Teekay Corporation is a publicly listed company headquartered in Bermuda. In 2021 its revenue was USD 0.68 billion. Established in 1973, Teekay has developed from a regional shipping company into one of the world’s largest marine energy transportation, storage & production companies. Teekay specialises in shipping crude oil.
Teekay is aiming to reduce its scope 1 emissions intensity by 40% by 2030, compared to 2008 and it also set a target to reduce absolute emissions by 50% by 2050 from an unknown base year. However, interim targets have not been set at intervals no greater than 5 years apart. The company’s targets could not be assessed because base emissions data could not be found. It is also unclear whether the company plans to use offsets. To demonstrate commitment to the low-carbon transition, the company should set long-term as well as regularly spaced intermediate targets aligned with its 1.5°C pathway.
Teekay is investing in increasing the efficiency of its vessels and developing innovative vessel designs to reduce environmental impacts. Every year the company pilots a variety of efficiency measures and the most successful ones are rolled out across its fleet in subsequent years. As one example, Mewis ducts have been used to enhance the energy efficiency of some vessels from the company’s fleet in 2021, these can provide up to 6% emissions reductions. New innovations will be implemented in 2022, such as digital flowmeters and the fuel consumption optimisation systems. However, the company does not disclose what proportion of its R&D expenditure is invested in low-carbon vehicles and energies.
For Teekay’s operations, no activity, emissions intensity or fuel data was available. Without these data points, it is not possible to assess the company’s past emissions trends or to assess the company’s alignment with its 1.5°C scenario pathway. The company does not disclose sufficient fleet information to meaningfully assess the share of low-carbon vehicles and energies in its operations. No strong evidence is available on the company’s plans to increase the share of low-carbon vehicles .
Teekay has developed a low-carbon transition plan to reduce fleet-wide emissions intensity by 50% by 2050 and so most emissions reductions are being driven by the regulatory environment. There is no evidence that the company uses climate scenario analysis in its business plans. Teekay recognises that climate change may lead to reduced demand for its services; emissions reduction efforts and compliance costs will require additional capital expenditures and potential changes to the company’s business model. However, Teekay does not disclose the estimated cost of the low-carbon transition to the company.
Teekay Corporation receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. The company does not disclose sufficient data to assess its emissions intensity trend or the alignment of its past, current or future performance with its carbon budget. The company shows limited evidence that it plans to change its business model to facilitate the low-carbon transition. Teekay has not committed to a net-zero target and there is no evidence of strong financial commitment to decarbonisation.
Teekay set a target to reduce its scope 1 emissions intensity by 40% by 2030, compared to 2008. Teekay is aiming to reduce its fleet’s absolute emissions by 50% by 2050. However, the base year is unknown and the company has not committed to a net-zero target.
Teekay has launched energy saving initiatives and installed digital flowmeters to support its emissions reduction goals. However, it is not clear how Teekay is planning to achieve its targets and does not disclose the estimated cost of the low-carbon transition to the company.
The company is increasing the efficiency of its vessels and has developed innovative vessel designs to reduce environmental impacts. However, the invested amounts are not known. In 2021 digital flowmeters were installed on 40% of its vessels, 60% are targeted by early 2022.
Teekay’s transition plan lacks a detailed set of actions and intermediate targets. Its efficiency improvements do not outweigh the need to also increase the share of low-carbon vehicles in its fleet. Teekay’s plans are unclear about the estimated investments needed to support its low-carbon transition.
No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.
No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.
The company has a grievance mechanism available to workers and external stakeholders. Beyond this, no relevant policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.
The company commits to respecting the health and safety of its workers. Beyond this, no relevant policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision-making.
The company has a policy prohibiting bribery and corruption and also prohibits making political contributions. Furthermore, the company offers a grievance mechanism. The company can however strengthen its disclosure and commitments on these subjects and other key ethical business topics including personal data protection and taxation. This to ensure ethical business conduct throughout its operations and in its relationships with business partners.