A Letter from our VP-ESG & Sustainability
I am pleased to provide you with a summary of our sustainability and socio-economic efforts during 2021. Aligned with our values and priorities and delivered through responsible stewardship and efficient operations, sustainability has always been an integral part of Diversified’s DNA. Just as our company has grown through acquisitions during the year so, too, have the desire and commitment of our now more than 1,400 employees to continue driving and delivering meaningful, positive ESG impacts not only for our stakeholders but society at large.
DESIGNING A CREDIBLE PATHWAY TO NET ZERO
We made solid progress on our 2021 emissions goals primarily through our internally developed Project Fresh initiative which included, in part, bringing to completion our in-depth work to comprehensively inventory our emissions producing assets across our enlarged 10-state footprint. Our asset inventory work and the related data governance process for reporting emissions allowed us to materially reduce the use of theoretical factors in our emissions reporting and instead allowed the use of more accurate actual emissions, which was instrumental in reducing our total 2021 reported emissions.
Using Project Fresh as a stepping stone, we recently expanded our inventory of handheld emissions detection equipment which is enhancing our daily efforts to identify, address and reduce unintended fugitive emissions across our entire footprint, and we are equally continuing to progress other stated 2022 emissions reductions initiatives. Collectively, these initiatives will continue to decrease actual emissions in the coming year and well-position us to achieve our commitment of net zero Scope 1 and Scope 2 GHG emissions by 2040.
SAFE AND SUSTAINABLE OPERATIONS
Our commitment to safe and sustainable operations has been the driver of our daily actions for as long as Diversified has owned assets. This commitment to asset integrity is manifested in our internally developed and well proven Smarter Asset Management programme which is focused on optimising production and increasing efficiencies and naturally includes a zero-tolerance approach to unintended natural gas emissions.
Our greatest asset is undeniably our employees. In 2021, Diversified conducted its first ever Employee Engagement Survey to better inform the Company on potential areas of improvement that would further strengthen our employees’ daily experiences. I am pleased to report that we had an overall 82% response rate which we believe is a tremendous response as an inaugural survey which included nearly 1,250 employees from nine states.
As a means of developing the next generation of potential Diversified employees, we continued our scholarship programme for students attending several of our local universities and further welcomed six university students across multiple functional areas as participants in an inaugural Summer Internship Programme.
As promised in 2020, we are pleased to include in our 2021 reporting an expanded set of disclosures related to the recommendations of the TCFD. Beyond a detailed discussion of the Company’s risks and opportunities associated with a transition to a lower-carbon economy, our robust climate scenario analysis revealed that our portfolio remains resilient even under the most aggressive net zero emissions scenario.
We are certainly encouraged by these findings and will use the results of the complete analysis to inform our path forward in the energy transition.
As we continue to navigate the ever-changing corporate expectations for energy providers, we do so confidently, knowing that companies like Diversified will play critically important roles in the ongoing energy transition. We are excited to take the next step in advancing our commitment to improving our environmental performance and driving real, long-term value for the environment, our current stakeholders and future generations.
Vice President-ESG & Sustainability