Pharos is committed to responsible and sustainable development. We recognise that energy demand is forecast to grow and that oil and gas will continue to be an important component of the global energy mix over many future decades.
This will be essential for sustainable economic development, especially in the countries where we operate.
Global climate risk and energy transition
Climate change is considered a principal risk to Pharos and its business over the medium and long term, and this is discussed in more detail in the Risk Management Report in our 2020 Annual Report & Accounts.
Global energy transition is a factor that impacts many of the Group’s principal risks including those associated with commodity price, access to capital, reserves, operations, political, stakeholder and reputational risks. We recognise that a global transition to a lower carbon intensity economy in response to climate change could result in reduced demand, lower oil prices and increased operating cost, capital cost, regulation and taxation. Our overall risk management integrates climate change and carbon related risks. Established management processes include any physical risks associated with climate change.
Pharos is cognisant of the potential diminished role of fossil fuels in the global energy mix as depicted in the IEA Sustainable Recovery Plan. However, at the same time, we also recognise that energy demand for oil and gas will continue to be an important component of the global energy mix for many decades to come.
Pharos will continue to develop its oil and gas resources responsibly to aid global economic development and deliver value for all our stakeholders. We believe that, countries such as Egypt and Vietnam can continue to have economic and social benefits from the responsible development of their natural resources and we are committed to doing this in a sustainable way. We will also continue to support our host governments as they seek to use oil revenues to promote sustainable and inclusive economic development, and we will support the actions that they take to manage climate change.
Business partners and influence
Relationships with business partners, host governments and local communities where we operate are critical for our business. Our Code sets out our commitment to doing business honestly and ethically and to complying with all applicable laws and regulations. It sets out our expectations to take steps to only do business with others who share our values.
Our ability to influence our business partners depends on our degree of ownership and operatorship. Where we are the designated operator, we fully apply the Pharos HSES MS. Where we are a joint operating partner, we seek to influence and ensure alignment with our systems. Where we have a minority interest, we seek to make our views heard and ensure that minimum standards are met in accordance with our commitment to the IFC Performance Standards.
New entry procedure
The process of identifying and addressing environmental, biodiversity, social and human rights (Environmental and Social Governance – ESG) issues and corporate business risks is an integral part of Pharos’s approach to new entry. It consists of three key stages: preliminary assessment (risk screening and issues identification), due diligence and deal closure. It is a means by which Pharos demonstrates its commitment to environmental and social performance to internal and external stakeholders as well as reducing exposure to financial, legal, operational and reputation risk. It is designed to enable the business to prevent harm, make better financial and operational decisions and to meet commitments vis-à-vis Pharos’s stakeholders.
HSE Management System
We undertake a range of activities to continuously improve our HSES MS to ensure that the Company’s policy commitments are applied. We may work in countries that have different standards and we review any potential gaps to ensure adherence to our policies in dialogue with our business partners. Routine monitoring is undertaken to assess and improve performance and periodic audits are conducted.
In 2020, a total of 277 HSES training sessions took place across Vietnam and Egypt throughout the year and 107 emergency response drills also took place across the Group.
During 2020, Petrosilah passed the annual surveillance Audit of ISO 14001-2015 for Environmental Management system.
Key Performance Indicators
|HSE regulatory non-compliances||Zero||Zero||Zero 1||Zero|
1 Although three regulatory non-compliances were reported in our Egyptian assets in 2019, these occurred in January, prior to the completion of our acquisition.
Contractors are used throughout all aspects of our business. Our Contractor Management Procedure sets out requirements through all stages from selection through to management and service delivery. In HSES critical activities, bridging documents are put in place to ensure Pharos and contractor alignment with our requirements.
|Hours worked in Vietnam and Egypt assets||Percentage of total|