Working responsibly

Air emissions

Direct and indirect air emissions

Chart

Total absolute and normalised GHG emissions (Scopes 1, 2 and 3)

Table

Total absolute and normalised GHG emissions (Scopes 1, 2 and 3)

    2012 2013 2014 2015 2016
All scopes (including location-based Scope 2) tonnes CO2e 3,216.72 28,184.21 62,923.79 35,391.63 31,982.31
All scopes (including market-based Scope 2) tonnes CO2e       35,142.86 31,693.53
Scope 11 tonnes CO2e 1,586.75 24,971.82 59,395.43 32,434.81 29,486.84
Scope 2 (location-based)2 tonnes CO2e 279.52 419.77 401.85 350.87 355.46
Scope 2 (market-based)2 tonnes CO2e       102.10 66.68
Scope 33 tonnes CO2e 1,350.45 2,792.62 3,126.51 2,605.95 2,140.01
Scope 1, 2 (location-based) and 3 normalised tonnes CO2e per 1,000 hours worked 9.32 35.53 40.72 52.65 33.40
Scope 1, 2 (market-based) and 3 normalised tonnes CO2e per 1,000 hours worked       52.28 33.10

Direct air emissions

Absolute and normalised direct GHG emissions (Scope 11)

(tonnes CO2e/tonnes CO2e per 1,000 hours worked)

  2012 2013 2014 2015 2016
Cairn total 1,586.75/
4.60
24,971.82/
31.48
59,395.43/
38.44
32,434.81/
48.25
29,486.84/
30.79
Greenland 604.01/
18.72
5,741.76/
79.49
2.22/
1.27
0.00/
0.00
0.00/
0.00
Ireland NA/
NA
NA/
NA
4,760.54/
160.37
0.00/
0.00
0.00/
0.00
Malta NA/
NA
NA/
NA
498.70/
65.23
0.00/
0.00
0.00/
0.00
Morocco 972.47/
100.09
18,844.61/
53.57
12,923.29/
40.16
0.00/
0.00
0.00/
0.00
Nepal 6.42/
1.03
0.04/
0.01
NA/
NA
NA/
NA
NA/
NA
Norway 0.00/
0.00
0.03/
0.00
0.23/
0.01
0.00/
0.00
0.00/
0.00
Senegal NA/
NA
382.68/
31.22
41,207.84/
50.53
32,434.81/
77.83
29,486.84/
48.20
Spain 3.85/
0.29
2.70/
0.23
2.62/
0.24
NA/
NA
NA/
NA

Total CO2 emissions

Chart

(tonnes)

Table

(tonnes)

  2012 2013 2014 2015 2016
Cairn total 1,581.45 24,886.37 59,151.16 30,843.44 28,110.28

CO2 emissions

(tonnes)

  2012 2013 2014 2015 2016
Greenland 602.21 5,721.68 2.21 0.00 0.00
Ireland N/A N/A 4,698.74 0.00 0.00
Malta N/A N/A 496.94 0.00 0.00
Morocco 969.20 18,780.52 12,880.02 0.00 0.00
Nepal 6.40 0.04 N/A N/A N/A
Norway 0.00 0.03 0.23 0.00 0.00
Senegal N/A 381.41 41,070.41 30,843.44 28,110.28
Spain 3.84 2.69 2.61 N/A N/A

Total CH4 emissions

Chart

(tonnes)

Table

(tonnes)

  2012 2013 2014 2015 2016
Cairn total 0.06 1.02 2.43 53.43 46.10

CH4 emissions

(tonnes)

  2012 2013 2014 2015 2016
Greenland 0.02 0.24 0.00 0.00 0.00
Ireland NA NA 0.19 0.00 0.00
Malta NA NA 0.02 0.00 0.00
Morocco 0.04 0.77 0.53 0.00 0.00
Senegal NA 0.02 1.69 53.43 46.10

Total NOx emissions

Chart

(tonnes)

Table

(tonnes)

  2012 2013 2014 2015 2016
Cairn total 29.64 466.18 1,110.28 473.03 435.14

NOx emissions

(tonnes)

  2012 2013 2014 2015 2016
Greenland 11.28 107.24 0.04 0.00 0.00
Ireland NA NA 88.18 0.00 0.00
Malta NA NA 9.33 0.00 0.00
Morocco 18.17 351.73 241.85 0.00 0.00
Nepal 0.12 0.00 NA NA NA
Senegal NA 7.16 770.82 473.03 435.14
Spain 0.08 0.05 0.05 NA NA

Total SO2 emissions

Chart

(tonnes)

Total SO2 emissions

Table

(tonnes)

