EagleClaw Midstream has issued its first ESG report and identified bold steps in its plan to achieve net zero greenhouse gas emissions by 2050. This plan will position EagleClaw Midstream to be an industry leader in sustainability and the ongoing energy evolution.
“We are delighted to share news of our sustainability progress in our inaugural ESG report,” said Jamie Welch, President and CEO of EagleClaw Midstream. “We are grateful to have incredibly talented and committed employees, suppliers and customers who all share our vision of working together to collectively stem the impacts of climate change for future generations.”
Company Charts Course to Improve ESG Performance
Although EagleClaw Midstream began reporting ESG results in 2020, efforts were put in place years prior to build robust data gathering, analysis and reporting capabilities to be able to publish this year. Welch noted the Company will continue to pursue innovative and creative ideas that meaningfully improve its short- and long-term performance in addition to creating additional metrics to track performance.
The Company has worked with employees across the organization to develop its roadmap to improve its ESG performance. To achieve its carbon neutrality and methane intensity goals, the Company intends to amongst others:
- Migrate a significant portion of its company vehicle fleet to electric vehicles over the next several years;
- Invest further in emissions monitoring, control and reduction equipment;
- Expand use of electric compression across its system where feasible; and,
- Explore potential application for a grant from the Department of Energy to evaluate carbon capture technologies to utilize and eventually deploy to achieve net zero carbon emissions.
Beyond these investments in its operations, EagleClaw Midstream pays market competitive salaries and bonuses. In addition, EagleClaw Midstream will implement in 2022 a new performance bonus structure for all its employees, tying 20% of bonuses to the achievement of ESG goals.
EagleClaw Midstream recently formed a Carbon Reduction Task Force to identify solutions to further reduce the company’s carbon footprint toward its long-term goal of net zero GHG emissions by 2050. Welch said the team includes experts in tax, safety and environmental compliance, finance, commercial, accounting, legal, operations, engineering and sustainability, thus bringing a multi-disciplinary approach to this complex challenge.
EagleClaw Midstream expects to achieve single-digit reductions in its carbon emission level by 2025 compared to its 2020 base year. Lowering its carbon output will result from new technology and operational practices to be put in place.
The Company also plans to develop and enact a policy on its commitment to diversity, inclusion and equity, adding to its already comprehensive program that includes required training on diversity and inclusion topics, special events to celebrate cultural heritage of its employees, and guest speakers on D&I topics.
EagleClaw Midstream also will participate in the ONE Future report for 2021, adding even greater transparency as to its progress in reducing methane emissions.
“I am excited to undertake this ESG journey with each and every employee at EagleClaw Midstream. Through our collective efforts, we will achieve our goals and ultimately, our commitment to the environment, safety and well-being of our employees and our commitment to our communities” added Welch.
New 2020 ESG Report Highlights Emissions Reduction, COVID-19 Response
The Company’s 2020 methane intensity rate was .057%, which is approximately 40% below the 2025 ONE Future target of 0.08%. That is a significant achievement in and of itself. EagleClaw Midstream is a member of ONE Future and joined in 2020.
In addition, two critical measures of its safety performance on which there has been significant recent emphasis and focus, Total Reportable Injury Rate (TRIR) and Motor Vehicle Incident Rate (MVIR), have also started to exhibit meaningful improvement, Welch explained.
EagleClaw Midstream also shared details of its recent support to employees and communities in need due to the challenges posed by COVID-19 and the related human health, education and economic consequences on the communities in which the Company operates.
The Company also highlighted its efforts to improve diversity and inclusion:
- Adding its first Independent Director to the Board thereby increasing its female Board membership to two;
- Increasing the number of Board Members under 50 to seven; and,
- Joining ALLY and expanding training efforts to build a more inclusive, diverse, and transparent work culture.
EagleClaw Midstream also shared that it had executed an agreement to source 100% of the electricity used in operations from renewable energy sources beginning in April of 2021. The Company said it is the first major gathering and processing company in the Permian Basin to procure 100% of its power for operations from renewable energy sources.
Blackstone Senior Managing Director & Global Head of Blackstone Energy Partners, David Foley, and Adil Rahmathulla, Managing Partner of I Squared Capital, added, “We have seen EagleClaw Midstream create and execute an impressive ESG program. We are excited as to the future for EagleClaw Midstream and look forward to seeing even more progress.”
The Company’s ESG report aligns with reporting frameworks established by the Sustainable Accounting Standards Board (SASB), Global Reporting Initiative (GRI) and the Energy Infrastructure Council/Gas Processing Association’s recently released reporting framework.