We aim to 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 energy transition has to play in our industry’s commitment to Net Zero targets. In line with our strategy, we are actively seeking opportunities in energy transition primarily around carbon capture (usage) and storage (CCS/CCUS). At the same time, we recognise the energy needs of the UK population and as such, we must 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 and ensure that our local communities’ benefit from our presence. 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
- Our customers and counterparties
- Local communities
- Debt providers
The manner in which we engage with stakeholders is governed by our 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, Task Force on Climate-related Financial Disclosure and UN Sustainable Development Goals. We prioritise these topics based on their impact on our business and their importance to our stakeholders.
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:
- Carbon Emissions
- Energy Use
- Adaptability /Resilience to Climate Change
- Community Development
- Diversity Equality & Inclusion
- Labour Standards/Practices
- Effective Governance Practices
- Anti-Bribery & Corruption
We care for our local environments and strive to minimise impacts, both on and offshore. Where we can, we innovate to reduce our carbon emissions and are working with leading clean energy schemes, Acorn and Net Zero Teesside, to help the UK reach net zero by 2050.
Reduce Energy Use
Enhancing efficiency across all our systems, combining assets to deliver resources more efficiently, and increased electrification and digitalisation are the primary focus areas of NSMP’s comprehensive strategy to dramatically reduce energy use across all 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 and preparing for them through hardening, updated engineering and new and emerging techniques and ways of thinking are core to NSMP’s long range focus.
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.
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 leading role in the energy transition and support the UK and our industry’s net zero commitments and targets
Labour Standards/Local Employer
Our facilities support over 1000 jobs across Teesside and North East Scotland, and provide significant local employment. We ensure that our Partner maintains employment standards that protect the rights of individuals and promote a safe and secure working environment.
Diversity, Equalities & Inclusion ("DEI")
We value diversity of gender, background, perspective and experience and our commitment to creating a culture of inclusivity which is a core values. In 2020, we focused our effort to broaden diversity within our organisation and today almost half of our organisation are female. 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. 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.
We aim to be a good neighbour and play a positive role in our local communities. We work with our key contractor and business 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 Teesside and North East Scotland, and provide significant local employment.
During the COVID-19 pandemic, we have actively sought to be good neighbours around our sites through our financial 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.
Some of the Causes/Charities that we have supported:
Thank you and your colleagues at North Sea Midstream Partners for championing St Mungo's work. Your support is essential to achieving our vision: that everyone has a place to call home and can fulfil their hopes and ambitions.
On behalf of the Board, Staff, volunteers and clients of Instant Neighbour I write to thank you for your very kind and generous donation of £2,500, this is hugely appreciated and of great help.
Alice House was approached by PX during lockdown to discuss ways in which they could help and they were keen to fund resources that would directly help patients. As for most people, it has been a really challenging year at Alice House and with ongoing uncertainty around our income, this kind of help is more valuable than ever.
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 Partner.
The Board oversees the Company and conducts its business through meetings and its standing committees: The Audit & Risk 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, 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 is then fed back to the Board. 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 and has the highest level of oversight over our ESG and sustainability practices and regular reviews of these practices occurs at all six 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. 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.
Our critical infrastructure is not only vital to our operations but also to the nation's 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.