EagleClaw Midstream aims to achieve net zero greenhouse gas emissions by 2050. The company announced its plan on June 16 when it issued its first environmental, social and governance (ESG) report.
The ESG report identifies the bold steps that EagleClaw Midstream plans to take to achieve its emissions goal. This plan will position the company to be an industry leader in sustainability and the ongoing energy evolution.
“We are delighted to share news of our sustainability progress in our inaugural ESG report,” said Jamie Welch, president and CEO of EagleClaw Midstream. “We are grateful to have incredibly talented and committed employees, suppliers and customers who all share our vision of working together to collectively stem the impacts of climate change for future generations.”
Company Charts Course to Improve ESG Performance
Although EagleClaw Midstream began reporting ESG results in 2020, efforts were put in place years prior to build robust data gathering, analysis and reporting capabilities to be able to publish this year. Welch noted the company will continue to pursue innovative and creative ideas that meaningfully improve its short- and long-term performance in addition to creating additional metrics to track performance.
The company has worked with employees across the organization to develop its roadmap to improve its ESG performance. To achieve its carbon neutrality and methane intensity goals, EagleClaw intends to amongst others:
- Migrate a significant portion of its company vehicle fleet to electric vehicles over the next several years;
- Invest further in emissions monitoring, control and reduction equipment;
- Expand use of electric compression across its system where feasible; and,
- Explore potential application for a grant from the Department of Energy to evaluate carbon capture technologies to utilize and eventually deploy to achieve net zero carbon emissions.
Beyond these investments in its operations, EagleClaw Midstream pays market competitive salaries and bonuses. In addition, the company will implement in 2022 a new performance bonus structure for all its employees, tying 20 percent of bonuses to the achievement of ESG goals.
EagleClaw Midstream recently formed a Carbon Reduction Task Force to identify solutions to further reduce the company’s carbon footprint toward its long-term goal of net zero GHG emissions by 2050. Welch said the team includes experts in tax, safety and environmental compliance, finance, commercial, accounting, legal, operations, engineering and sustainability, thus bringing a multi-disciplinary approach to this complex challenge.
The company expects to achieve single-digit reductions in its carbon emission level by 2025 compared to its 2020 base year. Lowering its carbon output will result from new technology and operational practices to be put in place.
EagleClaw also plans to develop and enact a policy on its commitment to diversity, inclusion and equity, adding to its already comprehensive program that includes required training on diversity and inclusion (D&I) topics, special events to celebrate cultural heritage of its employees, and guest speakers on D&I topics.
EagleClaw Midstream also will participate in the ONE Future report for 2021, adding even greater transparency as to its progress in reducing methane emissions.
“I am excited to undertake this ESG journey with each and every employee at EagleClaw Midstream. Through our collective efforts, we will achieve our goals and ultimately, our commitment to the environment, safety and well-being of our employees and our commitment to our communities” Welch said.
New 2020 ESG Report Highlights Emissions Reduction, COVID-19 Response
The company’s 2020 methane intensity rate was 0.057 percent, which is approximately 40 percent below the 2025 ONE Future target of 0.08 percent. That is a significant achievement in and of itself. EagleClaw Midstream is a member of ONE Future and joined in 2020.
In addition, two critical measures of its safety performance on which there has been significant recent emphasis and focus, Total Reportable Injury Rate (TRIR) and Motor Vehicle Incident Rate (MVIR), have also started to exhibit meaningful improvement, Welch explained.
EagleClaw Midstream also shared details of its recent support to employees and communities in need due to the challenges posed by COVID-19 and the related human health, education and economic consequences on the communities in which the Company operates.
The company also highlighted its efforts to improve diversity and inclusion:
- Adding its first Independent Director to the board thereby increasing its female board membership to two;
- Increasing the number of board members under 50 to seven; and
- Joining ALLY and expanding training efforts to build a more inclusive, diverse and transparent work culture.
EagleClaw Midstream also shared that it had executed an agreement to source 100 percent of the electricity used in operations from renewable energy sources beginning in April of 2021. The company said it is the first major gathering and processing company in the Permian Basin to procure 100 percent of its power for operations from renewable energy sources.
Blackstone Senior Managing Director & Global Head of Blackstone Energy Partners, David Foley, and Adil Rahmathulla, Managing Partner of I Squared Capital, added, “We have seen EagleClaw Midstream create and execute an impressive ESG program. We are excited as to the future for EagleClaw Midstream and look forward to seeing even more progress.”
The company’s ESG report aligns with reporting frameworks established by the Sustainable Accounting Standards Board (SASB), Global Reporting Initiative (GRI) and the Energy Infrastructure Council/Gas Processing Association’s recently released reporting framework.
EagleClaw Midstream is a fully integrated, private midstream company operates in the heart of the Delaware Basin with over 650,000 acres under long-term dedication. The company is headquartered in Midland, Texas, and has a significant presence in Houston. EagleClaw Midstream provides comprehensive gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. The company is the largest private gas processor in the Delaware Basin, with 1,320 million cubic feet per day (MMcf/d) of capacity and more than 1,400 miles of operated pipelines. EagleClaw Midstream has long-term dedications for gas, crude and water midstream services from approximately 30 successful and active producers in the Delaware Basin. EagleClaw Midstream is also a partner on the Permian Highway Pipeline project.Tags: EagleClaw, Environmental Social Governance (ESG), GHG Emissions