In 2020 Jadestone developed its alignment with the recommendations outlined in the G20’s Financial Stability Board Task Force on Climate-related Financial Disclosures, utilising it as a practical tool for navigating the transition to a low-carbon economy and increasing our understanding of the resilience of our business strategy. Jadestone introduced improvements across the Governance and Risk Management areas.
Board oversight of climate-related risks and opportunities
Jadestone recognises that climate change is a potential strategic risk to companies and society at large, and it is therefore the duty of the Board to manage it in the same way as any other strategic risk. The Board reviews Jadestone’s Corporate Risk Matrix biannually, which as of 2020, also includes the transitional risk of climate change. In addition, the Board receives monthly ESG briefings from the Leadership Team, which report on progress of climate-related programmes where appropriate.
The Board’s HSE, Remuneration and Disclosure Committee are jointly responsible for overseeing Jadestone’s strategies, programmes, performance and disclosures relating to ESG, which includes climate change.
Management role in assessing and managing climate-related risks and opportunities
In 2020, the Climate Change Working Group (“CCWG”) was formed, which included senior leaders from Finance, Risk & Strategy, HR, Investor Relations and Environment. The CCWG is tasked with developing climate-related strategies and programmes in line with the TCFD recommendations and its work is supported by energy and emissions reporting from key functional areas such as HSE and Operations.
Climate-related risks and opportunities identified over short, medium and long term
Throughout 2020, Jadestone made considerable progress in understanding its climate-related risks. Through a series of risk workshops the Company identified and assessed the following climate-related risks:
These risks were assessed considering short (<2 years) and medium (3-5 years) and long (>5 years) timeframes.
Impacts of climate-related risks and opportunities on organisation’s businesses, strategy and financial planning
Jadestone is currently reviewing the material implications of climate-related risks on its business. This analysis will inform Climate Change Strategy to be developed in the course of 2021.
Resilience of organisation’s strategy taking into account different climate scenarios, including a 2°C scenario
Processes for identifying and assessing climate-related risks
Climate change considerations are aligned with Jadestone’s formal Risk Management Framework and follow the same process as the identification and management of risk in other parts of the business. Climate-related risks, that are of strategic importance, have been incorporated into the Corporate Risk Register in 2020 after a series of risk workshops facilitated by the newly formed CCWG. Further integration of climate risk into Corporate Risk Framework is planned in 2021.
Processes for managing climate-related risks
How processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management
Metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process
For the purposes of internal performance review, Jadestone monitors metrics such as flaring, diesel consumption and absolute GHG emissions as well as emission intensity of its assets by unit of production.
Jadestone is currently reviewing the implications of the climate-related risks on its business which includes consideration of the most suitable metrics for assessing climate related risks and opportunities.
Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and the related risks
Jadestone collects and manages the emission and energy consumption data for its operated assets and continuously looks for ways to improve the efficiency of operations. Jadestone currently reports Scope 1 and 2 emissions, as per Section “Climate Change – GHG” of this report.
Targets used by the organisation to manage climate-related risks and opportunities and performance against targets
In 2021, Jadestone commits to reducing flaring and diesel use by 5% compared to 2020 levels at its Australian assets.