  2012 2013 2014 2015 2016
Cairn total 2.00 31.39 74.77 31.45 28.94

SO2 emissions

(tonnes)

  2012 2013 2014 2015 2016
Greenland 0.76 7.22 0.00 0.00 0.00
Ireland NA NA 5.94 0.00 0.00
Malta NA NA 0.63 0.00 0.00
Morocco 1.22 23.69 16.29 0.00 0.00
Nepal 0.01 0.00 NA NA NA
Senegal NA 0.48 51.91 31.45 28.94
Spain 0.01 0.00 0.00 NA NA

Total VOCs

Chart

(tonnes)

Total VOCs

Table

(tonnes)

  2012 2013 2014 2015 2016
Cairn total 1.00 15.70 37.38 58.28 52.14

VOCs

(tonnes)

  2012 2013 2014 2015 2016
Greenland 0.38 3.61 0.00 0.00 0.00
Ireland NA NA 2.97 0.00 0.00
Malta NA NA 0.31 0.00 0.00
Morocco 0.61 11.84 8.14 0.00 0.00
Senegal NA 0.24 25.95 58.28 52.14

Note: 2015 figures for NOx, SO2 and VOCs have been restated to incorporate flaring data that was not available when we produced our 2015 end of year reports.

Note: In addition, changes have been made to a number of data points over the years 2012-2015. When we carried out a review of our Scope 1 GHG emissions calculations in 2016 to ensure they reflected best practice and utilised the most appropriate and up-to-date factors available, we made some minor changes to the conversion factors we use from the ‘Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry’ (American Petroleum Institute (API) 2009) by selecting ones that align more accurately to the fuel types we use. These changes affected the NOx, SO2 and VOCs data in addition to the GHG-related air emission data so we are restating it here.


Indirect air emissions

Absolute and normalised GHG emissions from purchased electricity (location-based Scope 22)

(tonnes CO2e/tonnes CO2e per 1,000 hours worked)

  2012 2013 2014 2015 2016
Cairn total 279.52/0.81 419.77/0.53 401.85/0.26 350.87/0.52 355.46/0.37
Greenland 14.39/0.45 17.96/0.25 11.34/6.47 0.00/0.00 0.00/0.00
Morocco 0.00/0.00 4.69/0.01 4.96/0.02 2.79/0.62 0.69/0.26
Norway 1.60/0.06 1.48/0.04 1.30/0.04 8.46/0.22 13.81/0.26
Senegal NA/NA 1.87/0.15 22.09/0.03 27.19/0.07 31.95/0.05
Spain 16.19/1.21 17.06/1.44 13.37/1.20 NA/NA NA/NA
UK 247.34/0.97 376.72/1.24 348.79/1.07 312.42/1.48 309.02/1.07

Absolute and normalised GHG emissions from purchased electricity (market-based Scope 22)

(tonnes CO2e/tonnes CO2e per 1,000 hours worked)

  2015 2016
Cairn total 102.10/0.15 66.68/0.07
Morocco 2.79/0.62 0.69/0.26
Norway 43.21/1.14 34.05/0.63
Senegal 27.19/0.07 31.95/0.05
UK 28.90/0.14 0.00/0.00

Total absolute and normalised GHG emissions from business travel (Scope 33)

  2012 2013 2014 2015 2016
Business travel (tonnes CO2e/tonnes CO2e per 1,000 hours worked) 1,350.45/
3.91
2,792.62/
3.52
3,126.51/
2.02
2,605.95/
3.88
2,140.01/
2.23
Air travel (tonnes CO2e) 1,342.63 2,783.67 3,117.61 2,601.65 2,136.96
Rail travel (tonnes CO2e) 7.81 8.95 8.91 4.31 3.06

Note: Data has been provided for individual countries where there have been relevant emissions.

Note: We report our GHG emissions in accordance with the GHG Protocol Corporate Accounting and Reporting Standard (World Resources Institute/World Business Council for Sustainable Development). All GHG emissions are reported in tonnes of carbon dioxide equivalent (CO2e).

  1. Scope 1 emissions: direct GHG emissions which occur from sources that are owned or controlled by the Company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles etc.

    At present Cairn is undertaking exploration activities only. We are not operating any production assets. Our Scope 1 emissions arise from:

    • fuel combustion during offshore rig, marine vessel and aircraft operations, as well as a very small amount during use of land-based vehicles (proportion of total Scope 1 GHG in 2016: 78%);
    • flaring during well testing (proportion of total Scope 1 GHG in 2016: 22%); and
    • incineration of waste on marine vessels (proportion of total Scope 1 GHG in 2016: 0.001%).

