BKV Corporation
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:1.62 million MTCO2e/year (Scope 1 & 2)
Scope 1 Emissions:1.62 million MTCO2e/year
Scope 2 Emissions:4,701 tonnes CO2e/year
Scope 3 Emissions:11 million MTCO2e/year (estimated)
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:0.0309 million cubic meters/year (Barnett freshwater), 0.390 million cubic meters/year (NEPA freshwater)
Waste Generated:633 tons/year (non-hazardous solids), 0 tons/year (hazardous solids)
Carbon Intensity:35.8 tonnes CO2e/thousand BOE (Scopes 1 & 2)
ESG Focus Areas
- Climate Change
- Greenhouse Gas Emissions
- Air Quality
- Water Management
- Energy Management
- Hazardous Waste
- Spill Prevention
- Ecological & Biodiversity Impacts
- Community Relations
- Employee Engagement
- Diversity, Equity & Inclusion
- Employee Development
- Landowner Relations
- Human Rights
- Board Diversity
- Board Structure
- Executive Compensation
- Supplier Engagement
- Asset Integrity
- Cybersecurity & Data Privacy
- Business Ethics
- Government Relations
Environmental Achievements
- Reduced calculated CO2e emissions by 69 percent on the Plushanski pad in NEPA through asset consolidation and other improvements.
- Achieved a 44 percent reduction in emission events on the Plushanski pad compared to pre-retrofit levels.
- Received Project Canary TrustWell Gold Certification in 2021 across NEPA operations.
- Converted over 1,500 pneumatic devices at their sites, anticipating elimination of approximately 1,000,000 MTCO2e from Scope 1 emissions by the end of 2023.
Social Achievements
- Zero recordable injuries for employees and contractors in 2019, 2020, and 2021.
- Received one of the highest safety scores among peers in an ISN survey.
- Launched a confidential ethics and compliance hotline.
- Implemented a new Code of Conduct, updated employee policies, and refreshed the Employee Handbook.
- Invested $105,000 in local non-profits in Denver, Barnett, and NEPA.
Governance Achievements
- Established an ESG Working team and a Risk Management Committee.
- Tied ESG-related initiatives to executive compensation.
- Implemented a robust enterprise risk management process.
- Developed a company-wide Code of Conduct.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Offset 100 percent of current measured Scope 3 emissions as a gas producer by 2030
Short-term Goals:
- Net-zero emissions across Scopes 1 and 2 by 2025
Environmental Challenges
- Supply chain disruptions due to extreme weather events (Winter Storm Uri)
- Managing climate-related transition risks (policy and legal changes, emerging technologies, market shifts, reputational risks)
- Managing climate-related physical risks (acute and chronic impacts of extreme weather)
- Scope 3 emissions
Mitigation Strategies
- Winterization of operations
- Investment in cloud-based IT systems for enhanced resilience
- Production of Responsibly Sourced Gas (RSG) to command premium prices
- Development of carbon capture and storage (CCS)/CCUS projects
- Implementation of a four-tiered emissions monitoring ecosystem (LDAR, AI Dash/GHGSat, fixed-wing flyovers, continuous monitoring)
- Asset consolidation and modernization (Pad of the Future program)
- Pneumatic conversion to compressed air
- Electrification of pads and vehicle fleet
- Proactive engagement with landowners and communities
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Local Procurement Policy
- Vendor Code of Conduct
- ISN for contractor vetting
Climate-Related Risks & Opportunities
Physical Risks
- Increased severity of storms, droughts, and flooding
Transition Risks
- Stringent regulations
- Increased investment in renewable energy technologies
- Market supply and demand fluctuations
- Reputational risks
Opportunities
- Premium pricing for RSG and net-zero green gas
- Competitive advantage through lower emissions
- Enhanced reputation
- Strategic positioning for LNG exports
Reporting Standards
Frameworks Used: GRI, SASB, TCFD
Certifications: Project Canary TrustWell Gold (NEPA)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
BKV's initiatives to reduce emissions, produce RSG, and invest in renewable energy contribute to these goals.
Sustainable Products & Innovation
- Responsibly Sourced Gas (RSG)
Awards & Recognition
- Project Canary TrustWell Gold Certification
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:1.55 Mtpy CO2e (Scope 1 & 2, owned and operated upstream and midstream businesses as of Dec 31, 2023)
Scope 1 Emissions:1.55 Mtpy CO2e (2023)
Scope 2 Emissions:0.02 Mtpy CO2e (2023)
Scope 3 Emissions:18.7 Mtpy CO2e (2023, estimated)
Renewable Energy Share:4.8% (of total energy use, 2023)
Total Energy Consumption:40.3 thousand MWh (net purchased electricity, 2023)
Water Consumption:1.3525 million cubic meters (total freshwater, Barnett and NEPA, 2023)
Waste Generated:14,028 tons (non-hazardous total solids, 2023); 1,171 tons (hazardous total solids, 2023)
Carbon Intensity:Not disclosed
ESG Focus Areas
- Greenhouse Gas Emissions
- Climate Change
- Employee Health and Safety
- Community Relations and Engagement
- Emergency Preparedness and Response
- Capital Expenditures on ESG-related initiatives
Environmental Achievements
- Commenced commercial sequestration of CO2 at BKV’s first CCUS project, Barnett Zero.
- Reduced overall GHG emissions by over 38% compared to 2021 baseline year emissions.
- Completed implementation of elements of our POTF program on approximately 3,200 wells, achieving a reduction in estimated annual GHG emissions of approximately 520,000 metric tons per year of CO2e.
- Approximately 70% of NEPA gas and 45% of Barnett gas received “Gold” ratings from Project Canary Low Methane Verified Attribute.
Social Achievements
- Redesigned Safety Committee program to be representative of and driven by frontline workers.
- Maintained workforce TRIR below 0.5 for the third consecutive year with zero major incidents.
- Achieved 100% compliance with EHSR training among employees.
- Expanded mentorship program.
- Invested $170,000 in local nonprofits.
- Launched a grant program for local first responders.
Governance Achievements
- Integrated ESG program into corporate governance structure.
- Board of Directors provides regular oversight of ESG performance.
- Executive compensation linked to ESG goals.
Climate Goals & Targets
Long-term Goals:
- Net zero Scope 1, 2 and 3 emissions from owned and operated upstream and natural gas midstream businesses by the late 2030s.
Medium-term Goals:
- Net zero Scope 1 and 2 emissions from owned and operated upstream and natural gas midstream businesses by the early 2030s.
Short-term Goals:
- Not disclosed
Environmental Challenges
- Global downturn in natural gas prices impacting operations and budgets.
- Expansion of emissions footprint due to Exxon Barnett Acquisition.
- Logistical hurdles in implementing Pad of the Future program in urban-adjacent areas.
Mitigation Strategies
- Reassessment of timeline targets for emissions goals.
- Continued investment in POTF program ($4 million in 2023).
- Investment of over $50 million in CAPEX in CCUS business.
- Exploration of alternative power sources (compressed liquid nitrogen, solar) for Pad of the Future.
- Implementation of GPU Heat Trace Optimization project in NEPA.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Prioritization of local suppliers.
- Contractor engagement program with performance-based evaluations and safety requirements.
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Growth of CCUS business
Reporting Standards
Frameworks Used: SASB, GRI, TCFD
Certifications: ISO 14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Responsibly Sourced Gas (RSG)
- Carbon Sequestered Gas (CSG)
Awards & Recognition
- Not disclosed