Environment | Social | Governance
ESG
We manage our business responsibly and, therefore, recognise the growing importance of Environmental, Social and Governance (ESG) matters. We have taken steps to develop our priorities and recognise that this is a journey. Nonetheless, we are committed to continuously improving our approach to each of these areas.
In the Environmental sphere, we acknowledge the role the energy transition has to play in our industry’s commitment to net zero targets. In line with our strategy, we are actively seeking opportunities to participate in the energy transition, including developing our St Fergus site into an energy transition hub. At the same time, we recognise the importance of security of supply and the role natural gas will have during the energy transition. We must, therefore, continue to operate as efficiently and as respectfully toward the environment as possible.
In terms of our Social and Governance aspirations, we operate our business in a respectful manner that protects and promotes the safety of our stakeholders. We work proactively with all our stakeholders and care about the local communities in which we operate. We put in place the right processes to ensure that our business is managed in the right way.
Our stakeholders include, but are not limited to:
- Government & Regulatory authorities
- Shareholders
- Employees
- Partners
- Customers and counterparties
- Local communities
- Landowners
- Debt providers
The way we engage with stakeholders is governed by our values and policies, the fundamentals of which are integrity, honesty, dedication, accountability and respect. While building and operating infrastructure, we are committed to respecting landowners and communities, maintaining safe operations and promoting environmental stewardship.
We undertook a Materiality Assessment by identifying relevant ESG topics that have the greatest impact on our business and are of concern to our stakeholders. We also examined these topics by assessing them against sustainability and ESG benchmarking frameworks such as GRESB (Global ESG Benchmark for Real Assets), Task Force on Climate-related Financial Disclosure and UN Sustainable Development Goals.
Our ESG Priorities are those issues that featured prominently in our assessment as being of high importance in terms of business impact and stakeholder concern. They are:
- Safety
- Carbon Emissions
- Energy Use
- Adaptability /Resilience to Climate Change
- Community Development
- Diversity Equity & Inclusion
- Labour Standards/Practices
- Effective Governance Practices
- Anti-Bribery & Corruption
Environment
Reduce Emissions
We care for the environment and strive to minimise our impact, both on and offshore. Our aim is to conduct our business activities in a sustainable manner. Where we can, we ensure that our business operations reduce our carbon emissions and we make sustainable investment choices, whether it is in a new business asset, or in modernising or replacing our existing infrastructure. We demonstrated our commitment to this area through our recent acquisition of a 10% stake in the Acorn Carbon Capture & Storage project in the UK.
Reduce Energy Use
Enhancing efficiency across all our systems, combining assets to deliver resources more efficiently, and increased electrification are the primary focus areas of NSMP’s strategy to reduce energy use across our business operations.
Climate Change Resilience
We take very seriously our responsibility to reliably deliver energy to consumers every day, 365-days-a-year. Understanding the potential climate impacts to our systems is core to NSMP’s long range focus and we regularly update our assessments and also employ new / emerging techniques and ways of thinking.
Our Environmental Objectives
Our Journey to Net Zero
Short Term Plan- Include enhanced disclosures aligned to the Task Force on Climate-related Disclosures in our annual report and accounts, further to NSMP’s commitment in this area.
- Increase the energy efficiency of our operations by optimizing performance and targeting the use of low or zero carbon electricity across our operations.
- Support and motivate our suppliers, contractors, and partners to a minimise their carbon footprint.
- Support the development of the Acorn project both as an owner and as host and service provider.
- Develop our St Fergus Gas Terminal into an energy transition hub, leveraging our significant strategically placed freehold land and experience in the development, ownership and operation of critical energy infrastructure.
- Continuous improvement in asset efficiency and performance optimization, complemented by ongoing enhanced reporting and disclosure.
- Increase the use of low or zero carbon electricity across our operations.
- Continued investment and expansion of the St Fergus energy transition hub.
- Participate in projects key to the delivery of net zero, from CCS and direct air capture to blue hydrogen and ammonia, and from biogas / LNG to electrification and green hydrogen.
Social
Safety
The safe operation of our assets is our top priority. Safety is one of our core values and we are committed to managing our business in a responsible manner that seeks to eliminate harm to people and minimises adverse impacts on the environment. We promote a culture in which all personnel share the same commitment to health and safety and recognise the importance of mitigating risks. We believe that our approach to safety is attributable to the success of our business as safety breeds reliability.
Health, Safety & Environment (HSE)
NSMP is committed to protecting the health and safety of our people and partners, and those who may be affected by our activities.
Safety Principles
All of our personnel are expected to adopt, embrace, promote, and follow these basic principles:
- Demonstrate strong leadership and visible commitment, and promote a culture where safety, health and environmental protection is top priory in decision making
- Comply with all applicable legislation and industry standards
- • Ensure robust and high-quality health, safety and environmental management systems and governance processes are in place and effective
- Ensure safety, health and the environment risks are proactively identified, assessed and managed
- Create a safe and healthy working environment for our employees, the personnel working on our assets, and those who may be affected by our activities
- Maintain the integrity of our assets to a high standard
- Encourage positive attitudes and contributions from all personnel working on and in support of our business, and intervention on inadequately controlled activities
- Seek continuous improvements by setting targets to enhance our SHE performance, and monitor through regular review
- Operate responsibly particularly regarding the efficient use of energy and materials, the minimisation of waste and the prevention of pollution
- Aim to play a key role in the energy transition and support the UK and Norway to achieve our industry’s net zero commitments and targets
Our Achievements
- In Q2 2022, we achieved the milestone of 10 million man-hours with no Lost Time Injuries (LTI) across all our facilities.
