Decarbonizing Scope 3 emissions: The responsible approach to energy travel

PIPPA GANDERTON, ATPI Halo 

With targets to reduce emissions by as much as 45% by 2030 and hit Net Zero by 2050, the onus is on prominent industries to do their part to support change. Globally, a variety of industries have introduced efforts to decarbonize working practices and reduce their emissions footprints. With a spotlight on the energy industry, the success of hitting the Paris Agreement targets relies on the international energy framework to reduce Scope 1 & 2 emissions from traditional oil and gas exploration and extraction.    

For some of the biggest energy operators internationally, cutting emissions and producing energy with the lowest possible carbon intensity has become an integral key performance indicator (KPI). However, involvement and commitment from every corner of the industry, and all those with a stake in it, is necessary to create scalable change and push decarbonization.  

The energy industry is one with a proud history of teamwork and innovation. By solidifying its reliable network and supply chain, and utilizing the expertise demonstrated throughout it to drive continued revolution, there is no reason to believe that industry-wide efforts cannot be obtained. 

Many in the oil and gas industry are already showcasing leadership, working to reduce emissions by integrating new technologies, processes, and forward-thinking approaches. From reducing methane emissions to carbon capture, utilization, and storage, and electrifying offshore platforms and rigs, companies are tackling emissions caused by the various elements of the drilling and extraction process. However, the Green House Gas emissions that these actions address fall into the Scope 1 and Scope 2 categories. If the industry is to fully address and consider reducing its carbon footprint and maintain its commitment to ESG strategies while keeping on track to achieving Net Zero, a holistic approach to every operational facet is required. This includes Scope 3 emissions, caused by travel and logistics.    

THE RESPONSIBLE APPROACH TO TRAVEL 

When evaluating methods and processes to decarbonize rig emissions, Scope 1 & 2 are often the immediate areas that organizations address. However, Scope 3 value chain emissions, such as travel, cannot be ignored. As an industry that relies on global collaboration and regional resources, travel is a non-negotiable factor of day-to-day operations and, therefore, a significant emissions contributor internationally.   

It's often felt that the eyes of the world are on the energy industry and the ESG strategies and guidelines that companies platform. Many ask to be judged on their efforts to address, reduce or mitigate emissions, but amidst evolving standards and expectations, navigating decarbonization efforts can be a difficult task to manage. 

Outside expertise and resources can be crucial for guidance, especially for Scope 3 emissions that include the complicated external processes of travel management and workforce logistics. The role of a Travel Management Company (TMC) cannot be overstated.  

Going beyond handling corporate travel, TMCs—like ATPI—help clients cut emissions by sourcing and coordinating more responsible global travel programs via extensive sector knowledge. The combination of decades of servicing travel logistics for the oil and gas sector and developing seamless end-to-end solutions for every detail of travel management has established TMCs as a key collaborator. As the scope of where the industry operates, and where we source energy, has evolved simultaneously with Net Zero and ESG ambitions and technological advancements, expertise and technology combine to address energy sector challenges from mission-critical travel to decarbonization.  

Developed to address all of the above is ATPI Halo—a CO₂ measurement, reduction and compensation service, Fig. 1. Understanding that travel is a significant emissions contributor, ATPI Halo examines responsible travel solutions. By delivering granular and highly visual C0₂ reports, a platform such as ATPI Halo allows you to dig deeper and take proactive steps toward how the energy industry views and understands responsible travel.  

Fig. 1. ATPI Halo is a CO2 measurement, reduction, and compensation service.

Innovative platforms are foundational to supporting long- and short-term sustainability goals by assisting operators to measure, reduce and compensate for CO₂e travel emissions, empowering organizations to review sustainable travel options that are effective and aligned with operational objectives. Naturally, with so much at stake and public scrutiny keeping a close eye on progress, detailed CO₂e reporting can offer stakeholders clear visibility and insight into travel-related emissions footprints to address mitigation strategies. 

ATPI Halo's certified portfolio of carbon credit investment projects offers the opportunity to offset all or part of unavoidable travel CO₂e footprints, providing over 70,000 carbon credits to clients in the process. Additionally, ATPI Halo includes scope for investing in Sustainable Aviation Fuel (SAF), as operators look to reduce in-sector (air travel) CO₂e emissions in line with guidelines developed by Science-Based Targets initiatives. Strategic partnerships with innovative providers like Thrust Carbon and Neste allow ATPI to deliver its bespoke CO₂e tracking, reduction and compensation services, Fig. 2. 

Fig. 2. Pippa Ganderton, Director - ATPI Halo (second from right), alongside decarbonization collaborators Neste.

While many already apply a great deal of focus to Scope 1 & 2 emissions, transparent and concise end-to-end solutions for Scope 3 travel CO₂e measurement, reduction and compensation are essentials. Third-party platforms and the experts behind them will instead allow clients, regardless of their role in the oil and gas supply chain, to focus on their core activity. 

CASE STUDY: SUPPORTING SEADRILL TO REDUCE SCOPE 3 EMISSIONS 

Against the backdrop of the dynamic and evolving drilling sector, industry leaders are increasingly aware of the need to take responsibility for cutting their emissions. ATPI supports long-standing client Seadrill in contributing to sector-wide decarbonization efforts and ESG commitments. 

