How We Measure Up

The following table highlights our progress according to the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines (Application Level B+). This reporting framework – the most widely used in the world – sets out principles and indicators that enable corporations to measure and report their sustainability performance.

Our sustainability reporting is also guided by a joint, industry-specific framework on oil and gas industry guidance for voluntary reporting developed by IPIECA – the global oil and gas industry association for environmental and social issues; the American Petroleum Institute; and the International Association of Oil and Gas Producers.

The work we’ve done to meet these requirements is noted in this index. The page links help our website visitors find the information they require.

Legend

www = www.nexeninc.com
AIF = 2010 Annual Information Form
PC = 2010 Proxy Circular
AR = 2010 Annual Report
SR - 2010 Sustainability Report (print version)
BC = 2010 Sustainability Report back cover (print version)

Strategy and Analysis
Profile Disclosure
Description		 Cross-reference/
Direct Answer
1.1 President's Message SR-President's Message
1.2 Key impacts, risks and opportunities SR-Offshore, Shale Gas & Oil Sands
Organizational Profile
2.1 Company name Nexen Inc.
2.2 Primary brands, products, and/or services AIF-Corporate Structure
2.3 Operational structure AIF-Corporate Structure
2.4 Location of headquarters www
2.5 Countries where Nexen operates see footnote 1
2.6 Nature of ownership and legal form AIF-Business Overview
2.7 Nature of markets served AIF-Energy Marketing
2.8 Scale of the company AR-Performance Review
2.9 Significant changes during reporting period AIF-Three-year Look Back
2.10 Awards received www
Report Parameters
3.1 Reporting period 2010
3.2 Date of most recent previous report 2009
3.3 Reporting cycle Annual
3.4 Contact point for questions BC
3.5 Process for defining report content SR-Reporting Guidelines
3.6 Boundary of report see footnote 2
3.7 Limitations on report scope or boundary see footnote 3
3.8 Basis for reporting on non-wholly owned operations see footnote 4
3.9 Techniques for data measurement, calculations and estimates see footnote 5
3.10 Explanation of information restatements see footnote 5
3.11 Significant changes in measurement see footnote 5
3.12 List of GRI indicators addressed www
3.13 Policy and current practice on external assurance of report SR-External Reviews
Governance, Commitments & Engagement
4.1 Governance structure, including major Board committees PC-Board Committee
4.2 Independence of Board chair PC-Independence & Board Committees
4.3 Independent, non-executive directors on Board PC-Independence & Board Committees
4.4 Mechanisms for shareholder and employee participation PC-Reporting Concerns & Communicating with the Board
4.5 Link between compensation and Nexen’s performance (including social and environmental performance) PC-Annual Cash Incentives
4.6 Processes for the Board to avoid conflicts of interest PC-Ethical Business Conduct
4.7 Process for determining qualifications and expertise of Board members for guiding Nexen’s sustainability strategy www
4.8 Mission and values statements, internally developed codes of conduct or principles and policies SR-Integrity & Transparency
4.9 Board procedures for sustainability management PC-HSE&SR Committee Report
4.10 Processes for evaluating Board performance, including on economic, environmental and social performance PC-Board Assessments
4.11 Application of the precautionary principle see footnote 6
4.12 Externally developed economic, environmental and social principles or other initiatives endorsed by Nexen SR-Associations
4.13 Association memberships SR-Associations
4.14 Stakeholder groups engaged www
4.15 Basis for identifying and selecting of stakeholders www
4.16 Approaches to stakeholder engagement www
4.17 Key topics raised through stakeholder engagement and response www
Disclosure on Management Approach: Economics
EC1 Direct economic value generated and distributed www
EC2 Financial implications and other risks and opportunities due to climate change www
EC3 Coverage of defined benefit plan obligations AR-Pension & Other Post Retirement Benefits
EC6 Policy, practices and proportion of spending on locally-based suppliers at significant locations of operation www
Disclosure on Management Approach: Environmental
EN6 Initiatives to provide energy-efficient or renewable energy products and services www
EN14 Strategies, current actions and future plans for managing biodiversity impacts www
EN18 Initiatives to reduce greenhouse gas emissions www
EN20 NO, SO, and other significant emissions www
EN23 Number and volume of significant spills www
Disclosure on Management Approach: Social
LA1 Workforce profile www
LA2 Employee turnover www
LA4 Percentage of employees covered by collective bargaining agreements www
LA7 Standard injury and lost day rates and fatalities www
LA8 Programs in place to assist employees and others regarding serious diseases www
LA13 Diversity www
HR2 Human rights screening of suppliers www
HR8 Training of security personnel in human rights www
SO1 Impacts of operations on communities www
SO3 Percentage of employees trained in anti-corruption SR-Integrity & Transparency
SO5 Participation in public policy development www
SO6 Political contributions www
PR1 Life cycle stages in which health and safety impacts of products are assessed www
1 In 2010, Nexen operated in Canada, Colombia, Nigeria, Norway, UK, U.S. and Yemen.
2 Nexen Inc. or Nexen refers to the entire company and its subsidiaries. In 2010, Nexen had oil and gas operations in the UK North Sea, U.S. Gulf of Mexico, Western Canada, Yemen, offshore West Africa, Colombia and Norway.
3 Interests held in Canexus Income Fund and Syncrude Canada Ltd. are not included. Dollar figures are Canadian unless otherwise noted.
4 Nexen Inc. or Nexen refers to the entire company and its subsidiaries. In line with industry practice, we report all non-financial data in this report on a 100% basis for facilities operated by Nexen even though our working interests in these assets may be lower.
5 Stated with specific disclosures, if applicable.
6 Nexen has not formally adopted the precautionary approach; however, we have several management tools to identify and prevent or mitigate impacts. Our wind power investments and CO2 mitigation efforts are consistent with the precautionary approach.