Serinus is an oil and gas exploration, development and production company whose strategic purpose is to develop and produce natural resources. These business activities provide the energy essential to many of the processes and materials that support our daily lives but ultimately contribute to many of the environmental issues which are of concern to us today and in the future.
Climate change is an increasingly prominent issue, both globally and for our industry. The majority of our production is natural gas which we view as a transition fuel towards a low-carbon economy. Our gas production is primarily utilised in the generation of electricity and as such displaces coal in that energy mix. In all net-zero carbon scenarios oil and gas will remain essential elements of energy supplies for decades to come, our role in this process is to deliver our operations as cleanly and efficiently as possible.
Whilst extractive industries are essential to our modern way of life, we are strongly aware of the wider range of responsibilities that industries such as ours have. In addition to the management and protection of the environment in those countries in which we operate we also have a clear responsibility to the welfare and the safety of our employees, our investors and stakeholders, local communities that may be impacted by our business, host governments and all of our business partners.
The COVID-19 pandemic reminds us that risk management needs to be dynamic and able to adapt to new threats and the Group quickly implemented stringent and effective protocols to protect our workforce from the risk of infection across all of its offices and operations, which included, amongst other measures, testing, on-site care and support, amended shift patterns and alternate working days. Safety of our staff and contractors remains a key concern.
Therefore, a long term goal of the Group is to be a positive presence in the regions in which it operates through good corporate stewardship of our assets, our people and their communities. It is a key component of the ethos of Serinus that we maintain responsible and sustainable development while maintaining the highest operating standards and financial discipline. While Serinus carries out its operations in full compliance with relevant regulations, and complies with all safety and environmental requirements and aims to conduct itself in as environmentally friendly way as possible, the Group has subject to Board approval on 25 March 2021 formally established an Environmental, Social and Governance (“ESG”) Committee, led by the Chief Executive Officer, supported by other key personnel, and overseen by the Board, which will undertake a review of the policies and metrics under which we operate and measure ourselves and also evaluate the recommendations of the Taskforce on Climate-Related Financial Disclosure (“TCFD”) in order to determine how we may best address these new recommended disclosures.
Whilst the TCFD is currently voluntary for smaller companies, it is our intention to apply governance, risk management and strategy processes to manage climate-related financial risks and develop this further into an ESG strategy that is ultimately integrated into the corporate strategy, growth plans, capital allocation, operations and executive management key performance indicators.
The Sustainable Development Goals (“SDGs”) as set out by the United Nations, particularly SDG 13 (Climate Action), are often referenced as reporting criteria for many energy companies. Serinus will continually evaluate at a Board level how this may be incorporated into our ESG reporting in an appropriate and relevant manner in the future.
Based on the work undertaken to date, it is expected that the evaluation and assessment of the ESG strategy and remit for the ESG Committee will be based around the following criteria and we intend to provide a more comprehensive update by next year’s annual report:
|Environmental Performance||Social Performance||Governance Standards|
|· Greenhouse Gases
· Land Use
|· Safety Management
· Workforce & Diversity
· Training & Development
|· Structure & Oversight
· Code & Values
· Transparency & Reporting
· Cyber Risks & Systems