Petrofac Regulatory News (PFC)

PETROFAC ANNOUNCES NEW TARGETS TO ADVANCE SUSTAINABILITY AGENDA

· Commitment to reach Net Zero (1) in Scope 1 and 2 emissions (2) by 2030

· Targeting 30% of women in senior roles (3) by 2030

· Targets embedded in management scorecards

Petrofac ("Petrofac" or "the Company") today announces two important environmental and gender diversity targets to advance its broader sustainability agenda. Sustainability is at the core of Petrofac's strategy and critical to creating long-term value for all stakeholders. The Company's purpose is focused on enabling clients to meet the world's evolving energy needs, and to work collectively with industry to achieve a more sustainable, inclusive and diverse energy sector.

Group Chief Executive Ayman Asfari said: "Our vision is to be the preferred services partner to the energy industry, trusted to deliver to high quality and standards. Our sustainability agenda is key to this aspiration and the environmental and diversity targets we are announcing today represent a significant step forward.

"Our Net Zero target supports the principles of the Paris Agreement, the UK government's Net Zero goal, and is aligned with our clients' own ambitions as the sector moves to a net zero future. Our gender diversity target will help develop more women leaders for Petrofac and our industry, and builds on our work of increasing female representation at both Board and junior levels.

"Sustainability is at the core of our strategy, underpinning best-in-class delivery, future growth and enhanced returns. It allows us to help clients decarbonise their activities as well as our own; promote safe, local delivery and ethical value chains underpinned by rigorous compliance and governance; and build a diverse workforce that helps address the sector's skills gap."

Net Zero

We aim to reduce our Scope 1 and 2 emissions (2) to Net Zero (1) by 2030, and work to influence our supply chain to set their own reduction targets. Our Net Zero Strategy of 'Reduce, Transform, Enable' will focus the business on three areas:

· Reduce - cut our emissions by implementing energy efficiencies and low carbon strategies on sites and operations, optimising our operations and methods of construction and advancing flare and venting reduction and carbon abatement plans.

· Transform - adopt new technologies such as phasing in hybrid and electric vehicles on site, decarbonising our heating and cooling systems by switching to renewable electricity where available and fitting smart building technology in our offices to maximise energy efficiency.

· Enable - support our clients, partners and suppliers in their lower carbon ambitions, enable flexible and agile working practices, continue to embed emission reductions targets in management scorecards and incentivise our staff to be advocates for Net Zero.

At a divisional level, we expect Engineering & Production Services ("EPS") to reduce its Scope 1 and 2 (2) emissions to Net Zero (1) by 2025, while Engineering & Construction ("E&C") and Integrated Energy Services ("IES") will achieve the same by 2030.

Diversity and Inclusion

Petrofac comprises 80 nationalities and its Board has achieved 33% female representation, but we recognise we need to do more to increase the number of women in management. We will achieve our target of 30% of women in senior roles (3) by 2030 through a series of measures that include: continuing to embed diversity targets in management scorecards; developing our in-house diversity and inclusion capability; implementing Women in Leadership and "working without bias" training programmes for all our employees and; mentoring high potential women by Executive Committee members. To ensure we achieve our 2030 target, we are also setting interim targets of 10% of women in senior roles by 2021 and 20% of women in senior roles by 2025.

We are proud of our track record of developing young talent and building diversity from within. We will build on the 46% women in our 2019 graduate engineering intake by continuing to encourage more female graduates to join Petrofac as we develop our female leaders.

Finally, we want to build teams that reflect the communities we serve, and will be advancing programmes such as our graduate academy to further increase the national diversity of our workforce and leadership to better reflect the countries in which we operate.

NOTES

(1) Net Zero: no net increase in GHG emissions to the atmosphere as a result of GHG emissions associated with Petrofac's activities, where residual emissions will be offset by carbon credits.

(2) Scope 1 (direct emissions e.g., production processes) and Scope 2 (indirect emissions e.g. energy purchased).

(3) Executive management and direct reports (as per Hampton-Alexander criteria).

ENDS

Disclaimer:

This announcement contains forward-looking statements relating to the business, financial performance and results of Petrofac and the industry in which Petrofac operates. These statements may be identified by words such as "expect", "believe", "estimate", "plan", "target", or "forecast" and similar expressions, or by their context. These statements are based on current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements and neither Petrofac nor any other person accepts any responsibility for the accuracy of the opinions expressed in this presentation or the underlying assumptions. No obligation is assumed to update any forward-looking statements.

For further information contact:

Petrofac Limited

+44 (0) 207 811 4900

Jonathan Yarr, Head of Investor Relations

jonathan.yarr@petrofac.com

Aaron Clark, Investor Relations & Communications Manager

aaron.clark@petrofac.com

Alison Flynn, Group Head of Communications

alison.flynn@petrofac.com 

Tulchan Communications Group

+44 (0) 207 353 4200

petrofac@tulchangroup.com

Martin Robinson

LEI 2138004624W8CKCSJ177

NOTES TO EDITORS

Petrofac is a leading international service provider to the energy industry, with a diverse client portfolio including many of the world's leading energy companies.

Petrofac designs, builds, manages and maintains oil, gas, refining, petrochemicals and renewable energy infrastructure. Our purpose is to enable our clients to meet the world's evolving energy needs. Our six values - safe; ethical; innovative; responsive; quality & cost conscious; driven to deliver - are at the heart of everything we do.

Petrofac's core markets are in the Middle East and North Africa (MENA) region and the UK North Sea, where we have built a long and successful track record of safe, reliable and innovative execution, underpinned by a cost effective and local delivery model with a strong focus on in-country value. We operate in several other significant markets, including India, South East Asia and the United States. We have 10,700 employees based across 31 offices globally.

Petrofac is quoted on the London Stock Exchange (symbol: PFC).

For additional information, please refer to the Petrofac website at www.petrofac.com