Hart Energy's 2023 ESG Awards: Cleaner, Safer, More Diverse

Hart Energy’s annual ESG Awards are here, highlighting the findings of data analysis firm Clear Ratings and recognizing companies' efforts in sustainable operation, local community engagement and positive workplace culture.

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(Source: James Milbrandt, Hart Energy) 

ESG matters remain a critical–and sometimes, controversial–touchstone for companies across the supply chain as the energy transition cycle transforms the industry.

Hart Energy’s annual ESG Awards highlight the findings of data analysis firm Clear Ratings in its effort to categorize and quantify individual business efforts to improve ESG performance. These awards recognize advancements made in sustainable operation, local community engagement and positive workplace culture. The firm made special recognition of individuals in an “ESG Champion” listing on a case-by-case basis.

Clear Ratings analyzed dozens of nominations and applied a weighted methodology to score nominated companies. In this assessment, more easily quantifiable environmental improvements were weighted the heaviest. The ratings still placed critical scoring metrics on social advancement, including community support and workforce sentiment, and on governance matters, such as board diversity. The final weighted score represents an average of the three ratings.

Public Producer

Pioneer Natural Resources

Final Score: 90

Pioneer Natural Resources’ CEO Scott Sheffield was one of the highest profile executives to call on the industry to reduce flaring in its operations. Calling it a “black eye” as much as five years ago, Sheffield has continued calls on industry colleagues to improve environmental standards.

Pioneer, a Permian Basin pure play, prioritizes emissions reductions, freshwater use and diminishing its physical footprint on the land. (Source: Hart Energy)

Pioneer, a Permian Basin pure play, prioritizes emissions reductions, freshwater use and diminishing its physical footprint on the land.

E – Pioneer committed to reduce methane emissions through facility design, operations and leak-management protocols. Flaring is less than 2% of Pioneer’s produced natural gas, one of the lowest rates in the Permian, and the company has eliminated routine flaring.
Category Score: 90

S – The firm strives to protect the environment from damage, as well as the lives of its employees and community members who live near its operations from injury and health risks.
Category Score: 90

G – The board of directors is 23% racially diverse and 31% of its membership is female. Pioneer’s board was among the first U.S. producers to report annually on sustainability and climate risk, which is now common among public operators around the world. The board also realigned its executive compensation calculations with ESG performance measurements.
Category Score: 90

Talos Energy

Final Score: 88.75

One of the leading independent operators in the Gulf of Mexico, Talos Energy strives to create and maintain a culture of ESG awareness with initiatives that foster corporate responsibility in daily operations.

The Bayou Bend CCS project was the first offshore lease in the U.S. dedicated to CO₂ sequestration. (Source: Talos Energy Inc.)

E – Talos demonstrated commitment to protecting the diverse ocean and coastal environments in which it operates. Through its safety and environmental management system, Talos actively monitors its operations to minimize impacts and ensure full compliance with applicable industry standards and regulations. Current environmental initiatives include a 30% reduction in greenhouse gas emissions (GHG) emissions intensity by 2025 from baseline 2018 levels.
Category Score: 90

S – Talos was named one of Houston Chronicle’s Top Workplaces in Houston for eight consecutive years. In June 2021, the company raised approximately $70,000 through employee and company matching contributions to a local Houston children’s charity, Kid’s Meals.
Category Score: 85

G – The company has increased female representation on its board of directors to 30%. It has also increased its ESG-related performance metrics to account for 20% of management’s annual incentive plan.
Category Score: 85

Private Producer

PureWest Energy

Final Score: 90.25

PureWest, a natural gas producer in the Rockies, incorporates its ESG principles into daily operations through voluntary initiatives to self-monitor and decrease GHG emissions in support of community volunteering programs. The company, which recently was acquired by a private investor group largely led by family offices, has cultivated a positive, productive and inclusive work environment and was honored with a Denver Business Journal “Best Place to Work” award in the 2023 Large Company category.

