Our Commitment to Sustainability – Joint letter from CEO and Chairman
At RigNet, we believe that digital transformation will lead to a more sustainable energy industry. Our world-class, ultra-secure solutions allow our customers to be always connected, always secure and always learning. With our highly reliable network and machine learning solutions our customers can detect and respond to high priority issues faster, more efficiently, and with more information. From early detection of a faulty valve on a pipeline in an environmentally sensitive area, to workforce safety solutions that provide real time risk detection, to safer well planning, to fuel optimization for international shipping, we pride ourselves on making the energy industry safer, more efficient, and more environmentally friendly.
Our commitment extends to the communities in which we live and work and the employees that are our greatest asset. We have established policies to develop the talents of employees and we strive to make RigNet the safest and best place to work, regardless of race, sex, religion, nationality, sexual orientation or gender identity. We look to invest in the communities in which we work, including through charitable contributions and organized volunteer activities.
Finally, RigNet’s Board and Management Team are committed to practicing good corporate governance. We believe that a strong, diverse board and management, following good governance practices and engaging in robust discussion and debate will deliver better results to all of our stakeholders, including shareholders, customers, suppliers, employees, and the communities in which we work.
If you have any questions about our governance practices, safety, the environment, the communities in which we work or our employees, we encourage you to reach out to us. You can inquire through our Investor Relations Contact, Lee M. Ahlstrom, Senior Vice President and Chief Financial Officer, at [email protected] or +1 (281) 674-0699. Alternatively, we invite you to contact our directors individually or as a group through our Corporate Secretary, Shelly Buchman, Vice President Global Human Resources, Associate General Counsel & Corporate Secretary, at [email protected] or +1 (281) 674-0894.
How RigNet Thinks About ESG
RigNet delivers advanced software, optimized industry solutions, and communications infrastructure that allow our customers to realize the business benefits of digital transformation. With world-class, ultra-secure solutions spanning IP connectivity, bandwidth-optimized OTT applications, IIoT big data enablement, and industry-leading machine learning analytics, RigNet supports the full evolution of digital enablement, empowering businesses to respond faster to high priority issues, mitigate the risk of operational disruption, and maximize their overall financial performance.
Our Standard Industry Classification (SIC) code is 4899 – Communications Services. This reflects the core of what we offer – Managed Communications Services.
However, our GICS (Global Industry Classification Standard) code, managed by MSCI and S&P Global, is 10101020 – Oil and Gas Equipment and Services. That’s because under the GICS methodology, companies are classified by the industries from which they derive their revenues. In our case, more than 99% of our revenue comes from customers in the oil and gas vertical, from offshore contract drilling companies to supermajors to midstream pipeline companies and LNG projects.
We do not believe this GICS code is the best classification for RigNet.
What we do:
• Design, procure, install, operate and support customer satellite, microwave and cellular telecommunication networks in remote areas
• Protect our customers networks and digital assets via ultra secure cybersecurity services
• Improve our customers’ operating, safety and environmental performance through our real-time machine learning analytics
• Employ over 600 men and women in more than 10 countries
• Strive to deliver excellence in all we do.
What we don’t do:
• Produce oil and gas, drill wells, or manage production or drilling sites either onshore or offshore
• Engage in hydraulic fracturing (“Fracing”), handle fracing wastewater, or provide chemicals to fracing companies
• Operate engines or equipment used in the production of oil and gas
• Own property associated with oil and gas production
• Transport or employ hazardous chemicals used in the oil and gas industry
In short, many ESG metrics, such as those proposed by the Sustainability Accounting Standards Board (SASB), for our current GICS classification simply don’t apply.
That’s why RigNet, as we look to improve our ESG reporting transparency, will be evaluating which classification standards apply to our business, including Telecommunications Services, Internet Media & Services, and Software & IT Services. Our goal is to give investors a meaningful view of our key business risks and the strategies and activities we’re employing to manage those risks. We expect to make progress on this in 2020.
Several years ago, we realized that we would need to be more than a communications provider to the offshore drilling industry if we were going to succeed as the world transforms its energy mix. We decided to pursue a three-prong strategy to help us not only survive the rapid changes in our markets, but to return to growth as we helped our existing customers navigate these same trends and expanded our customer base beyond our traditional offshore drilling customers. Our three-pronged strategy is to:
• Add new capabilities that complement and differentiate our core Managed Communications Services;
• Expand into new industry verticals with our bundle of technology services; and
• Drive operational improvement and growth across our MCS, Apps & IIoT and Systems Integration segments.
