Serica Energy plc
Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Climate Action
- Responsible Consumption and Production
- Life Below Water
- No Poverty, Zero Hunger
- Gender Equality & Reduced Inequalities
- Decent Work and Economic Growth
- Quality Education
- Innovation & Infrastructure
- Peace, Justice and Strong Institutions
- Partnerships to Achieve Goals
Environmental Achievements
- Achieved a carbon intensity figure of 18 kt/million barrels in 2019, below the North Sea average of 21 kt/million barrels in 2018.
- 55% of Serica's produced waste was recycled in 2019.
- Average OiW discharge concentrations of <11 mg/l achieved during an extended period of maintenance on the Bruce PWRI system.
Social Achievements
- Raised over £7,500 for CLAN Cancer Support.
- Donated £10,000 to the Trussell Trust for food banks during the COVID-19 pandemic.
- Improved maternity, paternity, adoption and special leave policies.
Governance Achievements
- Implemented a Code of Business Conduct.
- Published a Modern Slavery Act 2015 statement.
- Established anti-bribery & corruption policy and training.
Climate Goals & Targets
- Contribute to a net zero carbon North Sea basin by 2035.
- Audit energy usage offshore and target innovations to reduce consumption.
- Assess the potential use of BKR infrastructure for carbon transportation and storage.
- Reduce landfill volumes significantly by partnering with waste management contractors.
Environmental Challenges
- Reducing GHG emissions from fuel gas combustion, diesel, and flaring.
- Managing physical and regulatory risks associated with climate change.
- Gender imbalance in the workforce.
Mitigation Strategies
- Actively monitoring industry developments and supporting the industry's Vision 2035 Net Zero initiative.
- Aligning with internationally recognised reporting initiatives.
- Implementing an Operating Management System (OMS) for compliance.
- Developing a strategy to enhance efficiency and reduce emissions.
- Improving recruitment strategies to increase female representation.
Supply Chain Management
Responsible Procurement
- Terms and Conditions covering Safe Performance at Work, Compliance with Safety Regulations, Environmental Considerations, the Modern Slavery Act, Business Ethics, Anti Bribery and Corruption.
- Supplier Pre-Qualification Questionnaire for moderate risk contracts.
- Pre-contract and post-contract award assurance for high-risk contracts.
Climate-Related Risks & Opportunities
Physical Risks
- Decrease in value and demand for products as the global economy decarbonises.
Transition Risks
- Increased cost of permitting emissions.
- Drive to reduce GHG emissions at various levels.
Opportunities
- Potential for CO2 storage in Bruce and Rhum fields.
Reporting Standards
Frameworks Used: GRI Core Option, UN Sustainable Development Goals, SASB: Oil and Gas Exploration and Production Standard
UN Sustainable Development Goals
- SDG 1
- SDG 4
- SDG 5
- SDG 8
- SDG 9
- SDG 10
- SDG 12
- SDG 13
- SDG 14
- SDG 16
- SDG 17
Serica's activities are framed within the context of the UN Sustainable Development Goals.
