BP 2014 Annual Report Download - page 72

In addition to the committee membership, all the SEEAC meetings were
attended by the group chief executive, the executive vice president for safety
and operational risk and the general auditor or his delegate. The external
auditor attended some of the meetings (and was briefed on the other
meetings by the chair and secretary to the committee), as did the group
general counsel and group ethics and compliance officer. The committee
scheduled private sessions for the committee members only (without the
presence of executive management) at the conclusion of each meeting to
discuss any issues arising and the quality of the meeting.
Members
Name Membership status
Paul Anderson
(chairman)
Member since February 2010; chairman since
December 2012
Frank Bowman Member since November 2010
Antony
Burgmans
Member since February 2004
Cynthia Carroll Member since June 2007
Ann Dowling Member since February 2012
Alan Boeckmann Member since September 2014
Activities during the year
Safety, operations and environment
The committee received regular reports from the S&OR function, including
quarterly reports prepared for executive management on the group’s
health, safety and environmental performance and operational integrity.
These included quarter-by-quarter measures of personal and process
safety, environmental and regulatory compliance and audit findings.
Operational risk and performance forms a large part of the committee’s
agenda.
During the year the committee received specific reports on the company’s
management of risks in marine, wells, pipelines, facilities and major
security incidents. The committee reviewed these risks, and risk
management and mitigation, in depth with relevant executive
management.
Independent expert – Upstream
Mr Carl Sandlin continued in his role as an independent expert to provide
further oversight and assurance regarding the implementation of the Bly
Report recommendations. We were pleased that Mr Sandlin agreed, at the
committee’s request, to extend his engagement to the summer of 2016.
He reported twice directly to the SEEAC in 2014, and presented detailed
reports on his work, including reporting on a number of visits made to
group operations around the world. He also reported to the committee that
25 out of 26 recommendations in the Bly Report were completed by the
end of 2014 (and he will report to the committee regarding the final
recommendation which is expected to be completed at the end of 2015).
Safety, ethics and environment assurance
committee (SEEAC)
Chairman’s introduction
The SEEAC has continued to monitor closely and provide constructive
challenge to management in the drive for safe and reliable operations at all
times. This included the committee receiving specific reports on BP’s
management of high priority risks in marine, wells, pipelines, facilities and
major security incidents. The committee also undertook a number of field
visits as well as maintained its schedule of regular meetings with executive
management.
We continued to receive regular reports from the independent experts that
we have engaged in the Upstream (Carl Sandlin) and in the Downstream
(Duane Wilson). They have provided valuable insights and advice on many
aspects of process safety and we are grateful to them for their work.
We were also very pleased to welcome Alan Boeckmann to the
committee in September. Alan brings valuable experience and insight from
his many years at Fluor.
Paul Anderson
Committee chair
Role of the committee
The role of the SEEAC is to look at the processes adopted by BP’s
executive management to identify and mitigate significant non-financial
risk. This includes the committee monitoring the management of personal
and process safety and receiving assurance that processes to identify and
mitigate such non-financial risk are appropriate in design and effective in
implementation.
Key responsibilities
The committee receives specific reports from the business segments as
well as cross-business information from the functions. These include, but
are not limited to, the safety and operational risk (S&OR) function, group
audit, group ethics and compliance and group security. The SEEAC can
access any other independent advice and counsel if it requires, on an
unrestricted basis.
The committee met six times in 2014, including joint meetings with the audit
committee. At one of the joint meetings the committee reviewed the
general auditor’s report on the system of internal control and risk
management for the year in preparation for the board’s report to
shareholders in the annual report (see ‘Internal Control Revised Guidance for
Directors’ (Turnbull) on page 63). In that joint meeting the committees also
reviewed the general auditor’s audit programme for the year ahead to ensure
both committees endorsed the coverage. The SEEAC and audit committee
worked together, through their chairs and secretaries, to ensure that the
agendas did not overlap or omit coverage of any key risks during the year.
BP Annual Report and Form 20-F 201468