PureWest is implementing new technology to help replace energy-intensive operations, including solar heat trace pumps and well automation, which allows the company to remove pneumatic devices—eliminating those operational emissions as well as the potential for fugitives. (Source: PureWest)

E – PureWest worked closely with Project Canary and TrustWell to certify all of its wells as “Responsibly Sourced” by year-end 2022. A rigorous internal auditing program was established to evaluate leak detection and repair (LDAR) findings and conduct facility evaluations. PureWest voluntarily removed thousands of pneumatic pumps to replace them with solar-powered devices, and removed all of its high-bleed pneumatic devices. The company also deployed stationary methane detection monitors at select sites.
Category Score: 90

S – PureWest’s charitable giving policy focuses on providing for basic human needs, such as food, shelter, healthcare and education. The company matches employee donations to more than 60 organizations.
Category Score: 85

G – PureWest seeks to encourage healthy debate and embrace the diversity of its workforce. The company says it fosters a workplace that encourages and rewards initiative and provides authority to make decisions within areas of accountability. It empowers employees to adhere to the corporate commitment to operate responsibly and continuously improve the bottom line.
Category Score: 95

Sentinel Peak Resources

Final Score: 90

Sentinel Peak Resources is focused on the acquisition, development and exploration of oil and gas resources, primarily in California. The firm concentrates on operational excellence, serving as a steward of the environment and investing in its people and communities.

Sentinel Peak Resources’ oil and gas operation in the McKittrick oil field is located among the foothills of Western Kern County, Calif. (Source: Sentinel Peak Resources)

E – The company set a target of achieving carbon neutrality by 2030 through improved efficiencies, adoption of alternative energy sources and utilization of new technologies. Sentinel has improved its methane management with a five-tank vapor recovery system that reduced CO2 emissions from crude oil storage tanks by 93%. In addition to GHG reduction, Sentinel minimized freshwater use, sourcing over 95% of its water from non-potable sources, including produced water from its own wells.
Category Score: 90

S – Sentinel supports multiple community youth programs, such as mentorship programs in local high schools, and a program to support emancipated young people develop skills required to obtain field or administrative work. The company supports the Los Angeles community by converting some non-operating sites into affordable housing and other socioeconomic needs.
Category Score: 90

G – Sentinel’s regulatory compliance has allowed it to succeed despite the headwinds oil and gas companies face in California. The company adopted the California Air Resources Board reporting standards for GHG emissions, an LDAR program, groundwater monitoring, oil spill prevention and other programs. Sentinel employs a third-party whistleblower reporting service, Lighthouse Service, to ensure a safe space for employees to report concerns, and it says it is committed to adopting cybersecurity protocols to ensure system and source integrity.
Category Score: 90

Public Services

Baker Hughes

Final Score: 92

The oilfield services giant demonstrates ESG leadership in its goal setting, its sustainability performance and its investments in new products and services. As an energy technology company, Baker Hughes is committed to not only improving its own ESG performance, but also helping customers meet their ESG challenges and opportunities in support of the energy transition.

Baker Hughes’ facility in Massa, Italy, is part of the company’s efforts to run more operations on renewable energies. (Source: Baker Hughes)

E – In 2022, Baker Hughes reduced its Scope 1 and 2 CO2 emissions by 28% from the 2019 baseline, with 10 Scope 3 emissions categories reported with limited assurance. The company recycled 57,666 metric tons of waste and sourced 26% of its electricity from zero-emissions sources.
Category Score: 95

S – Baker Hughes pledged $2 million in strategic grants through the Baker Hughes Foundation in support of the UN Sustainable Development Goals in 2022. The company gave $925,000 to support diversity and inclusion programs, as well as education and opportunity initiatives. It donated $417,000 to support health, safety and wellness, and disaster relief. And it gave $650,000 to support environmental programs.
Categoy Score: 80

G – Last year, 53,846 Baker Hughes employees had completed annual code of conduct training, including training on ethics, compliance and anti-corruption; 99% of the company’s governance body members had received anti-corruption training; and 100% of enterprise security personnel, including full-time and embedded contractors, were trained in human rights policies.
Category Score: 85

ChampionX

Final Score: 90

ChampionX is a global leader in upstream and midstream oilfield technology solutions, chemistry programs and services, drilling technology, artificial lift and automation technologies for the oil and gas industry. It defines its overarching corporate purpose as improving lives, and has built a sustainability culture from the ground up.

