An anchor handling vessel (AHV) is a specialized ship or boat that is used to handle and deploy anchors and other mooring systems in offshore environments. AHVs are typically used in the oil and gas industry, and are used to support the installation, maintenance, and removal of offshore drilling rigs, production platforms, and other offshore facilities.

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AHVs are equipped with powerful winches and other specialized equipment, and are designed to be able to handle heavy loads and operate in harsh offshore conditions. They are typically used to deploy and retrieve anchors and mooring systems, to tow offshore structures and equipment, and to provide support for other offshore operations.

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AHVs are an important tool for the offshore oil and gas industry, and are used by companies around the world to support their offshore operations. They are an essential part of the infrastructure that is needed to explore, develop, and produce oil and gas resources in offshore environments.

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Automation lifecycle management is the process of planning, designing, implementing, and maintaining automation systems and equipment throughout their entire lifecycle. This includes identifying the automation requirements of a system or process, selecting the appropriate automation technology, designing and implementing the automation system, and maintaining and updating the automation system over time.

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In the context of offshore operations, automation lifecycle management is an important process that is used to ensure that automation systems and equipment are operating safely and efficiently. It is used to plan, design, and implement automation systems that are used on drilling rigs, production platforms, and other offshore facilities, and to ensure that these systems are properly maintained and updated throughout their lifecycle.

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Automation lifecycle management is an important process that is used to improve the reliability and performance of automation systems in offshore environments. It is used to help ensure that automation systems are operating safely and efficiently, and to help prevent problems and issues that may arise during the operation of offshore facilities.

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A Best Available Technology (BAT) study is an assessment of the most effective and advanced technologies and methods that are currently available for reducing environmental impacts in a particular industrial sector. BAT studies are typically conducted by regulatory agencies or other authorities, and are used to develop or update environmental regulations or guidelines for a specific sector.

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BAT studies typically consider a wide range of factors, including technological feasibility, cost-effectiveness, environmental performance, and social and economic impacts. The results of a BAT study are used to identify the most appropriate techniques and technologies for reducing environmental impacts, and to set performance standards or emission limits for the sector.

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BAT studies are often used in the context of air pollution control, water pollution control, and waste management. They are an important tool for promoting the development and use of environmentally friendly technologies and practices in industry, and for reducing the environmental impacts of industrial activities.

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Carbon capture and storage (CCS) is a set of technologies and practices that are used to reduce greenhouse gas (GHG) emissions by capturing carbon dioxide (CO2) from industrial sources and storing it in underground geologic formations.

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CCS technologies are used to capture CO2 emissions from large industrial sources, such as power plants, cement and steel manufacturing plants, and oil and gas facilities. The captured CO2 is then compressed and transported to a storage site, where it is injected into underground geologic formations, such as depleted oil and gas reservoirs, deep saline formations, or unmineable coal seams.

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CCS technologies are an important part of the global effort to reduce GHG emissions and address the challenges of climate change. By capturing and storing CO2 emissions, CCS technologies can help to reduce the net amount of CO2 in the atmosphere, and to mitigate the impacts of climate change.

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There are a variety of CCS technologies that are currently in use or under development, including pre-combustion capture, post-combustion capture, and oxy-fuel combustion. CCS technologies are often used in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. They are also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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CCUS stands for Carbon Capture, Utilization, and Storage. It refers to a set of technologies and processes aimed at reducing carbon dioxide emissions from various sources, including power plants, industrial facilities, and transportation. The CCUS process typically involves capturing carbon dioxide (CO2) emissions from these sources, transporting the CO2 to a storage site, and either storing it underground or utilizing it in various industrial processes. The goal of CCUS is to help mitigate the effects of climate change by reducing the amount of CO2 that is released into the atmosphere.

The Carbon Disclosure Project (CDP) is an international non-profit organization that works to drive companies and governments to disclose their greenhouse gas (GHG) emissions, water use, and climate change strategies. CDP collects, processes, and publishes self-reported data from organizations around the world on their environmental impacts, risks, and opportunities.

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CDP works with a network of investors, companies, and cities to disclose information on GHG emissions, water use, and climate change strategies. The information disclosed through CDP is used by investors, companies, and cities to make informed decisions about environmental risks and opportunities, and to set and achieve their sustainability goals.

