Golar LNG Limited
Climate Impact & Sustainability Data (2020, 2021, 2021-01-01 to 2021-03-31, 2022, 2023)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Health, Safety and Security
- Environmental Impact
- Innovation and Transition
- People and Community
- Governance and Business Ethics
Environmental Achievements
- Maintained consistent efficiency and emissions per tonne of LNG produced by Hilli Episeyo at 0.30 tonnes CO2e/tonne LNG (2019: 0.30)
- Delivered a significant improvement in fleet Annual Efficiency Ratio (AER) to 8.71 (2019: 9.95), despite an average speed increase
- Improved fuel mix, with LNG delivering 93% of fuel use in 2020 (2019: 82%)
- Successfully completed a proof-of-concept trial aboard the Golar Igloo, demonstrating the harvesting of over 1.1MW at peak using a hydroelectric turbine in the seawater discharge
Social Achievements
- Maintained high retention rates for seafarers (97%) and office staff (86%)
- Continued cadet program with 76% of cadets still employed, 11 becoming senior officers
- Spent more than $10 million on local purchases in Cameroon
- 87% of the workforce at Porto de Sergipe power plant were locals during the installation phase
Governance Achievements
- No violations of laws or regulations in 2020
- Engaged an independent third party (PwC) to provide assurance over the completeness and accuracy of emissions data
- Board consisted of seven members, five of which were independent directors (29% women)
Climate Goals & Targets
- Developing technically and commercially viable floating application of green and blue technologies, focusing on hydrogen, ammonia and carbon capture
- Deliver a further 25% reduction in emissions intensity by 2030, based on the annual efficiency ratio against 2019 performance
- Achieve a retention rate of 95% for crewing and 90% for office staff
- More than 90% of staff demonstrate living by Golar values
- Reduce total waste (oily and non-oily) by 20% compared to 2019 benchmark
- Achieve zero fatalities and sustain a lost-time injury frequency below 0.80 per million exposure hours
Environmental Challenges
- COVID-19 pandemic causing widespread disruption to supply chains and crew changes
- Piracy attack resulting in the kidnapping of a crew member
- Highly variable energy demands impacting FSRU asset utilization
- Challenges in maintaining emission reduction plans due to COVID-19 related disruptions
Mitigation Strategies
- Implemented new measures to ensure safety of seafarers and staff, including screening, restricted access, and work-from-home options
- Provided financial support to crew members on shore leave
- Implemented remote solutions for maintenance and mandatory ship audits
- Implemented improvements to minimize the risk of piracy recurrence
- Continued to improve data and reporting of environmental impact and emissions
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- Ethics and compliance clauses in contractual agreements
- Risk-based, third-party due diligence
Climate-Related Risks & Opportunities
Physical Risks
- Increased severe weather events
- Increased sea temperatures
- Increased air temperatures
Transition Risks
- Increased environmental regulations
- Government policy changes
- Changing consumer preferences
- Technological advancements
Opportunities
- Energy transition increasing demand for natural gas
- Growth in LNG markets
- Opportunities for growth in floating liquefaction and gas to power projects
- Development of maritime infrastructure to support alternative fuels
- Development of carbon capture services
- Reduced energy usage through efficiency improvements
Reporting Standards
Frameworks Used: GRI, SASB, TCFD
Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001, ISM Code
Third-party Assurance: PricewaterhouseCoopers LLP (PwC)
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 9 (Industry, innovation and infrastructure)
- Goal 13 (Climate action)
LNG as a transition fuel, supporting renewable development and emissions reduction
Sustainable Products & Innovation
- FLNG technology
- Hydroelectric turbine for FSRU seawater discharge
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Greenhouse Gas Emissions
- SOX Emissions
- NOX Emissions
- PM Emissions
- Energy Efficiency
- Waste Management
- Employee Retention
- Workforce Diversity
- Safety
- Marine Incidents
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Not disclosed
Environmental Challenges
- Not disclosed
Mitigation Strategies
- Not disclosed
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: IMO Methodology
Certifications: ISO 14001:2015
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2021-01-01 to 2021-03-31
Environmental Metrics
ESG Focus Areas
- Emissions
Environmental Achievements
- Published comprehensive ESG report including audited emissions data and ambitious performance targets.
