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topics and plans to continue refining such topics; the expected benefits of the Company’s new diluent reduction technology; the timing of first production at Liuhua have the potential to reduce carbon capture costs and reduce the carbon intensity of heavy oil production; the advancement of technologies to improve the Company’s water efficiency; the focus on reclamation work at previously abandoned well sites; the goal to decommission facilities in a safe, orderly, timely and cost-effective manner; the timing for decommissioning of Pikes Peak; average time frames for site closures under the ABC program; and the Company’s approach to lobbying, including its positions on key issues.
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Information used in developing forward-looking statements has been acquired from various sources, including third-party consultants, suppliers and regulators, among others.
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By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur.
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Some of these risks, uncertainties and other factors are similar to those faced by other oil and gas companies and some are unique to the Company.
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The Company uses the term “barrels of oil equivalent” (or “boe”), which is consistent with other oil and gas companies’ disclosures, and is calculated on an energy equivalence basis applicable at the burner tip whereby one barrel of crude oil is equivalent to six thousand cubic feet of natural gas.
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This measure is used for consistency with other oil and gas companies and does not represent value equivalency at the wellhead.
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disclosure that U.S. oil and gas companies generally do not include or may be prohibited from including in their filings with the U.S. Securities and Exchange Commission.
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information, OSG has published the Environmental Report since FY 2001.
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In consideration of the environment, we have abolished printing of this report since the our website.
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Amid increasing uncertainty in the economic environment, we started the operation of the NEO Shinshiro Factory in May 2020.
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These days, environmental issues such as global warming and decarbonization (carbon-neutral) are global concerns that must be addressed with new initiatives for the future of the world’s manufacturing industry.
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The Japanese government has set a goal of reducing greenhouse-gas emissions to net-zero by 2050.
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The OSG Group will steadily contribute to the sustainable development of society by strengthening the development and the production of environmentally friendly products with energy-saving and high efficiency.
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All will work to maintain the global environment in harmony with OSG’s basic business policies.
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OSG conducts activities with consideration of the environment while offering products and services that contribute to society.
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FY 4 Environmental issues that impact the next generation are an important task for OSG to address.
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We are actively working on the promotion of efficient use of resources and environment-conscious manufacturing, and the provision of environmentally friendly products and services to our customers, with the aim of reducing environmental impacts and building a recycling-oriented society.
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To proactively tackle environmental issues with the company-wide environmental strategies, OSG has set up the Headquarters Environment Committee.
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Environmental management activities are primarily conducted by departments close to the workplace with a large environmental impact based on our environmental management system headed by a director in charge of environment as top management and a quality assurance manager as a general environmental management representative.
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training for newly appointed supervisors to develop skills as a qualified internal auditor for environmental management systems.
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We also train persons in charge of environment at each office to raise their knowledge and develop their practical skills through the education of environmental laws and regulations.
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Costs of environmental regulations Measurement of specifi c chemical substances, etc.
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We have balanced our water use so that the amount of drainage water equals our water usage.
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actual drainage water is estimated to be from the use of water-soluble coolants and the evaporation from air conditioning, etc.
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In order to contribute to the realization of a low-carbon society and the creation of a resource recycling society, OSG understands and manages the various environmental impacts of our business activities.
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We remain committed to initiatives such as reducing energy use and using waste from our manufacturing processes as recycled materials.
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OSG has promoted zero emission activities to reduce waste.
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We developed a system to recycle reusable and recyclable resources, and established a structure to ensure the proper disposal of waste from our operations.
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OSG has strived to reduce energy consumption, CO emissions and waste output.
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Focusing on efficient energy use and switching to energy-saving equipment, we have worked to promote continuous improvement in environmental impact throughout the entire company.
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Total CO energy-saving activities and a decrease in production.
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We are continually engaged in waste reduction activities and efforts to recover valuable materials from waste based on the 3Rs.
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The total volume of waste was reduced by production activities.
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For customers’ CSR activities and zero-emission promotion, we utilize these resources by collecting end-of-life tools from our customers and recycling rare metals.
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We are actively working to reduce environmental impacts by enhancing regrinding services and developing energy-saving products and high-efficiency products that enable high speed and long-life.
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Highly efficient production can be achieved with both durability and stability, which contributes to the waste reduction of tools and materials as well as labor-saving.
