Northern Oil and Gas, Inc.
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:12,988,635 tCO2e
Scope 1 Emissions:8.3 tCO2e
Scope 2 Emissions:180.7 tCO2e
Scope 3 Emissions:12,988,635 tCO2e
Renewable Energy Share:0%
ESG Focus Areas
- Climate Change
- Diversity
- Governance
- Community Impact
- Human Rights
Environmental Achievements
- Completed a full Scope 1 and Scope 2 emissions inventory for 2022.
- Conducted a Scope 3 screening of 2022 activities to understand emissions impact throughout the value chain.
- Implemented environmental initiatives at headquarters, including LED lighting and recycling stations.
Social Achievements
- Maintained very low employee turnover in the past three years.
- Launched the Analyst Development Program (ADP) in 2022.
- Charitable giving donations totaled over $87,000 in 2022.
Governance Achievements
- Implemented mandatory business ethics training for employees in 2023.
- Linked a discretionary portion of the annual cash bonus program for several executive team members to ESG goals in 2023.
- Adopted a human rights statement in 2023.
Climate Goals & Targets
Short-term Goals:
- 75% reduction in Scope 1 and Scope 2 net emissions by 2025 from the 2022 baseline year.
Environmental Challenges
- A majority of wellhead sites are exposed to physical climate-related risks (cold wave, tornado, wildfire).
- The most relevant transition risk is legal hurdles to exploration and production activities, increasing associated costs.
- Indirect environmental impacts are much greater than direct impacts due to the company's non-operated business model.
Mitigation Strategies
- Conducted a climate risk assessment to evaluate climate risk exposure specific to well facilities.
- Developed an Operator Engagement Survey to better understand operators’ ESG programs and commitments.
- Developed an Inventory Management Plan to provide a consistent framework for calculating GHG emissions.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Cold wave
- Tornado
- Heat wave
- Wildfire
Transition Risks
- Changing legislation
- Domestic activism
- Stranded asset risks
- Methane regulations
- Carbon pricing programs
- Potential litigation
- Technological disruptions
- Market shifts
- Reputational risks
Opportunities
- Carbon capture via geologic sequestration
Reporting Standards
Frameworks Used: SASB, GRI, TCFD