The CEO's blog, 17/6/2021

Delivering on our climate change and ESG commitments during a year like no other

Mathios Blog Sustainability report .jpg


Dear Energizers, 


Today, I am delighted to announce the launch of Energean’s third annual Sustainability Report, which this year – as promised – has been externally assured by Ernst and Young.


The last 12-months have seen climate change, and wider ESG issues, catapulted to the top of the agenda for governments, communities, investors, and society at large. It has undoubtedly been a difficult year for so many across the globe, yet a great deal of the lessons learned must be remembered: the importance of resolve, resilience and community – and the responsibility that every business has to provide a benefit to society as well as a return to investors. With that in mind, now more than ever, we should abide by our values, the Energean "Ethos".


The rapid fall in global energy demand during 2020 put huge pressure on our sector; however, our biggest challenge has not been our productivity and operational success, but ensuring that we maintain our culture, embody the Energean Ethos, and support one another through these challenging times. Despite the headwinds, I am proud to say that we have continued to deliver on our promises, whilst maintaining our strong sense of strategic direction. For Energean, sustainability and ESG sit at the heart of our business and Ethos. As the leading independent gas-producer in the Mediterranean, with a vision to lead the region’s energy transition, managing climate-related risks is always front of mind, and our Climate Change Strategy is integral to this year’s Sustainability Report. Nevertheless, if the past year has taught us anything, it is that social responsibility and strong corporate governance are imperative to the progress of humanity, and, are therefore more important than ever to the way we do business.


Having been the first E&P company in the world to commit to net zero emissions by 2050, our Climate Change Strategy provides a clear blueprint for how we will achieve that ambition. Demonstrating immediate progress is essential to meeting the goal of the Paris Agreement and we have already taken significant steps in the right direction; however, I want to stress, that this is only the beginning of our transformation. For example; the past year has seen us incorporate scenario analysis and carbon pricing into our investment decision-making process. Our analyses ensure that potential climate-related impacts associated with our current and future operations are well understood and remain front of mind for both management and the Board.


In the near-term, we remain totally focussed on reducing the carbon intensity of our operations. Our Board has set a reduction target of 85% by 2023, and we have already delivered a 67% reduction. That’s real progress we can all be proud of and provides a solid platform on which to build. Our broader environmental record is best in class and has been externally recognised as such; in 2020, we participated in our first ever Carbon Disclosure Project submission, which positioned us amongst the best performing third of E&P companies.


In response to the COVID-19 global pandemic our immediate priority has been to protect the health and wellbeing of our people. From the beginning of the outbreak, we took quick and decisive measures and as a result, only a small number of our workforce were infected with COVID-19, with all employees having since fully recovered and returned to work. During the year, we also reached significant safety-related milestones – achieving 2 million man-hours without a Lost Time Injury (“LTI”) across our operations and 12 million man-hours without a LTI at our FPSO development and construction project.


Alongside a commitment to our people, we’ve also supported our local communities who, during 2020, have relied on us more than ever before. From donating food to front-line medical teams in Israel, to working with our NGO and Government partners to secure medical supplies for hospitals and remote communities in Egypt, I’m extremely proud of our collaborative efforts, and the fantastic job we have done in working together in the fight against COVID-19.


As with our focus on the climate and fulfilling our commitment on social responsibility, strong corporate governance is the foundation of our business. Accountability sits at the heart of our approach to corporate governance and this is reflected in our approach to climate change, a critical issue that our Board bears ultimate responsibility for managing. Our target of ensuring that 70% our annual production comes from gas is set by the Board, but beyond this, we have reshaped our entire Board committee structure. During 2020, we created a dedicated Environment, Safety and Social Responsibility Committee to bring a strong strategic focus and healthy challenge to the way we tackle these important issues.


Whilst we are mindful that there is still more work to be done on all fronts, the progress we continue to make underscores our commitment to meet the world’s energy needs in a responsible way. We remain deeply committed to our sustainability goals and ambitions, working to secure a just energy transition that can deliver for all.