2022 ESG Report Highlights

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ESG strategy for long-term value creation

Our ESG Strategy seeks to ensure the business aligns with the selected UN SDGs and drives towards positive outcomes for society whilst delivering value for our stakeholders and investors.

As a key sector in the global energy system and a driver of economic and social development, the oil and gas industry has a leading role to play in sustainability.

We recognise the importance of being a responsible operator. Our ESG Strategy is aligned with the international reporting frameworks of the UN Sustainable Development Goals (UNSDGs) and Global Reporting Index (GRI), and reports against the Task Force on Climate-Related Financial Disclosures (TCFD). In 2022, we have proactively advanced the quality of the data provided, including data gathering and documenting the process for historic and forecast emissions. We have also expanded our reporting to include additional data on Scope 3.

In 2022, NEO continued to improve on, and embed, sustainable practices throughout the organisation, in line with: the UN SDGs; our Low Carbon Transition Plan (LCTP) and the North Sea Transition Deal (NSTD). To ensure our sustainability efforts are focused and in line with our overall business strategy, we are establishing an Environmental, Social and Governance Policy. The policy describes the direction of our sustainability efforts and goals and constitutes a framework for setting sustainability objectives.

With a spread of non-operated interests across many assets, we are well-placed to have a good understanding of de-carbonisation and ESG strategies across the UK Continental Shelf (UKCS). NEO recognises that continuous improvement, collaboration, and communication are key to an effective workforce and successful wider industry engagement. We strive to keep people informed and encourage ideas and feedback. This is demonstrated by our ESG Materiality Matrix survey undertaken across key stakeholders in 2022. 

We have developed a five-year plan to deliver our ESG Strategy and the targets set out in our LCTP and the North Sea Transition Deal. This plan facilitates participation from all areas of the business which includes the mapping of a robust and transparent route to delivering emissions reduction. This work involved significant collaboration with our non-operated partners to map emission profiles and emission reduction actions. We have also begun expanding our capability to map Scope 3 emissions through our supply chain and promote good governance across it. In 2023, we will continue to develop some of the key five-year plan concepts.

ESG strategy for long-term value creation

Our ESG Strategy seeks to ensure the business aligns with the selected UN SDGs and drives towards positive outcomes for society whilst delivering value for our stakeholders and investors.

UN SDG	Global Importance	NEO Energy Objective
UNSDG 13 Climate Action	Prioritising the climate.	Protection of the environment is part of our license to operate which is reflected in our LCTP. As part of this, we are determined to reduce GHG emissions across our portfolio and have set a 50% carbon intensity reduction target for scope 1 emissions by 2030 from a 2020 baseline and be net zero by 2050.
UNSDG 14 Life Below Water	Protecting biodiversity around our operations.	NEO seeks to minimise the impact on flora and fauna and conserve the biodiversity in ecosystems where we operate, carrying out environmental impact assessments and monitoring campaigns.
UNSDG 5 Gender Equality	Working against discrimination to create an inclusive culture, with equal pay and opportunities for all.	A strategic priority is to build a high performing organisation with world-class operating capabilities. An integral part of this is to ensure non-discrimination, equality and development. This will help unlock new ideas, greater productivity and employee wellbeing.
UNSDG 8 Decent work and Economic Growth	A focus on providing a safe place to work and creating local value.	We support local value throughout our supply chain and community investment.
UNSDG 3 Good Health and Well Being	Sustainable development cannot be achieved unless everyone’s primary health needs are met.	NEO’s employees are at the heart of its business so the health and safety of employees and contractors is the number one priority. We work to ensure that all our operations and activities are performed safely.
UNSDG 16 Peace, Justice and Strong Institutions	Responsible business practices contribute to social and economic stability.	NEO strives to ensure adherence to its Code of Conduct throughout the business, maintaining the highest standards in ethics, integrity, and transparency at all levels.