Energy and climate change

We are committed to minimising our impact on the environment by preventing pollution, minimising waste and emissions and using energy and resources efficiently.

Managing our emissions

Our greenhouse gas emissions and corporate carbon footprint reports have been carefully constructed to ensure clarity and accuracy. For fuels and electricity use, we base our reporting on the UK Department for the Environment, Food and Rural Affairs (DEFRA) emission factors. For gas flaring, we use The American Petroleum Institute’s SANGEA methodology.

Our emissions data is calculated using the globally recognised Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. This benchmark is produced by the World Resources Institute and the World Business Council for Sustainable Development.

All our operational sites are included in our greenhouse gas emissions and corporate carbon footprint report. We use an equity share approach to account for emissions from jointly owned operations. Operations that are wholly controlled by third parties are excluded from our reporting.

We commissioned ERM Certification & Verification Services (ERM CVS) to assure our 2016 Scope 1 and Scope 2 greenhouse gas (GHG) emissions. This process involved an evaluation of the data management systems and processes which we use to collect and report the fuel, energy and other data, which form the basis of our GHG emissions. Read our Independent Verification Statement.

We also monitor and report emission data to our clients for the facilities we manage on their behalf. At North Sea managed assets we measure and report on:

  • All discharges of hydrocarbons, and heavy metal to the sea
  • All air emissions of sulphur dioxide, nitrogen oxides and volatile organic carbons
  • Use of chemicals and their discharges
  • Naturally Occurring Radioactive Material (NORM)
  • Waste produced

Emissions performance

We have been monitoring and reporting our carbon emissions since 2008 and in 2016 there was a minor reduction in our emissions despite an increased level of activity at many of our project sites.

The intensity ratio for 2016 was 33.1 tCO2e per million US$ revenue (compared to 41.0 in 2015). We have chosen to use “tonnes/million US$ revenue” as this metric is the most representative across the entire business.

Carbon disclosure

We voluntarily participate in the Carbon Disclosure Project (CDP). The project provides a global disclosure system for companies to report their environmental impacts and strategies on greenhouse gas emissions.

In 2016 we achieved a score of ‘B’ from Climate Disclosure Project (CDP) based on our response to CDP’s climate change information request.

This score is above average for Energy sector FTSE 350 companies reporting to CDP in 2016 and indicates a comprehensive response to the questionnaire, as well as sound understanding and management of climate change-related issues – including greenhouse gas emissions – relevant to the Company.

Improving energy efficiency

Energy efficiency is also a key consideration for many of our projects. Our design team try to work beyond client requirements to optimise energy efficiency during the life cycle of facilities.

The Petrofac engineering team continuously strive to design facilities and processes for our clients which have low environmental impact during their life cycle. We have designed, supplied, installed and commissioned facilities with

  • Zero flaring
  • High energy efficiency
  • Lower footprints
  • Consuming less resources

For example:

In Kuwait, our team was assigned a project to treat and recycle the municipal waste water for boiler feed. After reviewing the scheme suggested by the client, it was identified that the scheme was too power intensive with high operating costs. The project design team proposed a new treatment scheme using a combination of advanced technologies which consumed far less power and reduced operating costs. This proposed treatment facility will bring down the power consumption from 8,000 kwh to 500 kwh per day, thus saving more than 90% of power and lowering the client’s carbon emissions.

The facility management team in our Sharjah office has reduced the building’s power consumption by more than 40% through introducing various energy efficiency initiatives in the last five years.

The training centre in Montrose, UK, replaced its fire pumps, upgraded the liquid LPG fire system and re-designed its training module to increase energy efficiency. All of these modifications and the awareness to employees and contractors resulted in 35% less energy consumption at the training centre.

It is imperative for us to embed high levels of environmental standards in our design to fulfil our obligation, not only as business executives but also as responsible citizens

E S Sathyanarayanan, Group Managing Director, E&C

Policy

Read our Environment policy

We're committed to limiting the environmental impact of our operations around the globe

Concrete waste

We repurposed concrete waste on a project site and saved 103 tonnes of CO2 emissions

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Excavated soil

We reused excavated waste soil on a project and saved 1.6 million kg of carbon emissions

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