Climate-related Risks, Opportunities and Risk Management

SPO

Climate-related Risks, Opportunities and Risk Management



Impacts from climate change are already noted in ports and shipping channels due to rising sea levels and changed erosion and sedimentation patterns. Extreme weather events (containing more energy as the atmosphere-oceans system warms up) have the potential to affect our operations both offshore and in ports, and the operations of our clients, in particular their offshore infrastructure.


Whilst weather patterns remain unpredictable, we have a diverse fleet of powerful vessels and well-trained employees to support the industry during climate / weather changing conditions safely. SPO is constantly reviewing and developing our safety measures pertinent to those risks and working to our aim to achieve our goal of Zero Harm to people, environment and our reputation.


Our Business Continuity Plans cover our shore operations (and Emergency Guidance Manual cover operations at sea) for such unpredictable events to ensure that we can continue our global operations with zero or minimum accidents and down time.


We believe that SPO's current risk management and business planning processes are robust enough to mitigate the risks associated with anthropogenic climate change over the next three decades to 2050. We will continue to monitor and adjust our business policies and strategy accordingly as climate policy developments unfold.


The following is our approach to minimising potential climate related threats:



Risk management
There is an established mechanism for early identification and addressing increased climate related risks within the overall SPO group risk management process.


Operating efficiency
Integrating sustainability / energy efficiency specifications into vessel design and operations and addressing ways to reduce carbon footprint of SPO's offices.


Carbon offset
Continuing to offset our current GHG emissions through dual accredited carbon offset REDD+ project and supplementing the downfall in credits by purchasing additional credits from credible projects delivering additional social value to the communities in project locations until such time as we have financially viable technological and / or operational means to eliminate them.


Alternative fuels
Actively investigating opportunities to radically decarbonise our operations through the determination, and proof of the feasibility of a low or zero carbon alternative to fossil fuel. SPO invested in Project Hafnium in 2018 - 2019.


Future regulations
Monitoring future market traits and regulatory conditions and "future-proofing" our business.


Client energy management
Working with our clients to reduce their fuel use (and costs). SPO is using two fuel management systems on board our vessels: FUELTRAX® and Aquametro. Both systems are smart, self-contained, marine fuel management solutions, which ensure security of fuel, compliance and optimised vessel performance.


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We believe that SPO's current risk management and business planning processes are robust enough to mitigate the risks associated with anthropogenic climate change over the next three decades to 2050.
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