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CDP provides a range of tools and resources to help organizations understand and manage their environmental impacts, including GHG emissions, water use, and climate change risks and opportunities. These tools and resources include CDP's environmental data platform, which provides access to environmental data from thousands of companies and cities around the world, and CDP's data analytics and reporting tools, which help organizations to understand, analyze, and report on their environmental data.

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CDP is a leading provider of environmental data and insights, and its work is recognized as a global standard for environmental disclosure. The organization is supported by a network of more than 1,000 investors and companies, and its data is used by investors, companies, and cities around the world to make informed decisions about environmental risks and opportunities.

Carbon dioxide (CO2) is a chemical compound made up of one carbon atom and two oxygen atoms. It is a naturally occurring gas that is present in the Earth's atmosphere and is essential for life on Earth. CO2 is produced by the burning of fossil fuels, such as coal, oil, and natural gas, as well as by the decay of organic matter. It is also produced through natural processes, such as the respiration of animals and the decomposition of plant material.

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CO2 is a greenhouse gas, which means it absorbs and radiates heat in the Earth's atmosphere. The concentration of CO2 in the Earth's atmosphere has increased significantly over the past century due to human activities, such as the burning of fossil fuels and deforestation. This increase in CO2 has contributed to the warming of the Earth's surface and atmosphere, a process known as global warming.

Carbon dioxide equivalent (CO2e) is a measure of the global warming potential of different greenhouse gases (GHGs). CO2e is used to compare the emissions of different GHGs on a common scale, based on their relative global warming potential.

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CO2e is calculated by multiplying the emissions of a particular GHG by its global warming potential relative to carbon dioxide (CO2). For example, the global warming potential of methane (CH4) is 28 times greater than that of CO2, so the CO2e of one ton of methane is 28 times the CO2e of one ton of CO2.

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CO2e is used to compare the climate impacts of different GHGs, and to track and report on GHG emissions. It is an important tool for helping organizations and governments to understand and manage their GHG emissions, and to reduce their environmental impact.

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CO2e is often used in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. It is also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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The Conference of the Parties (COP) is the supreme body of the United Nations Framework Convention on Climate Change (UNFCCC), an international treaty that was adopted in 1992 to address the challenges of climate change and to stabilize greenhouse gas (GHG) concentrations in the atmosphere. The COP is composed of the Parties to the UNFCCC, which include nearly all countries in the world.

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The COP meets annually to review the implementation of the UNFCCC and to take decisions that will guide future international efforts to address climate change. The COP is responsible for adopting the decisions that are necessary to implement the provisions of the UNFCCC, including the decisions that set out the commitments and actions that Parties should take to reduce their GHG emissions and to adapt to the impacts of climate change.

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The COP also serves as a forum for Parties to share information, experiences, and best practices on climate change, and to build partnerships and cooperate on climate-related activities. The COP is supported by a number of subsidiary bodies, including the Subsidiary Body for Scientific and Technological Advice (SBSTA) and the Subsidiary Body for Implementation (SBI), which provide technical and scientific advice and support to the COP and to Parties.

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The COP has played a critical role in the global efforts to address the challenges of climate change, and its decisions have shaped the international response to climate change over the past two decades. The COP has adopted a number of key decisions and agreements, including the Paris Agreement, which was adopted in 2015 and aims to limit global warming to well below 2°C above pre-industrial levels.

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The Corporate Sustainability Reporting Directive is a piece of legislation passed by the European Union that requires large companies to report on their environmental, social, and governance (ESG) performance. The directive, which was adopted in 2014, applies to companies with more than 500 employees that are listed on an EU stock exchange. These companies are required to disclose information on a wide range of ESG topics, including greenhouse gas emissions, energy consumption, water use, and employee diversity. The goal of the directive is to promote greater transparency and accountability in corporate sustainability practices and to encourage companies to take a more proactive approach to addressing environmental and social issues.

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Cap and trade is a type of market-based policy that is used to regulate and reduce greenhouse gas (GHG) emissions. Under a cap and trade system, the government sets a limit or "cap" on the total amount of GHG emissions that can be emitted by a particular sector or region.

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Companies or other entities that emit GHGs are required to hold allowances or "permits" that represent the right to emit a certain amount of GHGs. These allowances can be bought and sold in a market, allowing companies to "trade" allowances with one another.

