Independent assurance statement

To the stakeholders of Maersk Drilling A/S – Sustainability Report 2013
independent-assurance-statement

ENGAGEMENT, RESPONSIBILITIES AND CRITERIA USED

We have been engaged by the Executive Board of Maersk Drilling A/S (‘Maersk Drilling’) to provide limited assurance on the information disclosed in the Sustainability Report 2013 (‘the Report’). The Report is communicated on-line on Maersk Drilling’s website. The subject matter is defined as the content of the Report presented on the website. The website address is stated in note 1 to this Assurance Statement.

The content of the Report, including the identification of material issues, is the responsibility of Maersk Drilling’s management. Furthermore, it is the responsibility of Maersk Drilling’s management to ensure that no changes can be made to the Report as defined in note 1 – which is stated in a clause in Maersk Drilling’s management letter of representation to EY.

Our responsibility is to review the information in the Report against Maersk Drilling’s accounting policies and issue an Assurance Statement with limited assurance, based on ISAE 3000. Furthermore, our engagement is designed to provide limited assurance that the report complies with Communication on Progress (CoP) - criteria within Human Rights, Labour Rights, Environment and Anti-corruption, as stated in the United Nations Global Compact and comply with the AA1000 report criteria.

Maersk Drilling’s accounting policies are presented in section ‘About our sustainability report’ and in the notes to the data sheet in section ‘Performance data’. It is important to view the performance data in the context of these criteria. We believe that these criteria are suitable for purposes of our assurance engagement.

PROCEDURES PERFORMED

Our engagement has been planned and performed in accordance with the International Standard on Assurance Engagements (ISAE) 3000; Assurance Engagements other than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board. The purpose of our limited assurance engagement is to plan and perform procedures to obtain sufficient and appropriate evidence to substantiate our conclusions. Procedures to obtain limited assurance are less extensive in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks than those performed to obtain reasonable assurance, and therefore less assurance is provided.

We have reviewed:

  • Whether stakeholder concerns and sustainability business risks are adequately addressed in the Report through a Media Search in 12 relevant media.
  • Process performance improvements for material sustainability processes through interviews with 8 selected managers in relevant headquarter departments.
  • Materiality determination processes and stakeholder dialogue processes applied for the Report.
  • The report organisation and its interaction with line management representatives and its ability to provide a sound basis for reporting.
  • Documented data collection, conversion, assessment, presentation and control procedures considering Maersk Drilling’s accounting policies and the practical implementation of these procedures.
  • Completeness of data for safety, diesel consumption, external spills and waste. As part of the completeness reviews, we tracked first point of data registrations where we could identify documentation and carried out risk assessments of data incompleteness based on the fraud triangle.
  • Accuracy through reconciliations, recalculations and analytical procedures such as trend analysis in current year and in comparison to prior years.
  • Reporting policies compliance with International Association of Drilling Contractors (IADC).
  • GHG emission accounting policies compliance with the IPIEGA/OGP guideline.
  • Disaggregated data for LTIF and TRCF, including disaggregated data for working hours reported by a sample of two rigs and QM/HSE Corporate Department, to assess whether the data had been collected, consolidated and reported accurately.
  • A sample of 59 assertions selected on the basis of risk and materiality through inquiry of sufficient evidence.
  • Goals and promises from 2012 Report in order to test follow-up in the 2013 Report.

OUR CONCLUSIONS

AA1000 APS

We have reviewed the compliance of the Report and the reporting process with the AA1000APS principles.

Inclusivity

Has Maersk Drilling recognised individuals, groups of individuals or organisations that affect and/or could be affected by its activities and strategic response to sustainability? Has Maersk Drilling been engaging with these stakeholders across the business to develop its approach to sustainability?
We are not aware of any matters that would cause us conclude that Maersk Drilling has not applied the inclusivity principle in developing its approach to sustainability as it is presented in the Report.


Materiality

Has Maersk Drilling determined the relevance and significance of issues that will influence the decisions, actions and performance of its organisation and/or its stakeholders?
Nothing has come to our attention that causes us to believe that Maersk Drilling has not applied its processes for determining material issues to be included in the Report. We are not aware of any material sustainability performance aspects which have been excluded from the Report.


Responsiveness

Has Maersk Drilling responded to stakeholder issues that affect its sustainability performance and, if so, reacted appropriately through decisions, actions and performance, as well as communication with stakeholders? We are not aware of any matters that would cause us conclude that Maersk Drilling has not applied the responsiveness principle in considering the matters to be reported.


United Nations Global Compact

The United Nations Global Compact includes an obligation to report annually on Communication on Progress (CoP) within the principles for human rights, labour rights, environment and anti-corruption.
We are not aware of any matters that would cause us conclude that Maersk Drilling’s Report does not include the progress within the principles in the United Nations Global Compact Charter.


OVERALL CONCLUSIONS

Based on our review, nothing has come to our attention which causes us to believe that the information in the Report is not, in all material respects, correctly presented in accordance with Maersk Drilling’s accounting policies.

Furthermore, nothing has come to our attention that causes us to believe that

  • Maersk Drilling has not applied the ‘AA1000 AccountAbility Principles Standard (2008)’ for purposes of the Report and the reporting process.
  • Maersk Drilling’s Report does not communicate on progress within Human Rights, Labour Rights, Environment and Anti-corruption, as stated in the United Nations Global Compact.

OBSERVATIONS AND AREAS FOR IMPROVEMENT

Our observations and areas for improvement will be raised in a report to Maersk Drilling’s management. Selected observations are briefly presented below. These observations do not affect our conclusions on the Report set out above.

  • Communicate Business Integration achievements obtained through bridging of CSR processes and relevant business line processes and report more extensively on stakeholder dialogue performed in day-to-day business line practice.
  • In order to ensure data completeness, strengthen the data collection process and optimise the process around maintaining internal environmental reporting, as this will serve as strong internal data quality controls.
  • In order to ensure data accuracy, strengthen quality controls of data registrations offshore and improve the change management process by which key systems allow of data modifications and key personnel is notified of any data modifications made.

OUR INDEPENDENCE

Our engagement was conducted in accordance with the ‘IFAC Code of Ethics for Professional Accountants’, which requires, among other elements, independence of the members of the assurance team and of the assurance organisation, including those not being involved in writing the Report. The Code contains detailed requirements regarding integrity, objectivity, confidentiality and professional competence and behaviour.

EY has internal systems and processes to monitor compliance with the Code and to prevent potential conflicts regarding independence.

OUR ASSURANCE TEAM

We have assembled an interdisciplinary team that includes subject matter expertise and expertise in audit methodology.

Copenhagen, 20 February 2014

Ernst & Young
Godkendt Revisionspartnerselskab

Verification

documents

To the stakeholders of Maersk Drilling A/S – Sustainability Report 2013

Click
here to view the assurance statement for the full report