Month: May 2023

Updated analysis benchmarks the relative emissions intensity and total reported methane, carbon dioxide, and nitrous oxide emissions of more than 300 U.S. oil and gas producers and finds dramatic variations between companies and basins.

May 23, 2023 /3BL Media/ – Ceres and Clean Air Task Force, with analysis from ERM, today released the third annual report, Benchmarking Methane and other GHG Emissions of Oil and Natural Gas Production in the United States, which analyzes the production-based emissions of the largest oil and gas producers in the United States and highlights dramatic variation among producers and basins.

The report provides clear, consistent information that investors, operators, natural gas purchasers, policymakers and regulators can use to compare producers’ performance in an industry where voluntarily reported emissions metrics have historically been inconsistent and non-comparable.

This year’s analysis found that reported methane and greenhouse gas intensity in the oil and gas sector have declined 28% and 30%, respectively, between 2019 and 2021, despite an increase in natural gas and total hydrocarbon production. However, these trends are not consistent across basins or individual companies and can fluctuate year to year.

While overall emissions trended down in this year’s report, the gap between leaders and laggards continues to grow. The report found that natural gas producers in the highest quartile of methane emissions intensity have an average emissions intensity that is nearly 26 times higher than natural gas producers in the lowest quartile of methane emissions intensity.

Emissions intensity varies even between similarly sized operators in the same geographic area, according to the data, largely due to different equipment choices and operational practices. For example, pneumatic controllers were the largest source of reported production-segment methane emissions, making up 65% of the total. Fuel combustion equipment, including engines and heaters, was the largest source of total reported production-segment CO2 emissions, responsible for 65% of all reported CO2 emissions.

The findings can help shareholders differentiate between potential investments, and inform regulators, lawmakers and company executives about the main causes of reported methane emissions, as well as which companies are disproportionately responsible for them.

This edition of the analysis includes charts and data that track annual changes in emissions intensity, and the quantity of methane and other greenhouse gases emitted per unit of production, for each producer from 2015 to 2021. The underlying data suggest that these shifts in intensity can be attributed to a combination of factors including changes in operational practices, federal and state regulations, changes in corporate structure, or the sale of aging, high-emitting assets to firms below the reporting threshold.

“Oil and gas producers are not equals when it comes to methane emissions, and this research makes clear that a company’s climate impact is a direct result of operational and investment decisions within its control,” said Andrew Logan, senior director of oil and gas at Ceres. “While a number of leading companies have brought their methane emissions down since our first report three years ago, the gap between leaders and laggards has actually grown. For the poorest performing operators, high leak rates are a choice. Recent majority votes on methane-related shareholder proposals, including one last month at Coterra, underscore the investor consensus that the companies that will be best prepared for a low-carbon future are the ones taking ambitious steps now to bring emissions down.”

Methane is a primary driver of climate change, and it is more than 80 times more potent than carbon dioxide over its first 20 years in the atmosphere. The Intergovernmental Panel on Climate Change (IPCC) found that methane emissions alone are responsible for about half a degree Celsius of the global warming the planet has experienced to date, and methane levels in the atmosphere continue to rise every year. Due to its relatively short-lived atmospheric impact, reducing methane emissions is the best available tool to slow global warming in the near-term. As the differences in performance in the report released today suggest, there are already solutions readily available that can rapidly reduce methane emissions from the oil and gas sector.

“The findings of this new report demonstrate what is possible when oil and gas producers use well-known, readily available means to reduce their methane and other greenhouse gas emissions,” said Lesley Feldman, Research and Analysis Manager at Clean Air Task Force. “More important still, the report highlights what happens when they don’t—underscoring the need for strong federal and state regulations that can standardize best practices across the industry.”

The report is informed by data submitted to the Environmental Protection Agency (EPA) and does not account for orphan wells or abnormal process conditions (also known as “super-emitters”), which are major contributors to total emissions. Rather, it is designed to provide an analysis of publicly available, equipment-level data that can be applied consistently across companies. Abnormal process conditions comprise a significant quantity of total industry methane emissions, which makes it is important for companies and regulators to aggressively pursue innovation and adoption of technology that will allow their direct measurement and remediation.

The report is a collaborative effort between Ceres and the Clean Air Task Force, with support from the Bank of America Charitable Foundation. The full interactive datasets are available at https://www.sustainability.com. ERM, which provides strategic consulting services to support the transition to a net-zero emissions economy — performed the analysis using data from EPA’s Greenhouse Gas Reporting Program.

“With data spanning back to 2015, this updated analysis provides a valuable dataset to analyze oil and gas producer emissions,” said Robert LaCount, ERM’s Climate Change lead for North America. “With continued focus on GHG emissions, the analysis helps stakeholders and producers benchmark performance and supports decision-making as part of the transition to a decarbonized economy.”

