Neptune enjoys ESG rating bump
North Sea-focused Neptune Energy has received upgrades to its environment, social and governance (ESG) and credit ratings, the company announced on April 6.
ESG scores are an increasing concern among investors and buyers, as energy companies face greater scrutiny over the environmental impact of their operations. In its latest ESG rating review, Sustainalytics gave Neptune a score of 26.1, placing it in the top 3% of all upstream companies with a global ranking of 5th out of 169.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
"Neptune's “overall ESG-related disclosure follows best practice, signalling strong accountability to investors and the public," Sustainalytics said in a report. "The company's ESG-related issues are overseen by the ESG committee, suggesting that these are integrated in core business strategy. The company's overall management of material ESG issues is strong."
Neptune's rating has improved by two levels since January 2020, and it is now one of only three exploration and production companies rated 'medium risk," the company said. S&P has also upgraded Neptune's crediting rating to BB- stable outlook from BB- negative outlook, and Fitch to BB stable from BB negative outlook.
Neptune, which operates fields in the Dutch, Norwegian and UK sections of the North Sea, announced last year it would target a reduction in its upstream carbon intensity to 6 kg CO2/boe by 2030, which is 60% less than the level forecast if the company took no action. It also wants to reach net zero methane intensity within the next decade. The company is involved in hydrogen and carbon, capture and storage initiatives.