Gibson Energy Inc. announced today that it has received the top “AAA” rating from MSCI ESG Ratings, being only one of three companies globally in the Oil & Gas Refining, Marketing, Transportation & Storage industry and the only company in North America in that industry, to receive this leadership rating. In addition, building on its recognized sustainability efforts, the Company is pleased to announce an ambitious Net-Zero by 2050 target, which will become the Company’s long-term, overarching climate and GHG emission goal.
“Being a leader as the world transitions to a climate-resilient future is a critical role Gibson is committed to take for our country, business, shareholders and community,” said Steve Spaulding, President and Chief Executive Officer. “We have a responsibility to ensure a healthy economy is maintained while doing our part in limiting the rise of global temperatures. This can and will be accomplished through sustainable development. This ultimate leadership recognition by MSCI ESG Ratings, which is one of the largest providers of ESG data and analysis, as well as the leadership ratings received from other global rating agencies recognizes our accomplishments to date and the foundation we have laid for our credible path to achieve Net Zero Scope 1 and 2 greenhouse gas emissions across our entire business by 2050.”
Earlier in the year, Gibson announced a series of targets to reduce its GHG intensity and absolute emissions across all its business units by 2025 and 2030, which will become the Company’s interim goals along its longer-term path to Net Zero by 2050. Within the interim goals, Gibson has committed that by 2030, its overall intensity will be reduced by at least 20%, its processing intensity will be reduced by at least 40% and its storage and handling intensity will be reduced by at least 95% as compared to a 2020 baseline. Supporting this goal, the Company will reduce its absolute Scope 1 and Scope 2 emissions at the Moose Jaw Facility by at least 15% by 2025 and fully eliminate its absolute Scope 2 impact from its entire business by 2030.
Gibson’s climate and GHG emissions targets are now as follows:
Progress to Date
Gibson has already made meaningful progress in reducing its GHG emissions, including its recent investment in thermal heat exchanger technology at the Moose Jaw Facility as part of a recent $20 million expansion, resulting in a reduction in emissions intensity on a per barrel basis of over 10%. Continuing its focus on improving the emissions profile of the Moose Jaw Facility, the Company has also allocated capital within its 2021 budget to further reduce its emissions intensity by switching from a feedstock-based fuel supply to natural gas and continues to consider the impact of GHG emissions as part of its capital review processes for any capital investment opportunity.
To ensure that Sustainability and ESG remains a priority, and the Company is continuously working towards each of its 2025, 2030 and 2050 targets, 35% of its Short-Term Incentive Plan is related to Sustainability and ESG performance, including progress towards these targets.
Pathways to Net Zero by 2050
Following a thorough review of alternatives available, Gibson believes that it has developed a credible path to Net Zero by 2050 that includes the following:
- Gibson is committed to do its part to foster a healthy, sustainable economy by reducing GHG emissions to help limit the rise of global temperatures and reduce the impacts of climate change
- Gibson can reduce approximately 90% of current Scope 1 and 2 emissions across Gibson’s entire asset base through the application of existing technologies already in commercial use in North America, with the potential for superior alternatives to emerge over time, without relying heavily on offsets or credits
- Gibson does not expect that reaching Net Zero by 2050 will impair the Company’s ability to secure future capital investment opportunities and that all investments, including energy transition related opportunities, will continue to meet the Company’s existing internal return hurdles
- Gibson recognizes the importance of Scope 3 emissions, and the value chain partnerships required to appropriately address them, and will continue its work with customers, suppliers and other relevant stakeholders to identify and execute on reduction opportunities and solutions
- Gibson will continue to explore the potential to expand or enhance its climate-related targets, including exploring alignment with frameworks such as Science Based Targets, as it identifies opportunities to impact value-chain emissions, new credible pathways emerge and/or as existing targets are met
Inaugural TCFD Report and Incremental Disclosures
As part of its focus on reducing GHG emissions and addressing the impacts of climate change and the energy transition on the Company, Gibson has published its inaugural Task Force on Climate-Related Financial Disclosure Report (“TCFD Report”). The TCFD Report also includes Gibson’s climate scenario analysis aligned to the International Energy Agency’s Stated Policies and Sustainable Development Scenarios. The results of the scenario analysis affirm Gibson’s confidence that it will be able to adapt to changes in the external market and remain resilient through the various paths that the energy transition may take.
The TCFD Report also contains updated sustainability data guided by the Sustainability Accounting Standards Board (SASB) standards for the Midstream and Refining & Marketing industries and by the Global Reporting Initiative (GRI) Core option and takes into consideration the United Nations Sustainable Development Goals.
Gibson has also recently submitted its second annual CDP Climate Change Questionnaire, which includes Scope 1 and 2 disclosures across the entire business and enhanced Scope 3 disclosures.
Gibson’s Current ESG Benchmarking
Gibson Energy Inc. (“Gibson” or the “Company”) (TSX: GEI), is a Canadian-based liquids infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of liquids and refined products. Headquartered in Calgary, Alberta, the Company’s operations are focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and include the Moose Jaw Facility and an infrastructure position in the U.S.
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Original article: https://www.newswire.ca/news-releases/gibson-energy-recognized-as-global-leader-in-sustainability-esg-with-aaa-rating-and-solidifies-leadership-commitment-to-climate-action-with-net-zero-by-2050-target-843103113.html