ChampionX chemical solutions and services provide chemistry, technology, engineering support and onsite expertise to improve outcomes for upstream and midstream oil and gas operations. (Source: ChampionX)

E – ChampionX says it embedded sustainability into its culture and promoted more sustainable operations internally. It launched an internal carbon footprint calculator, which enables employees to calculate the manufacturing carbon footprint associated with transporting products from facilities to customer assets. In many cases, the calculator has shown the positive impact the company’s products have on reducing customers’ carbon emissions in the field.
Category Score: 90

S – ChampionX supports nine resource groups with the voluntary participation of over 1,000 employees. The goal is to create a workplace culture that cultivates a sense of belonging and allows for more purposeful alignment with the principles of the company. ChampionX also launched SEED (Sustainable Energy Empowers Development), a program that connects employees with opportunities to personally support environmental programs.
Category Score: 90

G – In support of their goal of continuous improvement and to strengthen the inclusivity of the company, ChampionX established an enterprise-wide Diversity and Inclusion Council, chaired by ChampionX CEO Soma Somasundaram. The council is made up of senior leaders from a cross-section of the company’s business, including a rotating set of employee resource group leaders.
Category Score: 90

Private Services

Danos

Final Score: 93.75

A family-owned oilfield service company, Danos views its commitment to ESG principles as fundamental to its success. The company is a founding member of the National Ocean Industries Association’s (NOIA) ESG network, which shares and develops best practices across the offshore energy industry.

Danos works with partner Natrx in Louisiana’s marsh to offload Cajun Coral, a restoration model that uses digital tools to work with mother nature to protect coastlines. (Source: Danos)

E – Danos works with wetland conservation groups, and is involved in projects building artificial reefs–nicknamed Cajun coral–using 3D printing that will help regrow coral beds, as well as protect against coastal erosion in Louisiana. Danos utilizes engine-calibration software to reduce its fleet’s fuel consumption and cut its CO2 emissions by 1,178 total metric tons a year.
Category Score: 95

S – The Danos Foundation has given over $1 million to 120 organizations and more than 350 employees in need since it launched in 2017. Danos partners with several technical and community colleges that offer degrees supporting the industry, and the company has a robust on-the-job training program.
Category Score: 90

G – Danos’ fabrication facility is fully certified to the International Organization for Standardization's quality management system standards and conducts rotating internal process audits to ensure compliance. The company is a multiyear winner of the National Ocean Industries Association (NOIA) Culture of Safety award for establishing an institutional safety culture through behavior-based safety programs and innovation.
Category Score: 90

Integrity BioChem

Final Score: 93.25

Integrity BioChem manufactures biopolymer products. (Source: Integrity BioChem)

Integrity Bio-Chemicals appointed its first director of sustainability in fall 2021 and touts breakthroughs in sustainability initiatives throughout the organization, committing itself to sustainable natural product solutions for the full product lifecycle.

E – Integrity BioChem’s bio-based, 4x-concentrated surfactants reduce combustion engine footprint by 75%.
Category Score: 95

S – A small company, Integrity BioChem boasts that, at its core, it is a technology company. The company strives for employee safety, reporting zero lost-time incidents in 2022.
Category Score: 85

G – Integrity BioChem made an executive commitment to ESG with the creation of a new role, director of sustainability. Laura Kuri Benavides took on this charge to implement and document the company’s sustainability processes. She also provides guidance on emerging sustainability technologies.
Category Score: 90

Public Midstream

Archrock

Final Score: 94.5

Houston-based Archrock’s mission is to “Power a Cleaner America.” The natural gas compression services provider’s 1,000-plus employees are spread across 21 states.