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Climate Action
- Responsible Consumption and Production
- Life Below Water
- No Poverty and Zero Hunger
- Gender Equality and Reduced Inequalities
- Good Health and Wellbeing
- Decent Work and Economic Growth
- Quality Education
- Peace, Justice and Strong Institutions
Environmental Achievements
- 45% reduction in gas flaring
- 15% lower carbon emissions
- First company to sign up to Zero Waste to Landfill initiative
- Supply chain initiatives to reduce emissions
- 60% reduction in oil discharged with produced water
Social Achievements
- High safety performance - Zero Recordable Incidents (TRIF)
- Consulted with staff and changed offshore shift pattern (from 21 to 14 days)
- Publication of our D&I roadmap and calendar
- Donations to Abernecessities, CFine & CLAN
- Fatigue & Mental Health First Aider programmes extended
Governance Achievements
- Increasing transparency with GRI, SASB and preparing to align to TCFD reporting
- Adding ESG targets to staff bonus KPIs for 2021
- Signed UN Global Compact
- Formalised ESG communications in board meetings
Climate Goals & Targets
- Reduce general waste produced to under 200 tonnes
- Increase percentage of recycled waste to >65%
- Achieve Carbon Intensity of less than 17 kg of CO2 per boe
Environmental Challenges
- COVID-19 pandemic and commodity price volatility
- Maintaining safety and wellbeing during pandemic
- Reducing Scope 3 emissions
Mitigation Strategies
- Adapting working patterns, remote working, and safety protocols
- Implementing pre-mobilisation COVID-19 testing
- Initiatives to reduce fuel consumption in logistics and supply chain
- Zero Waste to Landfill policy
Supply Chain Management
Responsible Procurement
- ESG requirements integrated into procurement process
- 94% of expenditure with UK suppliers
Climate-Related Risks & Opportunities
Transition Risks
- Changes in climate regulation
Reporting Standards
Frameworks Used: GRI, SASB, TCFD (in progress), UN Global Compact
Third-party Assurance: EY (Annual Report only)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 8 (Decent Work and Economic Growth)
- Goal 13 (Climate Action)
Initiatives contribute to these goals through emissions reduction, responsible resource management, and community engagement
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
- Health and Safety
- Waste Management
- Diversity & Inclusion
- Community Engagement
- Governance
Environmental Achievements
- 53% reduction in flaring volumes from 2019
- 14% reduction in Bruce Scope 1 emissions from 2019
- 88% reduction in waste sent to landfill since 2019
- Carbon Intensity lower than North Sea Average
Social Achievements
- 92% participation in Safety Observation Programme
- Strengthened recruitment processes to be more inclusive
- Supported good causes across the UK
- Completed over 4,600 hours of training
- Launched wellbeing webinars and health awareness campaigns
Governance Achievements
- Improved alignment with TCFD disclosures
- Refreshed Code of Business Conduct
- Published a new whistle-blowing policy
- Supported the Energy Services Agreement
- Introduced ESG-related KPIs linked to Senior Management and Directors' remuneration
Climate Goals & Targets
- Net zero emissions by 2050
- Achieve zero routine flaring by 2030
- Daily flare (CAT A) below 9.5 tonnes/day, total flare below 5,000 tonnes
- Scope 1 CO2 emissions below 210,000 tonnes
- 60% waste recycled, total general waste below 90 tonnes
- Develop a Methane Action Plan and establish a baseline
Environmental Challenges
- Increased production rates requiring higher gas compression and fuel gas usage
- Additional production from a third-party facility causing higher gas export compression
- Equipment failure of the water injection pump and blockage in water disposal well
- COVID-19 pandemic and associated restrictions
Mitigation Strategies
- Implemented digital solutions to track and interpret emissions performance
- Supply Chain introduced vessel sharing and alternative fueling stations
- Installed and commissioned de-oiler equipment
- Developed and implemented comprehensive COVID Management and Strategy
- Accelerated invoice payments to assist suppliers with cashflow
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Energy Services Agreement
- LOGIC terms and conditions
- Accelerated invoice payments
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UNGC
Certifications: Cyber Essentials
Third-party Assurance: EY (Annual Report and Accounts only)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Initiatives contribute to reducing emissions and promoting sustainable energy practices.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- SPE Offshore Achievement Net Zero Award
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Health and Safety
- Diversity and Inclusion
- Community Engagement
- Governance
Environmental Achievements
- Carbon intensity on Bruce, 16.4 kgCO2/boe, lowest since taking over Operatorship
- Reduced routine daily flaring
- Set emissions targets - 50% by 2030, Net Zero by 2050
- Developed and released Emissions Reduction Action Plan
- Developed a Methane Action Plan and committed to sign up to OGMP 2.0
- Reduced waste-to-landfill by 98% since 2018
- Reduced plastic water bottle usage by 2400 bottles
Social Achievements
- Awarded Young Person Guarantee Employer status
