EnLink Midstream Announces Path to Achieve Net Zero Emissions by 2050, Identifies Potential Emissions Milestones Along the Way
EnLink also announces issuance of 2020 Sustainability Report and other sustainability achievements
DALLAS, May 4, 2021 /PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink) today announced its intention to reach net zero greenhouse gas emissions by 2050, positioning the company among industry leaders in sustainability. EnLink plans to execute substantial emissions reduction strategies along the way that will systematically move the company toward its net zero goal.
Additionally, EnLink announced that it issued its 2020 Sustainability Report, joined The Environmental Partnership, a coalition of industry companies committed to pursuing emissions reductions, and became the proud recipient of the 2020 Chairman's Award for Safety Improvement from the GPA Midstream Association.
The Path to Net Zero Emissions by 2050
EnLink is pursuing significant emissions reductions strategies that will position the company to achieve net zero emissions by 2050 and minimize its impact on climate change, furthering EnLink's role in the ongoing energy transition to less carbon-intensive energy production.
"EnLink embraces both our responsibility to safely deliver energy and our role in the energy transition to a lower-carbon environment. We believe natural gas and petroleum products will continue to serve as critical fuel sources. Nearly 90% of EnLink's business is focused on lower-emitting natural gas and natural gas liquids, so we provide products that our lives and economy will need for decades to come, while lessening the industry's carbon impact," said Barry E. Davis, EnLink Chairman and CEO. "EnLink continuously seeks ways to improve and become more efficient. Setting a path to reach net zero emissions by 2050 and outlining the steps we will take and milestones we will pursue illustrates that EnLink is building momentum on our sustainability journey and driving toward what we see as the future of midstream."
The company assembled a cross-functional team of company leaders to develop strategies to move EnLink toward its long-term emissions path. Along the way, EnLink will strive to achieve emissions reduction milestones, all as part of our goal to reach net zero emissions by 2050, including:
- Achieving a 30% reduction in methane emissions intensity by 2024, as compared to 2020 levels
- Pursuing a path to reach a 30% reduction in our total CO2e emissions intensity by 2030, as compared to 2020 levels
The company is evaluating numerous emissions reduction innovations, process improvements, and opportunities, which may include:
- Replacing or retrofitting natural gas-driven pneumatic controllers to lower-emitting alternatives
- Increasing usage of renewable energy to power our operations
- Converting natural gas-driven equipment, such as compressor engines, to run on electricity
- Implementing carbon capture technologies for beneficial reuses or sequestration of carbon dioxide
2020 Sustainability Report & Safety Award Announcement
EnLink issued its third annual sustainability report, titled "Our Sustainable Future," which is now available at http://sustainability.enlink.com. The digital report showcases EnLink's sustainability achievements from 2020, including EnLink's receiving of the 2020 Chairman's Award for Safety Improvement from the GPA Midstream Association, an industry organization representing nearly 100 natural gas processors.
"I am extremely thankful to our over 1,000 employees who continue to live a 'GoalZERO' mindset – always striving for zero safety or environmental incidents," Davis said. "The GPA Chairman's Safety Improvement award shows our commitment to continuous improvement in an area that is our top operational priority – safety. Providing safe, reliable, responsible operations is the foundation of sustainability at EnLink and the cornerstone of our operational excellence."
Additional sustainability achievements highlighted in the 2020 Sustainability Report include:
- Environmental and Safety Achievements:
- Achieved the lowest Total Recordable Incident Rate (TRIR) in EnLink history of 0.47, which is a 43% improvement from the company's 2019 TRIR and 34% better than the 2020 GPA Midstream Division I TRIR average of 0.715
- Established the Reportable Environmental Incident Rate (REIR) to drive environmental performance and improved REIR by 17% from 2019
- Completed approximately $50 million of equipment reuse and refurbishing initiatives
- Social Achievements:
- Launched CEO-led Diversity, Equity, & Inclusion Action Team
- Conducted Unconscious Bias Training course completed by 97% of managers and Preventing Workplace Harassment course completed by 100% of employees
- Implemented a COVID-19 response plan to limit impacts to our employees, contractors, and customers
- Governance Achievements:
- Expanded Board diversity with one female director, two minority directors, and two directors under the age of 50
- Targeted executive compensation at market median (50th percentile) for each executive with 80% of compensation tied to performance-driven incentives
- Tied companywide Short-Term Incentive Program to sustainability and strategic initiatives; increased weighting of sustainability by 50% for 2021
- Sustainability Strategy and Reporting Achievements:
- Utilized the Sustainability Accounting Standards Board "oil & gas – midstream" reporting framework
- Adopted a companywide sustainability policy to drive sustainability initiatives
- Refined its sustainability structure, creating an executive-leadership-driven, Board-overseen sustainability strategy with cross-functional workstreams
The Environmental Partnership
EnLink joined The Environmental Partnership in March 2021. The Environmental Partnership is a coalition of oil and natural gas companies that are focused on addressing the industry's environmental impacts and implementing emissions reduction solutions. By joining this voluntary emissions reduction program, EnLink demonstrates its commitment to further implement practices that reduce methane emissions and contribute to the environmental performance of the industry. The Environmental Partnership is an initiative of the American Petroleum Institute.
