Stabroek Block co-venturer, Hess Corporation, disclosed yesterday that it has earned a place on the prestigious Dow Jones Sustainability Index (DJSI) North America for the 12th consecutive year. In fact, the company pointed out that it is one of only three oil and gas companies included in the North American Index.
The DJSI, which recognizes public companies for outstanding performance across economic, environmental and social factors, is used as a reference by shareholders who consider sustainability when making investment decisions. Only the most sustainable companies in each industry are considered each year for index membership.
In addition, Hess said the Transition Pathway Initiative (TPI) recently published its 2021 report on the progress of more than 190 energy companies in transitioning to a low carbon economy and supporting efforts to mitigate climate change in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. In TPI’s 2021 report, Hess said it is one of only three U.S. oil and gas companies to achieve its top Level 4 status, which is the highest level awarded to companies that demonstrably manage climate-related risks and opportunities from a governance, operational and strategic perspective.
“We are honored to be recognized by both the Dow Jones Sustainability Index and the Transition Pathway Initiative for delivering industry leading environmental, social and governance performance and disclosure,” said Alex Sagebien, Vice President, Environment, Health and Safety.
Hess was keen to note as well that its Sustainability Report which is published annually describes its strategy and performance on environmental, social and governance programs and initiatives.
In that document, the company’s Chief Executive Officer (CEO), John Hess said his firm’s longstanding commitment to sustainability supports the company’s purpose to be the world’s most trusted energy partner and guides its strategy and actions to create business and societal value.
During this unprecedented era of the COVID-19 pandemic, Hess noted that the world is faced with the significant challenge of addressing climate change. In this regard, he said the company’s strategy aligns with the energy transition needed to achieve the International Energy Agency’s (IEA’s) Sustainable Development Scenario, which assumes all the pledges of the Paris Agreement are met and oil and gas will still be 46% of the global energy mix in 2040.
The Hess boss said, “We support the aim of the Paris Agreement and also a global ambition to achieve net zero emissions by 2050. We support a carbon price to encourage the investments needed to accelerate decarbonization across all sectors of the economy while keeping energy affordable.”
Expounding further, the CEO noted that Hess’ Board and senior leadership have set aggressive targets for greenhouse gas (GHG) emissions reduction. In 2020, he noted that the company significantly surpassed its five-year targets to reduce Scope 1 and 2 GHG emissions intensity by 25% and flaring intensity by 50% from operated assets. Upon review of the company’s performance, it was found that Hess reduced GHG emissions intensity and flaring intensity by 46% and 59%, respectively, compared to 2014 levels.
Building on this, Hess said his company announced new five-year GHG reduction targets for 2025, which are to reduce operated Scope 1 and 2 GHG emissions intensity by approximately 44% and methane emissions intensity by approximately 52% from 2017 levels. He said these targets are designed to exceed the 22% carbon intensity reduction by 2030 in the IEA’s Sustainable Development Scenario, which is consistent with the Paris Agreement’s less than 2°C ambition.
In addition, Hess noted that his company is investing in technological and scientific advances designed to reduce, capture and store carbon emissions, including groundbreaking work being conducted by the Salk Institute to develop plants with larger root systems that are capable of absorbing and storing potentially billions of tonnes of carbon per year from the atmosphere.
As the Stabroek Block partner continues to execute its strategy, Hess assured that the company will continue to build a sustainable enterprise that makes a positive difference for all stakeholders and the world over.
