Seadrill Limited
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:615,116 tCO2e/year
Scope 1 Emissions:599,885 tCO2e/year
Scope 2 Emissions:265 tCO2e/year
Scope 3 Emissions:14,966 tCO2e/year
Renewable Energy Share:Not applicable
Waste Generated:3,655 tons/year
Carbon Intensity:31,456 tonnes CO2e per contracted rig year in 2021
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced GHG emissions by approximately 33% between 2019 and 2021 (primarily due to reduced activity).
- Achieved a CDP rating of 'B', maintaining its position as a leader in CDP rankings for offshore drilling contractors.
- 9% reduction in fuel consumption on a harsh environment semi-submersible through energy efficiency management.
- Developed the first methanol injection system designed for an offshore drilling rig, predicted to reduce CO2 emissions by 10-15% and NOx emissions by 30-80%.
Social Achievements
- Launched the BeWell campaign to raise awareness of and support common wellbeing concerns, including mental health.
- Developed a mental health program in collaboration with the charity Mind.
- Launched the Fuel Right program to improve the health and wellbeing of offshore personnel through healthy eating initiatives.
- Expanded Medfit program to include vaccination against preventable illnesses and a personalized mental health review.
Governance Achievements
- Formed a Sustainability Taskforce to coordinate the development and execution of ESG initiatives.
- Completed a Climate Risk Review.
- Released the Compliance Charter, outlining accountabilities and responsibilities for Compliance and Ethics.
- Implemented the Seadrill Compliance Portal, a one-stop compliance platform.
Climate Goals & Targets
Long-term Goals:
- Decarbonize operations; path to net zero emissions.
Medium-term Goals:
- Achieve year-on-year reduction in carbon emissions.
Short-term Goals:
- Reduce CO2 emissions through implementing energy efficiency measures and new technologies.
Environmental Challenges
- Reduced activity levels impacting overall GHG emissions.
- Extreme weather events affecting operations and increasing fuel use.
- The need to decarbonize the offshore drilling industry.
- COVID-19 pandemic impacting operations and employee wellbeing.
Mitigation Strategies
- Investing in energy-efficient and low-carbon technologies (methanol injection, hybrid power, Closed Bus Ties).
- Implementing energy efficiency management plans.
- Utilizing digitization and real-time monitoring of operating assets.
- Developing science-based targets to improve energy efficiency.
- Implementing robust systems for vaccination, ventilation, quarantine, and COVID-19 testing.
- Sharing best practices and awareness across the industry.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct aligned with ETI and ILO Conventions; business partner review to assess ethical, social, and environmental risks; anti-bribery terms in contracts.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Spills and rig damage
- Operational disruption
- Health and safety impacts
- Infrastructure adaptations
Transition Risks
- Increasing regulations
- Carbon taxes and tariffs
- Low-carbon regulatory requirements
- Reduced demand for oil and gas
- Shifting customer and lender requirements
Opportunities
- Becoming a low/no carbon operator
- Access to green debt
- Provision of green energy services
- New green activity markets
- Enhanced reputation
Reporting Standards
Frameworks Used: SASB Oil and Gas – Services Standard (2018), TCFD, GRI Materiality Standard GRI 3 (2021)
Sustainable Products & Innovation
- Methanol injection system
- Hybrid power technology
- Closed Bus Ties technology
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:856,643.74 tCO2e/year
Scope 1 Emissions:586,063.19 tCO2e/year
Scope 2 Emissions:405.63 tCO2e/year
Scope 3 Emissions:270,174.92 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:2,229,905.95 MWh/year
Water Consumption:Not disclosed
Waste Generated:3,104 mtonnes/year
Carbon Intensity:30,736.99 Tonnes CO2e per contracted rig year in 2022
ESG Focus Areas
- Environment
- Safe Operations
- Social
- Governance
Environmental Achievements
- Achieved a 'B' rating in the Carbon Disclosure Project (CDP) in 2022, the highest ranking among offshore drilling contractors.
- 9% reduction in fuel consumption on a harsh environment semi-submersible through energy efficiency measures.
- Installation of advanced filtration units on the West Elara, significantly reducing fuel wastage.
- Trialing hydrogen methanol injection technology on the West Saturn to reduce CO2e and NOx emissions.
- Implementation of Closed Bus Ties technology to enhance efficiency and reduce energy consumption.
Social Achievements
- Launched Start Safe and Finish Strong safety program, raising awareness of safety issues.
- Established a state-of-the-art training facility with a high-fidelity drilling simulation system.
- Implementation of Starlink onboard rigs to enhance connectivity and improve recruitment/retention.
- Donation of over 300,000 NOK (US$25,000) from the West Hercules crew welfare fund to support war relief efforts in Ukraine.
Governance Achievements
- Received ISO 9001 certification for Quality Management System.
- Established a Compliance Charter with clear accountabilities and responsibilities for Compliance and Ethics.
- Implemented the Seadrill Compliance Portal to streamline compliance processes.
- Published Human Rights Due Diligence Report.
Climate Goals & Targets
Long-term Goals:
- Development of zero-carbon fuels
- New/innovative emission reduction initiatives
- Develop the “Rig of the Future”
Medium-term Goals:
- Energy Efficiency Management Plans
- Data monitoring systems
- Closed Bus Ties
- Methanol Injection Systems
Short-term Goals:
- Fuel consumption tracking
- Energy Efficiency Management Plans
- Data monitoring systems
- Technology pilot programs
Environmental Challenges
- Reducing greenhouse gas emissions across operations.
- Maintaining a high safety record in a high-risk industry.
- Ensuring a diverse and inclusive workplace.
- Managing climate-related risks (physical, regulatory, market, technology, and reputational).
Mitigation Strategies
- Implementing robust energy efficiency plans, embracing energy-efficient and low-carbon technologies, and investing in digitization and analytics.
- Implementing the Start Safe and Finish Strong safety program, conducting thorough safety investigations, and using leading indicators to assess preventive measures.
- Promoting diversity and inclusion through hiring, promotion, and recognition practices based on capabilities and qualifications.
- Conducting a Climate Risk Review, integrating climate-related risks into the enterprise risk management system, and developing work programs to address specific risks and opportunities.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier Code of Conduct aligned with ETI and ILO Conventions
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Spill events
- Damage to operations
- Health and safety impacts
Transition Risks
- Regulatory changes
- Carbon taxes
- Low-carbon requirements
- Reduced demand for oil and gas
- Market shifts
- Customer ESG requirements
- Lender ESG standards
Opportunities
- Becoming a low/no carbon operator
- Access to green debt
- New green activity markets
- Improved operational performance
- Enhanced reputation
- Government funding
- Technology opportunities for emissions reduction
Reporting Standards
Frameworks Used: SASB, TCFD, GRI
Certifications: ISO 9001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Reducing GHG emissions, investing in energy-efficient technologies, supporting community projects related to clean energy.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed