25 July 2022
Sustainability
25 July 2022
Sustainability
Commenting on the announcement, Dev Sanyal, VARO Chief Executive Officer, said: “I am delighted to announce the publication of our first ESG report. Our ambitious strategy, the result of extensive consultation, is based on protecting and promoting people, our values, our operations, and our customer’s energy needs. At VARO, ESG is central to everything that we do and the report that we are publishing today, sits at the heart of our strategy to be the energy transition partner of choice. I am particularly proud of our industry-leading Net Zero target. There is an enormous opportunity for companies that are able to provide customers with the energy that they need, in the way that they want. With our track record of building new businesses and customer solutions, executed by an entrepreneurial team, we are perfectly poised to be a leader in the transition.”
Ernestina Benedetto, EVP Strategy and Transformation, said: “Our ESG strategy is central to our plan to create long-term value and is based on industry leading, rigorous and transparent ESG targets. Our role provides us with industry insights which enable us to empower our customers as they pursue their own decarbonisation ambitions. Critical to our plans is the integration of an ESG-focused approach in our overall governance and internal controls, and the oversight of both the Supervisory Board and Executive Board.”
New strategy to invest $3.5 billion and help customers meet Net Zero ambitions
ESG is central to VARO’s new strategy to become the partner of choice in the energy transition by providing secure and reliable energy solutions that customers need to reach Net Zero. Its “twin-engine” strategy will support these aims by generating cash flow (Engine 1) for reinvestment in Sustainable Energies (Engine 2). To achieve its ambitions:
Wide consultation with internal and external stakeholders
VARO engaged extensively with internal and external stakeholders in order to identify ESG issues of material impact. Consistent with GRI and SASB disclosure standards, 23 topics were identified in consultation with employees, customers, and NGOs. The process was planned in consultation with Senior Management and company shareholders, who represent the company’s Supervisory Board.
VARO to be Net Zero for Scope 1, 2 and 3 emissions by 2040
VARO is committed to providing supply security in the short term, while taking action at the same time to reduce its emissions and those of its customers. VARO has set ambitious and sector-leading new targets for the reduction and elimination of CO2 emissions:
VARO is focused on reducing the GHG emissions of its operations and has committed to a target of more than two-thirds renewable electricity by 2023. Initiatives to achieve this target include:
VARO to scale-up investment in infrastructure and strategic partnerships
The ESG strategy is built around expanding renewable capital investments, investments in repurposing existing infrastructure and leveraging long-term strategic partnerships. Essential to the VARO strategy is investment in manufacturing capacity to ensure modern and flexible infrastructure in support of the energy transition. The infrastructure strategy is designed to support, in particular, its ambitious plans for expansion in the advanced biofuels, biomethane/ bioLNG and green hydrogen markets.
Equity, Diversity, and Inclusion key to VARO’s growth plans
VARO is committed to improving the representation of all groups in the company. In particular, ensuring female representation across all levels is key to its strategy. VARO is committed to ensuring equal pay for all VARO employees in all countries. As part of its ESG strategy, the company has set aggressive targets with respect to female representation: