Sustainability

Our approach to sustainability and ESG

Our sustainability strategy is structured around Environment, Social, and Governance pillars, widely known as ESG. These are indivisible from what we do as a company, and we engage with representatives from various groups of stakeholders to understand what matters to them, and how we can align our ESG priorities to the material issues we identify.

Understanding what matters most to our stakeholders

We regularly engage with clients, suppliers, investors, NGOs, policymakers, employees, and our supply chain, to fully understand what matters most to them. As a result of these discussions, we identified material issues for our business and aligned our targets to them.

We aim to minimise our own environmental impact, while supporting our clients in achieving their lower carbon ambitions.

Making progress on our sustainability strategy

Our material issues	Our targets	Progress in 2021
		In progress        Progressing        Target not achieved
Addressing climate risk	Net Zero by 2030 (Asset Solutions by 2025)		Scope 1 & 2 emissions were reduced by 22% and we started reporting against Scope 3 emissions
Spill prevention and response	Zero pollution		We made progress in preventing and reducing spills, though unfortunately had one recordable spill, with a volume of two barrels
Promoting a circular economy	Circular economy adopted by all sites		We launched our No, Less, Better plastic reduction strategy and eliminated single-use plastics in our main offices
Sector leading health and safety	Zero harm		Tragically, we saw one fatality on a third-party contractor activity. We have taken far-reaching actions to address the underlying causes and remain determined to achieve our zero-harm target
Enhancing diversity and inclusion	30% women in leadership roles by 2030		We increased the proportion of women in senior management to 25% and adjusted our target of 30% by 2030 bringing it forward by five years to 2025
Respecting human rights	All third parties screened for human rights		We screened 100% of third parties for human rights violations, and no incidents of modern slavery were reported. However, at lower tiers of our supply chain, we did undercover labour rights violations (late salary payment)
Optimising in-country value	Sector leading local delivery		The proportion of locally-sourced goods and services increased to 54%, reflecting our continued investment in our local delivery capability
Embedding ethical values and behaviours	No regulatory non-compliance		We worked with the Serious Fraud Office to bring to conclusion the investigation into seven historic offences of failing to prevent former employees from offering or making payments to agents in relation to project awards between 2012 and 2015. We have taken responsibility, reformed, and learnt from these past mistakes, as acknowledged by the SFO and the Court
Enhancing transparency, governance and disclosure	Full compliance with TCFD		We successfully completed our first climate response report, which achieved full compliance with the TCFD recommendations and was recognised by the UN Global Compact as good industry practice

Aligning with the Sustainable Development Goals

We have aligned our sustainability strategy with the seven UN Sustainable Development Goals most relevant to Petrofac’s business.

We aim to work in partnership with our stakeholders to progress strategies that improve health and wellbeing, reduce inequality, tackle climate change, and preserve biodiversity – while championing a low-carbon economy and enabling economic growth.

We are also a signatory of the UN Global Compact, and this report serves as our Communication on Progress on the implementation of its 10 Principles. The report is also prepared in accordance with the Global Reporting Initiative, the Sustainability Accounting Standards Board, and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).