The CEO's blog 23/05/22

A transformational year and progressing our sustainability journey

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Dear Energizers, 

 

 

 

Today, I am delighted to announce the launch of Energean’s fourth annual Sustainability Report.

 

At Energean, ESG and sustainable development are at the heart of everything we do. As an Eastern Mediterranean and natural gas-focused business, we play a significant role in maintaining industrial development across the region – securing not only energy, but jobs, livelihoods, and prosperity for the people and families where we operate. Our mission is to achieve this in the best possible way, through innovation, improvement, integrity, and holding ourselves to the highest ethical standards in everything we do.

 

 

2021 was a transformational year for Energean, as our business became truly natural gas focused. The transition to natural gas is the right thing for us to do, both for the planet and the communities that host our operations. We believe the production of natural gas is a catalyst for and foundation of a more sustainable energy system. Gas has a crucial role to play in the replacement of more pollutive fuels, such as heavy fuel oil and coal, while providing the necessary flexible foundation for enhanced renewable energy installation. The ability for natural gas to save lives should not be underestimated – the replacement of fuels that emit harmful particulate matter can significantly cut respiratory diseases and avoid unnecessary deaths.

Having been the first E&P company to announce a 2050 net-zero target, we have made immediate, significant and verifiable moves towards achieving this. In 2021, we delivered an 8% year-on-year reduction in our carbon emissions intensity to 18.3kg/CO2/boe and implemented a zero-flaring policy across all of our operating sites. Building on our implementation of green electricity contracts in Israel and Greece in 2020, during 2021 we followed this up with a switch to renewable-sourced electricity in Italy, helping us to achieve a 100% Scope 2 emissions reduction across all our operated sites.

Looking ahead, we see carbon capture and storage (CCS) as an integral part of our long-term pathway to net zero. We are proud to be the only Eastern Mediterranean E&P company in the process of developing a CCS project. In 2021, we moved this project forward by entering the pre-front-end engineering design stage and look forward to pressing ahead with this exciting and innovative initiative.

Whilst this is a Sustainability Report, it is important to understand that ESG is not simply about environmental issues. On the Governance side, we are committed to transparency and positive external and internal engagement. We are both proud of the awards that we have won in this space, and that this report has been externally assured by Ernst & Young Greece for the second consecutive year.

Our commitment to the highest of HSE standards is informed by our commitment to best practice governance and environmental standards. Above all else, safety is and always will be our number one priority, and we are proud to have maintained our excellent safety performance throughout 2021. During this past year, we reached more than 11 million person-hours with no Lost Time Injuries (LTIs) in the building of our FPSO in Singapore; and almost 1 million person-hours with no LTIs across all Energean sites.

A major relevant issue that has become apparent well after this report had been started and after the period on which is reports is energy security. There has rarely been a time in recent history where the issue has been of such urgent importance. Russia’s horrific invasion of Ukraine has created an energy crisis across Europe, which will reshape and redefine the globally interconnected energy market for decades to come. As we face this new and uncertain future, energy security at all levels – national, continental and global – has been thrust up the political agenda. From a sustainability perspective, companies operating across the energy sector have a crucial role in supporting energy security.

For Energean, supporting energy security for our local communities is at the heart of our approach to sustainability. We see the potential for proven and secure domestic natural gas reserves to support domestic and regional energy needs and sustainable development goals, while saving on the inherent emissions cost of transportation, either by pipe or LNG tanker.

Whilst this years’ Sustainability Report represents the significant progress we have made as a business, it also serves as a reminder that we are on a journey and must remain focussed on our central mission – continue to innovate, continue to improve, maintain our integrity, and always hold ourselves to the highest ethical standards in all that we do. I have full confidence in achieving this with the talent we have across our business and look forward to continuing our journey together.

 

Mathios