Aris Water Solutions, Inc.
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:109,635.20 tCO2e/year
Scope 1 Emissions:32,219.27 tCO2e/year
Scope 2 Emissions:77,415.92 tCO2e/year
Renewable Energy Share:15%
Total Energy Consumption:991,739.61 GJ/year
Carbon Intensity:478.23 tCO2/Revenue $M
ESG Focus Areas
- Climate Change
- Emissions
- Energy
- Water
- Health & Safety
- Diversity & Inclusion
- Community Involvement
- Board Composition
- Executive Leadership & Management
- Risk Management
- Business Ethics
- Supply Chain
- Cybersecurity & Data Privacy
- Public Advocacy
- Stakeholder Engagement
Environmental Achievements
- 179% increase in volume of produced water recycled
- 36% decrease in methane emitted directly from operations
- 24% decrease in energy intensity
- 13,680 metric tons decrease in Scope 1 emissions
- 63% of Water Sold in 2021 was Recycled
- Spill intensity decreased by 71%
Social Achievements
- 50% decrease in employee turnover
- 50% increase in average training hours per employee
- 75% of workforce consists of women and/or minorities
- 18% of management is women, 34% are minorities
Governance Achievements
- Successfully completed IPO
- Issued first Sustainability-Linked Bond in the industry
- Fully independent Audit, Compensation and Nominating and ESG committees
- 25% of the Board is made up of women
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Recycle 98% of all barrels of water sold to customers by 2030
Short-term Goals:
- Recycle 85% of all barrels of water sold to customers by 2025
Environmental Challenges
- Water stress in arid regions
- Need for additional clean water sources
- Limited regulatory framework for beneficial reuse of produced water
- High costs associated with monitoring water quality for beneficial reuse
- Potential for elevated prices for field gas generated power due to weather events
Mitigation Strategies
- Investing in leading technology solutions and collaborating with research entities
- Developing cost-effective treatments to transform produced water into clean water
- Developing surrogate methodologies for characterizing and monitoring terminal uses of treated produced water
- Implementing a cross-functional response plan for crisis management
- Reviewing power agreements to minimize the financial impact of temporarily elevated prices
Supply Chain Management
Responsible Procurement
- Upholding laws and regulations
- Endorsing standards of economic, social, ethical and environmental practices
- Identifying and moderating risks
- Communicating ESG standards to stakeholders
Climate-Related Risks & Opportunities
Physical Risks
- Winter Storm Uri
Opportunities
- Beneficial reuse of produced water
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UN SDGs, EIC
Certifications: ISO 14001, ISO 45001
Third-party Assurance: ISS ESG (for Sustainability-Linked Bond KPI)
Sustainable Products & Innovation
- Clean water production technologies
- Low Temperature Thermal Distillation Technology
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:147,674 tCO2e/year
Scope 1 Emissions:25,165 tCO2e/year
Scope 2 Emissions:122,509 tCO2e/year
Renewable Energy Share:23%
Total Energy Consumption:1,105,213 MWh/year
Water Consumption:67,789,000 m3/year
ESG Focus Areas
- Climate Change
- Emissions
- Energy
- Water Sustainability
- Supply Chain
- Health & Safety
- Diversity & Inclusion
- Community Involvement
- Board Composition
- Executive Leadership & Management
- Business Ethics
- Cybersecurity & Data Privacy
- Public Advocacy
- Stakeholder Engagement
Environmental Achievements
- Recycled over 118 million barrels (12 billion gallons) of produced water since 2019, helping preserve groundwater aquifers.
- Reduced Scope 1 GHG emissions intensity by 13% compared to 2022 and by 50% since 2021.
- Increased the proportion of renewable energy use by 14%.
Social Achievements
- Reduced employee Total Recordable Incident Rate (TRIR) by approximately 9% year-over-year and achieved a 100% reduction in Days Away Restricted or Transferred (DART) incidents.
- Workforce composed of more than 73% women and/or minorities.
- Reduced Preventable Vehicle Incident Rate (PVIR) by 30% in 2023.
Governance Achievements
- Fully independent Audit, Compensation, and Nominating & ESG committees.
- Board oversight of enterprise risk monitoring and mitigation.
- Regular executive sessions of independent directors at Board and committee meetings.
Climate Goals & Targets
Environmental Challenges
- Beneficial reuse of produced water in Texas and New Mexico faces challenges due to existing regulatory framework limitations and the high costs and uncertainties associated with monitoring water quality for health and environmental protection.
- Managing evolving cybersecurity threats.
Mitigation Strategies
- Working with industry leaders (ConocoPhillips, Chevron, ExxonMobil) through a Joint Industry Partnership to pilot technologies for safely and economically returning excess water to the hydrologic cycle.
- Exploring opportunities to extract valuable minerals from produced water.
- Implementing a comprehensive cybersecurity program aligned with the NIST Cybersecurity Framework.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Global Reporting Initiative (GRI) Standards, Sustainability Accounting Standards Board (SASB) – Value Reporting Foundation’s SASB midstream framework metrics, Energy Infrastructure Council (EIC)/ GPA Midstream (GPA) ESG Reporting Framework (Version 2.0)
Certifications: ISO 14001, ISO 45001