Financial Energy Review
…..by James Ikenna…..,.
……. gets regulator, investors commendation on strides…..
Seplat Petroleum Development Company Plc (“Seplat” or the “Company”), a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), is strongly committed to deploying resources and expertise to create and deliver sustainable value to meet the expectations of its various stakeholders through a responsible approach in the management of the Company’s Environment Social, and Governance (ESG) imperatives.
The Company is committed to driving operational excellence in optimizing benefits to society and minimizing the negative impacts of its activities whilst making significant contributions towards sustainable development and pursuing continuous improvements in its Key Performance Indicators (KPIs) to ensure a better world without losing focus on the future generations.
Mr. Roger Brown, Chief Executive Office at SEPLAT said this at the Facts Behind the Sustainability Report presentation made to the Nigerian Stock exchange (NSE) on Tuesday in a virtual session.
According to Brown, SEPLAT’s sustainability policy is based on the following principles: Commitment to transparent and complete disclosure of our ESG performance; encouraging responsible use of resources – energy, water and others; implementing human rights and gender equality; needs assessment of stakeholders to identify appropriate solutions; considering natural and cultural circumstances of SEPLAT’s host communities in the implementation of CSR initiatives; and setting science-based targets to deliver on environmental footprint.
In addition, the SEPLAT CEO added: “We adopt an inclusive stakeholder management approach; integrate sustainability into our core business model and strategy; embed Sustainability concept and practice companywide; operate the highest standard of corporate governance; leverage on stakeholder engagement in determining materiality; and exhibit a strong belief in our shared Value philosophy.”
He noted that the Company is strongly driving Nigeria’s transition to gas, delivering significant environmental, economic and social benefits that support United Nations Sustainable Development Goals.
On SEPLAT’s response to Climate Change, he said the Company is strongly adhering to its flare out campaign to reduce carbon footprint, and has gone ahead to established a science-based assessment of our Greenhouse Gases emissions and reporting, adding that SEPLAT is currently investing in new infrastructure and R&D to help capture some of the emissions not previously reported.
Brown explained: “We are developing a Carbon Calculator for continuous sustainable deployment to highlight the most negative carbon emission activities. Our investments in gas at Oben, Sapele and ANOH is aimed at reducing GHG emissions.
“SEPLAT has created a new energy group to manage our midstream gas business and explore the adoption of renewable energy.”
According to him, SEPLAT’s operations impact a wide range of stakeholders; as the Company has continued to deploy proactive and effective stakeholder engagement framework, identify and classify stakeholders and their expectations, build mutually beneficial relationship with stakeholders, engage its stakeholders regularly and consistently, and deliver consistently on our Global Memorandum of Understanding (GMoU) commitments.
He explained that SEPLAT has invested extensively on development of local suppliers, of which over 98 per cent of materials are sourced from Nigeria; adding that: “We have a deliberate policy of encouraging local contractors in the award of some jobs. The Company takes the issue of local content delivery seriously.”
Over the years, SEPLAT has: improved economic empowerment of women and youths with customised empowerment programme; sustained skills acquisition program for youths in its communities whilst creating jobs and developing local suppliers. The Company has also improved access to quality education through customized CSR programmes, improved community infrastructure development, engaged 534 employees in its Nigerian and UK locations.
In his address, Oscar N. Onyema, the NSE Chief Executive Officer, congratulated SEPLAT CEO and the Company for the robust achievements and strides in the sustainability journey.
The NSE CEO who urged companies to learn from SEPLAT, said reporting sustainability could help organisations create a sustainable future.
Onyema noted that there is a recognized need for enhanced levels of corporate transparency on Environment, Social and Governance (ESG), and as an exchange “we are well positioned to encourage and even require listed companies to produce better sustainability reports that are issued consistently and with comparable information.”
On governance, Brown said SEPLAT operates with the highest standard of corporate governance, with the Board oversight of all sustainability issues and the CSR Board sub-committee having direct oversight of sustainability issues. This is in strict compliance with SEPLAT’s corporate governance policy and companywide compliance with the Code of Business Conduct.
Also speaking, the Divisional Head, Trading Business at the NSE, Jude Chiemeka, said sustainability is a journey and various companies are in their different stages of achievement and reporting.
He said the NSE will continue to promote global best practices as is seen in sustainability reporting, whilst also encouraging companies to do likewise.
The SEPLAT CEO explained: “We respects rights of employees, community people and their culture. We maintain a non-discriminatory posture in recruitment devoid of gender, religion, tribe or other such considerations, and adhere to national and international labour laws and protocols.”
Commenting on the Company’s adherence to best practices, Brown said: “We adhere to relevant international standards and protocols such as the United Nations Universal Declaration of Human Rights, International Covenant on Civil and Political Rights, International Covenant on Economic, Social, and Cultural Rights, Convention on the Elimination of all forms of Discrimination Against, International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, Board decision from inception on complete and transparent disclosure annually via Sustainability Report, Creation of a new function of Research & Sustainability Department to focus on ESG monitoring and reporting.”
