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We believe that our multi-client business model not only benefits customers commercially but also is a more sustainable, environmentally friendly business model than the alternative of proprietary acquisition. We remain committed to understanding the energy consumption and greenhouse gas emissions in its operations and finding ways to reduce its impact as well as minimizing and mitigating the impact that our activities have on the marine and land environments and communities around them.
TGS is committed to protecting the environment in which we live and work, while also conducting our operations in an environmentally sustainable and responsible manner. We strive to lead the industry in minimizing the impact of our operations on the environment.
In 2020, TGS continued to incorporate climate risk into its business and operational strategy by using the “Task Force on Climate-related Financial Disclosures” (TCFD, set up by the Financial Stability Board) so that it can address the financial impacts of climate risks and opportunities.
TGS Climate-Related Strategy
|Governance||Strategy||Risk Management||Metrics & Targets|
|TGS' Board of Directors oversees TGS' business strategy, and in particular, TGS' efforts when it comes to assessing financial, business, operational risks associated with climate change to TGS and our impact on climate change. TGS' leadership, operations, sustainability
and HSE departments are responsible for assessing and managing these risks to the organization and updating the strategy to address these risks.
|In developing TGS' strategy, the company looks at a variety of factors and indicators that have the potential to impact our business, including market conditions, oil price, technology changes, and legislation and policy shifts, all
of which are affected by climate-related risks and opportunities.
|TGS identifies, assesses, and manages risks at varying levels, including at the overall corporate level, department level and project level. These risk assessments incorporate an analysis of our industry and market and the potential impacts, including climate-related impacts, that each will have on our business, as well as changes in environmental legislation and industry practices.||TGS measures its emissions related to its vehicles and the electricity usage in its offices and data centers [Scope 1 and 2). Thus far, TGS' Scope 3 reporting is limited to emissions based upon fuel consumption related to our marine and onshore operations; however, TGS aims to expand this to include business travel in the future. In 2021, TGS began setting targets aimed at reducing our Scope 1 and 2 emissions to net zero by 2030.|
|Action Plan||Action Plan||Action Plan||Action Plan|
|a) The financial and other impacts related to climate change [energy industry reputation, technology changes, energy transition) are considered by the Board and TGS' leadership as part of the annual risk enterprise assessment and their
annual strategy sessions. TGS recently announced a Board-approved, updated strategy at the start of 2021 to address both the risks and opportunities that a more diverse energy mix going forward will have on traditional oil and gas and new energy solutions.
|a) TGS has identified the energy transition and diversifying energy mix to be both a climate-related opportunity and risk. There is opportunity for TGS to diversify its product offerings and solutions to address this growing industry and offset the risks associated with a potential decrease in oil and gas exploration. See TGS' 2021 Capital Markets Day Presentation for
more information on TGS' updated strategy.
|a) Climate-related risks
are identified and assessed through environmental impact assessments [EIAsl. site surveys, public or social consultations, engaging with environmental consultants, participation
and membership in industry trade organizations [e.g. IAGC, IOGP). project-specific hazard assessments and consultation with regulators and permitting agencies.
|a) TGS Scope 1 emissions are derived from a couple of vehicles owned by the company, whereas the Scope 2 emissions are derived from electricity usage in its offices and datacenters. TGS reports emissions derived from fuel consumption by our vendors for our marine, onshore, and air seismic operations as Scope 3 emissions.|
|b) TGS recently updated its strategy to be prepared for a greater energy mix to address both the risks and opportunities that will result from the impact the energy transition is having
on traditional oil and gas companies and the emergence of new energy solutions. Implementation of this is brought about by diversification of TGS' business through
a New Energy Solutions department and an increased presence of ESG on TGS' Executive Team.
|b) TGS' strategy has been adjusted to account for a more diverse energy mix, which presents opportunities for TGS to diversify its business and revenue stream to serve carbon capture and storage, deep sea mining, geothermal energy, wind energy and solar energy.
This adjusted strategy addresses the potential financial impact if exploration decreases and provides business opportunities for new revenue streams, products, and services.
|b) TGS commissions EIAs to understand potential impacts on the environment it may operate in. TGS also employs protected species observers [PSO's)
and utilizes passive acoustic monitoring [PAM) on its operations in order to ensure our operations do not have a detrimental effect on the environment in which we operate. TGS employs various other environmental mitigation measures including conducting soft starts or ramp-ups and placing buffer zones around environmentally sensitive areas.
|b) In 2020, TGS' Scope 1 emissions were 385 mt of C02e; Scope 2 emissions were 13,586 mt of C02e; and the emissions derived from our onshore and marine operations totaled 144,722.05 mt of C02e.|
|c) TGS has adjusted its strategy
in line with the energy transition within the industry, and results of this were presented to the market in early 2021. TGS intends to do full climate change scenario analysis that includes both a 2°C and lower scenario based upon the Paris Agreement. This analysis will
look at the market, legal, policy, technological and physical risks related to varying climate change scenarios and their potential impacts to TGS. The Board will review this analysis and incorporate it into its strategy and planning. TGS will make further adjustments as needed based upon the results of the climate change scenario analysis to be completed in 2021.
|c) TGS' annual risk enterprise program incorporates environmental and climate related risks, as well as TGS' mitigation measures. TGS' Board and Leadership Team also look at the climate-related risks and opportunities as part of its regular strategy sessions to ensure that TGS' short-term and long-term strategies account for all relevant risks and opportunities. TGS also receives regular feedback from its stakeholders, including investors and clients, and incorporates such feedback into how TGS manages its climate-related risk.||c) TGS has set a target of reducing its Scope 1 and Scope 2 emissions year over year with the goal of becoming net zero in Scope 1 and Scope 2 emissions by 2030. TGS is also working to incorporate a climate-related impact analysis into its internal investment decision-making process.|
TGS is an office-based company that does not operate or own vessels, manufacturing plants or factories. Nevertheless, TGS is committed to working towards understanding the energy consumption and greenhouse gas emissions in all its operations and finding ways to reduce its impact.
|Scope 1 Emissions||2020||2019||2018|
Energy usage in our offices and data centers make up TGS’ Scope 2 emissions. Energy consumption for data processing and high-performance computing are responsible for the bulk of the emissions related to the generation of purchased energy (Scope 2), with our Houston data center comprising of 90% of our 2020 data center emissions.
Houston, TEXAS (10 August 2021) – Further reinforcing its commitment to ESG and its employees, TGS, a global provider of energy data and intelligence, today announced that it is set to install a landmark solar energy parking canopy at its operational headquarters in Houston, Texas. Consisting of 1,700 modules, the installation is projected to boast an annual output of 929,034 kilowatt hours of energy – creating a unique approach to achieving the Company’s net-zero targets. The TGS solar energy parking canopy is also marked as one of the most innovative and largest solar panel projects in the Houston area.
TGS has set the following operations goals for 2021 and beyond.