REPORT SPEED/SUSTAINABILITY
As part of our SPEED Value System, we know we are interdependent with the environment and understand that our success depends on the overall well-being of our stakeholders and the planet as a whole. We know that, by its nature, our industry is carbon intensive and that climate change impacts all our stakeholders.
Our operations (Scope 1), energy purchases from third parties (Scope 2) and the value chain (Scope 3), including the transformation and end -use of our products, are activities that impact the atmosphere by releasing greenhouse gases (GHGs) that contribute to climate change.
The effects of climate change are becoming ever clearer. For us, the main physical effects are related to:
Our Sustainability Division is part of the Strategy, Sustainability and Legal Area, and is responsible for leading and managing our climate action, with the direct support of the Operations Area. We focus our climate change management on preventing and mitigating impacts, as well as on identifying opportunities arising from the energy transition.
Adaptation: Properly managing the potential impacts of the new physical reality of climate and the social environment.
Mitigation: Reducing emissions and decarbonizing our operation
Governance: Building meaningful capabilities in the energy transition and managing our relevant information to make better decisions
In 2021, our Board announced a GHG emissions reduction plan that builds on our 2020 baseline (15.2 kgCO2 /boe), even though our intensity that year was already approximately 28% below industry peers
We implement mitigation actions and continuously monitor the business landscape, evaluating partnerships with companies in the sector to share emissions management and mitigation best practice in three areas:
Clean energies: For us, clean energies are solar, wind, geothermal, hydroelectric, tidal, biomass and others that emit less GHG for the energy generated. Natural gas can be considered as a transition energy if it is used to replace higher emissions-intensive fuels.
Energy efficiency: Energy efficiency is getting the best results in any activity using the least amount of energy resources possible. In our approach to circularity and reducing the use of inputs for oil production, energy efficiency is transformative through reducing costs as well as emissions. We apply this philosophy from energy generation through to final consumption..
Methane management: Although methane represents a significant portion of hydrocarbon sector emissions, particularly indirect emissions, we have managed to achieve remarkable levels of efficiency and utilization in our operations.
The activities we completed in 2023 and which are listed in this mitigation chapter as part of our emissions reduction plan allowed for a decrease of over 40,000 metric tons of CO2 e in Scope 1 and 2 emissions compared to the previous year. There were improvements in emissions intensity, which went from 13.0 to 10.6 kg CO2 e/boe produced, and in energy intensity, which went from 56.1 to 43.7 kWh/ boe produced
As most of our emissions are related to energy sources, mainly electricity and heat, as well as the fuels used to generate them, we monitor our operations’ energy intensity for the management of this input.
The decrease in energy intensity by over 22% (from 56.1 kWh/boe in 2022 to 43.7 kWh/boe in 2023) is the result of improvements in processes and access to cleaner energy sources such as solar and supplies from the national grid. These sources replace the burning of fossil fuels, which have proportionately less usable energy.
