Biodiversity

In exploring the world for new sources of energy, Cairn has a responsibility towards the environment in which it is operating. We operate in countries that are sensitive to even small changes in biodiversity and strive to implement operations and practices that adhere to international standards and regulations, to preserve and protect the surrounding environment at all times.

We recognise that biodiversity loss is an issue. Our CRMS is used to ensure that biodiversity issues are addressed in all of our activities while ESIAs are the principal tools we use to identify potential impacts of our activities on biodiversity.

In seeking to ensure 'no net loss' of biodiversity, we promoted the sustainable use of biological resources in line with the Convention on Biological Diversity (CBD). In addition, we also strive to:

• avoid impacts on environmentally sensitive areas and commit to avoid operations in UNESCO-designated World Heritage Sites
• reduce or remedy biodiversity loss and make positive contributions to biodiversity where possible
• adopt a precautionary approach by conducting impact and risk assessments for new operated activities
• work closely with other stakeholders to ensure their concerns are addressed and their interests and knowledge are recognised and respected when planning our activities.

Biodiversity Policy

After a comprehensive review of our approach to biodiversity in 2009, we published our revised Biodiversity Policy in February 2010. In this, we outline our approach, based on the following principles:

• We assess biodiversity through EIAs, which are conducted before operations are undertaken in new areas, employing specialists and engaging with the communities to take advantage of their expertise about the local biodiversity.
• We develop and implement site-specific Environmental Management Plans and Biodiversity Action Plans.
• We guide our projects and actions to measure our success at protecting and conserving local flora and fauna and associated habitats.
• We aim to prevent changes to the distribution, abundance or productivity of species or populations of species.
• We aim to prevent the degradation of, or substantial risk to, areas of biological, cultural, scientific, historic, aesthetic or wilderness significance.

Our biodiversity strategy and procedures are reviewed at least annually and after any major changes and projects. They are fully integrated into the Corporate Responsibility Management System and ensure effective assessment and management of biodiversity issues.

Protecting Biodiversity in Greenland

We are one of the first companies to explore potential new energy resources in Greenland. The unique biodiversity of this region and its near-pristine environment mean that we have a particular responsibility to ensure our operations do not present unnecessary risks. Following a successful seismic exploration programme in 2008 and 2009, we are planning to carry out a four-well exploration drilling programme offshore West Greenland in the summer of 2010.

The protection of biodiversity forms an integral part of our exploratory strategy and we have completed a robust EIA to ensure our approach to this issue is comprehensive and proactive. The EIA has been informed and shaped through our strong and open relationships with Greenlandic Government and local communities, drawing on their knowledge base as a key resource.

Protecting Biodiversity Worldwide

Cairn also holds rights and is exploring opportunities in other countries around the world.

Each country presents unique biodiversity challenges; our strategy involves assessing each operation individually for any potential risks particular to that area and implementing robust measures to mitigate such risks.

In keeping with industry best practice, we are committed to not working in UNESCO World Heritage Sites.

Pollution and Spills

The spillage of oil, drilling muds and other chemicals presents a significant potential risk to biodiversity arising from our activities. We are, therefore, committed both to implementing industry-standard best practice in both spillage prevention methods and spill-containment contingency plans should any incidents occur.

We are also committed to minimising CO₂ emissions across our operations in response to the issues raised by global climate change.

Our Performance in 2009

Cairn has established operations in a number of countries around the world but it is our new exploration activities in Nepal and Greenland where we must focus most on the potential for an impact on biodiversity.

In Greenland, our southern acreage blocks of Kingittoq, Saqqamuit and Salliit are adjacent to important bird areas. In Nepal, four of our exploration blocks are adjacent to important wildlife parks, reserves and conservation areas.