About Ceres

Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies, and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.

About Clean Air Task Force

Clean Air Task Force (CATF) is a global nonprofit organization working to safeguard against the worst impacts of climate change by catalyzing the rapid development and deployment of low-carbon energy and other climate-protecting technologies. With 25 years of internationally recognized expertise on climate policy and a fierce commitment to exploring all potential solutions, CATF is a pragmatic, non-ideological advocacy group with the bold ideas needed to address climate change. CATF has offices in Boston, Washington D.C., and Brussels, with staff working virtually around the world. Visit catf.us and follow @cleanaircatf.

About ERM

ERM is the business of sustainability.

As the largest global pure play sustainability consultancy, ERM partners with the world’s leading organizations, creating innovative solutions to sustainability challenges and unlocking commercial opportunities that meet the needs of today while preserving opportunities for future generations.

ERM’s diverse team of 7,500+ world-class experts in over 170 offices across 39 countries supports clients across the breadth of their organizations to operationalize sustainability. Through ERM’s deep technical expertise, clients are well-positioned to address their environmental, health, safety, risk, and social issues. ERM calls this capability its “boots to boardroom” approach – a comprehensive service model that allows ERM to develop strategic and technical solutions that advance objectives on the ground or at the executive level.

Media Contact: Reginald Zimmerman

Originally published on Built From Scratch

During Military Appreciation Month, we’re honored to share the stories of four associates who make up the 35,000 veterans and military spouses representing The Home Depot.

As Juan Ordaz was transitioning out of the military, he searched for a new career path with similarities to his time in the Marine Corps. He joined The Home Depot as a garden associate and recently celebrated his 20-year anniversary with the company.

MILITARY SNAPSHOT

MILITARY TITLE: SERGEANTBRANCH: MARINE CORPSYEARS IN THE MILITARY: 12CURRENT ROLE: DISTRIBUTION CENTER AREA SUPERVISOR

“One of the company’s values that has a direct correlation with the Marine Corps’ values is doing the right thing. It’s about doing the right thing when no one is watching. As a leader in the military and at The Home Depot, being dependable and having integrity are two very important traits.”

–JUAN ORDAZ

Lisa Thomas is a store manager, military spouse and mother to three boys. While her husband served in the Marine Corps, Lisa needed a job that granted her flexibility and support. She says what started out as a job quickly turned into a career.

MILITARY SNAPSHOT

SPOUSE’S MILITARY TITLE: MAJORBRANCH: MARINE CORPSYEARS AT THE HOME DEPOT: 23FIRST ROLE: CASHIER; CURRENT ROLE: STORE MANAGER

“Never hold yourself back. There were many times that I was afraid to grow with the company because I believed it would be difficult to transfer if we needed to move. 23 years later and 10 Home Depot store transfers later, I’m grateful to have Home Depot family across the country.”

–LISA THOMAS

Marlon Joseph spent 29 years serving in the Navy. As a leader in the military, he prioritized a culture that consisted of inclusivity, support and transparency. He strives to bring that same mindset to his role now with The Home Depot.

MILITARY SNAPSHOT

MILITARY TITLE: MASTER CHIEFBRANCH: NAVYYEARS IN THE MILITARY: 29CURRENT ROLE: CONTACT CENTER SUPERVISOR

“One piece of advice I would give to veterans and military spouses is to own your development. Perseverance, organization, flexibility and resiliency are the backbone to a successful military career. Those same traits are what will help you succeed at The Home Depot.” 

–MARLON JOSEPH

Bethany George and her husband both come from military families. Not only did they follow in their footsteps by joining the military, but they also work at The Home Depot. Over the past 15 years with the company, Bethany has grown her career from a coordinator to a manager in Talent Acquisition.

MILITARY SNAPSHOT

MILITARY TITLE: MAJORBRANCH: AIR FORCEYEARS IN THE MILITARY: 27CURRENT ROLE: FIELD STAFFING MANAGER

“During my first 12 years at The Home Depot, I was juggling my career, family and the military. I learned that you can’t be everything to everybody all the time. It’s okay to close your laptop at the end of the day and focus on other responsibilities.” 

–BETHANY GEORGE

If you’re a veteran or military spouse looking for career opportunities at The Home Depot, visit www.careers.homedepot.com/military. 

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Each of Kimberly-Clark’s brands has a brilliant purpose that guides everything they do. From focusing on environmental impact to supporting and enabling women to break down barriers to opportunity, Kimberly-Clark equips its brands to provide Better Care for a Better World.

One way is through Kotex’s She Can Initiative. While the brand focuses on raising awareness around Menstrual Hygiene Day each year, it also champions women’s progress year-round by fighting period stigmas and the barriers they cause. Projects have included producing a film depicting how period stigma nearly stopped the first woman soccer referee, creating a “She Can Anthem,” and changing the color of the fluid used in product marketing.

