Csr Cairn India 2d6r3l

The report is prepared in accordance with the Global Reporting Initiative (GRI) guidelines version 4.0 (core) and the Oil and gas Sector Supplement (OGSS). Data measured on the basis of Primary environmental data is part of systems that are aligned to Environmental Management Systems ISO 14001 Standards. Safety and occupational health data is aligned with OHSAS 18001 (Occupational Health and Safety Assessment Series).

Assurance Strategy At Cairn India, our management systems and processes undergo periodic, comprehensive due diligence checks through independent, structured audits. We have extended this practice to validate the data, processes and initiatives that constitute our sustainability performance. Sustainability audits and assurance activities were conducted across all our sites and the findings have informed our sustainability strategy and reporting. This report’s contents and performance indicators have been externally assured by KPMG.

MEASURED QUANTITIES: Fuel consumption (except diesel consumption in contractor vehicles, which was estimated), Water withdrawal, Water recycled, Ozone depleting substance emissions, Waste water discharged, Produced water, Waste generated, Drilling waste, Spills, Hydrocarbon flared, Production data, Environmental expenditure. Total workforce number, Employee hire and turnover, Safety incident data, Training hours, Workforce diversity breakup, Stakeholder grievances, Incidents of discrimination, and Fines paid.

DERIVED DATA: Renewable energy generated, Energy saved, Greenhouse gas emissions, GHG emissions reduced, overall SOx/NOx/VOC emissions, and Hydrocarbon vented. Injury rates, Average salary information, and Ratio of salaries. Greenhouse Gas emissions are calculated based on the API Compendium 2009 Injury rates (employees + contractors) are calculated based on the industry standard provided by the IOGP. We have updated the manner in which we calculate total hydrocarbon processed including the hydrocarbons processed in Ravva as part of the oil tolling arrangement for ONGC. Additionally, we have also included the quantity of gas processed as part of the gas lift operations in Ravva. The addition of these

CSR undertaken

• 97% decrease in local water consumption fro PE, work over and completion operations • 3200 toilets constructed in houeholds under swatch bharat abhiyan , 188 school toilets constructed in barmer district. • 100% employee received code of business ethics training • REC purchase equivalent to ~ 3 MW of renewable energy installed capacity • 12% increase in GHG Emissions Intensity at 146.47 TCO2e/'000 Tons of hydrocarbon produced. Below IOGP average for 4th year in a row

Awards 2015-16

On others analysis and action is still pending. Still, without the sustainability reporting process we would not have visibility into these important aspects of the organization and I believe we would be poorer for it. However, there are areas that we need to improve upon. We need to be better at analyzing the organization-wide consolidated data that is being generated. This analysis needs to be periodic, timely, and linked to financial impact. Long-term projections and baselines still need to be created. We need to have a better understanding of how our relationship with environmental and social factors will change over a long-term business cycle. Finally, we need to better socialize our thoughts on sustainability among our supply chain. Clearly, this journey has yielded results. We will continue to tweak our approach so that our people, processes, and performance become sustainable as a whole.

Improved Governance on Environmental Aspects: A formal governance body on sustainability, the Sustainability Steering Committee (SSC), has helped influence key aspects of our environmental footprint. A special task force setup by the SSC drove the reduction of local water consumption by nearly 97% for our Petroleum Engineering and related operations.

The same is true for our achievements in impro waste handling. These are all areas that had seen some level of managerial vacuum in the past. Consistent follow-up by the SSC with all business units on managing sustainability aspe has allowed us to bridge those gaps. Improved Inputs for Decision-Making: The reporting process has required us to amalgamate information that we were not tracking holistically in the past. Aspects such a organization-wide energy consumption, GHG emissions, the source and quantities of water

SUSTAINABILITY GOVERNANCE PROCESS The Sustainability Steering Committee comprises of Directors/Heads of Department from all the key functions within the company

