NGC Leads the Way Globally on Environmental Transparency in the EITI
One of the world’s pressing concerns is how the energy transition and climate change will shift Government policies, company strategy and citizens’ lives over the short to medium term. For Trinidad and Tobago, these concerns are a point of significant interest. As a net energy exporter and small island state, the country already faces the brunt of climate change impact and any major tremors in the global energy transition policy space will impact our revenue and market share for LNG and petrochemicals. Gathering as much data to help clarify how citizens, companies and Government respond to these developments is pivotal.
The Extractive Industries Transparency Initiative (EITI) promotes the open sharing of data on a country’s natural resources with its citizens. The initiative focuses on reconciling revenue earned from oil, gas and mining, and accounting for any discrepancies between Government’s receipts and company payments. The EITI also offers diagnosis and recommendations on improving Government and company systems for revenue collection and audit and assurance. Recently, however, the EITI has started to emphasise disclosures related to the energy transition and assessing environmental impacts. In its 2019 EITI Standard, the EITI made steps to advocate for environmental and social reporting.
The Standard encouraged reporting countries to disclose information on the management and monitoring of the environmental impact of the extractive sector and disclose mandatory payments related to the environment. T&T has participated in the initiative for over a decade and is among the first countries to disclose environmental indicators (as far back as 2017). The latest TTEITI report provides oil spill data, an overview of the environmental laws/regulations governing the extractive sector and obligations companies must fulfil to rehabilitate oil / gas fields or quarrying acreage in the case of an environmental incident. As part of an environmental reporting pilot project, the TTEITI Steering Committee (TTEITI) also requested companies share more detailed disclosure of environmental indicators.
NGC Pioneers Emissions Disclosure in EITI
The National Gas Company of Trinidad & Tobago (NGC) was the only company to participate in the pilot project. And, they are also the first company globally to disclose granular emissions data within the EITI framework. The company divulged information on scope 1 GHG emissions (CO2, methane etc); resource/energy use (water, electricity, oil and natural gas consumption); air and water pollution permits; certificates of environmental clearance and environmental impact assessments; fines and notices of violations; best management practice to reduce its carbon footprint and improve energy efficiency. The NGC’s pioneering efforts aligned with their strategic focus on a green agenda. The company currently publishes sustainability reports using GRI Standards and uses its website to provide information on regional renewable energy policy and business opportunities.
As part of the pilot project, NGC disclosed several important pieces of information related to their emissions and plans to mitigate emissions that prompt a deeper analysis of trends. The NGC’s CO2 emissions and methane emissions grew from 4,732 tonnes and 4,365 tonnes of CO2 equivalent respectively in 2019 to 6,718 tonnes and 22,315 tonnes of CO2 equivalent in 2021. These disclosures point to the impact of Covid-19 on operations as it relates to both emissions and energy consumption (See Chart 1 and 2). In 2021, the increase in CO2 was due to increased combustion from flaring while there was an incident where methane was released leading to a spike in methane emissions. Importantly, in its submission, the NGC also showed steps the company is taking to reduce GHG emissions and improve energy efficiency – whether improving methane measurement and control systems, undertaking energy audits or funding reforestation programmes etc.
This data allows citizens to recognise the impact of NGC’s operations and assess the company’s strategies to reduce its carbon footprint. The company undoubtedly plays a critical role in our economy. Based on independent EITI reports, over the last decade, the NGC is the second largest contributor to Government revenue from the oil and gas sector after BPTT. These environmental disclosures add another layer of public information on the company’s operations.
“The National Gas Company of Trinidad & Tobago (NGC) was the only company to participate in the pilot project. And, they are also the first company globally to disclose granular emissions data within the EITI framework.”
The energy transition will affect the company’s future strategic outlook. Facing down these challenges and embracing new opportunities begins with using data to guide strategy and gain buy-in from its stakeholders, including citizens. Importantly, the disclosures are in sync with Government policy where reporting on emissions will be codified in law and become mandatory in the near future.
By putting its environmental disclosures in the public domain, NGC is a leading light locally, globally and regionally. These disclosures set a positive example for other companies and help the NGC build trust with a public clamouring for more information already cognisant of the effects of climate change and the energy transition on their lives.
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