At a Glance
Energy or Utility
Data Analysis, Engagement and Behavior Change, Supply Chain, Sustainability and Energy Management Strategy
Schlumberger—a worldwide provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry—engaged Leticia Neves as its first EDF Climate Corps Fellow to work on an efficiency enhancement project. The goal of this project is to calculate savings from utility projects across the company’s global operations and examine the potential of applying these savings to create a special R&E budget for the development of wellsite technologies and related sustainability-based field operations processes.
Neves’s project introduced the Schlumberger Global Stewardship program to the concept of impact valuation, which is a way of calculating actual monetary expenses with utilities and supplies by incorporating the external social and environmental costs or impacts incurred by society from their operations and supply chain. While exploring impact valuation methodologies, Neves looked at natural capital assessment, environmental profit and loss (EP&L), and integrated profit and loss (IP&L). She concluded that the EP&L process would align most closely with the Schlumberger Global Stewardship strategy.
The EP&L consists of an overarching framework that incorporates multiple aspects of the company’s Global Stewardship strategy, such as responsible supply chain management, building a sustainability culture, and better data management. This framework incorporates Neves’s initial project goal of calculating savings from efficiency projects but goes beyond to include external costs borne by the environment and society along with other aspects of Schlumberger’s sustainability strategy goals. Neves found that Schlumberger would benefit from creating an EP&L and incorporating this approach in their operations, communications, business strategies, and decision making.
Neves networked with several companies in different industries that are known for having best practices in impact valuation. She learned about the wide variety of methodologies, formats and angles that can be followed and found the EP&L to be the most applicable framework for Schlumberger.
She proposed that Schlumberger conduct a pilot project for an EP&L account and use the data to develop a methodology for the creation of a recurring R&E budget.
Schlumberger is the largest oilfield service company and because it is recognized as an industry leader, the company is highly motivated to put forth programs that have practical application to the industry. One way of leading the industry would be for Schlumberger to adopt an EP&L. This would enable the company to implement a holistic approach to understanding and mitigating the social and environmental impacts incurred by society through Schlumberger operations and its supply chain. It would also help the company to make better informed ESG-related business decisions in terms of suppliers and operations; identify, manage and mitigate risks; identify opportunities; and improve communications with its stakeholders, shareholders, and the general public. More importantly, Schlumberger will promote accountability within and outside the oil and gas industry in a way that will hopefully contribute to improving industry ESG practices related to how the industry works.
As a result, Schlumberger has invited Neves to lead a carefully controlled next-step implementation of the pilot project.