A comprehensive update to the ConocoPhillips Sustainable Development report is completed every other year. To keep the Sustainable Development performance metrics current, certain key metrics are updated every year. The following performance metrics are provided as an update to the
2006 Sustainable Development Report (3.7MB .PDF document).
Air Emissions PerformanceMetrics Related to Climate Change and Energy EfficiencyMaterial Efficiency PerformanceSafety PerformanceSpill MetricsPolitical ContributionsMetrics Related to our Impact on CommunitiesMetrics Related to our Investment in EmployeesData Tables
Air Emissions Performance
Work continues on reducing air emissions from our operations. We track emissions of sulfur oxides (SOx), nitrogen oxides (NOx), particulate matter (PM) and volatile organic compounds (VOCs). These emissions are defined as:
- SOx are acidic gases produced during the combustion of fuels that contain sulfur compounds.
- NOx are the sum of nitric oxide and nitrogen dioxide. NOx emissions occur almost exclusively from the combustion of fossil fuels in boilers, heaters, engines, flares, turbines and fluid catalytic cracking units.
- PM is emitted from combustion of fossil fuels in addition to other activities.
- VOCs are hydrocarbons associated with natural gas and crude oil and represent lost product when released.
For more information on our approach to clean air, please see the Environment section of this report.
Sulfur Oxide (SOx) Emissions
In our U.S. refineries, we continue to significantly reduce air emissions. By the end of 2010, we will have installed nine wet gas scrubbers on our fluidized catalytic cracking units, resulting in a substantial reduction in sulfur dioxide emissions and particulates.
Nitrogen Oxide (NOx) Emissions
By year-end 2014, we will have completed 85 NOx reduction projects on a variety of refinery equipment.
In 2008, increases in NOx emissions for our upstream businesses were the result of improved emissions inventory and data quality, as well as increased drilling.
Particulate Matter (PM) Emissions
Volatile Organic Compounds (VOCs) Emissions
VOCs are hydrocarbons associated with natural gas and crude oil, and represent lost product when released.
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Metrics Related to Climate Change and Energy Efficiency
Consistent with our
position on climate change, we track data for greenhouse gas emissions, flaring, and energy used.
For additional information on our methodology for measuring GHG emissions, please see the Environment section.
Greenhouse Gas (GHG) Emissions Performance
ConocoPhillips’ total 2008 CO
2 equivalent GHG emissions were approximately 64.3 million metric tons, an increase of 1.4 percent or 0.9 million metric tons from 2007. A significant portion of this increase is due to ConocoPhillips assuming operations of an electric and steam cogeneration facility in southern Texas. In addition, we clarified the reporting relationship between one of our refineries and an adjacent electricity and steam cogeneration facility. This clarification improved the quality of our reported data. Of the emissions directly attributable to our activities, 80.6 percent was directly related to our global operations, 9.7 percent was due to imported electricity, 6.2 percent was from methane emissions and 3.5 percent was from imported steam.
Over the past three years, our year-over-year GHG emissions have been relatively consistent. A shift in baseline emissions occurs between 2005 and 2006, which is attributable to the acquisition of substantial exploration and production assets in 2006. When normalized for higher oil and natural gas production volumes, our emissions per unit of production have generally trended downward each year since 2004.
Flaring
Flaring is a safety measure that burns off excess gases that might otherwise pose a hazard. For example, refining units use flares to maintain safe operating pressures during the production process. Flaring in our Exploration and Production operations primarily results from burning excess natural gas that cannot be recovered for export to consumers, used as fuel within the field, or cost-effectively reinjected into the producing formation. Such flaring is most common in areas of the world lacking sufficient infrastructure to transport natural gas to market. We have made steady progress in reducing flaring volumes since 2003. During 2008 we decreased our flaring volume 16 percent to 30.3 billion cubic feet (BCF), from 36.1 BCF in 2007. We had earlier experienced a 7 percent increase in 2006, mainly due to the acquisition of exploration and production assets, as well as new equipment installations at one refinery that provided more accurate reporting. However, that same year we achieved flaring reductions in our Asia Pacific and European exploration and production activities. About 74 percent of our total flaring is in our Exploration and Production business, with 23 percent attributed to refining and 3 percent occurring in other business segments.
Our Exploration and Production business is pursuing opportunities to further reduce flaring. For example, in the U.S. Lower 48 region, we are using a closed-loop cleanout process during well construction and completion activities. Optimization of this process during 2008 in our San Juan business unit significantly reduced the gas flow-back time and saved more than 129 million cubic feet of gas that would have otherwise been flared or vented to the atmosphere.
In our Refining business, we are working to reduce flaring incidents through the installation of flare gas recovery systems. We have committed $150 million to cut by one-half the gas volumes flared from our U.S. refineries. Compressors have been installed or are scheduled for installation at 13 locations to recover gas that would otherwise be flared, and recycle it for processing into fuels and other products.
Energy Used
Since the combustion of fossil fuels is a primary contributor to GHG emissions, we continually strive to make our operations more energy efficient. This provides an environmental benefit through reduced emissions, as well as an economic benefit through lower production costs. Improvement in refinery energy efficiency also continues, frequently in association with projects intended to meet other refinery objectives. Slight energy efficiency decreases are attributable to new production coming online, improved data quality and the addition of operating assets, such as cogeneration facilities at our Sweeny refinery in Old Ocean, Texas.