- Increased organisational focus on Process Safety
- Raised awareness of D&I issues
- Awarded Silver award in OEUK Supply Chain Principles
- Completed over 11,600 training hours
- Donated £73,000 to charitable causes across the UK
- Implemented Menopause Policy
Governance Achievements
- Established a dedicated Board-level Sustainability Committee
- Enhanced alignment to TCFD recommendations
- Developed and rolled out new Code of Conduct training
- Added ESG Policy and Strategy to Operations Management System
Climate Goals & Targets
- Achieve Net Zero emissions by 2050
- Achieve 50% emissions reduction by 2030
- Reduce Scope 1 emissions to below 200,000 tonnes
- Reduce total flared gas to under 5,000 tonnes
Environmental Challenges
- Abnormal shutdown and startup operations associated with managing the Rhum Field exceeding flaring targets
- Delay in reinstating water injection system resulting in oil in water discharges to sea
- Increase in Scope 2 emissions due to increased office usage post-Covid restrictions
- Maintaining strict pre-mobilisation testing and isolation procedures for offshore workers during the first half of 2022
Mitigation Strategies
- Increased visibility of daily flared volumes, cultural change, and improved operating practices to reduce flaring
- First 2023 well intervention campaign to reinstate water injection well
- Implementing blended work policy to reduce commuting emissions
- Measured relaxation of Covid-19 controls and removal of pre-mobilisation testing
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Contracts and Procurement Policy
- Use of SEQual for supplier pre-qualification
- 93% spend on UK based suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Storms
- Exceptional wave conditions
Transition Risks
- Reduced demand for oil and gas
- Increased costs and taxes
- Restricted access to finance
- ESG considerations restricting acquisitions
- Negative industry reputation
Opportunities
- Strengthened stakeholder relationships
- Acquisition of divested oil and gas assets
- Incentives for investing in energy efficiency technology
- Collaboration on innovation solutions
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UNGC
Certifications: Cyber Essentials
Third-party Assurance: RISC (UK) Ltd (Limited Assurance on emissions)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Initiatives contribute to these goals through emissions reduction, energy efficiency improvements, and support for renewable energy technologies.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Silver Supply Chain Principles award (OEUK)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
- Safety
- Diversity & Inclusion
- Supply Chain Sustainability
- Community Engagement
- Governance
Environmental Achievements
- Reduced Scope 1 CO2 emissions by 18% compared to 2022 (179,447 tonnes vs 218,567 tonnes)
- Reduced methane emissions by 33% compared to 2022
- Reduced total flaring volumes by over 50% compared to 2018 (4,708 tonnes vs 10,309 tonnes)
- Reduced oil discharged overboard by 73% compared to 2022 (0.24 tonnes vs 0.88 tonnes)
- 99% of waste avoided landfill
Social Achievements
- Launched Process Safety Improvement Plan
- Completed well intervention and abandonment work scopes with no recordable injuries
- Increased female representation on the Board to 27%
- Awarded Armed Forces Covenant Silver Award
- Donated over £117,000 to causes across the UK
Governance Achievements
- Established a dedicated Sustainability Committee
- Welcomed five new Board members, increasing the number of independent non-executive directors
- Integrated Tailwind Energy into the organization
Climate Goals & Targets
- Achieve net zero emissions by 2050 (North Sea Transition Deal target)
- Reduce CO2 emissions by 25% by 2027 (North Sea Transition Deal target)
- Achieve zero routine flaring by 2030 (World Bank target)
- Reduce Bruce Scope 1 carbon intensity to 15.5 kg CO2/boe by 2024
- Reduce general waste and dry mixed recyclables to under 90 tonnes by 2024
- 90% or above of total waste to be reused, recycled or sent to waste-to-energy by 2024
Environmental Challenges
- Supply chain disruptions due to extreme weather
- Meeting ambitious emissions reduction targets
- Maintaining a diverse workforce in a competitive market
- Managing risks associated with the energy transition
Mitigation Strategies
- Developed alternative sourcing strategies
- Implemented emissions reduction action plan
- Enhanced recruitment practices to attract diverse candidates
- Engaged with industry and regulatory forums to collaborate on solutions
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Code of conduct
- Supplier sustainability requirements
- SEQual pre-qualification
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Supply chain disruptions
Transition Risks
- Regulatory changes
- Market shifts
- Reduced demand for fossil fuels
Opportunities
- Investment in clean technology
- Acquisition of divested oil and gas assets
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UNGC
Certifications: Null
Third-party Assurance: RISC (UK) Ltd (Limited Assurance)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Initiatives contribute to reducing emissions and promoting sustainable energy practices
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- OEUK Working as One Gold Award
- Armed Forces Covenant Silver Award