EnLink will continue to share details on its sustainability and emissions journey in quarterly earnings materials and future sustainability reports.
About EnLink Midstream
EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, and NGL capabilities. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit www.EnLink.com to learn how EnLink connects energy to life.
This press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our management, the matters addressed herein involve certain assumptions, risks and uncertainties that could cause actual activities, performance, outcomes and results to differ materially from those indicated herein. Therefore, you should not rely on any of these forward-looking statements. All statements, other than statements of historical fact, included in this press release constitute forward-looking statements, including but not limited to statements identified by the words "forecast," "may," "believe," "will," "should," "plan," "predict," "anticipate," "intend," "estimate," and "expect" and similar expressions. Such forward-looking statements include, but are not limited to, statements about operational, environmental and climate change initiatives, future operational outcomes, objectives, strategies, expectations, and intentions, and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect these statements and our financial condition, results of operations, or cash flows include, without limitation (a) the impact of the ongoing coronavirus (COVID-19) outbreak on our business, financial condition, and results of operations, (b) potential conflicts of interest of Global Infrastructure Partners ("GIP") with us and the potential for GIP to favor GIP's own interests to the detriment of our other unitholders, (c) GIP's ability to compete with us and the fact that it is not required to offer us the opportunity to acquire additional assets or businesses, (d) a default under GIP's credit facility could result in a change in control of us, could adversely affect the price of our common units, and could result in a default under our credit facility, (e) the dependence on Devon for a substantial portion of the natural gas and crude that we gather, process, and transport, (f) developments that materially and adversely affect Devon or other customers, (g) adverse developments in the midstream business that may reduce our ability to make distributions, (h) competition for crude oil, condensate, natural gas, and NGL supplies and any decrease in the availability of such commodities, (i) decreases in the volumes that we gather, process, fractionate, or transport, (j) construction risks in our major development projects, (k) our ability to receive or renew required permits and other approvals, (l) increased federal, state, and local legislation, and regulatory initiatives, as well as government reviews relating to hydraulic fracturing resulting in increased costs and reductions or delays in natural gas production by our customers, (m) climate change legislation and regulatory initiatives resulting in increased operating costs and reduced demand for the natural gas and NGL services we provide, (n) changes in the availability and cost of capital, including as a result of a change in our credit rating, (o) volatile prices and market demand for crude oil, condensate, natural gas, and NGLs that are beyond our control, (p) our debt levels could limit our flexibility and adversely affect our financial health or limit our flexibility to obtain financing and to pursue other business opportunities, (q) operating hazards, natural disasters, weather-related issues or delays, casualty losses, and other matters beyond our control, (r) reductions in demand for NGL products by the petrochemical, refining, or other industries or by the fuel markets, (s) impairments to goodwill, long-lived assets and equity method investments, and (t) the effects of existing and future laws and governmental regulations, including environmental and climate change requirements and other uncertainties. These and other applicable uncertainties, factors, and risks are described more fully in EnLink Midstream, LLC's and EnLink Midstream Partners, LP's filings with the Securities and Exchange Commission, including EnLink Midstream, LLC's and EnLink Midstream Partners, LP's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Neither EnLink Midstream, LLC nor EnLink Midstream Partners, LP assumes any obligation to update any forward-looking statements.
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SOURCE EnLink Midstream, LLC
Released May 4, 2021