Environmental, Social and Governance · 2020. 8. 12. · ENVIRONMENTAL 11 ENVIRONMENTAL MANAGEMENT...

Environmental, Social and Governance

Report 2019

02

Content02 Content

03 Our Commitment

04 About Nabors

05 Our Shared Mission and Values

06 Our ESG Commitment

07 Environmental

08 Environmental Management System

09 Energy Management

13 Climate Change

14 Spill Prevention

15 Water and Waste Management

18 Suppliers

19 Social

Staff

20 Human Capital and Technology

22 Human Rights and Labor Practices

23 Health and Safety

27 Training and Development

28 Talent Management

29 Diversity and Inclusion

Society

32 Local Communities

34 Political Advocacy

35 Social Impact of Products and Services

36 Customer Relations

37 Governance

Corporate

38 Board Structure

39 Enterprise Risk Management

40 Shareholder Engagement

41 Audit

42 Cybersecurity

Business Conduct and Ethics

44 Code of Conduct

45 Financial Integrity

46 Conflict of Interest

47 Compliance with Laws, Rules and Regulations

48 International Business

49 Intellectual Property and Confidentiality

50 Compliance and Reporting

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N A B O R S . C O M C O P Y R I G H T © 2 0 2 0 . A L L R I G H T S R E S E RV E D .

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https://nabors.com

http://www.nabors.com

0303

Anthony G. Petrello Chairman, President and CEO

It is not enough to lead the industry in innovation and technology, the breadth

and depth of our responsibilities must include the Environmental, Social and

Governance tenets.

Guided by our long-standing mission, vision and values, our success is not

just measured in the bottom line but in the impact we have on our employees,

contractors, customers and the communities we serve. Over the years, we have

implemented numerous sustainable practices and this is just the beginning.

We are dedicated to providing solutions that deliver efficiencies and safeguard the

health and well-being of all. This commitment means a multi-prong approach that

encompasses everything from environmental impact, compliance training and a

robust safety culture, to nurturing our communities.

Moving forward, we pledge to consider more than the value proposition as we

contemplate how we are carrying out our business goals. We can and will do more.

Our Commitment


https://nabors.com


04

About Nabors

$3B TOTAL OPERATING REVENUE

399 RIGS

379 TOTAL ACTIVE PATENTS

20+ COUNTRIES14,000 EMPLOYEES


Numbers reflect end of year 2019.

https://nabors.com


05

Our Shared Mission and Values

Safety

Whether on a rig, in a

maintenance facility

or office setting, our

robust procedures and

processes are created

to protect everyone. It’s

about the well-being

of each and every staff

member, contractor and

visitor.

Accountability

We proceed with integrity

and transparency to hold

everyone responsible for

decisions and results. This

does not mean a culture of

finger pointing but rather

the balance of ownership

that reinforces a high-

performing organization.

Teamwork

Trust breaks down silos

and stands at the center of

strong teams. Sharing our

knowledge and supporting

each other translates into

a unified front moving

towards common goals.

Excellence

With a laser focus on

details, Nabors’ staff

delivers quality by

adhering to our best-in-

class standards. Never

compromising or cutting

corners results in superior

products and services our

customers have come to

expect.

Innovation

The search for the

application of better

solutions has always been

in the Nabors DNA. We

push the boundaries and

search for leading-edge

answers. Never dissuaded

by obstacles, our staff

continually develops

solutions unique to the

industry.

Deliver best-in-class drilling performance through our exceptional people, execution, teamwork and technology.


https://nabors.com


06

At Nabors, we understand the importance of integrating ESG into our business and recognize the value it brings to sustaining our organization over time.

Sound environmental practices are imperative not only to show

our commitment to the communities where we operate, but to

ensure the long-term sustainability of those operations.

Commitment to fair and equitable treatment of employees,

customers and other stakeholders helps to ensure

operational success.

Ethical and transparent corporate governance practices

invariably reduce risk and improve the bottom line.

Our ESG Commitment


https://nabors.com


07

Environmental

The protection of the Earth is not just an aspirational goal but the practical application and efficient use of our resources and expertise. We use our proprietary technology and services to deliver efficiencies that reduce our customers’ operational footprint.

