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NGL Energy Partners

NGL Energy Partners is a publicly listed midstream oil and gas company headquartered in the USA. In 2020, it had USD 24.09 billion in revenue and a reported 1,300 employees*. NGL sources, moves, markets and stores fossil fuels in the USA. The company lacks emissions reduction targets and a low-carbon transition plan and is yet to demonstrate its low-carbon commitment.

Summary

NGL Energy Partners LP ranks joint 98th with an ACT rating of 0.1E-. NGL performs extremely poorly across all areas of the benchmark assessment. It does not provide data on its emissions and activities. It was therefore not possible to assess the scope 1 and 2 emissions impact of its midstream activities, including pipeline transport and storage. It was also not possible to assess the upstream and downstream scope 3 emissions impact of the fossil fuel products the company sources and markets.

NGL lacks emissions reduction targets and a low-carbon transition plan, and does not finance any low-carbon and mitigation technologies. It has only just released its first-ever sustainability report and emissions accounting data and has a long way to go to demonstrate commitment to the low-carbon transition.

*Employee figure as reported in 2020. This figure may include full- and part-time employees and workers, depending on the company’s reporting practice.

Ranking position: #98 /100
Total score: 0.2 /100
Performance score: 0.1 /20
Narrative Score: ABCDE
Trend Score: Trend line is up

Trend line is equal

Trend line is down

Performance module name	Performance module score	Rank (0-100)
Targets	0.0 /100	#38
Material Investment	0.0 /100	#84
Intangible Investment	0.0 /100	#20
Sold products	0.0 /100	#55
Management	0.0 /100	#91
Supplier Engagement	0.0 /100	#57
Client Engagement	0.0 /100	#53
Policy Engagement	10.0 /100	#69
Business Model	0.0 /100	#52

Leading practices

No leading practices were identified for this company.

Management: NGL has not implemented governance for the management of climate-related issues. It has no individual or committee with oversight of climate-related issues and does not incentivise the management of climate issues. The company also does not have a low-carbon transition plan, nor does it make use of climate scenario analysis. It recently released its first-ever sustainability report. NGL should use its sustainability report to clarify its governance approach for climate change issues. This will give its stakeholders confidence that the company takes climate change seriously and embeds it in its decision-making structure.
Business model: NGL’s annual reporting refers to the sale of renewable products but provides no details on the nature or sales volumes of these products. NGL should improve its transparency in this area to increase credibility regarding its low-carbon compatible business activities.
Supplier engagement: NGL does not produce or refine its own fossil fuels but sources them from its large supplier base. Despite a supplier base of approximately 200 crude oil producers, the company has not implemented any supplier engagement strategies, initiatives, or partnerships on climate change issues or greenhouse gas reductions. To achieve the scale of value chain emissions reductions required by the low-carbon transition, it is imperative that companies like NGL with midstream business activities in the value chain engage their upstream suppliers on these issue and create demand for low-carbon energy.

Trend

NGL receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. The company’s lack of transparency on activity and emissions data means that its future emissions performance could not be estimated. However, with no emissions reduction targets, low-carbon transition plan or climate scenario analysis in place, it is predicted that the company will only diverge further from its 1.5°C pathway.

Commitment: NGL does not have any emissions reduction targets or other low-carbon commitments.
Transition plan: NGL does not have a low-carbon transition plan.
Present: NGL released its first-ever sustainability report in 2021. This report included the company’s first emissions accounting reporting for scope 1 and 2 emissions.
Legacy: NGL’s lack of transparency on emissions and activity data between 2014 and 2019 means that its past performance on scope 1 and 2 and scope 1, 2 and 3 emissions intensities could not be assessed.
Consistency: NGL’s lack of a low-carbon transition plan and emissions reduction targets are inconsistent with the expectations of the low-carbon transition. NGL will need to make significant strategic and business model changes to align with its 1.5°C pathway.

More about the company

Headquarters: Tulsa, Oklahoma, USA
Group revenue: USD 24.09 billion
Ownership structure: Publicly listed
Number of employees: 1,300
Scope of activity: Midstream
Website: http://www.nglenergypartners.com/

NGL Energy Partners

Leading practices

Risks and opportunities

Management

Business model

Supplier engagement

Trend

Progress towards the Paris Agreement

Commitment

Transition plan

Present

Legacy

Consistency

More about the company