Talos Energy Inc published its inaugural Environment Social and Governance Report (ESG Report). This document highlights the company’s commitments and initiatives across several ESG indicators.
Through the report, Talos Energy covers its 2019 operations and results and presents them to stakeholders and the general public. Data and disclosures come from Talos’ materiality assessments and some ESG standards, such as the Global Reporting Initiative.
The company doesn’t discard the possibility of including additional third-party standards in its following reports. However, the firm looks to communicate its commitment to ESG principles and operating practices through best-suited means.
Talos Energy ESG Principles
Regarding ESG principles, the company categorized some indicators within them. For instance, Talos Energy considered the impact of its activities in diverse ambits such as energy consumption, carbon emissions, water usage, and environmental compliance for Environmental matters.
According to the company’s measures, they didn’t release hydrocarbon into the ocean in amounts more significant than one barrel along 2019.
Also, Talos Energy reports they had a full release of less than one-third of one barrel from 28 million gross operated barrels produced. This situation represents an 18% reduction in greenhouse gas emissions (GHG) from 2018.
Over Social indicators, the company considers safety results, support to the local community, employment, and training and education activities it developed last year. Talos Energy raised over $1 million for donations, pledges, matches, and events for local communities and charitable organizations.
Possibly of your interest: 2020 ESG Report
For the “G” component, Talos measured its operations through the next indicators: anti-corruption, enterprise risk management, and diversity within the decision-making processes.
In its ESG report, the firm highlights the independence of its Board of Directors. The company also provides executive compensations for best practices and engages heavily in management compliance measurement regarding its US-Mexico operations in the Gulf of Mexico.
Other measured topics included in the document are Health and Safety, Environment, Social, Governance, Culture, and Development.
The firm reported zero recordable by employee incidents and just nine total incidents across over 3.7 million person-hours worked in 2019 in the U.S. These results represent a 50% reduction in incident rates from 2018.
Furthermore, the company highlighted its rank as the top workplace by the Houston Chronicle for the seventh consecutive year. Talos adds it implemented a higher education tuition reimbursement program for its employees to supplement training programming options.
Why reporting ESG commitments? – Talos Report Relevance
In current times, various stakeholders, customers, suppliers, employees, and government officials are calling companies to do more regarding sustainability matters and enhance transparent practices.
According to a PWC analysis, investors have made sustainability increasingly part of their top agendas. In their view, risk management and executing activities benefit directly from an ESG proper identification.
Therefore, ESG can provide long-term value to a company’s developments, projects, and assets.
Possibly of your interest: Green LNG: an answer to ESG claims
Investors now want to see companies engaging in material activities and reporting their sustainability efforts through qualitative and quantitative metrics disclosures (KPIs). For them, those actions help them in decision-making and strategic-investment processes.
A few metrics available for companies to use are MSCI, Sustainalytics, and S&P. However, some investors call for better ESG homologation and binding frameworks since standardization isn’t still available.
In that regard, continuing with disclosure reports remains crucial. Companies that voluntarily disclose their ESG efforts through reports, company websites, statements, or regulatory filings, may find it more comfortable in the future to obtain investments.