Kistos Holdings plc aims to generate value for shareholders while maximising operational sustainability and reducing emissions for the benefit of future generations.
Our approach to environmental, social and governance (ESG) is foundational to how we operate as a business. Kistos’ commercial activities are conducted responsibly, supported by strong governance structures and with the utmost consideration for our environmental and social impact.
2. Our ESG Strategy
As an energy business, we have a vital role to play in society’s transition to a low-carbon future. We explore opportunities for growth and create value, doing so in harmony with the planet and with people at the heart of our approach.
Caring for the environment
We will continue to put sustainability first with every decision we make.
Operating ethically and responsibly
We will act with integrity to ensure we’re always doing the right thing.
Putting People First
We will create safe, inclusive workplaces, promote human rights, and strengthen our communities.
3. ESG Outlook and Non-Financial Performance
Natural gas plays an important role in the energy transition, bridging the gap on the journey from fossil fuels to a net zero future. Supporting international net zero emission targets, we have long been committed to producing gas with a minimal carbon footprint – continuously innovating to achieve this goal. One such example is our low-emission Q10-A offshore platform in the Dutch North Sea. Unmanned and powered by solar panels and wind turbines, Scope 1 emissions from gas production at the platform are minimal.
As part of our wider emissions reduction ambition, we also have a programme to identify and prevent operational methane leaks with annual inspections, exceeding the four-year inspection requirement.
We aim to ensure our platform has the smallest impact on animal life and biodiversity as possible. To reduce the wildlife impact of flaring during drilling operations, dedicated teams monitor bird migrations passing near to our facilities and let us know when it’s safe to do so. We’re also limiting use of ultrasonic sounds to reduce harm to local marine life and have taken steps to keep seals at a safe distance from our platform.
 Less than 0.01 kg of CO2 per barrel of oil equivalent produced (kgCO2/boe).
Non-Operated Asset Emissions
In the UK, gas production from our non-operated Greater Laggan Area assets have an emissions intensity of approximately 13 kgCO2/boe (versus a UK industry average of 25 kgCO2/boe).
In Norway, we aim to reach 7 kgCO2e/boe by 2025 from non-operated interests in the Balder and Ringhorne oil fields to match the Norwegian Continental Shelf (NCS) average.
Wherever we have non-operated assets, we work closely with operators to identify opportunities for further emission reductions.
 Following the on-station arrival of the Jotun floating production storage and offloading vessel (FPSO).
Our social impact is defined by our commitment to upholding employee safety and well-being, as well as advancing important agendas such as diversity, equity, and inclusion (DEI).
Our number one priority is ensuring safety in our operations and throughout the entire value chain. That is why, aligned with our goal of zero harm, we have incorporated third-party contractors into our safety culture. We achieve low rates for lost time incidents, non-compliance incidents, near misses and hazards during drilling and testing operations.
To further provide the best conditions for our employees to thrive at work, we maintain a flexible, hybrid working environment that helps encourage collaboration and creativity.
Approximately 30% of our workforce are women (25% including Directors) and we aim to enhance equality and equity throughout our operations by developing a corporate DEI strategy. We regularly review our policies to ensure we are making progress against targets.
To create meaningful social impact, we must understand what our stakeholders needs and interests are. We value stakeholder engagement and maintain ongoing communications with our employees and contractors, joint venture partners, suppliers, and investors. Key to our continued success is the involvement and welfare of coastal communities living near our operations, as well as safety regulators and national coastguard services – who we liaise with frequently. We also involve all appropriate regulatory bodies when required.
Responsibility for setting strategic aims, defining our business plan and strategy, and managing Kistos’ financial and operational resources, lies with our Board. Overall supervision, acquisition, divestment, and other strategic decisions are also determined by the Board. In conjunction with other Executive Directors, our Executive Chairman is charged with the day-to-day responsibility for implementing the Company’s strategy.
Risk management is critical to achieving our overall strategic objectives and creating value and we are constantly working to identify and assess relevant risks. To support this, we foster a culture that promotes ethical and responsible behaviour, and we work to mitigate bribery and corruption.
Our governance framework and approach to risk management help us run operations responsibly, while addressing key stakeholder and societal concerns.
4. Our Material ESG Issues
To manage risk, we must understand the ESG issues that are most important to our stakeholders and our business. So, in 2021, we undertook our inaugural materiality assessment, with support from Flag Communication.
The process involved:
Desk-based research and media scan.
A review of Kistos’ corporate approach and policies.
A review of material issues reported by a benchmark group of peers and best practice companies.
Interviews with seven internal and external subject matter experts to score potential material issues in terms of impact on the business and influence over stakeholders.