Pharos Energy, an independent energy company, has taken the next step in its net zero journey by publishing a detailed net zero roadmap following its formal commitment in September 2022 to achieve net zero greenhouse gas (GHG) emissions by 2050.
The net zero roadmap, which was researched and developed by the Company in close consultation with specialist advisors and consultants, models emission reduction pathways to achieve net zero Scope 1 (direct) and Scope 2 (indirect) GHG emissions from all existing and proposed future assets by 2050 or before. Based on this modelling, the roadmap contains interim targets set against the Company’s 2021 baseline year, which have been approved by the Board.
The Group has non-controlling equity stakes in its producing assets and is predominantly non-operating. As a result, it has no direct control over the majority of its emissions inventory but it can exercise influence through the joint operating companies (JOCs) in Vietnam and Egypt in conjunction with the other JOC partners. The Company will use the net zero roadmap to continue to engage with the JOCs, partners and governments on reducing emissions where possible through the options identified. To the extent within its control, the Company will continue reducing its own emissions and remain committed to transparency in reporting and to keeping stakeholders updated on progress.
In addition, the Company established an Emissions Management Fund in September 2022. From every barrel net to the Group sold at an oil price above $75 per barrel, a contribution of $0.25 is made to the Fund. The current value of the Emissions Management Fund is now c.$400,000. In line with the net zero roadmap, this Fund is available to provide financial support for emissions management projects undertaken directly by the Group or through the JOCs.
Jann Brown, Chief Executive Officer, commented: “The oil and gas industry is in a period of transition as the drive to reduce emissions globally is combined with each country’s efforts to secure the energy needed for its socio-economic development. We recognize that the journey to net zero will not be straightforward and this roadmap is a testimony to how Pharos is aiming to manage oil and gas assets in a responsible and transparent manner in line with our purpose to create sustainable prosperity and value for all our stakeholders.”
The detailed roadmap may be viewed here.