scotland. The audits were conducted to identify areas for energy usage reduction and address them quickly to support our corporate and environmental responsibilities and goals. The Environmental Risk Management Group is also working on assembling an Energy Team. This team will consist of individuals who will be responsible for performing energy audits at NOV facilities to determine sources where process and equipment improvements could be made to reduce energy use and cost. Once areas needing improvement are identified, the team will work to create energy-efficient processes to reduce the facility’s energy consumption and expenditure. With teams such as these being assembled to take an active role in measuring and reducing our energy use and carbon output, NOV looks forward to presenting you, our Stakeholders, with what we’ve learned and our successes in our next Sustainability Report.
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