Climate change

Climate change was an area of focus and activity during 2016. With the landmark Paris Agreement in late 2015, we spent significant time and effort at both the executive and Board levels exploring and evaluating potential climate change strategies.

The Board developed the following statement on climate change:

  • Ophir recognises the scientific consensus that greenhouse gas emissions are driving manmade climate change. Achieving the internationally agreed target of limiting global mean temperature rise to well below 2°C above pre-industrial levels will require significant and sustained reductions in these emissions.
  • the global changes required to achieve this 2°C goal will impact the oil and gas industry significantly. At Ophir, we are deepening our understanding of the implications of the Paris Accord for our business, and considering what actions we may take across a range of areas including our core business strategy, our operational emissions and our interactions with stakeholders. Ophir’s Board will continue to oversee the ongoing development of the Company’s strategy in this area, including its approach to tracking trends to provide commercial foresight on how quickly the world is moving toward decarbonisation. Climate change and the implications for Ophir will remain on the Board’s strategic agenda going forward.

In terms of disclosure, Ophir for the first time in 2016, submitted a Climate Change Questionnaire to CDP. We were encouraged by the fact that Ophir was recognised by CDP as being one of the top three first-time responders among UK-based companies.

We also engaged in 2016 with the Wellcome Trust, a UK-based charity and Ophir shareholder, to help us by conducting a ‘Live Case Study’ on the topic of climate change. This process involved a structured stakeholder engagement, interviewing 14 different external stakeholders including investors, governments, multilateral organisations, non-governmental organisations (NGOs), consultants and industry experts. The study provided valuable insights to assist us in formulating our climate change strategies.

With respect to our greenhouse gas emissions, we report Scope 1 and 2 and certain Scope 3 emissions. Scope 1 emissions are those over which Ophir has direct control; Scope 2 emissions are indirect energy emissions from electricity we purchase for offices and logistics bases; the Scope 3 emissions we report are a result of passenger air miles from business flights.