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Being good stewards of the environment includes setting standards for waste management, minimization and decommissioning. We seek to identify new and better ways to diminish our environmental footprint and social impacts by becoming more efficient in the workplace and in the communities in which we operate.
Waste
Our approach to waste management is based on a simple set of priorities – first, eliminate waste where possible; then reuse, recover and recycle it; and finally as a last resort, dispose of it safely. We have a global Waste Management Standard that requires all operations to evaluate the waste they generate and the suitability of the waste facilities they use.
ConocoPhillips’ businesses can use only commercial waste contractors that meet company standards for operational integrity, have environmental protection measures in place, implement monitoring and institutional controls, and comply with relevant regulations.
The Waste Management Standard also requires businesses to develop comprehensive management plans for company-owned or -operated waste units. The standard applies to all operations worldwide. In ventures where we are not the operator or hold a minority interest, we strive to influence our co-venturers to implement similar programs. In implementing our standard, we developed a commercial waste management program to track waste-disposal activity. In the United States and Canada, we have compiled a list of company-approved commercial waste management facilities. We inspect potential new waste sites and periodically audit the sites that we choose to utilize. We prefer contractors who provide cost-effective commercial alternatives to landfill disposal. But if this is not an option, we select sites that comply with strict environmental standards.
Back to top Safety Performance We strive to complete each day without any injuries, illnesses or incidents in our workplaces, homes and communities. We have made substantial progress toward our goal of zero incidents in our operations. However, despite extensive efforts, we still experience some serious incidents. Therefore, we recognize that our safety performance must improve further and understand that this will require full employee involvement and commitment. Our internal programs are designed to improve safety performance by stimulating leadership at all levels of the organization and ultimately forming one inclusive team of employees and contractors.
Total Recordable Rate (TRR) and Lost Workday cade (LWC) Metrics
In 2008, the total recordable rate (TRR) for the company’s combined work force improved by 16 percent when compared with our 2007 performance. And while nearly every business segment showed TRR and lost workday case (LWC) improvements in 2008, our Project Development and Procurement organization led the way with employees achieving zero recordable injuries and contractor performance improving by 39 percent over 2007.
Unfortunately, of the injuries incurred across the company’s combined work force, one in four was serious enough that the individual lost time from work. Of these incidents, two resulted in a fatal injury to a contractor; one in Peru and the other in New Mexico. We deeply regret these occurrences, and strive to use the lessons learned from all safety incidents to enhance the future safety of our operations.
Back to topSpill Metrics We respond to spills as soon as they are discovered and report all liquid hydrocarbon spills greater than one barrel or 42 gallons. While all spills are considered serious, those greater than 100 barrels are defined as significant incidents and trigger immediate reporting to management, as well as extensive investigation and corrective action. There were 20 such significant spills in 2008, down from 24 in 2007. During 2008, approximately 75 percent of all our spill volume occurred in a single pipeline failure incident in the United States. We have achieved a 31 percent reduction since 2003 in our annual number of spills that exceed one barrel.
Back to top Political Contributions
All political contributions are reported twice a year to the compliance and ethics committee. Further details of these contributions can be found on in our
position on political policies, procedures and giving.
Back to topMetrics Related to our Impact on Communities
We measure both our contribution to the global economy and charitable donations.
For more information, please see the Communities section.
Contributing to the Global Economy
Our global operations contribute substantially to social and economic development in the communities in which we operate. For example, our direct economic contributions during 2008 included:
- Jobs – ConocoPhillips employs more than 30,000 people around the world.
- Taxes – $18.3 billion in total tax revenue to governments was generated by our continuing operations, excluding royalties to government entities.
- Shareholder dividends – $2.9 billion in cash dividends were paid on ConocoPhillips common stock.
- Capital investments – ConocoPhillips reinvested $19.1 billion in capital expenditures and investments to find new energy supplies.
- Payments to various vendors and suppliers for products and services:
- $13.1 billion for production, operating and exploration expenses
- $2.2 billion for selling, general and administrative expenses
Philanthropic Contributions
ConocoPhillips has a long tradition of investing in the communities in which we operate. During 2008, our corporate donations totaled more than $95 million, which includes approximately $70 million in charitable contributions from the corporation and about $25 million in funds for other community investment projects donated through our company-operated businesses, as well as various joint ventures and equity affiliates.
Back to topMetrics Related to our Investment in Employees We track information from our Employee Opinion Survey on promoting a positive work environment, employee satisfaction, and our progress on diversity and inclusion. We also track employment metrics. The ConocoPhillips Employee Opinion Survey was last conducted in 2008 and is updated every other year.
For more information on our approach to investing in employees, please see the People section.
Diversity and Inclusion
The metrics below compare the workforce Global Diversity and U.S Equal Employment Opportunity Commission Statistics for 2008.
| 2008 Global Diversity Metrics |
Leadership All Employees
Women 12.4% 23.3%
Non-U.S. Employees 12.9% 33.2% |
| 2008 U.S. Equal Employment Opportunity Commission Statistics |
| Officials and Managers Professionals Women 15.1% 28.6% Minorities 11.9% 17.7% |
Employment Metrics
At the end of 2008, we employed 33,800 people worldwide, compared with 32,600 in 2007. This 4 percent increase was mainly attributable to business growth due to high commodity prices during the first half of 2008.
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From the 2008 Employee Opinion Survey
