Climate Change Data

SierraCol Energy

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:301,283 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:302 ktCO2e/year
Scope 2 Emissions:52 ktCO2e/year
Scope 3 Emissions:8,892.2 ktCO2e/year
Renewable Energy Share:76%
Total Energy Consumption:763,968 MWh/year
Water Consumption:128,687 Megalitres/year
Waste Generated:14,213 tons/year
Carbon Intensity:18.8 kgCO2e/boe

ESG Focus Areas

  • Climate Change & Emissions
  • Water Management
  • Community & Society
  • Human Capital
  • Employee Health & Safety
  • Asset Integrity, Process Safety & Security
  • Corporate Governance & Compliance, Ethics and Transparency
  • Economic Performance

Environmental Achievements

  • 47% reduction in scope 1 and 2 emissions vs 2020 baseline. On track for a 60% reduction in 2024.
  • Replaced 41 MW of crude oil self-generation with energy from the national grid. On track for 57MW replacement by end of 2024.
  • No surface water used in water-stressed areas.
  • Signed 18 conservation agreements with local communities for 5 years, for the protection of 75.6 hectares and rehabilitation of 39 hectares of strategic ecosystems.
  • Established an alliance with a company that uses Waste Electrical and Electronic Equipment.
  • Initiated a project to utilise organic material for composting, achieving a reuse of 67.8 tonnes.
  • Recycled 22 tonnes of material (paper, cardboard, etc.).
  • Assessed new environmental legislation for licensing and reporting, finding no significant impact on operations.
  • Managed 43 environmental licences and permits without material non-compliance issues.

Social Achievements

  • US$4.7 million allocated to social programmes, focusing on infrastructure development, enhancing quality of life, education, and entrepreneurship.
  • 2,498 loans totalling US$3.2 million were disbursed under the microcredit programmes administered by the El Alcaraván Foundation.
  • 1,056 youths engaged in the ‘Tecnoacademia’ program, offering them opportunities for skill development, and hands-on training in basic and applied sciences.
  • 50% of new hires in all selection processes for full-time positions were women, compared to a sector-wide ratio of 27%.
  • Successfully handled 615 queries with an efficiency rate of 98% in their management and resolution.
  • 65.7% of goods and services were purchased from national, regional, and local suppliers and contractors.

Governance Achievements

  • Improved Sustainalytics ESG rating from 27.3 to 19.9.
  • 100% of our operation assessed for corruption risks.
  • No regulatory compliance issues.
  • 97.4% of the employees received training on ABC policies.

Climate Goals & Targets

Long-term Goals:
  • Aspire to carbon neutrality by 2030.
Medium-term Goals:
  • Achieve 60% reduction in scope 1 and 2 emissions by 2024.
  • Replace 57MW of crude oil self-generation with energy from the national grid by end of 2024.
  • Eliminate routine gas flaring by 2025.
Short-term Goals:
  • Reduce conventional waste to disposal by 25% by 2024.
  • Establish 30 conservation agreements with local communities by 2024.
  • 100% of construction activities with produced water recirculation by 2025.
  • 100% firefighting test with recirculated produced water by 2025.

Environmental Challenges

  • Social challenges due to community dynamics and socio-political changes in the regions.
  • Concerns about environmental performance and demands from investors and stakeholders concerning climate change and environmental compliance.
  • Insufficient support for policies promoting low carbon alternatives, strong market competition, or high costs associated to emerging technologies such as carbon capture and storage (CCS).
  • Decreasing oil demand in line with global emission reduction targets.
  • Security challenges in the region.
Mitigation Strategies
  • Continuous monitoring through a real-time alert system and engaging in purposeful dialogue with the community and local authorities.
  • Implementing multiple alternatives to reduce GHG emissions and improve business resilience.
  • Implementing low-carbon technologies and energy transition, evaluating carbon credits alternatives.
  • Enhancing business resilience through regulatory compliance and cost-effective mitigation projects.
  • Comprehensive risk analysis and strategic planning, working with local law enforcement to address operational risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • ESG principles incorporated into supplier selection criteria.
  • Emphasis on environmental, labour, and occupational health and safety standards.

Climate-Related Risks & Opportunities

Physical Risks
  • Floodings
  • Droughts
  • Wildfires
Transition Risks
  • Regulatory compliance in response to climate change
  • Implementation of low-carbon technologies and energy transition
  • Oil and gas demand
  • Concerns about environmental performance
Opportunities
  • Development of energy-efficient products
  • Gas-to-liquid and gas based generation projects
  • Implementation of OGI technology for precise quantification of fugitive emissions

Reporting Standards

Frameworks Used: SASB, TCFD, TNFD, IPIECA, GRI

Certifications: ISO 14001, ISO 45001, ISO 28001

Third-party Assurance: PricewaterhouseCoopers S.A.S.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Award from the ACP for the ALMA gender initiative.