E N V I R O N M E N T A L

08

E N E R G Y M A N A G E M E N TE N V I R O N M E N TA L M A N A G E M E N T S Y S T E M C L I M AT E C H A N G E S P I L L P R E V E N T I O N S U P P L I E R SWAT E R A N D WA S T E M A N A G E M E N T

Nabors is committed to performing at the highest level of operational

integrity. To achieve this, we developed a global Environmental Management

System (EMS). The EMS is a part of the company’s strategy to provide

a framework for our actions in reducing or eliminating the negative

environmental impacts of our business activities. The key processes maintain

awareness and compliance with legal requirements, ensure the competency

of employees and monitor and evaluate environmental performance. The

EMS brings together the tools designed to provide the highest value to our

customers and employees.

Utilizing this comprehensive approach, our goal is enhanced

communications to continue driving this strategy through our operations

worldwide.

Environmental Management System

Seventeen environmental awareness property reviews completed at Level 3 - high risk sites. All actions identified have been addressed, resulting in successful subsequent permitting.


09


Identifying and managing our energy consumption does more than reduce

costs, it lessens the impact on our world. With additional automation on our

rigs, warehouse and office efficiencies, we are able to continually decrease

our carbon footprint.

Energy Management

The Houston corporate office garage lights were

changed to LED, improving energy efficiency by 70%.

E N E R G Y E F F I C I E N C Y


10


By optimizing and consolidating delivery truck routes, we were able to

reduce traffic to and from rigs, offices and warehouses. Vehicles carrying

materials to Nabors locations were used for backhaul service for streamlined

operations.

To continue the momentum, we will establish new targets to monitor

unnecessary emergency orders delivered on an individual basis.

Energy Management


11


A 314,000 gal net savings of engine oil resulted in a reduction in environmental impact by:

METRIC TONS OF CARBON DIOXIDE3,206 KGS OF METHANE128.74 KGS OF NITROGEN

DIOXIDE25.12Calculations are based off of data collected by Nabors Drilling Technologies USA, Inc.

Similar condition based maintenance is followed on all lubricants, including hydraulic oil, gear oil, engine coolant, etc.

Engine Original Equipment Manufacturers (OEM) traditionally

recommend replacing engine oil based on operating hours

(e.g. 84 gal every 500 hours). Instead, Nabors developed

conditioned based maintenance practices resulting in an

increase in oil life by four to eight times.

• Added filtration systems to optimize engine’s oil life

• Scheduled monthly lubricant analysis

Reduction of Maintenance SpendGallons (gal)

400,000CONSUMPTION BASED ON OEM TIME BASED MAINTENANCE RECOMMENDATIONS

GAL

See “Conditioned based maintenance process”

GAL86,000ACTUAL OIL CONSUMPTION BASED ON NABORS CONDITIONED BASED MAINTENANCE PROCESS

GAL314,000NET SAVINGS OF ENGINE OIL IN 2019

Conditioned Based Maintenance

2019 SpotlightReduction in Engine Oil Consumption

Energy ManagementBy establishing best-in-class practices, we have improved

maintenance performance, while reducing consumption of

engine oil.


12


Canrig’s new top drive produces 75 dBA, a significant reduction from the standard top drive noise level of 94 dBA. Decibels adjusted or dBA is a measurement adjusted to allow for varying sensitivities of the human ear to different sound frequencies.

As a comparison, a power mower produces 96 dBA and a vacuum cleaner 72 dBA.


Energy Management2019 Spotlight

Reducing Noise Levels


13


Climate Change

Finding solutions to mitigate climate change means identifying opportunities

and developing and implementing technology. The changing climate creates

risk but also the opportunity to be at the forefront of innovation and growth,

through the use of technological advances.


14


Spill Prevention

Foundational to our spill prevention approach are innovative technologies

designed to properly contain fluids. There is a sense of urgency to protect

the environment from impact and we consider all facets including the

storage, handling and disposal features.

Collaboration with our customers, extensive employee training, rig design

features and a regular cadence of drills reinforces the process in our global

workforce.



15


Water and Waste Management


To maintain an ecological balance, we continually evaluate viable methods

for water reduction, material reuse and end-state waste management

alternatives to protect our natural resources.

Our efforts have shortened drill times, decreased truck traffic and increased

water conservation.


16


At our Safah Base in Oman, we initiated the redirection of water discharge

immediately after construction of the sewage treatment plant. Now, five

years later, this healthy stand of trees encircles miles of perimeter around

the facility. Flocks of birds have nested, setting up homes in the beautiful

greenery.

Even in the middle of the arid desert, as these trees mature, they will absorb

and store larger amounts of the carbon emissions.

Wash bays set up at construction projects and maintenance yards across the

country include reclamation units that filter water used in the process and

recirculate it back into the bays.

