Petrofac announces new targets to advance sustainability agenda
Commitment to reach Net Zero (1) in Scope 1 and 2 emissions (2) by 2030
Targeting 30% of women in senior roles (3) by 2030
Targets embedded in management scorecards
Petrofac ("Petrofac" or "the Company") today announces two important environmental and gender diversity targets to advance its broader sustainability agenda. Sustainability is at the core of Petrofac’s strategy and critical to creating long-term value for all stakeholders. The Company’s purpose is focused on enabling clients to meet the world’s evolving energy needs, and to work collectively with industry to achieve a more sustainable, inclusive and diverse energy sector.
Group Chief Executive Ayman Asfari said:
“Our vision is to be the preferred services partner to the energy industry, trusted to deliver to high quality and standards. Our sustainability agenda is key to this aspiration and the environmental and diversity targets we are announcing today represent a significant step forward.
“Our Net Zero target supports the principles of the Paris Agreement, the UK government’s Net Zero goal, and is aligned with our clients’ own ambitions as the sector moves to a net zero future. Our gender diversity target will help develop more women leaders for Petrofac and our industry, and builds on our work of increasing female representation at both Board and junior levels.
“Sustainability is at the core of our strategy, underpinning best-in-class delivery, future growth and enhanced returns. It allows us to help clients decarbonise their activities as well as our own; promote safe, local delivery and ethical value chains underpinned by rigorous compliance and governance; and build a diverse workforce that helps address the sector’s skills gap.”
We aim to reduce our Scope 1 and 2 emissions (2) to Net Zero (1) by 2030, and work to influence our supply chain to set their own reduction targets. Our Net Zero Strategy of ‘Reduce, Transform, Enable’ will focus the business on three areas:
Reduce - cut our emissions by implementing energy efficiencies and low carbon strategies on sites and operations, optimising our operations and methods of construction and advancing flare and venting reduction and carbon abatement plans.
Transform - adopt new technologies such as phasing in hybrid and electric vehicles on site, decarbonising our heating and cooling systems by switching to renewable electricity where available and fitting smart building technology in our offices to maximise energy efficiency.
Enable - support our clients, partners and suppliers in their lower carbon ambitions, enable flexible and agile working practices, continue to embed emission reductions targets in management scorecards and incentivise our staff to be advocates for Net Zero.
At a divisional level, we expect Engineering & Production Services (“EPS”) to reduce its Scope 1 and 2 (2) emissions to Net Zero (1) by 2025, while Engineering & Construction (“E&C”) and Integrated Energy Services (“IES”) will achieve the same by 2030.
We are on a journey to Net Zero
Businesses that harness diversity of thought, perform better
Diversity and Inclusion
Petrofac comprises 80 nationalities and its Board has achieved 33% female representation, but we recognise we need to do more to increase the number of women in management. We will achieve our target of 30% of women in senior roles (3) by 2030 through a series of measures that include: continuing to embed diversity targets in management scorecards; developing our in-house diversity and inclusion capability; implementing Women in Leadership and “working without bias” training programmes for all our employees and; mentoring high potential women by Executive Committee members. To ensure we achieve our 2030 target, we are also setting interim targets of 10% of women in senior roles by 2021 and 20% of women in senior roles by 2025.
We are proud of our track record of developing young talent and building diversity from within. We will build on the 46% women in our 2019 graduate engineering intake by continuing to encourage more female graduates to join Petrofac as we develop our female leaders.
Finally, we want to build teams that reflect the communities we serve, and will be advancing programmes such as our graduate academy to further increase the national diversity of our workforce and leadership to better reflect the countries in which we operate.
Net Zero: no net increase in GHG emissions to the atmosphere as a result of GHG emissions associated with Petrofac’s activities, where residual emissions will be offset by carbon credits.
Scope 1 (direct emissions e.g., production processes) and Scope 2 (indirect emissions e.g. energy purchased).
Executive management and direct reports (as per Hampton-Alexander criteria).