Page 11 - BeachBooklet_2020

Modelling our business against In step with the Paris Agreement
different scenarios Australia and New Zealand are party to the Paris
Not only does our position of strategically placed Agreement, which aims to strengthen the global
assets position us for growth but our low operating response to the threat of climate change by:
costs helps us maintain our financial strength, ·
especially during periods of market volatility. holding the increase in the global average
temperature to well below 2°C above pre-
As disclosed in our Sustainability Report last year, industrial levels; and
Beach tested its portfolio against several scenarios · pursuing efforts to limit temperature increase
which highlighted our business’ robustness in a low to 1.5°C.
carbon future. Furthermore, Beach recently disclosed
its carbon price of up to $50/tonne CO2e as part of Australia’s first Nationally Determined Contribution
its portfolio management. This price forecast was (NDC) towards the Paris targets includes an economy-
derived using a variety of sources including peer wide target to reduce greenhouse gas emissions by 26
companies and industry forecasts. It also factored to 28 per cent on 2005 levels by 2030.
in the jurisdictions within which Beach’s assets are Beach Energy is contributing to this goal through
located (Australia and New Zealand) and the pricing taking tangible steps to reduce emissions from its own
outlooks in those locations with Australian Carbon operations, primarily through it’s ‘25 by 25’ initiative.
Credit Units (ACCUs) spot prices currently trading at
around $A17/tCO 2 e at the time of this report. Tangible steps to emissions reduction

Being part of an industry driven effort to Beach recognises that it must do more to reduce
lower absolute emissions - including its emissions, and has spent FY20 benchmarking
emissions intensity emissions across its portfolio.

In addition to providing a cheap and reliable source of In FY21, Beach is embarking on a new ’25 by 25’
energy domestically, LNG exported out from Australia strategy, to reduce emissions from its operations
to many Asian countries is helping reduce pollution by 25% by FY25 against FY18 levels (when Beach
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and emissions in their economies. Reducing global acquired Lattice Energy).
emissions is a global effort, and as an energy exporter Beach is in the process of assessing projects to meet
Australia is doing its part through many channels. these targets, however they are likely to include
In the last decade, coal-to-gas switching has deploying technologies to reduce the use of flaring,
saved around 500 million tonnes of CO2, an effect establishing a Leak Detection and Repair (LDAR)
equivalent to putting 200 million zero carbon electric program, and augmenting certain activities at Beach
vehicles on the road over the same period . facilities with renewable energy.
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The oil and gas industry is working collectively to Finally, there is not a single perfect solution that can
reduce greenhouse gas emissions through the entire tackle climate change. Both oil and gas, but primarily
exploration and production life cycle which includes gas, will continue to play a pivotal role in the future
identifying emission reduction opportunities from energy mix. Ignoring this reality could result
the design phase of a project to production and in misleading policy action that could negatively
processing activities, to carbon offsets and new end impact the economic, political, and societal needs
of pipe solutions such as (CCS). As an example, of many countries.
Beach is supporting the proposed Moomba CCS pilot
project, operated by Santos which, once completed,
would capture and permanently store 1.7 million
tonnes of carbon dioxide from the gas processing
plant each year and reinject it into the same
geological formation.

7 Reduced emissions of fine particulates, reduced emissions of sulphur dioxide (which contributes to acid rain and smog) and nitrogen oxides, and a much lower demand for
water for power station cooling
8 IEA (2019), The Role of Gas in Today’s Energy Transitions, IEA, Paris https://www.iea.org/reports/the-role-of-gas-in-todays-energy-transitions

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Beach Energy Sustainability Report l October 2020