Our target for future new builds is to include water conservation systems in

the construction, to further our water conversation efforts.

Water and Waste Management2019 Spotlight

Redirection of Water Discharge


17


The handling of waste, whether in paper form or excess water, is an easy

concept to grasp but not always simple to execute. Like other aspects of

our business, our commitment to ESG tenets requires continual learning and

development.

At our Houston office, we began the recycling program only to learn the

improper disposal of a single piece of material in the incorrect container

could contaminate the entire bin. The compromise turned out to be single

stream recycling, a process where all trash and recyclables are gathered and

then sorted off-site.


Water and Waste Management2019 Spotlight

Streamlining Recycling


18


Suppliers

To further a collaborative effort, we work with suppliers aligned with our

business standards. We urge those suppliers to go beyond local, state and

national environmental laws, regulations and practices. The companies

we work with are expected to demonstrate they comply with all applicable

standards regarding human rights, labor and governance.


19

Social

A strong company culture builds the core strength of a business. By bringing together diverse voices and cultivating a welcoming environment, we strive to support our people, contractors, customers and communities.

Inclusion, dignity and equality make up the character of Nabors.

20

S O C I A L

P O L I T I C A L A D V O C A C Y S O C I A L I M PA C T O F P R O D U C T S A N D S E RV I C E S L O C A L C O M M U N I T I E SD I V E R S I T Y A N D I N C L U S I O N C U S T O M E R R E L AT I O N S

H U M A N R I G H T S A N D L A B O R P R A C T I C E S TA L E N T M A N A G E M E N TT R A I N I N G A N D D E V E L O P M E N T H E A LT H A N D S A F E T Y H U M A N C A P I TA L A N D T E C H N O L O G Y

Human Capital and Technology

Our commitment to human capital encompasses all people-related

components affecting our employees, contractors, customers, suppliers or,

through a broader lens, our communities.

This partnership between technology and team brings the best of both

worlds to change the way wells are drilled. The advantages of technology

have also been realized in other areas of human capital where the focus

areas include onboarding, performance appraisals and training.

S O C I A L

21

S O C I A L



Human Capital and Technology

Technology does more than drive efficiencies. It helps our staff to advance

safer, more dependable results. As an example, we designed myDrills™,

a mobile application that digitizes well control drills and successfully

implemented it in our U.S. operations. The application standardizes well

control drills and improves employees’ well control competency through its

planning, evaluation and execution of various scenarios.

S O C I A L

95% of U.S. Rigs Completing myDrills™ in 2019 with an Average of 1 Drill Per Crew Per Week

707733

568

247

24

A U G S E P T O C T N O V D E C

2019 SpotlightImproving Competency with myDrills™

22

S O C I A L



Cultivating a quality workforce and protecting human rights represents our

multi-prong approach to developing an environment where each person feels

protected, safe and valued.

Nabors is committed to respecting the basic rights of the people with whom we

work with and avoiding engagement in any activity that encourages or solicits

the abuse of another’s human rights. We exercise due diligence to identify and

prevent human rights risks throughout our global operations.

Human Rights and Labor Practices

23

S O C I A L



Safety stands front and center in our corporate values because we believe all

of our global operations can and must achieve our mission of zero incidents

and zero injuries. Every employee accepts this condition of employment but,

more importantly, the message is we want everyone to be able to go home to

their family at the end of the work day.

Mission Zero is more than a safety campaign, it is a journey of leadership

training, supervisor development and a devoted concentration on risk

management at all levels. Through the integration and reinforcement of

our core principles, we continuously enhance our safety culture to achieve

Mission Zero.

• myDrills™

• Job Safety Analysis (JSA)

• Permit-To-Work (PTW)

• Chronic Unease

• Dropped Objects Prevention

Program (DROPS)

2 0 1 9 F O C U S

Health and Safety

S O C I A L

i

24

S O C I A L



Health and Safety

Providing a safe, healthy and drug-free environment not only improves physical

wellness but builds engagement and fosters a sense of belonging and purpose.

We provide easily accessible resources to ease the burden on individuals and

their families.

An on-site medical clinic helps elevate a proactive approach. The clinic offers

convenient, treatment for health challenges such as diabetes, asthma and high

blood pressure. Employees on the company insurance plan can get lab tests

completed, undergo sports physicals, take part in tobacco cessation programs

or take part in various wellness campaigns.

Our on-site fitness center with state-of-the art facilities provide a variety

of group classes, individual training sessions and various fitness programs

throughout the year. Facility staff can perform wellness evaluations, customize

individual goals and create a personalized plan.