    In 2016 we carried out a review of our Scope 1 GHG emissions calculations to ensure they reflect best practice and utilise the most appropriate and up-to-date factors available. As a result, we updated to the latest published Global Warming Potentials (GWPs) for CO2, CH4 and N2O from the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5), having used the Second Assessment Report (SAR) GWPs previously. We also made some minor changes to the emission factors we use from the ‘Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry’ (American Petroleum Institute (API) 2009) by selecting ones that align more accurately to the fuel types we use. Finally, we introduced an additional two categories to our waste incineration data. We applied these changes across all our Scope 1 GHG data, past and present. The changes were not material but we are nevertheless restating all Scope 1 GHG figures in this 2016 report.

    Fuel combustion

    The rig, vessels and helicopters keep a daily log of fuel usage and each provides us with a total figure for fuel consumption, in litres, at the end of each month. Fuel consumption figures for land-based vehicles (<0.5% of total fuel consumption) are partly drawn from accurate fuel consumption records and partly from estimates when exact fuel usage is impractical to track.

    A fuel density figure is used to convert litres of fuel into tonnes. The fuel density is provided by the rig, vessels or helicopter operator when available (most of the time in 2016). Otherwise, a typical density is used from API 2009. Figures in tonnes are then converted into CO2e using emission factors for carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) from the API Compendium 2009.

    Flaring

    Flaring was carried out during well testing in 2016. The volume of oil and gas flared was measured and converted into mass (tonnes) using densities obtained from well test samples that were analysed in the laboratory. Scope 1 GHG emissions (tonnes of CO2e) were then calculated using emission factors from EEMS (Environmental Emissions Monitoring System) Atmospheric Emissions Calculations, 2008 (Table 10.1).

    We have updated our 2015 Scope 1 GHG emissions figure to incorporate flaring data that was not available when we produced our 2015 end of year reports. Our 2015 normalised GHG emissions have increased in line with this. Note: 2015 flaring data was included in Cairn’s 2016 ‘Half Year Corporate Responsibility Update’ but has since been recalculated with amended gas densities and is restated in this report.

    Waste incineration

    A small amount of non-hazardous waste was incinerated on one of the marine vessels supporting drilling operations in 2016. Scope 1 GHG emissions (tonnes of CO2e) arising from waste incineration are calculated using emission factors from the GHG Protocol 2014.

    Estimates and uncertainties

    Petrol and diesel consumption for land-based vehicles at shore bases/offices was partly estimated. This represents less than 0.5% of fuel consumption during operations in Senegal and overall.

    The mass of waste incinerated on board vessels is usually based on estimates, however this represents a tiny amount compared to overall emissions (<0.001 tonnes CO2e).

    We use the most applicable emission factors available, but there will always be a small margin of error from these as they may not match fuel type exactly.

  2. Scope 2 emissions: electricity indirect emissions are from the generation of purchased electricity consumed by the Company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the Company.

    Our Scope 2 emissions arise from:

    • use of electricity in all our offices and a small amount of district heating and cooling in our Stavanger office.

    We report Scope 2 emissions in line with GHG Protocol Scope 2 Guidance, i.e. in two ways: according to a location-based method and a market-based method. (Transmission and distribution losses are excluded.) For the location-based method we use emission factors from the International Energy Agency (IEA) Report ‘CO2 emissions from Fuel Combustion Highlights’ (2013 edition), p110-112 ‘CO2 emissions per kWh from electricity generation’. These are grid average emission factors for each country. For district heating and cooling we use location-based emission factors from the UK Department for Environment Food & Rural Affairs (Defra) 2015. For the market-based method we use emission factors, where available, in the following order of preference:

    • Supplier-specific emission factors - obtained from Cairn offices' electricity suppliers.
    • Residual mix emission factors - obtained from the RE-DISS II document ‘European Residual Mixes 2014’, last updated in June 2015.
    • Location-based emission factors. These are the same IEA and Defra emission factors that we use for calculating location-based emissions.

    Supplier-specific emission factors were requested from the electricity suppliers of all of Cairn’s offices but were only available for the Edinburgh and London offices. Market-based Scope 2 figures for Norway were calculated using the residual mix emission factor for Norway. For Morocco and Senegal there were no residual mix factors available so the location-based factors were used.

    We are not able to obtain supplier-specific emission factors for years prior to 2015 so all Scope 2 data prior to 2015 is calculated according to the location-based method.

    Our Scope 2 GHG figures for all years have been very marginally adjusted in 2016 (maximum figure change of 0.34 tonnes CO2e) due to slight adjustments that were made to the units of measure conversions in our database.

