- Basic Environment Policy
- Environmental Philosophy
- The MODEC Group recognizes the critical importance of the harmony with irreplaceable global environment and humanity, as well as sustainable development. We will contribute to “Realization of a Low Carbon society” while also considering health maintenance and environmental conservation. We are aiming to realize this through cooperation with various stakeholders in our all business activities.
- Action Guideline
- 1Complying with Environmental Regulations and Rules
In promoting business activities, we observe and comply with environment-related laws, regulations, agreements etc.
- 2Promotion of Resource Conservation, Energy Saving and Recycling, and Reducing of Waste
We seek to promote the conservation of resources, energy saving and recycling in all areas of our corporate activities, and endeavor to reduce waste output.
- 3Contributing to environmental conservation by development of new products and technologies
We contribute to society through the development of technologies and products that contribute to reducing environmental impact.
- 4Evaluation of environmental impacts and their mitigation
In all business activities, we evaluate the impacts on the environment, assess the risks, and minimize our impact.
- 5Environmental Conservation in project implementation
We give sufficient care and consideration to environmental conservation in the countries in which we operate through monitoring and measuring the impacts. In case of serious accidents, we regularly verify the emergency management response process to ensure a prompt and effective response.
- 6Unifying internal awareness through environmental education
We implement environmental education and internal public communication to enhance the environmental awareness of every employee, including affiliated companies. In addition, employees strive to build relationships of trust through voluntary participation in local and social environment conservation activities.
- 7Establishing of Environmental Administrative Organization and Building an Environmental Management System
We promote environmental conservation efforts by establishing an environmental administrative organization, and by building and maintaining an environmental management system.
- 1Complying with Environmental Regulations and Rules
Under monitoring by the Board of Directors (BoD), the MODEC group has in place the “ERM (Enterprise Risk Management) conference”, which is chaired by the President & CEO and composed of executive officers. In addition, “ERM Organizer” is placed at Corporate Planning & Strategy Dept., and General Manager of the Dept. are Chief ERM Organizer for the arrangement of “ERM conference”.
The “ERM conference” meets regularly to discuss, plan and confirm result pertaining to significant issues, such as compliance, climate change, social contributions, and diversity. The results of deliberations and discussions at the conference are regularly reported to the BoD. Especially, the significant risks are reported to the BoD, after approvals and deliberations by the Management Board (MB).
The MODEC group sets the risks with comprehensively understanding and assessing all of the risks related to overall business activities as “Risk Index and Scenario”. The “Risk Index and Scenario” is reviewed once a year by “ERM Organizer”, deliberated at the ERM conference and approved by the MB, finally reported to the BoD.
As evidenced by the adoption of the SDGs (Sustainable Development Goals) by the United Nations and the Paris Agreement (including 2℃ target), the MODEC Group recognizes continuous action focusing on climate change is essential for sustainable development. Fulfilling our mission to secure the stable supply of energy, we contribute to achieving global goals such as "Realization of a low or zero carbon society" guided by the SDGs and the Paris Agreement in cooperation with governments, other companies, and local communities.
While demand for oil and gas is increasing, calls for clean-energy to shift to a low-carbon society are growing.
Under these circumstances, we promote new energy development approaches such as offshore wind power generation. We understand the critical importance of the climate agenda such as CO2 emissions reduction and promote sustainable growth through environment-friendly management while facing social issues continuously.
GHG emissions data
Unit: t-CO2e (ton-CO2 equivalent)
- Scope 1
- MODEC classifies emissions from the operations of assets (FPSO and FSO facilities) owned by the group and leased to oil & gas companies in Scope 3, Category 13.
- Scope 2
- Covers emissions from purchased electricity for offices with 10 employees or more in Australia, Brazil, Cote d'Ivoire, Ghana, Japan, Mexico, New Zealand, Senegal, Singapore, USA, and Vietnam. Emission factors from electricity generation are based on the country-specific data listed on “Emissions Factors 2021", an IEA statistics publication. The main reason for the increase from 2021 to 2022 is the increased electrical usage at our offices due to employees returning to office after working from home as a result of deregulation measures taken against Covid-19 in each country.
- Scope 3
- MODEC has calculated GHG emissions from the operation of sixteen (16) assets owned by the group and leased to oil & gas companies (Category 13). The methodology to calculate GHG emissions through Company facilities follows API Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (NOVEMBER 2021) and focuses only on the emission weight of CO2, CH4, and N2O, because these three components are the most dominant GHGs emitted from facilities in the oil and gas industry. The emission sources which are used for the calculations are limited to the following categories and more than 99% of the emissions from the assets are covered by these four categories: 1. Stationary sources (fuel combustion), 2. Flare, 3. Vent sources (mainly from cargo oil tanks), 4. Fugitives. The main reasons for the increase from 2021 to 2022 are addition of two (2) new leased assets in our fleet and temporary emissions during the start-up and commissioning period.
In addition to Category 13 emissions, MODEC will continuously try to identify emissions in relevant categories related to our business.
*Data as of end of March 2023
Disclosure Based on TCFD Recommendations
Pollution and Resource Management
The MODEC Group engages in the prevention of pollution, waste minimization, effective use of water, energy and raw materials through complying with the Marpol Convention on the Prevention of Marine Pollution adopted by the International Maritime Organization (IMO) and environmental laws and regulations in each country and region in which we conduct our business.
In addition, we actively seek to minimize environmental impacts through management systems, which identify and evaluate the environmental risks in each project.
The MODEC Group recognizes the critical importance of “Conserving the Natural and Marine Environment” and “Safely running the projects in the countries and regions where we operate projects”.
We promote activities for “Reduction of impact on biodiversity” and “Conservation of biodiversity” through cooperation with stakeholders such as governments, other companies, and sub-contractors.
Responding to Water Issues
Reflecting the growing concern of the global perspective on water-related issues, the MODEC Group complies with environmental laws and regulations in the countries and regions where we conduct our business.
We commit to engage in the reduction of impacts on water resources and the reduced water consumption with recognition that the conservation and sustainable use of water resources are key materiality for us. In addition, we promote a business that related to sustainable use and conservation of water resources.