ADNOC’s Journey to Turn Social Risk Management into Action

Abstract In 2020, ADNOC started introducing social risk management (SRM) in project delivery and operations to prepare for the increasingly complex social performance demands of local and international stakeholders. Effective implementation requires early assessment of social impacts and proactive engagement of stakeholders, which can only be achieved if all technical and non-technical (outward-looking) disciplines work seamlessly together. This paper describes an integrated and multi-disciplinary approach to achieve this, aligned with international standards, yet adapted to local customs. ADNOC’s HSE Management System was chosen as the backbone of the program to which a dedicated SRM policy and standard were added. This SRM standard includes requirements, processes, reporting templates and tools to perform social impact assessments and engage external stakeholders. Key topics of the standard were aligned with international standards on social performance and stakeholder engagement, and blended with local culture and customs. A company-wide training program, appointment of SRM specialists, and coaching by specialized consultants were provided to support implementation. An internal organizational structure was designed to ensure internal alignment between the various disciplines, a prerequisite for consistent communication with external stakeholders. Implementation of the foundations of the SRM program was completed over a period of three years with external help. Internal resources are now continuing implementation. The prerequisite of internal alignment across all layers of ADNOC was and is the most important and challenging part of the program. ADNOC is a conglomerate of many different companies and ventures in which cross-organizational and cross-disciplinary alignment at operational level does not come naturally. Therefore, the program design had to address both the organizational and behavioral aspects of this situation. The speed of implementation could only happen thanks to strong and direct involvement of ADNOC senior management. Several more years are needed until SRM is fully embedded as a new discipline, adequately resourced and experienced, and until its policy and procedures are implemented as a matter of business-as-usual, not only within ADNOC, but also amongst its partners, suppliers and contractors. In addition, SRM will need to be kept up to date with international developments such as new directives by the European Union that are turning international standards into regulation. ADNOC’s program is the first and most comprehensive approach to social performance in the Gulf region that successfully blends local customs and international requirements for social performance. A key novelty of the program is the organizational model that enhances internal cooperation and alignment between disciplines and operating companies in ADNOC to ensure consistency of implementation and a single voice to external stakeholders.