Energy transition is a long-term issue and our strategy is to be transparent, improve governance and analyse our portfolio. Our aim is to develop ways of meaningfully dealing with the issues that arise in the context of a long energy transition period ahead.
Our approach to climate change includes:
- measuring and reporting greenhouse gas (GHG) emissions;
- considering climate-related risks and opportunities in all projects and investment decisions;
- promoting efficient energy use;
- engaging with stakeholders; and
- contributing to local programmes that address social and environmental impacts.
Potential risks and opportunities
We monitor developments closely to explore the implications of responding to the challenges of a carbon-constrained future. Noting a rise in interest from financial institutions, ethical investors and the media, we continue to examine the resilience of our portfolio to understand the climate-related factors affecting investments and commercial developments.
- Financial risk management: Even though some financial institutions have reduced or removed their commitment to hydrocarbon investments in recent years, our projects remain economically and socially viable.
- Regulatory risk management: We continue to assess legislation and policy risks, which are often specific to regions or countries in which we operate or plan to enter. We review international and local legislation for existing implications, along with potential mechanisms that could be introduced in the future.
- Physical and social risk management: We plan our operations to be safe and efficient, select equipment and facilities to meet the requirements of the programme, and aim to minimise our time in the field, reducing emissions and costs. We consider the latest operating and design standards for minimising impact and future-proofing our activities, while seeking social and environmental programmes that benefit communities. Read our Greenhouse Gas Emissions Verification Report.
We remain committed to the voluntary requirements of the Task Force on Climate-related Financial Disclosures (TCFD), and through our membership in the Association of British Independent Oil Exploration Companies (BRINDEX), we have developed a position on TCFD in support of the UK government’s target of reducing GHG emissions to net zero by 2050.