As an oil and gas company, Oil Search recognises it is impossible to decouple climate change from our Corporate Strategy: the two must be fully integrated.
Oil Search’s Corporate Strategy is focused on having a globally competitive energy portfolio that is sustainable over the long term. The Corporate Strategy is refreshed periodically through our integrated planning framework process, which produces updated strategic objectives approximately every three years.
Reflecting on climate risks, global climate policy trends and the climate scenario analysis has reinforced Oil Search’s Corporate Strategy of focusing on a globally competitive energy portfolio that is sustainable over the long-term.
The Climate Change Strategy is consistent with our Climate Policy and aligns with our Social Responsibility Policy and strategies. It helps to ensure the Company is prepared for future carbon constraints and that we understand the potential risks and impacts to our business.
We designed our Climate Change Strategy to operationalise our corporate climate commitments to embed climate risk into our decision-making, strategy development and risk management practices.
Given rapidly changing stakeholder expectations and changes to technology and government policies, we expect our Climate Change Strategy to continue to evolve and to be regularly updated.
How our Climate Change Strategy aligns with Corporate Objectives |
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Reduce Risk | Enhance Value | Responsible Operator |
Internal carbon price for investment and design decisions | Embed findings of climate scenario analysis into Corporate Strategy | Assist PNG to meet its climate and development objectives |
Incorporate climate risk into strategy and decision-making processes | Include climate performance Key Performance Indicators as a component in management Short-term Incentives | Reduce emission intensity of our portfolio |
Conduct physical climate risk assessments | Investigate renewable power opportunities in PNG | Support host government efforts to establish policy frameworks for 2°C. Support local communities in building resilience to physical climate change impact. |
Oil Search's Climate Change Resilience Report provides detailed information on how this Strategy is operationalised including climate metrics and targets, climate adaptation impacts, how we assist PNG to meet its climate development objectives and our engagement on climate policy. The Report also includes detailed climate scenario analysis, which indicates long-term resilience and continued economic value generation for Oil Search in a range of decarbonisation scenarios, including a 2oC pathway.