Alyeska Pipeline Releases Inaugural ESG Report
Galyna Andrushko | Envato
A survey of Alyeska Pipeline Service Company employees found that 89 percent believe sufficient environmental safeguards are in place for the Trans Alaska Pipeline System. Workforce diversity is on target for female employees and well above goals for ethnic minorities. And out of 100 regulatory inspections, 3 resulted in a notice of violation in 2022. These are some of the findings of Alyeska’s first environmental, social, and governance (ESG) report.
Dedication to Transparency
“Our inaugural ESG report is a testament to our enduring promise to the environment and the communities we serve,” says John Kurz, Alyeska president and CEO. “Since our inception, we have upheld a steadfast commitment to sustainability and safe operations. This report highlights our ongoing dedication to transparency and accountability as we navigate the complex challenges and opportunities of the modern energy landscape.”
The nineteen-page document pertains to Alyeska’s 2022 initiatives, strategies, and performance in key areas such as environmental impact, social responsibility, and governance practices. According to an introductory letter, “We work to minimize environmental impacts and maintain strong relationships with our stakeholders.”
Among the environmental findings is a downward trend in greenhouse gas emissions from TAPS operations as engineers devise more efficient ways to add heat to crude oil. In the past, when flow volume was larger, oil would remain warm and fluid from Prudhoe Bay to Valdez, but with the pipe now operating below half its designed capacity, Alyeska must heat the oil to keep it flowing smoothly.
The company’s social initiatives include goals for hiring women and minorities. With women accounting for 61 percent of senior executives, that category is well above the target of 45 percent. Administrative personnel, with 76 percent women, are above the target of 70 percent. However, Alyeska is below its target for hiring women as professional-level staffers (nearly half of the total workforce). The ambitious goal of hiring 54 percent women as lab technicians is also falling short, at 36 percent.
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With more than 35 percent of Alyeska employees counted as ethnic minorities, the company is well above its target of 19 percent, particularly in the categories of craft technicians, administrative staff, and mid-level management.
The report notes that Alyeska donated $358,100 to Alaska nonprofits in 2022.
Further Findings
Galyna Andrushko | Envato
In the governance section, the report notes that eighteen regulatory agencies have oversight of TAPS. Out of 100 inspections in 2022, 76 were satisfactory, 21 had minor findings, and 3 were more serious. Also, employee injury rates have risen since 2020 after falling steadily for the previous two decades.
Through the employee concerns program, fifty-one concerns were investigated in 2022, down from the five-year average of seventy-nine concerns investigated annually. The report attributes the decline to active conversations between employees and management to head off concerns.
Alyeska has posted a link to the full report online.
Many companies adopt, and abide by, ESG policies to satisfy the concerns of investors. However, Alyeska has no investors to impress, at least directly. The company is jointly owned by Hilcorp (through its Harvest Alaska subsidiary), ConocoPhillips, and ExxonMobil. The major North Slope producers have their own ESG policies and practices.
Alyeska traces its origin to cooperation among North Slope oil companies in 1970, and it has operated and maintained TAPS since the pipeline carried its first oil in 1977. The company has approximately 740 full-time employees and collaborates with numerous contract partners.
Making History
The track of oil and gas development in Alaska shows the footprints of bold companies and hard-working individuals who shaped the industry in the past and continue to innovate today. The May 2024 issue of Alaska Business explores that history while looking forward to new product development, the energy transition for the fishing fleet, and the ethics of AI tools in business.