    Estimates and uncertainties

    Most of our electricity and district heating and cooling (Norway only) consumption happens in our head office in Edinburgh (75% of our total electricity, district heating and cooling in 2016), followed by Stavanger, London and Dakar (12%, 7% and <6% of total respectively). Electricity consumption for the Edinburgh, London, Dakar and Rabat (0.1% of total) offices is taken from meter readings. The figure for the London office covers October 2015 to October 2016 because fourth quarter figures are not available in time for this report. Electricity consumption for the Stavanger office is calculated as a proportion of the overall building consumption.

    There is always a degree of inaccuracy in emission factors. Also, there is no electricity emission factor available for Greenland so we used the Denmark factor instead.

  3. Scope 3 emissions: Scope 3 emissions are a consequence of the activities of the Company, but occur from sources not owned or controlled by the Company.

    Cairn currently reports Scope 3 emissions from business travel, including air and rail travel, but not tube travel. Other Scope 3 emissions, e.g. supply chain and employee commuting, are excluded.

    For calculating Scope 3 (business travel) GHG emissions we use the Defra methodology, including its recommendation to include an uplift for the influence of radiative forcing in air travel emissions. This uplift ensures that the maximum climate impact of an organisation's travel habits is captured. In our air travel GHG emissions’ calculations we use journey type (domestic, short haul, long haul, and international (new for 2016)), seat class (economy, premium economy, business, first) and distance travelled. In our rail travel GHG emissions calculations we use rail type (national rail, international rail) and distance. We updated to the latest Defra 2016 emission factors for 2016 data (see http://www.ukconversionfactorscarbonsmart.co.uk/).

    It is Cairn policy that all travel for Edinburgh and London based staff, and usually the smaller offices, is booked using its corporate travel agent, HRG, except under special exception. As a result of this, the majority of our travel data is obtained in a report from HRG and includes details on journey type, seat class and kilometres travelled. Travel data is also obtained from Cairn’s travel provider in Norway, from a travel expense claim report from Edinburgh’s accounts department, and through communication with executive assistants in all Carin's offices. Where journey kilometres are not provided with the data, they are obtained from internet resources, e.g. airmilescalculator.com, travelmath.com and virgintrainseastcoast.com (carbon calculator).

    Estimates and uncertainties

    Not all HRG flight data can be broken down into flight sectors with the corresponding seat class so there is a degree of uncertainty in this, e.g. GHG emissions for some of the domestic flight sectors may be calculated using short or long haul flight emission factors.

    Travel data obtained from travel expenses does not always show whether a journey is single or return so this sometimes has to be assumed. In addition, the seat class of these flights is not shown however flights booked outside the HRG system are usually with budget airlines so the majority are known to be economy class. These flights are not broken down into sectors but the majority are domestic or short haul/European flights which are only one flight sector.

    For rail travel data obtained from travel expenses, some of the journey distances are based on estimates.

    Travel data provided by Cairn’s travel provider in Norway (Berg-Hansen) does not include train journeys so an estimate has to be made for these.

    Occasional flights/train journeys booked by individuals, based in Cairn’s offices outside the UK, might get missed however this is considered minimal.

GHG normalised to total employee and contractor hours worked

To meet UK reporting requirements, GHG emissions need to be reported normalised to an appropriate performance measure representative of the business. As Cairn did not have revenue or operated production facilities in 2016, or in the previous four years, and activities were of an exploration nature only (i.e. exploration drilling and associated activity), its GHG emissions have been normalised to total employee and contractor hours worked. They are presented as tonnes of CO2e per 1,000 hours worked.

Hours worked are collected for employees and for contractors. Employee hours are derived primarily from Cairn’s time-writing system that UK and Norway employees use to log their working hours. For Senegal and Morocco employees, hours worked are estimated based on the number of working days in the month and the standard working hours. Employee hours include hours worked by ‘other workers’ (contracted for more than three months to an organisational position) as these are captured in the time-writing system. Cairn’s Human Resources department compiles the figures and enters them into the database each month.

Hours worked by field-based contractors are collected monthly, together with other HSE KPI data, from each vessel, rig, aircraft and shore base. For offshore workers, the hours are often calculated on a 12-hours work day basis.

Hours worked by short-term (less than three months) office-based contractors have been collected for the first time in 2016. Figures for the Dakar office contractors were obtained monthly in the form of timesheets. The remaining figures were compiled at the end of 2016 using a list of non-time-writing personnel and the schedule of a software implementation project, and had to be estimated in some cases.

Estimates and uncertainties

Hours worked by field-based contractors are often calculated on a 12-hour per work day basis rather than being a precise log of time worked.

Hours worked by short-term office contractors, other than those in the Dakar office, were estimated, largely based on discussion with people in the Edinburgh office.

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