Operating on behalf of clients globally, in shallow, harsh and ultra-deepwater environments, with headquarters in Houston, Texas, and additional presence in Brazil, Angola, Norway, the United Kingdom, the United Arab Emirates, and Singapore, Seadrill has a truly global footprint, making travel unavoidable. 

Ensuring that it is taking action to cut emissions where possible, the offshore drilling leader has embraced sustainability in its international logistical planning. As an offshore drilling company, Seadrill's operations play a critical role in minimizing environmental impact. Over time, Seadrill has demonstrated its commitment to technological solutions that promote sustainability and efficient operations through areas of direct emissions from its operations (Scope 1) and indirect emissions (Scope 2). 

As its trusted travel partner, ATPI has further strengthened Seadrill's decarbonization and ESG efforts and commitment to sustainable operations by implementing ATPI Halo. Through ATPI Halo, Seadrill has been supported in tracking and subsequently assessing its Scope 3 emissions related to business travel, and, in the process, Seadrill now has increased insight into the impact of its indirect emissions, Fig. 3. 

Fig. 3. ATPI supported offshore drilling leader Seadrill with decarbonization efforts via ATPI Halo.

Understanding its responsibility to conduct operations sustainably and to adhere to the highest standards of business ethics and integrity, Seadrill has endorsed decarbonization efforts for over a decade. To track its emissions, since 2010, Seadrill has been reporting to the Carbon Disclosure Project (CDP), a voluntary program that supports companies to measure, analyze, and better understand their carbon footprint.  

Achieving consistently positive results that have displayed steady growth in offsetting carbon emissions since initially taking part in the project in 2022, Seadrill achieved a B rating in the CDP, the highest Management category. This demonstrates that it is being externally assessed as understanding and taking active management measures to reduce carbon emissions. This result and Seadrill's track record are proof of its position as leading the offshore drilling contractor sector. 

ATPI Halo's capability to capture travel-related CO₂e data for “measurement” (reporting and analysis), “reduction” (consulting on ways to reduce the travel CO₂e emissions), and “compensation” (carbon offset provision) provides Seadrill with the opportunity to engage in carbon offsetting projects that support its UN Sustainable Development Goals in the regions where it operates. These carbon offsetting projects were carefully selected for their quality, integrity and effectiveness in addressing a variety of the most pressing global challenges, including: 

Improved cooking practices & cleaner air in Nigeria. In 2022 and 2023, Seadrill Angola offsets, compensating for over 4,700 CO₂e/ts, allowed for valuable funding to be used to provide cleaner, more efficient cookstoves to communities across rural Nigeria, helping to slow forest degradation, lower emissions, and contribute to healthier communities. Established in 2017, this program aligns with No Poverty (UN SDG 1), Affordable and Clean Energy (UN SDG 7), and Climate Action (UN SDG 13). 

Amayo 40-MW wind power project. In 2022 and 2023, Seadrill Brazil offsets, compensating for over 2,800 CO₂e/ts, allowed for investment in the wind farms of Rivas Municipality of southwest Nicaragua. This project delivers renewable, affordable and clean electricity to the local community, reducing energy interruptions to businesses, increasing employment and income, enhancing the economy, and improving living conditions. Established in 2009, this project aligns with Quality Education (UN SDG 4), Affordable and Clean Energy (UN SDG 7), Decent Work and Economic Growth (UN SDG 8), Climate Action (UN SDG 13), Life on Land (UN SDG 15), and Partnerships for the Goals (UN SDG 17).  

Guiding Seadrill in reducing its carbon footprint, ATPI provided expertise and knowledge to make smarter—and more sustainable—travel choices through its connections with verified green suppliers, i.e., airlines, hotels, and other travel providers that have verified commitments towards environmental sustainability. To guide and educate Seadrill’s travel bookers, ATPI provided visibility of CO₂e on travel options, itineraries and invoices, all of which help Seadrill's booking and traveling communities gain a greater understanding of the impact of their decisions.  

From owning the entire process from calculation to offset, official carbon credit retirement, and ultimately receiving offset certificates, ATPI supported Seadrill to be transparent about its sustainable initiatives with investors, customers, and future recruits. Seadrill remains resolute in its pursuit of sustainable practices, innovation, and a cleaner future for the drilling industry—suitably aided by its choice of suppliers, such as ATPI, who fully embrace the requirements and sustainability strategy at Seadrill. 

Over the years, ATPI has keenly supported Seadrill’s complex travel and events logistics, adapting its services to meet evolving requirements—both internally at Seadrill and in line with external industry expectations.  

PIPPA GANDERTON is an experienced director of global account management across the travel industry, with over 25 years working across sectors, including specialist markets such as marine and energy. After being appointed as director of the ATPI Halo division, she has been responsible for sourcing and managing effective carbon offset programs and spearheading the delivery of ATPI’s sustainable travel approach by managing all aspects of the carbon reduction portfolio. Additionally, Ms. Ganderton leads ATPI’s global Environmental, Social and Governance (ESG) Steering Group, bringing expertise from key areas of the business together to help define the forward-thinking TMC’s sustainability path.