Big ESG, Just Quietly

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Pioneer Natural Resources released its 2020 Sustainability Report, detailing its dedication to and focus on environmental, social, and governance (ESG) programs. The report launched to little fanfare, yet the targets and initiatives are impressive.

The full report highlights enhanced disclosures on:

  • Air emissions

  • Health and safety metrics

  • Diversity and inclusion initiatives

  • Community engagement

  • Board governance

President and CEO Scott D. Sheffield said, “Pioneer continues to make our comprehensive ESG and HSE strategies a top priority. With this report, we are pleased to announce the improvements we have made over the past year as well as additional environmental targets, including the adoption of greenhouse gas and methane emission reduction targets, continuing our leadership through minimizing flaring, and progressing projects that reduce our freshwater usage.”

Pioneer is formally adopting targets to reduce greenhouse gases and methane emission intensities from operations, including a 25% reduction in GHG intensity and 40% reduction in methane intensity by 2030. The Company’s emission intensity reduction targets are aligned with the Task Force on Climate-related Financial Disclosures (TCFD) criteria for target setting.

The company established a goal to limit flaring intensity to less than 1% of natural gas produced. It will end routine flaring (as defined by the World Bank) by 2030, with the aspiration to accomplish this by 2025.”

Pioneer’s initiative to update the City of Midland’s wastewater treatment plant is almost complete. In return, the company will receive non-potable water from the City of Midland. This source of treated municipal wastewater will displace freshwater used in operations and represent a significant milestone in Pioneer’s ongoing freshwater reduction strategy.

This report from Pioneer is unique because instead of just saying where they stand on ESG issues, they have incorporated these items into their strategy and articulated where they plan to improve on them. 

The report and action from Pioneer is the standard that ESG investors and other stakeholders will embrace going forward.

ESG isn’t easy.