Oil and gas producer - Carbon strategy development

Energetics worked with a Western Australian oil and gas producer to develop and implement a carbon strategy in response to climate change risks and opportunities. Through the facilitation of an executive level strategic workshop, the client was able to gain executive level commitment to a climate change response and to understand current and desired future positioning. The client was then able to develop projects and actions to work towards their desired position as an innovator in climate change.

Key Facts

Client: Western Australian oil and gas producer
Location: Western Australian
Industry: Oil and gas
Project: Carbon strategy development
Lead consultant:

 

Outcomes

Following work on compliance projects, Energetics helped the client to recognise the need to think more strategically about its response to climate change. Energetics helped the client to:

  • Gain executive level buy-in and commitment to climate change initiatives
  • Understand the current level of engagement and gauge the level of aspiration for climate change positioning
  • Set goals and objectives for improvement
  • Define actions to achieve their ‘innovator’ aspiration

Determining the need for a carbon strategy

Through the initial provision of compliance program support, Energetics helped the client to recognise the need for its organisation to start thinking more strategically about its response to climate change. Key personnel were unaware of the position their executive leadership team held in relation to climate change and were asking such questions as:

  • What should our position on a carbon price be?
  • What are the profitability risks and opportunities of a carbon price?
  • Do we have executive support to prioritise mitigation analysis and planning?
  • Do our public statements reflect what we are doing or what we want to be doing in relation to climate change?
  • Is our infrastructure vulnerable to climate change?

In consultation with the client, Energetics developed a scope for an executive level workshop and a plan for responding to workshop outcomes. The intention was to develop key themes and actions for the clients’ strategic carbon response.

Executive carbon strategy workshop

Executive level engagement throughout the carbon strategy development process is essential.

To gauge the level of aspiration that the executive team had in relation to climate change positioning, Energetics referred to its ‘Denial-Innovator’ continuum. We plotted the existing sophistication of the company’s thinking around climate change and the discussion then moved to where the organisation would like to be with the client. The client identified that it currently sat at ‘reactive’ but would like to move between ‘proactive’ and ‘innovator’. The client was aiming to be able to anticipate and devise innovative responses to shifts in the social, political or economic landscape as a consequence of climate change.

Partners in action planning

The objective to progress to ‘innovator’, encouraged staff to develop business cases for projects to achieve this goal. In the initial strategy workshop, a list of projects was analysed for risks and opportunities. These projects included:

  • Refining internal knowledge-sharing processes in order to be on the front foot for all carbon and energy related matters
  • Development of a Marginal Abatement Cost Curve to prioritise mitigation opportunities across all Australian facilities
  • Determining a shadow carbon price forecast to inform all investment decisions
  • Establishing an adaptation strategy

Energetics is in the process of supporting its client with the refinement and implementation of the key climate change actions. We are also working with the client to establish a formally documented carbon strategy and project tracking tool.