Mercuria CSR Report 2021 - Flipbook - Page 43
2021 Corporate Social Responsibility
Scope 1 emissions 2021: 455,630 tCO2e
The Scope 1 and 2 emissions result mainly from our assets. 2021 saw a drop in Scope 1 emissions from
565,570 tCO2e in 2020 to 455,630 tCO2e in 2021, although within individual assets some have seen
material changes in emissions.
One upstream oil and gas asset saw a drop from 183,227 tCO2e in 2020 (Scope 1 + 2) to 34,937 tCO2e
in 2021 (Scope 1 + 2). Part of the change was associated with the movement of emissions reported
by Mercuria under Scope 1 for 2020, being removed for 2021. This was based on discussions for 2021
showing that one field had been reported by the asset as Scope 3 as they did not operate it. For 2021
this was excluded from the values (dropping the reported value by around 50%). In addition, another
field was divested in July 2021 and so only 50% of the year is reported for 2021. Overall, the 2021
reported emissions for the asset are less than 20% of the 2020 reported values.
One of our upstream oil and gas assets has seen production drops in 2021, although these are in part
offset by the use of more reliable emission factors. Last year the emissions were estimated by applying
a production based emission factor from another upstream oil and gas asset. For 2021 we have moved
away from this approach given differences in the production and location. With only partial activity data
available, we have applied IPCC emission factors to estimate the emissions from onshore oil and gas
production providing a high level estimate with referenced emission factors. Moving forwards we will
continue to gather details of the flaring/venting and power generation to establish full GHG calculations
based on activity data.
Two of our assets had not reported fugitive emissions in cases where they are likely to be a material
Scope 1 source. We have applied IPCC factors to estimate fugitive emissions rather than exclude these
due to a lack of data.
Of the new assets added to Mercuria’s portfolio in 2021, based on the operational/management control
approach taken for emissions reporting, there are no additional assets added in terms of emissions
reporting for 2021. Divestments resulted in some assets being reported for part of the year, up to the
point of divestment.A review of the assets and emission sources has led to a more complete Scope 1
reported emission in 2021. Over time, the asset reporting will evolve as we work with assets to further
evaluate emission sources and enhance processes to report activity data (e.g. combustion of fuels,
flaring, venting).
Many of the Mercuria assets have improved their GHG reporting processes over the last year with some
engaging GHG accounting companies to review their emissions and others enhancing their processes
to report against regulatory requirements. All of these activities will be beneficial to Mercuria’s
GHG reporting, enabling a more centralised approach to be adopted in the future, applying greater
consistency in reporting.
Scope 2 emissions 2021: 81,471 tCO2e
Scope 2 emissions are included for all reported assets. The 2021 data request included obtaining
example invoices for purchased electricity, including the purchases of electricity on a green tariff. This
has all been reported, with recognition of the green tariff purchases after consideration of the full
emissions, as per the GHG protocol. The addition of some Scope 2 emissions that were missing in 2020
has led to a higher Scope 2 emissions but one that is more complete.
The reported Scope 2 emissions for 2021 is 81,471 tCO2e compared to 27,241 tCO2e in 2020. Most of the
increase is associated with a more complete data set for the assets.
Scope 3 emissions 2021: 1,718,699 tCO2e
Scope 2 emissions are included for all reported assets. The 2021 data request included obtaining
example invoices for purchased electricity, including the purchases of electricity on a green tariff. This
has all been reported, with recognition of the green tariff purchases after consideration of the full
emissions, as per the GHG protocol. The addition of some Scope 2 emissions that were missing in 2020
has led to a higher Scope 2 emissions but one that is more complete.
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