25

S O C I A L



Health and Safety

S O C I A L

2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9

0.740.72

0.66

0.54

0.8

0.7

0.6

0.5

*Only rigs that operated for 75% of the time, as calculated using total operating hours.

116rigs LTI Free

in 2019

1Canada

86rigs* LTI Free for the

last 3 years

68United States

17International

Total Recordable Incident Rate (TRIR) since FY 2016

i

i

Programs and Processes that Further Reinforce a Culture of Safety

• Safety Leadership Training

• Rules to Live By

• Global Safety Week

• Crown of Excellence

i

2019 SpotlightSafety Performance

26

S O C I A L



Health and Safety

• 95% or greater score on rig audit protocol

• 95% or greater compliance with training requirements

• No preventable Class I or recordable incidents in the past 90 days

What is Crown of Excellence?

150 75%rigs received Crown of Excellence awards in 2019

of total rig count including rigs with minimum of 21 days worked

2019 SpotlightCrown of Excellence

S O C I A L

27

S O C I A L



Recruiting the best is not enough, we also plan for the long-term success of

employees to ensure a high-performing and high-reliability workforce. It is

part of our DNA to help employees cultivate skills for increased proficiency,

safety and overall performance.

We have embraced a true learning organization and use all aspects of

training and development as a means of promoting professional and career

growth. We do this through a variety of educational methods and programs,

including instructor-led training, computer-based training, micro-learnings

and on-the-job experiences. This investment builds a more engaged and

committed workforce.

Based on our belief of the importance of developing our workforce, efforts to

continually provide access to training and development opportunities of all

types will be a future focus.

Percentages of Trainings Provided on ESG

• 75% on product and operational safety

• 25% on data security, environmental and labor practices

7,609people trained in 2019

68,825certifications provided in 2019

39,358computer based trainings

29,467instructor led trainings

48training hours per employee in 2019

Training and Development

28

S O C I A L



Nabors’ talent management programs aim to reduce turnover and improve

our bench strength. A thoughtful structure provides the framework for

development through succession planning, career paths, high-value/high-

potential identification and performance appraisals. We instituted procedures

for succession planning and performance appraisals that serve as our talent

management foundation. By prioritizing employee development, we ensure

there is no disruption to delivering critical services because we have reduced

turnover and costs.

Our focus is to invest in additional avenues to keep growing our talent

management program and leverage the opportunities to ensure our people

flourish. We want to give them more than a job. We want to give them a

career.

Talent Management

29

S O C I A L



We embrace diversity and inclusion. From hiring to retention to development,

our process places a priority on building an inclusive environment across

race, gender, age, national origin, religion and unique perspectives and

ideas. We know people perform at a higher level when they feel heard and

valued.

Diverse companies achieve better business outcomes. Representing more

than 85 nationalities around the globe, our staff is indeed, greater than the

sum of its parts.

Diversity and Inclusion

2,300people from local communities were hired during 2019

30

S O C I A L



Job Band Female Male Total

Executive 4 38 42

Director 11 84 95

Manager 69 339 408

Supervisor 74 797 871

Individual Contributor 170 1684 1854

Administrative Support 260 233 493

Field Operations 121 10267 10388

Grand Total 709 (5%) 13,442 (95%) 14,151

Gender Nabors GlobalAdministrative and

Field Support

Oil and Gas

Industry Global

Female 5% 21% 15%

Male 95% 79% 85%

White (Not Hispanic or Latino)

Native Hawaiian/Other Pacific Islander (Not Hispanic or Latino)

Two or More Races (Not Hispanic or Latino)

American Indian or Alaska Native (Not Hispanic or Latino)

Hispanic or Latino

Black or African American (Not Hispanic or Latino)

Asian (Not Hispanic or Latino)

63%

0% 1% 2%

3%8%

23%

63%White (not Hispanic

or Latino)

23%Hispanic or Latino

8%Black or African

American

3%Asian

A L L E M P L O Y E E S

O V E R V I E W

This graph captures statistics for the U.S.