SUSTAINABILITY AGENDA IN PHASE 1, “the mapping phase”, we have tried to IN PHASE 2, “the integration phase”, we will aim align the day-to-day job functions of our to extend our decision-making structures to embed employees to sustainability metrics. The goal will be to more the larger sustainability agenda. We have efficiently conducted incorporate sustainability into our processes and assessments to understand how closely our strive functions are aligned with the larger sustainability themes of for best-in-class performance benchmarks. We have started taking steps towards modelling this climate change, natural resource management, This phase is on-going and we expect to fully behaviour in our planning process, however we waste integrate assess that full realization of this vision with management, workforce safety, training, societal information gathering and alignment to happen by 3, the“the endmaturity of IN PHASE phase”, we will assess impact, sustainability 2019. our human rights, corruption, influencing public policy, goals across the organization by the end of 2017. sustainability performance as a result of and embedding product responsibility sustainability metrics in our decision-making and strategy-setting process. We estimate that we will start to see specific performance metrics respond to our sustainability measures undertaken by the company by 2020.

STAKEHOLDER ANLYSIS

nternal Stakeholder Engagement nternal channels of ommunication such as town hall meetings, daily adership update forums, HSSEQ&S leadership and ustainability Steering Committee meetings, site level sk sub-committees, employee engagement urveys, incident reporting through the Cairn Incident anagement System (CIMS),

Full stakeholder analysis is in the diagram

External Stakeholder Engagement DIRECT CHANNELS LOCAL COMMUNITIES The CSR team has been given the primary responsibility of overseeing our engagement with local communities. Stakeholder Engagement Cells have been formed so that of the local community can bring their grievances and suggestions to the company. Our “Community Connect” program is designed to engage with all of the villages that surround our operations in a non-transactional forum on a periodic basis. The HSSEQ&S and CSR teams are also mandated with conducting public hearings for the Environmental

WATER CONSERVATION AND MANAGEMENT We recognize that in the areas where we operate in Rajasthan and Andhra Pradesh, we are the largest single consumer of water and as a result we have the responsibility to safeguard this precious resource for all other s. Additionally, we monitor the water sources closely every year from our observation wells and PHED wells in the surrounding area, so that we can know in advance any adverse changes that could occur due to our current water abstraction practices. In Rajasthan, we estimate that our operations will impact less than 0.1% of the saline aquifer over the lifetime of our operations. Cairn sources almost all of the water required for the exploration, development and production in the Rajasthan Asset from the deep saline Thumbli aquifer,which is located in the Barmer district of Rajasthan. Cumulatively, nearly 98% of all of our water requirements are met through these saline sources of water. Out of the remaining 2%, nearly 1.8% is sourced from local community sources. In FY2015-16, Cairn India committed to reduce the sourcing of this local community water to zero over a three year period.

The steps taken during the year have resulted in a significant redistribution of water sourcing. 100% of all the water required for completion activities is now being sourced from treated saline water. 100% of all the water for the fraccing campaign is now being sourced from the treated RGT borewells. Nearly 97% of all the water for our petroleum engineering activities is now being sourced from internal treated water Cairn sources Additionally, this increase is also due to the utilization of local community water at our Bhogat Terminal, which saw increase in water use as more operations were brought online during the commissioning of our offshore hydrocarbon sales operations. Plans are underway to further reduce our demand from local community water sources.

WASTE MANAGEMENT 1. Dewatering the Water Based Mud (WBM) drill cuttings immediately after their separation from the shale shaker. These measures help in removing the high moisture content, thereby providing the opportunity for the online disposal and effective management of the WBM drill cuttings. 2. Installing Centrifugal Cutting Dryers (CCD) in the landfill area to recover the synthetic base mud from the synthetic oil based mud drill cuttings and reducing the moisture of the cuttings. The recovered base oil mud can be reused for drilling purposes and the final drill cuttings (after base oil recovery and moisture removal) are disposed to the hazardous waste Cairn is also testing a major initiative to dispose landfill. Around 613 barrels of SOBM was recovered highcalorie oily residue waste like filters, walnut using this technique. media, oily rags and bottom sludge by coprocessing it at cement factories, which can use them in their kilns. This avoids the incineration of waste. We have obtained statutory approvals for this process, and if successful, it can solve a significant waste problem for the company and create a resource out of waste.

