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.
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.
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.
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.
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.
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.