Diversity and Inclusion2019 SpotlightEmployee Statistics

31

S O C I A L



Diversity and Inclusion2019 Spotlight

Employee Resource Groups

10+GLOBAL EVENTS

4+NEW EMPLOYEE RESOURCE GROUPS LAUNCHED

450+EMPLOYEES PARTICIPATED IN GLOBAL EVENTS

Unconscious Bias Workshop

International Women’s Day

32

S O C I A L



Nabors is proud to support community outreach activities focused on four

pillars:

• Science & Math Education

• Safety & the Environment

• Health & Hunger

• The Arts

The heart of our global staff is evident in the many events in which we

participate or we sponsor in our communities. Many of these began as labors

of love and have continued over the years, exemplifying our commitment to

our neighbors and the true desire to make a difference. You’ll find our staff

organizing blood drives, planting trees and feeding the hungry.

C O M M U N I T Y I N V O L V E M E N T

Local Communities

• Susan G. Komen Race for a Cure

Breast Cancer

• Bike MS: Texas MS 150

• Memorial Hermann Toy Drive

• Houston Food Bank

• Blood Drives

• The Extra Mile Dubai Race for

Education

• Emirates Red Crescent

33

S O C I A L



We must earn the respect of the communities where we operate. To achieve

that, we live our mission and values by collaborating on educational and

community projects. In many areas around the world, our employees are

woven in the tapestry of the neighborhood, community, city or town where

we have the ability to effect change.

One shining example is the devotion of our staff in Colombia. For more than

a decade, Nabors employees have made the holidays brighter for thousands

of children by hosting an annual toy drive. The commitment from the team

can be seen year-round with efforts that include supporting children’s

sporting events, activities with senior citizens and educational courses for

single mothers.

9,000holiday gifts and donations for children and seniors

Local Communities2019 Spotlight

Colombia Toy Drive

34

S O C I A L



Nabors rarely makes contributions to political candidates or political parties,

and then only as permitted by applicable law. We encourage the lawful

personal and financial participation of directors, officers and employees in

the elective, civic, welfare, political, educational and similar activities that

serve the public interest. Staff who take part in such activities (other than

company-sponsored civic activities) do so, as private citizens and not on

behalf of Nabors.

Additionally, directors, officers and employees will not engage in political

or civic activities (other than company-sponsored civic activities), while on

company time, and will not use company resources, including equipment,

for any political or civic activities (other than company-sponsored civic

activities) or discussions. Directors, officers and employees will not be

reimbursed by the company for any political contributions.

An employee’s personal lawful political contribution, or decision to abstain

from contributions, does not influence their compensation, job security

or opportunities for career advancement. No political contribution is

reimbursable by Nabors.

Political Advocacy

35

S O C I A L



Social Impact of Products and Services

Recognizing communications must be a two-way street, we frequently

seek feedback to ensure we are exceeding customers’ expectations. Our

groundbreakers anticipate these needs to deliver differential solutions. It is

how Nabors has maintained its status, as the performance driller of choice.

Our customer experience strategy continues to be a differentiator through

the implementation of the Net Promoter Score® (NPS), a measure of

customer experience. This approach of turning insights into action, drives

change based on valuable customer input.

36

S O C I A L



The transaction between vendor and customer has evolved far beyond a

mere exchange of money, goods and services. These purchases now bear

the expectation of social impact. As other issues rise in importance, it is

critical to include our sustainability priorities in the value proposition.

To be good stewards of our natural world, Nabors considers the broad

spectrum of impact of our equipment and technology. This mission drives us

to continue innovating solutions for a landscape that needs our help.

S O C I A L

In the past two years, Nabors has gained 13% of the super major market

share by focusing on customer loyalty and retention.

Net Promoter Score® (NPS) and Customer Mix

Market Share of Super Majors

2018 2019 2019

3 1 %

2 %

6 7 %

2018

3 9 %

2 8 %

3 3 %

2 1 %

4 7 %

3 2 %

3 4 %

3 9 %

2 8 %

NPS Score Customer Mix

N = 1 2 3 N = 1 9 6

N P S S C O R E D E T R A C T O R S T I E R 3 T I E R 2 T I E R 1

PA S S I V E S P R O M O T E R S

6

11

C O N T R A C T O R 1



N A B O R S


O T H E R

i

Super Majors include: BP, EOG, XTO, Chevron and Shell

2019

35%

2014

22% 13%+

Customer Relations2019 Spotlight

Improving Customer Experience

37

GovernanceOur Board of Directors, management and employees share an ongoing commitment to the highest standards of corporate governance. Every year, we review our governance guidelines to verify that the standards meet the level of excellence our customers have come to expect.

The board has established five standing committees: Audit, Compensation, ESG, Risk and Technology and Safety. The newly named ESG Committee is responsible for shaping the company’s ESG initiatives.

