A key focus of TGS’ ESG strategy is addressing its Scope 1 and 2 emissions and working with the industry to address emissions in seismic operations. At the start of 2021, TGS set the goal to be net zero in Scope 1 and 2 emissions by 2030 and already took meaningful steps toward that goal.
TGS, in partnership with its landlord, is developing the largest solar project in Houston to use solar energy to help power its Houston headquarters. By installing solar panel canopies in the company’s parking lot, TGS estimates a potential reduction of ~30% in its global office emissions.
TGS is also addressing the emissions impact from its data centers and the increasing compute generated from its digital and machine learning solutions for subsurface intelligence. TGS’ computing power over the last year has increased by more than 50%. However, the company is proactively mitigating the emissions impact by utilizing more energy-efficient equipment, resources and finding commercially beneficial solutions, such as carbon-neutral cloud computing.
Finally, TGS recognizes that collaborating with its vendors, suppliers, partners and customers in this area is critical. To that end, TGS is partnering within the industry through the International Association of Geophysical Contractors to develop emissions standards for seismic operations that encourage consistent carbon accounting across the industry.
The company’s HSE program is a key pillar of its ESG program. As TGS is an asset-light company dependent upon its contractors, the company takes a proactive role in evaluating, monitoring and auditing its contractors’ HSE and COVID-19 practices to ensure they are aligned with TGS standards. Starting in 2020 through the first half of 2021, TGS logged 2 million man-hours without a lost-time injury or recordable incident. During that same time period, TGS had zero COVID-19 incidents in field operations or work-related illness due to COVID-19 in any TGS office.
Embracing diversity and inclusion has become a key focal point for TGS. In addition to being included in the 2021 Bloomberg Gender Equality Index and adopting the UN Women’s Empowerment Principles, TGS is taking active steps to provide a more inclusive workplace for women and other underrepresented groups in the industry. One of the key changes implemented in 2021 included adopting a policy of 16 weeks of fully paid leave for new mothers for TGS’ U.S. workforce and extending a portion of TGS’ paid parental leave to non-birth parents or adoptive parents.
TGS understands the importance of transparency to its shareholders, employees and customers in how it operates and has improved its ESG reporting over the past two years. TGS is a supporter of the Task Force on Climate Related Financial Disclosures, the UN Global Compact and its Sustainable Development Goals and incorporates these principles into its operations and strategies.
ESG reporting agencies and indices have recognized these efforts. In 2021 TGS was recognized as No. 1 in its industry and sub-industry with “strong” ESG risk management by Sustainalytics. The Governance Group awarded TGS’ 2020 ESG reporting an A rating and put it as one of the top 15 companies on the Oslo Børs. State Street Global Advisors also acknowledges TGS as an ESG “Leader” and in the top 10% of the industry for its ESG performance. TGS is committed to operating sustainably and being transparent about its progress.