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which customers are satisfied while protecting the environment.
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OSG offers products that enable high-precision machining with high efficiency in order to help customers reduce their environmental impact.
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local environment under the direction of the Safety and Health Committee at each office.
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Through this activity, each employee raises awareness of environmental issues.
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Association is awarded to member companies with particularly excellent results in environmental management, such as CO on the environmental survey.
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OSG was recognized as a model of other companies for its continuous efforts to improve environmental management, such as the reduction of waste emissions for the third consecutive year, the achievement of resources recycling rate of almost emissions per unit of production for the fifth consecutive year.
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This award, which honors contributions to the development of Japanese industry and society, is given to parts and materials that play a significant role in helping to address the challenges faced by the Japanese manufacturing industry such as the declining birthrate and aging population, environmental conservation, stable supply of resources and energy, and intensifying international competition.
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(Tap water) 100% 74% *1 Valuable materials are not included in industrial waste emissions.
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* *1 Valuable materials are not included in industrial waste emissions.
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This report focuses on developments and actions for our key programs, progress toward our corporate and brand goals during the analysis of trends and business impacts where available.
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Through this report, ESG (Environment, Social, and Governance) is used to refer to the Gap Inc. central team that owns and supports all work related to the ESG issues impacting the company’s performance.
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This year marked major milestones: completed our signature skills-training program, P.A.C.E.; our partnership with USAID’s Women + Water Alliance helped 1.5 million people improve their access to clean water and sanitation; and, guided by our robust ESG framework, we set future targets on climate in line with sciencebased goals.
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*Green-rated indicates high-performing facilities with few violations, none of which were critical.
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of our sourcing went to green-rated* facilities, on track to reach 80% by 2025.
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JUDY ADLER, VP, ESG At Gap Inc., we lead with our values and think holistically about how environmental and social responsibility connects with our business and the world – particularly the lives of people from underrepresented groups.
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This program – which has reached over girls since 2007 – supports people from communities in our supply chain and beyond who face greater risks due to gender discrimination, lack of access to education and healthcare, and the worsening effects of climate change and the water crisis.
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We enrich communities by aiming to create a net positive impact in areas disproportionately affected by environmental issues like climate change and the water crisis.
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Our environmental goals are ultimately about protecting the world’s natural resources for generations to come.
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Women + Water Alliance, which combines objectives to empower women and improve community water resilience in a part of India where water stress and poverty are acute aspects of daily life.
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this program already has improved access to clean water and sanitation for and Maharashtra.
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Our approach builds on our rich history of women’s empowerment, unlocking opportunities for people to succeed in the workforce and responsible environmental stewardship.
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ENABLING OPPORTUNITY A Brighter Future This Way ONward fuels the next generation of leaders with the skills and confidence they need to succeed in the workplace.
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As of the end of of Old Navy’s denim assortment incorporates water-saving techniques, with over 2 billion liters of water saved since 2019.
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of Old Navy’s denim assortment incorporates water-saving techniques In 2021, Old Navy launched the Imagine Mission Fund to support the brand’s values work.
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Water is a Human Right Through the USAID Gap Inc. Women + Water Alliance (see p. working with nonprofit partners in India to empower farmers, like Pramila, and their communities to improve their access to clean water and sanitation, supporting long-term water resilience in places that are aligned with our supply chain.
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From water to wash, fiber to factory, the clothes you love to live in are made responsibly and with respect for the planet we all share.
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Pramila Ahoriya, a farmer and university student in Karajwani village, India, where women on average spend fetching water for their families.
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Better Materials In farmers with training and procurement commitments during their three-year transition toward certified organic farming and away from conventional agricultural practices, which do not use harmful synthetic pesticides and fertilizers.
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The brand also uses conscious dyeing techniques and wash methods that ensure cleaner waterways and reduce water usage by including the implementation of bio-softeners and foam dye.
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Customers can bring unwanted items to stores for resale on thredUP®’s platform, providing an easy way to reduce environmental impact by extending the life of pre-loved clothing.
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Banana Republic signed on to become a member of the Good Cashmere Standard®, which aims to improve the welfare of cashmere goats, the lives of farmers and farming communities, and the environment in which they live.
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Renewable Energy As of company-operated stores in North America are offset by renewable electricity from Fern Solar, a 7.5-megawatt offsite solar project in North Carolina.
