Hess Corporation (NYSE: HES) published its 2018 Sustainability Report today, providing a comprehensive review of the company’s strategy and performance on environmental, social and governance programs and initiatives
“We believe sustainability is fundamental to our long-term strategy and performance and supports our purpose to be the world’s most trusted energy partner,” CEO John Hess said. “Our commitment to sustainability starts with our Board of Directors and senior management and is reinforced at every level of our company.”
Hess Corporation’s 22nd annual sustainability report has been prepared in accordance with the Core level for sustainability reporting under the Global Reporting Initiative (GRI) Standards. GRI is an independent organization that provides the world’s most widely recognized sustainability reporting and disclosure standards. Preparation of the report was also informed by recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD) and oil and gas industry metrics from the Sustainability Accounting Standards Board (SASB). The report has been third-party assured by ERM Certification and Verification Services.
Highlights from this year’s report include:
Safeguarding people and the environment: By working closely with employees and contractors to continuously improve our safety performance, over the past 5 years Hess has reduced its workforce recordable incident rate by 23% and its workforce lost time incident rate by 33%. In 2018, the company achieved the lowest severe safety incident rate in its history – a 43 percent reduction from 2017 – and reduced the number of process safety events for the fourth consecutive year.
Reducing its carbon footprint: Hess has aggressive targets for greenhouse gas (GHG) emission reductions, and over the past 11 years has reduced its Scope 1 and 2 equity GHG emissions by approximately 64%. The company is on track to meet its 2020 targets to decrease flaring and GHG emission intensities from operated assets by 50% and 25%, respectively, from 2014 levels. In 2018, Hess achieved leadership status in the prestigious CDP Global Climate Analysis for the 10th consecutive year.
Conducting portfolio-specific carbon asset risk scenario planning: In line with the Task Force on Climate-Related Financial Disclosures framework, in 2018, Hess tested the robustness of its portfolio through 2040 under multiple energy supply and demand scenarios. The company’s asset portfolio remains resilient and its pipeline of forward investments provides strong financial returns even under the ambitious GHG reductions assumed within the International Energy Agency’s Sustainable Development Scenario.
Making a difference in local communities: Hess’ community investments support programs in a variety of areas with a particular focus on education, workforce development and environmental stewardship. In 2018, Hess led the development of North Dakota’s Intelligent Pipeline Integrity Project, or iPIPE, to advance new technologies that prevent and detect pipeline leaks. In Guyana, Hess is working with its joint venture partners to build capacity among the local workforce and supplier companies including the Centre for Local Business Development established by the joint venture in 2017.
Maintaining top-quartile ESG performance: In 2018, Hess was named to the Dow Jones Sustainability Index North America for the 9th consecutive year and toCorporate Responsibility Magazine’s 100 Best Corporate Citizens list for the 11th consecutive year.