Talos Energy establishes long-term emissions targets in advance of 2021 ESG report
Talos Energy strengthened its ESG commitments with the establishment of long-term emissions reductions targets and further linkage of executive compensation to ESG performance. Additionally, the company provided select 2020 ESG performance statistics in advance of its 2021 ESG report release, which is expected in 3Q 2021.
Talos established a target of 30% reduction in greenhouse gas emissions intensity by 2025 from the baseline 2018 levels established in its 2020 ESG report. ESG-driven metrics have also been increased to account for 20% of management’s annual incentive plan, and they include key initiatives aimed at emissions reduction and health and safety metrics. Production metrics were eliminated from the annual incentive plan scorecard, and maximum category payouts were reduced from 200% of targets to 150%.
Paula Glover was formally elected to Talos’s Board of Directors and appointed to the recently enhanced Safety, Sustainability and Corporate Responsibility Committee, which maintains oversight for sustainability and corporate responsibility matters.
“The combination of recent changes to executive compensation and governance, as well as the establishment of long-term emissions reduction targets, advances our commitment to ESG at all levels of our business and further aligns the interests of all stakeholders as we look toward the future,” said Talos President and CEO Timothy Duncan. “Talos has always had a compelling ESG story with a strong health, safety and environmental track record and solid governance and compensation practices, and we are increasingly committed going forward.”
In 2020, Talos saw a 20% reduction in greenhouse gas emissions intensity from 2018 levels, and a 20% reduction in flaring and venting emissions from 2019 levels. The company also established an employee-led internal ESG committee whose members are actively working on a wide array of initiatives, including emissions reduction, safety, diversity and inclusion, community relations and energy transition initiatives.