TO OUR STAKEHOLDERS
We are pleased to publish our 2022 Sustainability Report for our employees, customers, shareholders and communities.
Reflecting on 2022, the natural gas demand rebounded as we continued to emerge from the global Covid-19 pandemic. U.S. natural gas production set an annual record in 20221 and global events also reinforced the realization that a more diverse energy mix is needed to satisfy energy demand and preserve energy security. With the U.S. ideally positioned to satisfy both domestic natural gas demand, as well as global LNG demand, the EIA continues to project that consumption of natural gas will grow, through 2050, even as renewable energy continues to be the fastest-growing U.S. energy source.2
These are exciting trends for our core business. At the same time, we continue to acknowledge that more progress must be made to address the emissions intensity of the natural gas industry. And, as the leader in U.S. natural gas compression, we play a critical role in transporting affordable and cleaner energy, for the benefit of America and the world, and we believe we have a duty to continue doing so in a safe and environmentally responsible way.
We’ve built a resilient business over 68 years and our focus in 2022 was further embedding sustainability in our corporate strategy and everything we do. In the dynamic and evolving world of energy, for Archrock, this meant embracing a new purpose:
WE POWER A CLEANER AMERICA™
Throughout this report, you’ll read about how we are high-grading our asset base, harnessing our upgraded technology platform and prioritizing opportunities to help our customers with emissions management. I am proud of the work we accomplished in 2022, including:
- Exceeding our safety targets for Total Recordable Incident Rate and Preventable Vehicle Incident Rate, and delivering a zero Lost Time Incident Rate, for the second straight year.
- Achieving a 12% year-over-year reduction in our 2021 Scope 1 and Scope 2 CO2 emissions intensity.
- Investing in electric drive compression horsepower, securing a minority investment in a methane emissions monitoring company and developing a patent-pending methane capture technology.
- Developing and adopting a comprehensive diversity and inclusion policy; and
- Doubling the weight of safety and sustainability within our 2022 short-term incentive plan to 20% compared to 2021.
This report further details these initiatives as well as other ESG efforts that we believe are essential to delivering long-term value for our stakeholders.
Archrock’s 2022 Sustainability Report continues to align with the Sustainability Accounting Standards Board (SASB) midstream reporting framework. For the first time, the report also includes disclosures based on the Task Force on Climate-related Disclosures framework (TFCD).
With gratitude for your interest in Archrock, I invite you to learn more about our sustainability approach, performance, and continued commitment with respect to environmental, social and governance matters.
Brad Childers
President and Chief Executive Officer
1 EIA, Today in Energy https://www.eia.gov/todayinenergy/detail.php?id=54959
2 EIA, Annual Energy Outlook 2022. https://www.eia.gov/outlooks/aeo/
Our Official HSE Policy
Learn in greater detail about Archrock's respect for the health and safety of our employees, customers, and communities, and what we're committed to do to preserve it all.