View the Board of Directors and Leadership Team.

https://www.nabors.com/about-us/board-directors

https://www.nabors.com/about-us/our-leadership

38

G O V E R N A N C E

C O M P L I A N C E A N D R E P O RT I N G

C O N F L I C T O F I N T E R E S T I N T E L L E C T U A L P R O P E RT Y A N D C O N F I D E N T I A L I T YI N T E R N AT I O N A L B U S I N E S SC O M P L I A N C E W I T H L AW S , R U L E S A N D R E G U L AT I O N S

B O A R D S T R U C T U R E A U D I T C Y B E R S E C U R I T YS H A R E H O L D E R E N G A G E M E N TE N T E R P R I S E R I S K M A N A G E M E N T C O D E O F C O N D U C T F I N A N C I A L I N T E G R I T Y

Our governance guidelines were modified in 2014 to provide for

an independent Chairman of the Board following the tenure of our

current Chairman and CEO, whose employment agreement provides he

will serve in both roles. Until such time, the board considers the current

combination of the chairmanship with an experienced, independent

lead director, an effective structure for the company. The board’s

current view is that this synthesis coupled with a predominantly

independent board and a proactive, independent lead director, promotes

a candid discourse and responsible corporate governance.

With a shared commitment to ensure the highest standards of corporate

governance and ethics, the board reviews all of its governance policies

annually and refines, as necessary. Members of the board meet regularly

with management and employees to discuss strategy and other business

matters. These board practices are considered best-in-class corporate

governance.

Board Structure

INDEPENDENT DIRECTORS

85.7%

IND. DIRECTOR AVG. TENURE

6.2 YEARSAVERAGE AGE

65 YEARS

AGE RANGE

60 69DIVERSITY

WOMEN14.3%

MINORITY14.3%

39

G O V E R N A N C E




Nabors Enterprise Risk Management Committee (ERMC) considers a

broad and complex set of risks, along with those commonly associated

with the industry. For the ERMC, risk is an opportunity for improvement. It

is not a matter of eliminating the risk but identifying the best approach for

addressing it.

In 2019, the established ERMC timeline involved quarterly meetings with

clear objectives including the recommendation of mitigation plans.

We survey our executives, directors and managers to better understand the

risks and those results provide the focus for the ERMC’s meetings.

Enterprise Risk Management

40

G O V E R N A N C E




Shareholder Engagement

We work diligently to communicate with our shareholders but it is just as

important to hear from them. Shareholders provide valuable input and serve

as our touchstone for concerns and potential issues.

In making decisions regarding corporate governance issues, the board

considers shareholder opinions and input. The board obtains this input in

several ways, such as through regular shareholder outreach by the board and

management, advisory votes, as well as, shareholder and other proposals at

our annual general meetings.

Dialogue with shareholders and proxy advisory firms affords our directors

deeper insight into shareholder concerns than is provided just by a vote

on individual topics, and enables a more effective response to issues of

most importance to shareholders. By establishing a regular cadence of

conversations, we maintain discussions on a variety of corporate governance

topics.

41

G O V E R N A N C E




The Audit Committee of the board, guided by a written Audit Committee

Charter, monitors financial statements, the qualifications and independence

of the independent auditor, the performance of auditors and company

compliance of legal and regulatory requirements.

All members of the Audit Committee meet independence, financial literacy

and experience requirements of the New York Stock Exchange (NYSE) and

Securities Exchange Commission (SEC) rules and regulations. The board has

also determined that all members of the committee are “Audit Committee

financial experts” as defined under SEC rules.

G O V E R N A N C E

Audit

http://investor.nabors.com/Cache/IRCache/8d803de2-1a5a-a3ce-125d-6988dd4ec913.PDF?O=PDF&T=&Y=&D=&FID=8d803de2-1a5a-a3ce-125d-6988dd4ec913&iid=4010705

http://investor.nabors.com/Cache/IRCache/8d803de2-1a5a-a3ce-125d-6988dd4ec913.PDF?O=PDF&T=&Y=&D=&FID=8d803de2-1a5a-a3ce-125d-6988dd4ec913&iid=4010705

42

G O V E R N A N C E




Nabors cybersecurity approach is based on the tenets:

• Predicting

• Preventing

• Detecting

• Responding

Nabors maintains cybersecurity strategies to prevent and address

potential risk to the everyday operations and protect our environment and

employees. Standing on the front lines of corporate security is our ever-

vigilant Information Technology (IT) team. With the ever-increasing reach of

technology and the unconscionable scams from bad actors, the risks are

many. The cost of a breach or even word of that vulnerability can harm a

company’s reputation and result in a significant financial impact.

