Tullow Oil Plc Sustainability Report 2020 Contents
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Focus on sustainability Tullow Oil plc Sustainability Report 2020 Contents About this report 3 Tullow’s suite of Sustainability Reporting 4 About Tullow Oil 5 Message from our CEO 6 Our sustainability framework 7 Our governance framework 8 Aligning our goals 9 2020 Sustainability highlights 12 Safe operations 13 Occupational health and safety 14 Process safety 16 Shared prosperity 17 Stakeholder engagement 18 17 Optimising local content 19 Skills and enterprise development 20 Skills development and preparing Shared prosperity people for jobs 23 Environmental stewardship 24 Discover more 17 Climate resilience 25 Waste management 28 Energy efficiency 29 Equality and transparency 30 Governance, compliance & ethical conduct 31 Human Rights 32 2020 total socio-economic contribution 32 Our people 33 Localisation 37 13 Policies & Data 39 Safe operations Discover more 30 13 Equality and transparency Discover more 30 2 Tullow Oil plc Sustainability Report 2020 Front cover: Akosua Gyan Bandoh, TEN Operations Engineer for Tullow About this report Tullow’s 2020 Sustainability Report Risk and Resilience report. complements our 2020 Annual Report Quantitative data in this report relates to disclosure and provides further details of the 2020 calendar year and covers our global our environmental and social performance operations unless otherwise stated. Tullow’s over the past year. This Sustainability Report Greenhouse Gas emissions data from its was prepared in accordance with the Global operated assets has been externally assured Reporting Initiative (GRI) Standards (2016) core and this year, we have also published Tullow option. GRI Standards represent the most Oil’s ‘GHG Emissions scope & calculation widely used sustainability reporting framework methodology’. You can find a link to the in the world today. GRI principles have assurance statement here. Our basis for informed our reporting approach: materiality reporting (all data collection methodologies) (the issues relevant to our most significant are noted in a separate document available impacts and which are of most importance for download here. We welcome your to stakeholders), stakeholder inclusiveness feedback and invite you to send comments (responding to stakeholder expectations and to: [email protected] interests), sustainability context (presenting our performance in the wider context of sustainability issues) and completeness (inclusion of all the information which reflects significant economic impacts to enable stakeholders to assess our performance). Our disclosure was also informed by the International Petroleum Industry Environmental Conservation Association (IPIECA) Oil and Gas Industry Guidance on Tullow supports the following Voluntary Sustainability Reporting and the standards and partnerships: Sustainable Accounting Standards Board. Tullow’s key findings in response to the recommendations of the Task Force on Climate-related Financial Disclosures are covered in the Annual Report and this Sustainability Report and additionally are covered in full in a separate report: Climate 3 Tullow Oil plc Sustainability Report 2020 Tullow’s suite of Sustainability Reporting 2020 Sustainability Report 2020 Annual Report Climate Risk & Code of Ethical Conduct 2020 Payments to Resilience Report 2020 Government Report 4 Tullow Oil plc Sustainability Report 2020 About Tullow Oil Tullow is a well-established, recognised oil and gas explorer and producer Our focus is on producing low cost oil and gas in a safe, efficient and environmentally and socially responsible way. Our key activities include generating material value for host countries, creating local business opportunities and building Jamaica Mauritania a compelling proposition for investors and Ghana Guyana a great place for employees to work. Côte d’Ivoire Uganda Our portfolio of over 50 licences spans Suriname Equatorial Guinea Kenya 11 countries. We are headquartered in Gabon London and our shares are listed on the Peru The Comoros London, Irish and Ghana Stock Exchanges. Tullow’s portfolio evolved in 2020 with Namibia the farm down of our equity in Uganda and our exit from country, as well as the demobilisation of operations in Kenya. Argentina Therefore, although the ESG data published here includes both Uganda and Kenya, our disclosure on both countries is limited. Exiting countries 5 Tullow Oil plc Sustainability Report 2020 Message from our CEO Despite the challenges of dealing with the pandemic and this disappointing performance, we achieved Refreshed purpose the significant reduction in staff numbers, Tullow worked zero recordable injuries at our Ghana offshore Towards the end of the year, I worked with TEN and Jubilee FPSOs and Zero recordable my colleagues on the Senior Leadership hard to prioritise the health and wellbeing of its staff, injuries in our Kenya facilities. Despite those Team to re-evaluate and refresh our purpose, maintain our social investment commitments to host achievements, our overall number of TRIs which has been defined as: ‘building a better communities and plan for an improved carbon emissions highlights the further progress we must make future through responsible oil and gas to ensure that safety is a priority for everyone, development.’ This purpose is based on the performance for our operated assets. everywhere across the Group. belief that oil and gas will continue to play an essential role in the global energy mix for With a COVID-19 emergency committee Net Zero the long-term, and that host governments established in February 2020, our people In 2020 we set out to define a decarbonisation around the world will continue to greatly rose to the challenge, swiftly adapting to plan and determine a timeframe for our Net value the capability, connectivity and capital working from home and maintaining Zero commitment.This work culminated in that companies like Tullow can provide. operational performance to meet our Tullow committing to become a Net Zero At Tullow's Capital Markets Day in commitments to host governments and our Company by 2030. Significant work has been November, we set out our 10-year plan investors, lending banks and bond holders. undertaken to review every option possible outlining our intent to invest billions of As the global pandemic spread, protecting for our producing assets, however, the single dollars, which will generate significant the health and safety of our people and the largest opportunity to decarbonise the revenues for our host countries, create communities in which we work in became business is the elimination of routine flaring. local business opportunities, and ensure an urgent priority. I am proud of the way in Over the next five years, this will be achieved our business is run in a responsible and which our teams worked collaboratively and by managing the business’ current low carbon way, whilst building a compelling resolutely to meet our production targets dependencies on the need for routine proposition for investors and a great place whilst managing the health of our staff and flaring, namely: debottle-necking of gas Dear Reader to work for employees. contractors. As the year progressed we had systems on Jubilee and TEN; ensuring the 2020 was a year when the resilience of to manage, as many businesses had to, a continued offtake of current volumes to our people and our business was tested in number of cases of the virus on our FPSOs the Government of Ghana; and securing a full. In addition to the operational challenges and in our offices, but were thankful that commercial agreement with the Government presented by the COVID-19 pandemic, and all our people and contractors could return of Ghana on future gas offtake volumes, the unprecedented volatility in the oil safely home to their families. which in turn is dependent on the growth of Rahul Dhir, Chief Executive Officer markets, Tullow also underwent significant gas demand in Ghana. These decarbonisation organisational restructuring to reduce our Safety Performance efforts will set Tullow on a path to reduce cost base and make us a more efficient Tullow had a disappointing 2020 safety emissions on a net equity basis by 40 per organisation. Notwithstanding these performance, where we recorded more cent relative to a 2020 baseline. Further challenges, the company remained steadfast Lost Time Injuries (LTIs) and Total Recordable identified emissions can reduce emissions to its sustainability commitments, honouring Injuries (TRIs) in 2020 than 2019. Although by a further 5 per cent. Carbon offsetting will our financial commitments to social investment this result is unacceptable, none of the also be required to achieve a carbon neutral partners and progressing our Net Zero strategy. events at our controlled activities were life or Net Zero status, and work is underway to changing. We remain committed to preventing determine the right carbon offset strategy the injury of all people associated with our for Tullow. operations all of the time. Notwithstanding 6 Tullow Oil plc Sustainability Report 2020 Our sustainability framework Our approach to sustainability is driven by our purpose to build a better future by responsible oil and gas development. Sustainability is operationalised across the business through the implementation of our strategy, management standards, governance and audits. Our approach also considers the expectations of our key stakeholder Safe Shared Environmental Equality and groups our banks and investors; our host Strategic operations prosperity stewardship transparency governments