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As of the end of fiscal Work toward zero discharge of hazardous chemicals in our supply chain: eliminate PFC-based finishes from our supply chain 2023 38% of products with water- or stain-repellent finishes were made using non-PFC-based finishes.
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Scope Reduce Scope 1 and 2 GHG emissions by 90% from a 2017 baseline 2030 Our 2020 Scope 1 and 2 emissions were reduced by 39% from a 2017 baseline.
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In 2020, 17% of our energy was produced from renewable sources.
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In Empower@Work focused on creating a robust implementation and impact model that seeks to drive market change and influence the wider ecosystem to make lasting, positive changes for women workers.
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To uphold these policies and improve supply chain working conditions, we focus on two areas: Assessment and Remediation Through transparency and partnership across our supply chain, we can improve workers’ well-being, protect human rights, reduce environmental impacts, and improve business performance.
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We also support our facilities with environmental capability-building programs, which can be found in the Resource Efficiency and Manufacturing section (p.
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each facility using a color-coded system: > Green for high-performing facilities with few violations, none of which were critical.
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Between 2016 and 2020, we worked toward a goal of sourcing from facilities rated yellow or green; today, only 1 percent of facilities we work with are rated red, compared to 16 percent in 2016.
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In performance improvement by setting a goal to source at least 80 percent of business spend from green-rated factories by 2025; we are on track, with 68 percent at the end of 2021.
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PROGRESS IN 68% of our business spend is allocated to green-rated factories 75% of Tier 1 factories are participating 100% By 2023, 100% of our Tier 1 facilities will participate in industrywide efforts, including SLCP and/or ILO-IFC Better Work, and 100% of Tier 2 strategic mills will participate by 2025.
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We became a founding partner of the fund in a pool of investments from multiple sources to support local woman-led organizations.
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Our purpose to be Inclusive, by Design drives our work on programs that ensure diversity is a major feature of our talent pipeline.
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In applicants were hired, compared with less than 10 percent of applicants from other sources.
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of color. Gap Inc. continues to integrate insights and new resource tools from This Way ONward into our talent strategy.
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We work to create products and customer experiences that authentically reflect the diversity of our customers.
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We provide opportunities for employees to learn and connect with each other and their local communities, and to support social and environmental issues that are meaningful to them and our company.
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For World Water Day in March, we held another Walk for Water that helped raise awareness and funds to address the challenges that women around the globe face accessing water.
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More than employees from nine countries completed a 1.2-mile walk, a distance that represents the average distance women around the world walk every day for water.
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Climate change and water scarcity are global challenges that transcend boundaries, affecting people and communities everywhere.
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OPPORTUNITY Our environmental approach centers on addressing climate, waste and water issues by creating more sustainable products.
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Many of our initiatives, especially around water, positively impact the lives of women by increasing the opportunities available to them and recognizing the central role they play in every step of the production of the garments we sell.
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“ We believe water is a human right and it is a critical natural resource for our business.
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Water is used to cultivate and process raw materials like cotton, it is consumed in the mills and laundries that manufacture our products, and it is used by customers to wash their clothes.
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Water is also critical to the health and well-being of the people who make our products, the majority of whom are women.
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For this reason, much of our water stewardship work focuses on high-volume suppliers operating in areas of water risk, where we can partner to introduce innovative local solutions.
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By engaging with our suppliers, we can help them to implement industry and Gap Inc. programs (such as our Mill Sustainability and Water Quality programs) around water quality and efficiency, so that they can meet our water-savings targets.
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As a founding member of the Water Resilience Coalition, we support its ambitious > Positive water impact in water-stressed regions.
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of water resilience We work strategically to use water more efficiently in our products, especially through raw material sourcing and manufacturing.
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We aim to eliminate water contamination from chemicals, improve awareness and access to water and sanitation (particularly among women), and invest in opportunities to build community water resilience and catalyze water innovation.
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Our programs and collaborations are designed to tackle different water challenges, mobilize broader business action, and raise awareness of these critical issues.
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Manufacturing (p. 3. Raw Materials and Product (p. 37) 2021 Progress In 2021, we embarked on a water strategy-setting process with corporate water stewardship experts at the Water Foundry.
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We also engaged more than experts to gather feedback on our preliminary water strategy across raw materials, manufacturing, and customer communities through a roundtable discussion facilitated by Ceres.
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