We invited Alison Lewis, Chief Growth Officer, to discuss how Kimberly-Clark operates with its purpose-led, performance-driven approach and how it ultimately influences culture through its purpose.

Listen for insights on:

Inspiring innovation with purposeActivating brand purpose to challenge stigmasOpening social impact work to other collaboratorsCreating and maintaining a purpose-led, performance-driven culture

To listen to this episode and others, visit Purpose 360 Podcast.

by Ashwin Rama Chandran

We are at a time when companies are publicly making sustainability commitments. Companies have jumped onto the net-zero and carbon-neutral bandwagon regardless of size or industry. According to the Science Based Target initiative (SBTi), 4,632 companies are taking action to reduce emissions, of which over 1,700 companies have made net-zero commitments.

While these are encouraging signs from a sustainability perspective, the primary step these companies must take to act on these commitments is to record and report on their carbon footprints, directly attributable to their operations and upstream and downstream supply chains. Understanding Scope 1, 2, and 3 carbon footprints with increased confidence helps take action to prioritize decarbonization initiatives and report improvements. This improves regulatory compliance and signals to customers and other stakeholders that companies are authentically walking the talk.

The European Union’s Carbon Border Adjustment Mechanism (CBAM) imposes a carbon tax on importers to prevent carbon leakage and support the decarbonization of the EU industry. Companies that are importing products must buy carbon certificates equivalent to the carbon price they would have paid if these products were otherwise produced in compliance with EU carbon pricing rules. Importers will thus be required to determine each product’s total carbon dioxide emissions to calculate the equivalent carbon certificates they need to purchase or to choose the right supplier to meet their sustainable goals.

Companies are on the quest to track carbon emissions in various categories such as purchased goods and services, upstream and downstream transportation and distribution, use of sold products, processing of sold products, and end-of-life treatment of sold products. Tracking and accounting for emissions in some of these categories are complex.

SAP Sustainability Footprint Management, a cloud-native solution built on SAP Business Technology Platform (SAP BTP), enables enterprises to calculate and analyze their carbon footprint, using master data from their existing enterprise resource planning (ERP) system, product, value chain, and at a corporate level following the Greenhouse Gas Protocol’s Scope 1, 2, and 3 emissions. The solution helps companies meet their sustainability commitments by working to improve the speed, accuracy, and efficiency of emissions calculations and management. It can also integrate with SAP S/4HANA, connect an ERP system via public APIs available in SAP Business Accelerator Hub, and import data from an external source by uploading a file. The calculated footprints can be embedded into SAP S/4HANA to extend end-to-end business processes with sustainability data.

Most companies currently use estimated data to calculate their carbon emissions. SAP Sustainability Footprint Management provides a holistic assessment of emissions by using a hybrid approach where average or secondary emission data from life cycle assessment (LCA) databases and actual or primary data from suppliers and verified business data are combined and managed in an integrated environment while allowing for greater actual data input over time. This helps companies to track and manage product-specific emissions and choose product- and value chain-specific elements.

While Scope 1 and 2 emissions are traceable, transparency around Scope 3 emissions presents a difficult challenge for companies. For many companies, Scope 3 emissions account for 90% of overall emissions. In addition to Scope 1 and 2 emissions, SAP Sustainability Footprint Management can also measure Scope 3 emissions from purchased materials as well as upstream and downstream transport. SAP aims to enhance the solution to count all 15 Scope 3 emissions in the coming releases. Analyzing the carbon footprints of purchased materials and goods helps identify and prioritize sustainable suppliers, and companies can also explore alternative materials to reduce carbon emissions.

Salzgitter AG, one of the largest steel producers in Europe, signed a Memorandum of Understanding (MoU) with the Volkswagen group to start production of low carbon dioxide steel from the end of 2025. Salzgitter AG is using sustainability solutions from SAP to assess CO2 footprints in the new production process.

Fifty years ago, SAP revolutionized financial accounting with ERP software. Today, SAP is reinventing the “R” in ERP by extending the definition of resources beyond financial and goods flows, offering a precision approach to sustainability by enabling transactional carbon accounting through a green ledger. This enables combined financial and environmental decision-making at different points across the business process. The green ledger offers deep insights by being embedded into RISE with SAP S/4HANA Cloud and the GROW with SAP solution, with additional capabilities added with every release.

Climate change is a collective problem that requires collective efforts. While SAP is committed to achieving net zero along our value chain by 2030, SAP is also enabling businesses with the data visibility and analytic insights needed to act on decarbonization initiatives across value chains. Together, we can enable a future with zero emissions.

Watch this video to learn more.