A strong aspect of our risk management protocol is the constant monitoring

by our IT staff to pinpoint the latest attempt to steal information, breach our

firewalls or target our workforce. Regular phishing tests, as well as, training

and a healthy cadence of communications helps educate our global staff.

G O V E R N A N C E

Cybersecurity

43

G O V E R N A N C E




Robust security awareness program for all employees:

High-end technology utilized to mitigate risk:

Routine assessments and penetration testing performed by reputable third parties:

Establishing an enterprise-wide data loss prevention program:

• Mandatory security awareness training

courses

• Phishing tests modeled on real-world attacks

• Regular cyber threat updates communicated

to staff

• 24/7 monitoring of systems and data transactions

• Automated intrusion detection/prevention and

response

• Next-generation anti-malware solutions on multiple

layers of the infrastructure

• Top cybersecurity vendors perform external

penetration tests of Nabors’ systems

• Internal scans are performed on devices that are

deployed facing external networks

• Cybersecurity risk assessment of the Nabors IT and

Digital Technology (DT) environment performed by

third-party vendors

• Additional controls have been established for

top-tier company data

• Data monitoring for all transactions leaving

trusted networks

• High-volume transaction monitoring

96%

93%

98%

95%

93%

92%

100%

9 06 0

US Drilling

SANAD

NDS

Canrig

NCS

Canada

International Drilling

IT Computer-Based Training Compliance

8 %

4 %

Phishing Campaign Summary 2019

9%

6%

9%

6%

1%

7%

13%

PE

RC

EN

TA

GE

OF

FA

ILE

D U

SE

RS

J A N F E B A P R M AY S E P T O C T N O V

Cybersecurity

44

G O V E R N A N C E




Nabors is committed to conducting business in a responsible, honest and

ethical manner, thereby fostering a safe and productive work environment.

We uphold this commitment to our shareholders, employees, customers,

suppliers and the communities in which we operate.

The Nabors Board of Directors has adopted the Code of Business Conduct,

which applies to all directors, officers and employees of the company and

its subsidiaries. The Nabors Code of Business Conduct sets forth principles

core to our company’s values and describes Rules to Live By. This code

governs all transactions of Nabors and also serves as a comprehensive

guide to all our decisions and activities.

G O V E R N A N C E

Code of Conduct

http://investor.nabors.com/file/4010705/Index?KeyFile=1500117577

45

G O V E R N A N C E




Complying with applicable laws and regulations is just one aspect of instilling discipline in how we conduct business. Internally, we have a robust set of accounting principles and controls to govern our actions.

Nabors will not tolerate employees who achieve results at the cost of legal violations or unscrupulous dealings. Our shareholders, creditors, management, governmental entities and employees rely upon the accuracy and transparency of the company’s accounting records.

Financial Integrity

46

G O V E R N A N C E




G O V E R N A N C E

Nabors recognizes and respects that employees may take part in legitimate

financial, business and other activities outside their jobs. To ensure these

transactions are lawful and free of conflicts, we provide training and

education on the scope of their responsibilities as Nabors employees.

Employees are directed to communicate with their supervisor about any

outside employment, directorship or business involvement that might be

perceived as creating a conflict now or in the future.

Conflict of Interest

47

G O V E R N A N C E




Fair Competition

Many countries regulate,

and in certain cases

prohibit, certain types of

anticompetitive behavior.

Nabors is dedicated to

compliance with laws

governing fair competition

in all of our activities. For

Nabors, any activity that

undermines this commitment

is unacceptable.

Insider Trading

Generally, it is both illegal

and against Nabors’ policy

for any employee or board

member who is aware

of material nonpublic

information relating to the

company to buy or sell any

securities of the company

or recommend that another

person buy, sell or hold the

securities of the company.

This trading prohibition

also applies to derivative

instruments based on

securities of the company.

Quality, Health, Safety & Environment (QHSE)

Nabors is committed to QHSE

excellence. Compliance with

all applicable laws, rules and

regulations governing health,

safety and the environment

is the responsibility of

management and employees

in all functions.

Fair Employment Practices

Nabors provides equal

employment opportunity and

follows applicable labor and

employment laws wherever

it operates, including the

prohibition against all forms

of illegal discrimination.

Political and Civic Activities

Nabors does not make

contributions to political

candidates or political parties

except as permitted by

applicable law.