We believe that our success in introducing new digitization technologies optimized on our networks, including our IIOT business and our Intelie real time machine learning business, comes from the operational improvements that our customers experience when they deploy these services – operational improvements that decrease emissions, fuel use and water use and thus drive our customers own sustainability initiatives. We are also finding that these new offerings lead us into new industries as we continue to diversify our revenue base.
At RigNet, building trust with people and partners around the globe is essential to our success. Our values provide the operating framework for building this trust while also defining who we are and how we behave. We have created this Code of Ethics and Business Conduct to provide simple guideposts to help us operate ethically and legally in a complex global environment.
RigNet’s core values include: Integrity * Respect for People * Teamwork * Safety * Passion for Excellence
We operate in over 50 countries. We want to be a positive contributor to each and every community in which we have employees, customers and suppliers and we want to make sure that all of our stakeholders are treated the same way we want to be treated.
We believe it’s important to enable our stakeholders to let us know how well we’re living up to our Values. We use EthicsPoint to allow anyone to anonymously submit a report if they believe there’s something we should know. EthicsPoint’s server is secure and is not part of the RigNet, Inc. website or intranet.
RigNet’s Vendor Code of Conduct sets out our business conduct and ethical performance requirements for all RigNet Vendors and is based on our values and our Code of Ethics and Business Conduct. In selecting Vendors, RigNet seeks to do business with reputable business partners who are committed to the same ethical standards and business practices as we are and this Vendor Code of Conduct formalizes the key principles under which Vendors to RigNet and its subsidiaries are required to operate.
RigNet conducts operations in some of the most challenging environments around the world. Our activity is primarily driven by where our energy customers are and includes countries where bribery and corruption has historically been an issue for the oil and gas industry.
RigNet has strict policies and procedures for conducting our global business activities and we hold ourselves to the highest standard. We are subject to the U.S. Foreign Corrupt Practices Act (“FCPA”), the UK Bribery Act, and other local regulations.
Our Anti-Corruption Policy and Manual applies to all Company officers, directors, employees, and agents of all of our subsidiaries. We conduct mandatory annual training to ensure awareness and compliance, and we regularly vet any foreign agents through third parties to provide assurance of compliance.
RigNet does not authorize, involve itself in, or tolerate any business practice that does not comply with our Anti-Corruption Policy and Manual. We expect the conduct of our employees and agents to be legal and ethical and to reflect positively on our Company.
We aspire to be the cybersecurity partner of choice for our customers. Our state of the art Cyphre hardware-based encryption services and our Enhanced Cybersecurity Services give our customers the peace of mind of 24/7 monitoring by top-notch security personnel in our Security Operations Center, along with military-grade hardening of their networks. We protect our own network with the same services and consistently rank well above our competitors and customers in third-party ratings of Cybersecurity. These tools allow our customers to comply with increasingly stringent data privacy regulations around the world while also protecting networks from threats.
Our Enterprise Risk Management Framework
Risk is an inherent part of RigNet’s business activities and successful management of that risk is critical to our growth and success. We have established an Enterprise Risk Committee to oversee our enterprise-wide risk management. The Enterprise Risk Committee includes senior managers from each of our segments and each of our corporate functions. The Enterprise Risk Committee is required to meet at least six times per year. Under the supervision of the Enterprise Risk Committee, we annually survey approximately 40 employees in all regions, all business lines and functions and at various levels of the organization about the greatest risks facing RigNet. Based on the survey results, the Enterprise Risk Committee identifies and prioritizes active risk areas that require management to focus and plan. The Enterprise Risk Committee assigns each active risk to the business process owner to investigate further, develop a mitigation plan, and present a readout back to the Enterprise Risk Committee. At each regular meeting of our Board of Directors, management provides a report on the activities of the Enterprise Risk Committee to our directors and provides separate reports to our Corporate Governance and Nominating Committee and Audit Committee. The Enterprise Risk Committee has adopted a charter, which is reviewed at least annually.
Health, Safety and the Environment
In addition to making our customers more environmentally friendly, at RigNet we firmly believe that in our business no one should get hurt, no environmental damage is acceptable, and nothing is more valuable than our employees’ health and safety.
