Tackling climate change is critical to our ESG framework and of utmost importance to our business model and strategy. 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 towards a net zero future.
We have set an ambitious target to reach Net Zero in Scope 1 and 2 emissions by 2030, and work to influence our supply chain to set their own reduction targets.
To achieve this, we will focus on three areas:
Enable – encourage our staff to be Net Zero advocates and support our clients, partners and suppliers in achieving their lower carbon ambitions
Reduce – cut our emissions by implementing energy efficiencies, optimising our operations and methods of construction, and reducing flaring and venting
Transform – switch to renewable energy, phase-in hybrid and electric vehicles on site, and fit smart building technology in our offices to maximise energy efficiency
Over the next three years we will drive progress against these ambitions. We are targeting a 3% annual reduction in Scope 1 and 2 emissions intensity, through switches to renewable energy, emissions reductions, and cleaner transport. We will also establish a programme to assess our Scope 3 emissions baseline as we look to decarbonise our supply chain in future years.
We continued to enhance our climate change programme and achieved Carbon Disclosure Project (CDP) rating of ‘B’ in 2020
We are on target to meet our commitment to reduce GHG intensity by 20%
To better understand the potential impacts of climate change on the business, we continued to work towards full compliance with the recommendations of the Task force on Climate-related Financial Disclosures (TCFD). We formed a working group with representatives from our environmental, finance, risk and governance teams.
The working group looked at how Petrofac might be impacted by a changing climate, to provide the leadership team with future-looking insight on likely climate risks and opportunities.
You can find out more about how we are approaching the financial risks and opportunities related to climate change in our TCFD report.