Environment
Genel aims to be a responsible producer of natural resources which contribute to the global energy mix, in a way that fits this phase of the energy transition. We place great value on preserving the natural environment wherever we operate, and our risk-based approach to minimising potential adverse impact is central to all Genel decision making. It ensures we allocate effort and investment where it is needed most.
Climate-related risks
Genel acknowledges the risks represented by climate change and the challenges that will need to be overcome as the world navigates the necessary energy transition. We remain aware of the critical role that our industry will contribute throughout this transition, given that the energy needs of future generations are expected to be met by a mix of renewables, conventional oil and gas, and other non-renewable energy sources. As such, our industry has a critical part to contribute to this next chapter, through responsible energy production.
Genel supports the recommendations of the Task Force on Climate-related Financial Disclosures (‘TCFD’), which aims to increase transparency of climate-related risks. Genel welcomed the opportunity to provide responses to these recommendations as part of our latest Annual Report.
Our GHG Emissions Management Standard
Genel’s GHG Emissions Management Standard was approved by the board in 2020 and represents our primary tool for assessing the carbon intensity of our portfolio. The application of this Standard calculates a life-of-field carbon budget which provides a robust understanding of our GHG footprint, and which is essential to enable Genel to manage and reduce our emissions. Management of GHG emissions continues to be an important consideration for our current business and within our new our business pursuits.
GHG emissions profile
Genel has enhanced its sustainability reporting and practices year-on-year, and our 2024 GHG emissions reporting boundaries are described below. Genel aims to provide a robust view of our GHG footprint, and our procedure for emissions reporting can be viewed here.
Scope 1 and 2 emissions
Genel reports Scope 1 and 2 emissions on an equity-share approach, which we consider to be the most transparent representation of emissions footprint. Genel’s total Scope 1 and 2 emissions in 2024 were subject to verification by an accredited third-party assurance provider and Genel’s 2024 assurance statement can be viewed here.
2024 GHG emissions (equity based)
Scope 1 emissions
Scope 2 emissions
Carbon intensity
Scope 3 emissions
Genel calculates its Scope 3 emissions in order to understand the emissions that are not owned or controlled by Genel, but that occur within our value chain. As we look to incrementally extend the boundary of our reported Scope 3 emissions, we continue to report on an operational basis, but from 2022 onwards, we also reported an equity-based reporting for category 11 (sold products). The rationale for doing so is that Category 11 represents the overwhelming contributor to Genel’s emissions footprint, and so by extending the reporting boundary for this category allows us to better represent Genel’s Scope 3 emissions.
2024 Scope 3 Emissions
Total Scope 3 emissions
Scope 3 emissions, or indirect emissions from activities or assets not owned or controlled by Genel, have been accounted for since 2021.
CDP Climate score of B
Genel was please to maintain a CDP climate score of B in 2024, for a third consecutive year.
Managing the Natural Environment
As we navigate this period of the energy transition, Genel acknowledges the critical importance of preserving the natural environment and furthermore, the importance of conducting our operations in such a way that minimises any potential adverse impact to the environment.
In the context of progressively increased pressure on natural ecosystems, Genel’s approach to environmental management focuses on reducing resource and water use, managing waste, preventing pollution, maintaining air quality, and protecting biodiversity.
Environmental Social Impact Assessments (‘ESIAs’)
The ESIA process has long provided the cornerstone to Genel’s environmental due diligence and helps to protect both the natural and the built environment. An ESIA will precede any new development activities in order to identify potential impact and crucially, will detail the necessary actions required to mitigate this impact.
The ESIA forms an essential part of our business-as-usual operational practices and allows for development of an Environmental and Social Management Plan (ESMP). The ESMP allows Genel to monitor and respond to potential environmental, social and human rights impacts and grievances that arise within local communities.
By undertaking ESIAs in this manner, we aim to meet demands from local host governments and communities in preserving the integrity of the environment and communities of the areas in which we operate.
Water Management
In acknowledgement of the increasingly sharpened focus on global water resources, and in reflection of the water-restricted regions in which Genel operates, water management forms a key priority of our commitment to environmental responsibility. In reflection of our ongoing efforts on this front we were pleased to receive a CDP Water Security score of B in 2024.
Waste Management
Genel is vigilant about continuous improvement and we have built a reputation for excellence in waste management. For example, waste practices at our former operated activities in the KRI ensured the majority of generated waste was recycled and all our operations included rigorous waste segregation programmes.
For our future operational activities, Genel’s ambitions will be to implement waste management practices and establish a waste management supply chain that will support the targets which we had achieved at formerly operated sites.
Biodiversity and land management
Protection of biodiversity has always been a key consideration when considering exploration and production opportunities. Moreover, the role that biodiversity plays in supporting the natural environment more broadly is not underestimated by Genel. This was embedded into Genel’s operational practices in 2022, through formalising our Biodiversity Management Standard which defines the approach to be taken by Genel in relation to the assessment, mitigation, and management of biodiversity issues and impacts.
Implementation of this Standard reflects the considerable significance which we place on preservation of biodiversity, as we continue to work in collaboration with partners to protect nature wherever we operate. The ESHIA process includes an assessment of potential biodiversity impact and details the necessary measures required to mitigate these risks.