Compliance with Laws, Rules and Regulations

48

G O V E R N A N C E




Working with Governments

Nabors conducts business with all governmental representatives in adherence to high ethical standards and in compliance with applicable laws and regulations, including U.S. laws that have application outside of U.S. territories and special requirements associated with government transactions.

Improper Payments

Bribery of public and private officials in the conduct of Nabors’ business in the U.S. and abroad is strictly prohibited.

Our Chief Compliance Officer oversees the company’s anti-bribery program.

Export Controls/U.S. Embargoes/Trade Sanctions

Nabors follows relevant international trade control regulations, including licensing, shipping documentation, import documentation, reporting and records retention requirements of all countries in which we conduct business.

International Business

49

G O V E R N A N C E




Built on the shoulders of pioneers, Nabors has always pushed the

technology boundaries by investing in research and development. As we

explore options and generate innovative products, we employ Intellectual

Property (IP) strategies to safeguard our valuable assets.

It is not enough to rely on policies to protect and defend the rights to our

intellectual property, we also respect the valid IP rights of others.

This is how our industry evolves and how companies change the future.

Status quo has never been acceptable for us and we continue seeking

answers and creating solutions.

G O V E R N A N C E

Intellectual Property and Confidentiality

50

G O V E R N A N C E




Ethical conduct is more than a catchphrase; it is an expectation for every

employee, officer and board member. Each person is empowered to raise

potential issues and report violations of company policies.

To remove any concerns over the reporting mechanism, we have instilled

several avenues for communications, including the toll-free Nabors Hotline

at 1-877-NABORS7. This line is monitored 24 hours a day by an independent

organization and callers can remain anonymous.

G O V E R N A N C E

100%hotline issues assigned for investigation within 48 hours

Compliance and Reporting

51

IndexC

023 Chronic Unease

Chronic Unease is the discomfort regarding the management of risks; a practice that requires a healthy amount of skepticism about what you see and do. Simply put, it is the opposite of complacency. At Nabors, we reinforce this concept in our safety training.

025 Crown of Excellence

Crown of Excellence is our recognition program for rigs that meet the criteria of equal or greater than 95 percent in a rig crews compliance audit score and training compliance within a quarterly period.

D

023 Dropped Object Prevention Program (DROPS)

Dropped Object Prevention Scheme/Program is a comprehensive industry-wide initiative focused on preventing dropped objects, with the ultimate goal of delivering a prevention strategy across our industry.

G

025 Global Safety Week

An annual global initiative in which we step back from our daily tasks to re-commit to our core value of safety. At Nabors locations around the globe, staff immerse themselves in presentations, workshops, videos and events.

J

023 Job Safety Analysis (JSA)

Job Safety Analysis is a procedure that breaks each task into steps to identify potential hazards before any action is taken. This method requires the employee to think through possible problems before starting the job.

L

025 Lost Time Injury (LTI)

Lost Time Injury (LTI) is an injury sustained by an employee that will lead to a loss of productive work time. An injury is considered an LTI only when the injured worker is unable to perform regular job duties, takes time off for recovery or is assigned modified work duties while recovering.

M

023 myDRILLS™

myDRILLS™ is the digitization of well control drills. It walks crews through different scenarios at the start of the job. This system evaluates drillers and crews on seven different skills: communication, complication knowledge, positive kick indicators, procedural execution, procedural knowledge, supervision of subordinates and well control theory.

N

035 Net Promoter Score® (NPS)

Net Promoter Score measures customer experience and predicts business growth. This proven metric provides the core measurement for customer experience management programs.

P

023 Permit-To-Work (PTW)

The permit-to-work uses formal documentation to safely perform work based on a risk assessment.

R

025 Rules to Live By

Adapted from a program originally developed by the American Petroleum Institute (API), Rules to Live By addresses the critical safety hazards with the highest potential for significant injury or worse in our industry. The simple rules serve as concise reminders of safety guidelines and the mitigation of certain hazards.

T

025 Total Recordable Incident Rate (TRIR)

The Total Recordable Incident Rate measures the organization’s past safety performance by calculating the number of recordable incidents per 100 full-time workers during a one-year period.


https://nabors.com


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https://nabors.com


Environmental, Social and Governance · 2020. 8. 12. · ENVIRONMENTAL 11 ENVIRONMENTAL MANAGEMENT...

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Transcript of Environmental, Social and Governance · 2020. 8. 12. · ENVIRONMENTAL 11 ENVIRONMENTAL MANAGEMENT...