A Message from Our Board
As the chair of the Health, Environmental, Safety and Corporate Responsibility (HES&CR) Committee of the board of directors, I can attest that when we take action, our stakeholders can be confident that it’s thoroughly and thoughtfully planned, tested and implemented.
We operate from a position of financial strength and set realistic priorities to meet our stakeholders’ expectations with respect to investments, employment, energy supply and community sustainability. This focus on being a safe and financially and environmentally responsible operator will ensure our place in any future energy transition.
Our stakeholders have made it clear that we must meet the dual challenge of supplying the world’s growing energy demand while also addressing climate risks. Climate change and the associated risks are among their top concerns and in 2019, Marathon Oil published our first climate risk report with the relevant disclosures from the Task Force on Climate-related Financial Disclosures (TCFD) framework. This included a discussion of the board of directors’ involvement in enterprise risk management at Marathon Oil.
For years, our company has worked to reduce our greenhouse gas (GHG) emissions, particularly methane. To strengthen this commitment, in 2019 the board added GHG intensity as a metric in executive compensation calculations. This sends a strong message to stakeholders and management alike about the importance we place on responsible operations. While we still face challenges with gas capture infrastructure limitations and flaring in our North Dakota Bakken asset, we’re addressing this as we do all problems: diligently and collaboratively with all relevant stakeholders. We are committed to finding a sustainable solution and are already seeing significant improvements on this front in the second half of 2020. We expect to make a step change in our Bakken gas capture to approximately 90% in the third quarter of 2020.
Collaborative efforts have led to very positive outcomes in other areas of ESG. Notably, 2019 was an outstanding year for safety performance. In fact, our best ever as measured by the Total Recordable Incident Rate (TRIR). This resulted, in part, from working with our contractors to perform to our high standards, which keeps everyone safe and maintains a stable workforce. We also continued making strategic social investments to create healthy, safe, strong and resilient communities where we work and live.
Despite the challenges our industry is facing, Marathon Oil will continue to do our part in supplying the energy the world needs. All while staying true to our principles as a financially sound, responsible operator, and being accountable for our results.
On behalf of the Marathon Oil board of directors and the HES&CR committee, thank you for this opportunity to share insights on the company’s approach to risks and challenges, as well as our successes. I look forward to your feedback on how we can enhance our nonfinancial performance and reporting.
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