At the core of RigNet’s HSE platform is an uncompromising quest for HSE excellence and the desire to be regarded by our customers and peers as a communications company that is setting the standard for minimizing risk and incident occurrence. RigNet prioritizes HSE objectives and uses thorough, after-action reviews and continuous process improvement to maximize results.Our Commitment
The health, safety, and security of our employees, business partners, and affiliates are a core value in the company’s business model. Excellent HSE performance will help make RigNet the company of choice for our customers. Along with this recognition, we stand to gain the admiration of our business partners, affiliates, and governmental bodies for our commitment to, and continuous improvements in HSE stewardship.Our HSE Objectives
• Strive for zero workplace incidents by fostering a safe and secure global-work environment
• Mitigate hazards which cannot be eliminated
• Minimize operational risk exposure
• Minimize operational footprint to reduce environmental risks and increase efficiency
• Perform all work tasks in compliance with HSE policies and procedures
We will focus our resources and priorities to ensure:
• No accidents at worksites
• No environmental damage
• No damage to operational assets
• No lapses in HSE compliance
RigNet tracks work-related safety-related statistics and reports Total Recordable Injury Rate (“TRIR”) and Lost Time Injury Rate (“LTIR”). These measure the number of OSHA-defined Recordable and Lost Time incidents vs. normalized total employee working hours. For 2018 and 2019, our statistics were as follows:
|Hours worked||Number of Recordable Incidents||TRIR||Number of Lost Time Incidents||LTIR|
Please review the following policies and procedures to learn more about our commitment to Safety and the Environment:
Rignet’s Quality and Health, Safety and Environmental Policy Statement is the foundation that supports our QHSE Management System (“MS”) and establishes our QHSE values and objectives in support of our continuing commitment to undertake our work safely, responsibly, and with a duty of care to our employees, customers and the wider community. This policy applies to all RigNet personnel, business, and operations worldwide.
RigNet has developed and implemented a Quality, Health, Safety and Environmental (QHSE) Management System to document the company’s best business practices, better satisfy the requirements and expectations of its customers and improve the overall management of the company. Our QHSE Management System meets the requirements of the following international standards: ISO 9001 (2015) ISO 14001 (2015), and ISO 45001 (2018). This system addresses the implementation, maintenance, and continual improvement of our HSE programs.
RigNet is proud to be ISO 14001-certified in the United Kingdom and Brazil. Please click below to view the respective certificates:
RigNet’s other certifications and industry association involvement can be found here.
Working at RigNet
As a telecommunications and technology company, employees are one of our key assets. RigNet employs more than 600 full time personnel around the world. Our global headquarters is in Houston, Texas and we have other main offices in:
• Lafayette, Louisiana
• Houma, Louisiana
• Denver, Colorado
• Mexico City
• Ciudad del Carmen
• Rio de Janeiro
• Sao Paulo
• Abu Dhabi
• Saudi Arabia
• Kuala Lumpur, Malaysia
• Perth, Australia
• Luanda, Angola
At RigNet, we focus on helping our employees at every level of their career identify and use their strengths to contribute their best every day. From entry-level team members to senior leaders, we believe there is always room to grow knowledge and experiences. We support our employees by offering opportunities to sharpen their skills through on the job learning experiences to formal internal and external development programs.
In addition to mandatory training for each employee on safety, anti-corruption, cybersecurity, sexual harassment, and a variety of other topics, RigNet supports technical training and membership in professional organizations that allow employees to further hone their skills. In addition, we offer a tuition reimbursement program for employees wishing to pursue additional higher education.Employee Engagement and Involvement
We believe engaged employees contribute not only to better outcomes for our stakeholders but have more fulfilling personal and professional lives. That’s why RigNet surveys its employees annually using the Gallup Q12 Employee Engagement Survey, one of the industry’s most well-known and accepted tools for measuring employee engagement. Results are disseminated to department heads and managers and small group discussions are held allowing management to not only gain additional insight but also formulate action plans to help address employee concerns. We report the results of our survey every year to our Board of Directors and brief the Board on action plans to address any areas noted as needing improvement.
Employee Engagement: Percentage based on Q12 Employee Engagement Survey:
|Q1 2017||Q4 2017||Q4 2018||Q4 2019|
Engagement refers to how committed employees are to the organization. Engaged employees have higher productivity, profitability, customer service and reduced safety incidents and turnover.
Our Connect program establishes leaders in each of our major offices to help drive engagement and encourage local volunteerism. We support a number of local charities and offer employees opportunities several times per year to volunteer during work hours to support various causes, often around education and children’s rights.Diversity and Inclusion
At RigNet, we don’t just accept difference — we celebrate it. RigNet is proud to be an equal opportunity workplace and an affirmative action employer. We do not discriminate based upon race, religion, color, national origin, gender (including pregnancy, childbirth, or related medical conditions), sexual orientation, gender identity, gender expression, age, status as a protected veteran, status as an individual with a disability, or other applicable legally protected characteristics.
RigNet supports the hiring of veterans and is honored to provide opportunities to men and women who have served their respective countries.