Climate Goals & Targets
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Climate Goals & Targets
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Health, Safety and Security
- Environmental Impact
- Innovation and Transition
- People and Communities
- Governance and Business Ethics
Environmental Achievements
- FLNG conversions saved around 63,343 tons of GHG emissions (equivalent to removing over 25,000 cars from the road for a year)
- Achieved a carbon intensity of 0.319 TCO2e/TLNG on FLNG Hilli, below the median intensity of most other operating liquefaction plants
- Reduced total waste (oily and non-oily) by 20% compared to the 2019 benchmark (although this increased in 2023 due to removal of superfluous piping insulation)
- London office entirely powered by renewable energy and recycles a high percentage of waste (averaging around 90%)
Social Achievements
- Achieved a 95.79% retention rate for offshore personnel and 90% for onshore staff
- 90% of employees in Cameroon office and 40% onboard are Cameroonian nationals
- Local spend (excluding salaries) increased 38% to USD 11m in 2023
- Implemented several educational programs in Cameroon, including scholarships and internships
Governance Achievements
- Completed the conversion and re-delivery of its second FLNG, Gimi, without a single lost time incident
- Updated governance policies, including Anti-bribery and Corruption, Code of Conduct, Speak Up, and others
- Conducted a human rights audit in February 2023
- In-house compliance register received a top score from a classification society in November 2023
Climate Goals & Targets
- Not disclosed
- Utilize investment in carbon capture technology in future FLNG units
- Utilize investment in Macaw Energies to displace diesel and LPG
- Achieve zero fatalities and sustain a lost-time injury frequency below 0.80 per million exposure hours
- Maintain a “best in class” safety framework
- Achieve a retention rate of 95% for offshore personnel and 90% for onshore staff
- Ensure more than 90% of staff demonstrate living by the Golar values
- Consistently achieve a benchmark emissions intensity of 0.30 TCO2e/TLNG on FLNG Hilli and Gimi
- Reduce total waste by 20% compared to the 2019 benchmark
- Achieve zero serious environmental events
Environmental Challenges
- Hilli Episeyo did not produce LNG as efficiently as designed due to fluctuations in feed gas supply and unscheduled maintenance
- Golar’s 2023 FLNG Lost Time Injury frequency increased from 2022 levels
- Fluctuations in feed gas supply, its CO2 content, and their implications on the efficiency of operations are outside of Golar's control
- Stigmatization of the LNG industry as part of the fossil fuel sector
- Increased environmental regulations
- Uncertainty in the balance of LNG supply and demand
- Technological advancements leading to market share of low-carbon and renewable energy sources exceeding expectations
- Increased severe weather events
Mitigation Strategies
- Investing in research and development of cleaner technologies
- Implementing a Risk Based Inspection programme (RBI) to reduce unscheduled maintenance
- Proactively investing in the research and development of cleaner technologies
- Implementing actions to reduce the probability of occurrence, reduce the impact, transfer the risk, or accept the risk
- Developing and investing in technologies that further enhance operations and combine environmental and economic benefits (e.g., Macaw Energies)
- Strengthening organizational culture to maintain a common understanding of quality and safety objectives
- Increased due diligence and human rights audit activity
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier Code of Conduct
- Local procurement initiatives
Climate-Related Risks & Opportunities
Physical Risks
- Increased severe weather events
Transition Risks
- Increased environmental regulations
- Technological advancements leading to market share of low-carbon and renewable energy sources exceeding expectations
- Decreased demand for LNG
Opportunities
- Growth in markets for LNG
- Opportunities for growth in floating liquefaction
- Use of new technologies to lower carbon emissions
Reporting Standards
Frameworks Used: SASB, GRI, TCFD
Certifications: ISM, ISO 9001, ISO 14001, ISO 45001, MLC, ISPS, IOPG 510, ISO 27001 (IT department only)
Third-party Assurance: Det Norske Veritas (DNV)
UN Sustainable Development Goals
- SDG 7 (Affordable and Clean Energy)
- SDG 9 (Industry, Innovation and Infrastructure)
- SDG 8 (Decent Work and Economic Growth)
- SDG 13 (Climate Action)
Golar's initiatives contribute to these goals through low-carbon LNG production, community development, and job creation
Sustainable Products & Innovation
- Macaw Energies' F2X technology
- Aqualung's carbon capture membrane technology
Awards & Recognition
- Not disclosed