(Talos Energy, 27.May.2021) — Talos Energy Inc. (NYSE: TALO) provided an update on its ongoing Environmental, Social and Governance (ESG) initiatives. The company further strengthened its ESG commitments with the establishment of long-term emissions reductions targets and further linked executive compensation to ESG performance. Additionally, the company provided select 2020 ESG performance statistics in advance of its 2021 ESG Report release expected in the third quarter of 2021.
- Established target of 30% reduction in greenhouse gas (“GHG”) emissions intensity by 2025 from the baseline 2018 levels established in the 2020 ESG Report.
- ESG-driven metrics have been increased to account for 20% of management’s annual incentive plan (“AIP”) and include key initiatives aimed at emissions reduction and health and safety metrics. Additionally, production metrics were eliminated from the AIP scorecard and maximum category payouts were reduced from 200% of targets to 150%.
- Paula Glover was formally elected to the Board of Directors; Ms. Glover has been appointed to the recently enhanced and re-named Safety, Sustainability and Corporate Responsibility Committee, which maintains oversight for sustainability and corporate responsibility matters.
Talos President and Chief Executive Officer Timothy S. Duncan commented: “The combination of recent changes to executive compensation and governance as well as the establishment of long-term emissions reduction targets advances our commitment to ESG at all levels of our business and further aligns the interests of all stakeholders as we look toward the future. Talos has always had a compelling ESG story with a strong health, safety and environmental track record and solid governance and compensation practices, and we are increasingly committed going forward.”
Duncan continued: “In 2020 we improved in numerous operational categories, including emissions intensity and safety, while continuing our track record as a Houston Chronicle Top Workplace and supporting local communities with grassroots charitable contributions and volunteer activities. As we finalize our 2021 ESG Report and reflect on progress made over the past year, we’re excited about continuous improvement across our business moving forward and the positive impact our employee-led ESG committee is generating towards our efforts. Our products are critical to modern society and our role requires relentless effort to be one of the cleanest, safest, most socially responsible and most transparent companies in our industry.”
In addition to governance and compensation updates, Talos also provided select details regarding its 2020 ESG performance, which will be further detailed in the company’s second annual ESG Report expected to be released in the third quarter of 2021.
2020 ESG Performance Updates:
- ~20% reduction in GHG emissions intensity from 2018 to 2020 (21.8 to 17.4 mt CO2e / MBoe).
- ~20% reduction in flaring and venting emissions from 2019 to 2020 (163.5 thousand to 130.6 thousand mt CO2e); consistent with Gulf of Mexico operational best practices, Talos continued to have zero routine flaring.
- Highly competitive 0.54 total recordable incident rate (“TRIR”); sustained in line with 2019 performance and significantly improved from 2018.
- Less than 3/4 of one barrel of oil released from over 23 million gross operated barrels produced through Talos operated production facilities.
- Continued operational trend of using minimal sourced water for production and completion operations.
- Established employee-led internal ESG committee whose members are actively working on a wide array of initiatives, including emissions reduction, safety, diversity and inclusion, community relations and energy transition initiatives, among others.
- Named a Houston Chronicle Top Workplace in Houston for the eighth consecutive year and increased employee allowances for direct charitable funding initiatives and time away from the office for community volunteering hours.