(Source: Archrock)

E – Archrock reduced its Scope 1 and 2 carbon intensity by 11% in 2021 compared to 2020 levels. Scope 3 emissions in 2021 were 37% below 2017 levels. In 2022, Archrock acquired a 25% equity position in Ecotec, a company that provides methane emissions monitoring, leak detection and environmental compliance. Archrock is working to connect Ecotec’s proven technology with its U.S. natural gas compression infrastructure and customer support network.
Category Score: 95

S – The Archrock Cares organization supports volunteer activities with organizations, such as the Houston Food Bank. In 2022, Archrock added a diversity and inclusion metric to its short-term incentive program, increasing the company’s percentage of employees that self-identify as members of underrepresented groups.
Category Score: 90

G – Archrock’s majority independent and annually elected board of directors drive a focus on long-term sustainability and governance standards throughout the organization. Of the annually elected Archrock board of directors, three of the seven independent board members are either female or ethnically diverse, including audit and governance committees led by female board members. In 2022, Archrock increased the weight of safety and sustainability within its short-term incentive plan to 20%.
Category Score: 95

Crestwood Equity Partners

Final Score: 93.25

Crestwood Equity Partners made significant strides on its second, three-year sustainability strategy, initiated in January 2022, including deliverables achieved through its comprehensive carbon management plan.

Crestwood remains committed to seeking ways to enhance its emissions monitoring. (Source: Crestwood Equity Partners LP)

E – While the company’s GHG emissions increased in 2022 due to the acquisitions of new gathering, compression and processing assets, Crestwood achieved a 5% reduction in its methane emissions intensity rate from 2021 levels and a 58% reduction since 2018. The company also made advancements on its continuous, methane-monitoring pilot and installed devices on 13% of its assets in 2022, enhancing its approach to methane detection.
Category Score: 95

S – In 2022, Crestwood donated $1.5 million to the communities it operates in, and Crestwood employees volunteered over 2,800 hours.
Category Score: 85

G – Crestwood continues to increase its female leadership representation and was included in the 2023 Bloomberg Gender-Equality Index for the third consecutive year. Crestwood continues to make significant progress in advancing its approach to corporate governance in alignment with best practices, enhancing disclosures in its annual proxy statement and maintaining a board composition of 89% independent directors, reflecting diverse perspectives and ensuring robust decision-making.
Category Score: 90

Aris Water Solutions

Final Score: 89.25

Aris Water Solutions, a leading developer and operator of critical water infrastructure assets in the Midland and Delaware basins, has committed to exceeding the high standards set by its customers, global regulators and the global investment community. This enables customers to exceed their own water, safety and community commitments and focus on their core businesses.

Aris Water Solutions is a leading developer and operator of critical water infrastructure assets in the Midland and Delaware basins. (Source: Aris Water Solutions)

E – Aris recycled 4.6 billion gallons of water in 2022 to offset groundwater withdrawals, reduce wastewater disposal and cut carbon emissions. Aris led the formation of the largest joint industry beneficial reuse project, working with three major operators to develop, pilot and demonstrate desalination and polishing treatment technologies that aim to facilitate safe beneficial reuse of treated water outside of the oil industry. Also, Aris was able to reduce fresh and groundwater consumption by up to 90% in certain instances.
Category Score: 90

S – Aris supports local communities by giving to and volunteering with first responders and local charities.
Category Score: 90

G – The company is committed to ensuring a diverse and inclusive culture, with over 50% minority and female representation, including at senior leadership and executive levels. Aris has an independent governance with a diverse board, including 33% gender and minority representation.
Category Score: 85

Private Midstream

XRI Holdings

Final Score: 88.75

XRI was founded in 2013 on the tenets of conservation of water resources, environmental sustainability, employee health and safety and corporate stewardship. XRI’s mission is to provide the industry with an environmentally sustainable alternative to groundwater use for hydraulic fracturing operations.

XRI has committed to a corporate culture and code of conduct ensuring the highest level of business ethics, including anti-bribery and corruption standards, stakeholder rights and social justice practices, as well as governance of sustainability initiatives. (Source: XRI Holdings)

E – The independent water midstream company’s operations avoid the emitting of 225,000 metric tons of CO2 per year, save over 400 MMbbl of freshwater aquifers per year and prevent reinjection of over 270 MMbbl of wastewater.
Category Score: 90

S – XRI engages with the community it serves through volunteering and participating in economic development.
Category Score: 85

G – XRI has committed to a corporate culture and code of conduct ensuring the highest level of business ethics, including anti-bribery and corruption standards, stakeholder rights and social justice practices, as well as governance of sustainability initiatives.
Category Score: 85

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