- Zero work-related illnesses were suffered during 2021. We take all necessary steps to ensure the health of our personnel.
- In 2021, our Teesside Gas Processing Plant achieved 26 years of consecutive RoSPA Gold Awards and the Patron’s Award, and our St. Fergus Gas Terminal achieved 6 years of consecutive RoSPA Gold Awards. RoSPA (Royal Society for the Prevention of Accidents); https://www.rospa.com/.
- Employee wellbeing program implemented for all staff, providing support for personal and work-related issues that might be impacting their performance wellbeing, mental or physical health.
Labour Standards/Practices
We provide over 1,000 local jobs at our sites in Risavika, on Teesside and at St Fergus. We ensure that our operating partner maintains employment standards that protect and rights of individuals and promote a safe and secure working environment in line with both UK and Norwegian employment legislation.
NSMP and our operating partner, px Group, are committed to ensuring we have relationships with our partners and suppliers that are professional, effective and based on mutual respect. We are committed to seeking out and sharing best practice to deliver continuous performance improvement. NSMP supports Good Business Pays and is committed to paying suppliers fairly and quickly.
Diversity, Equity & Inclusion ("DEI")
We value diversity of gender, background, perspective and experience, and are commited to creating a culture of inclusivity. It is our policy to recruit talent based on skill, knowledge, attitude and experience, without discrimination on the basis of gender, sexual orientation, age, family status, ethnic origin, nationality, disability or religious belief. In 2020, we successfully focused our efforts to broaden diversity within our organization.
DEI is a priority for our Board and the People & Remuneration Committee review the culture of the organisation to ensure that we continue to maintain an inclusive work environment. To demonstrate our commitment to DEI, our Board commissioned a report on DEI and Culture during 2021/2022, from which an Action Plan is being developed to build on our progress in this area.
Community Development
We aim to be a good neighbour and play a positive role in our local communities. We work with our operating partner, px Group, to establish positive local relationships, and support community organisations and initiatives where we can help make a difference. Our assets support over 1,000 high quality jobs across Northeast Scotland, Teesside and Risavika and provide significant local employment.
During the COVID-19 pandemic, we have actively sought to be good neighbours around our sites through our charitable contributions. We have also connected with our employees by making contributions to specific causes that matter to them.
We also seek to connect with our local communities beyond financial contributions and focus on initiatives that link our local communities with our business. such as initiatives or topics related to careers in STEM and energy transition.
During 2021/2022, we have continued to support many initiatives, some of the Causes/Charities that we have supported are:
Governance
Effective Governance Practice
Our Board and Leadership Team are committed to sound principles of corporate governance. Such principles are critical for us to achieve our long-term performance goals and maintain the trust and confidence of our shareholder, employees, customers, and Partners.
The Board oversees the Company and conducts its business through meetings and its standing committees: The Audit & Risk Committee and the People & Remuneration Committees. We have a highly skilled and experienced Board which includes an independent non-executive Chairman and two other independent non-executive directors. In addition, we have directors representing the interests of our shareholders and our CEO is the only executive member of the Board.
The Chair has oversight of the Board agenda and takes responsibility Board’s annual evaluation process.
We have a fully functional risk management process which is led by the Audit & Risk Committee. We have quarterly Management Risk Reviews as well as bi-annual reviews by the Audit & Risk Committee which are then fed back to the Board for consideration. Our Risk Register includes strategic and operational risks, as well as the processes, guidelines, and policies for identifying, assessing monitoring, and mitigating such risks. Risk management is embedded into business processes and key decisions at all levels of the company.
The Board has the highest level of oversight of our ESG and sustainability practices and regular reviews of these occurs at all Board meetings.
Anti-Bribery & Corruption
NSMP has adopted an anti-bribery & corruption policy which complies primarily with the requirements of the UK Bribery Act 2010 and the anti-corruption provisions in the Norwegian Penal Code. The Board, employees and all those acting for or on the Group’s behalf are strictly prohibited from offering, paying, soliciting or accepting bribes or kickbacks, including facilitation payments. We have zero tolerance approach to bribery & corruption and as such, training is provided to the Board and all employees covering how to identify various types of bribes as well as procedures for accepting or offering gifts or hospitality. NSMP maintains a register logging gifts and hospitality received or declined. Compliance with the anti-bribery & corruption policy is monitored by the CEO.
In addition, the Board has adopted an anti-facilitation of tax evasion policy which complies with the requirements of the UK Criminal Finances Act 2017. The policy has been introduced across the Group and its compliance is monitored at both Group and by individual operations.
Cybersecurity
Our critical infrastructure is not only vital to our operations but also to wider economic well-being and so, we recognise that they are targets for cyber threats. We continue to enhance controls to protect the confidentiality, integrity, and availability of our corporate and operational systems. We regularly assess our cyber risks and to complement this effort we engage third parties to perform facility and system penetration tests, compromise assessments and security maturity assessments of both our corporate and operational networks. We have adopted an ongoing education campaign to create security awareness and mitigate cybersecurity and data security threat. The Board has oversight of cybersecurity, it receives regular updates on risks and emerging trends and determines the best way to address them.