Synthetic Oil Based Mud (SOBM). Cairn’s implementation of CCDs has resulted in several benefits for the company. The typical Oil-on-Cuttings (OOC%) for CCDs is around 15%. However, using rig centrifuges and Vertical Cutting Dryers (VCDs), we were able to bring down the OOC% to 7%, thereby reducing the waste volumes. Furthermore, we were able to recover the base oil, which was not just an environmental saving but also resulted in the savings of an expensive oil that costs >$200/barrel. Additionally, since we did not have to transport virgin base oil to our drilling sites, we were also Each evaporator is able to able to reduce the overall ~60 roadKL safety risk waste that arose out evaporate of liquid of operation. perthis day. Over the course of the year, ~313,444 barrels of liquid waste has been evaporated.

ENERGY USE, GHG EMISSIONS & OUR RESPONSE TO CLIMATE CHANGE

MEETING OUR SOCIAL COMMITMENTS Plant Integrity, Employee Safety and Occupational Health SYSTEMS AND PROCEDURES

Aishwariya recorded 1.9 million LTI (Lost Time Incidents) free man-hours. That is nearly 3 years of LTI-free performance. • Bhagyam recorded 6.05 million LTI-free man-hours. This is over 4 years of LTI-free performance • MPT recorded 17.14 million LTI-free manhours. That is nearly 2 years of LTI-free performance • RGT recorded 11.8 million LTI-free manhours. That is over 7.5 years of LTI-free performance • Ravva recorded 4.5 million LTI free manhours. That is nearly 2 years of LTIfree performance • Suvali recorded 3.17 million LTI free manhours. That is nearly 3 years of LTI-free performance. Safety performance including contract person

SPILL RESPONSE PLAN Professional Career Ladder Mentoring Program Skill Mapping CEO CONNECT WITH OUR YOUNG TALENT

COMMITMENT TO THE LOCAL COMMUNITY ENGAGING LOCAL VENDORS Additionally, Cairn has invested considerable efforts to improve the capabilities of local vendor partners to bring them to a standard where they can comply with our HSE standards and fulfill our needs

For example, both our water and solar plants are successfully run and managed by local village level committees. Local entrepreneurs are setting enterprises to distributing safe drinking water; women masons from local community, who were trained at the Cairn Enterprise Center (CEC), are leading the construction of toilets; and electricians who were trained at the Cairn Enterprise Center are setting up and maintaining wiring for the Center. Local youths who have been trained under the Cairn Agri-Fellow program are setting up agroenterprises based on new techniques and value added products.

With the introduction of a female gynaecologist, who now accompanies the Mobile Health Vans (MHV), over 55% of the villagers who seek treatment are women. Currently 10 MHVs are providing basic medical services at the doorstep of 350,000 rural people across 144 villages in Rajasthan and 115 villages in Gujarat. Over the last three years we have conducted 30 multi-specialty health camps and 35 health awareness camps. The healthcare program for mothers and children reaches 500,000 community . We have trained more than 1,500 health workers, ed national healthrelated campaigns, and sensitized about 2,000 adolescent girls and women and 150 adolescent boys on menstruation hygiene and reproductive health COMMUNICATING SINCERELY COMMUNITY CONNECT

GRI given after this

Vision and Objective Cairn India is committed to the highest standards of corporate social responsibility. We are committed to creating value through leadership in corporate social responsibility. It is our conviction that continuous business growth, sustainable communities and the creation of value for our stakeholders, go hand-in-hand

Relationships

Responsibiliti es

Respect

Cairn Objectives Proactive management of stakeholder expectations to obtain and maintain ‘ Social license to operate’ Partnering with the community for socio-economic development

Achieve positive perception of cairn in areas of operation

Demonstrate leadership in corporate citizenship

Vision Encapsula tes

CSR Policy