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The goal of cap and trade is to create economic incentives for companies to reduce their GHG emissions, by making it more expensive for them to emit GHGs above the cap. By setting the cap at a level that is lower than the current level of GHG emissions, the government can create a "market signal" that encourages companies to invest in clean technologies and practices that will help them reduce their GHG emissions.

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Cap and trade is an important tool for reducing GHG emissions in a way that is efficient and cost-effective, and is often used in conjunction with other policies and programs to promote the transition to a low-carbon economy. In the context of carbon accounting, cap and trade is often used to track and verify GHG emissions reductions, and to ensure that companies are meeting their GHG reduction targets.

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Carbon accounting is the process of measuring, managing, and reporting on an organization's greenhouse gas (GHG) emissions. Carbon accounting is an important tool for helping organizations to understand their GHG emissions and to identify opportunities for reducing their environmental impact.

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Carbon accounting typically involves the collection and analysis of data on an organization's GHG emissions, and the calculation of GHG emissions using standardized methods and protocols. This data is used to create a "carbon footprint," which is a measure of the organization's GHG emissions.

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Carbon accounting is often used in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. It is also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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Carbon accounting is an important tool for helping organizations to understand and manage their GHG emissions, and to play a role in mitigating climate change. It is used by a wide range of organizations, including companies, governments, and non-profit organizations, to track and manage their GHG emissions and to meet their sustainability goals.

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A carbon pledge is a commitment made by an organization, event, product, or service to reduce its greenhouse gas (GHG) emissions or to offset or neutralize its GHG emissions through a variety of approaches. Carbon pledges are often made in order to mitigate the impacts of climate change and to create a more sustainable future.

A carbon sink is a natural or artificial system that absorbs and stores carbon dioxide (CO2) from the atmosphere, thereby mitigating the impacts of climate change and helping to create a more sustainable future. Carbon sinks can be found in a variety of natural and artificial systems, including forests, oceans, soil, and man-made infrastructure such as carbon capture and storage (CCS) facilities.

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Forests are a natural carbon sink, as trees and other vegetation absorb CO2 through the process of photosynthesis and store it in their wood, leaves, and roots. Oceans also act as a natural carbon sink, as phytoplankton and other marine organisms absorb CO2 and use it to build their shells and skeletons, which eventually sink to the ocean floor and are stored over long periods of time. Soil can also act as a carbon sink, as it can absorb and store CO2 through the addition of organic matter and the use of carbon-sequestering practices such as reduced tillage.

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Man-made infrastructure such as CCS facilities can also act as a carbon sink, as they capture and store CO2 emissions from industrial sources in underground geologic formations, such as depleted oil and gas reservoirs, deep saline formations, or unmineable coal seams.

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Carbon sinks are an important part of the global effort to reduce greenhouse gas (GHG) emissions and address the challenges of climate change. By capturing and storing CO2, carbon sinks can help to reduce the net amount of CO2 in the atmosphere, and to mitigate the impacts of climate change.

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A carbon target is a specific, measurable goal that is set by an organization, event, product, or service to reduce its greenhouse gas (GHG) emissions or to offset or neutralize its GHG emissions through a variety of approaches. Carbon targets are often set in order to mitigate the impacts of climate change and to create a more sustainable future.

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Carbon targets can be set in a variety of ways, including absolute targets (e.g., reducing GHG emissions by a specific amount), intensity targets (e.g., reducing GHG emissions per unit of output), or sectoral targets (e.g., reducing GHG emissions in a specific industry sector). Carbon targets can also be set in terms of timeframes, such as short-term targets (e.g., reducing GHG emissions over the next five years), medium-term targets (e.g., reducing GHG emissions over the next ten years), or long-term targets (e.g., reducing GHG emissions over the next twenty years or more).

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Carbon targets are often set in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. They are also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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Carbon targets are an important part of the global effort to address the challenges of climate change and reduce GHG emissions. By setting and achieving carbon targets, organizations can demonstrate their commitment to sustainability and to reducing their environmental impact.

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A carbon footprint is a measure of the total greenhouse gas (GHG) emissions caused by an organization, event, product, or service. A carbon footprint is typically expressed in terms of the amount of carbon dioxide (CO2) that is equivalent to the GHG emissions, and is often measured in terms of metric tons of CO2e (carbon dioxide equivalent).

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A carbon footprint is used to understand and manage an organization's GHG emissions, and to identify opportunities for reducing its environmental impact. A carbon footprint is typically calculated by collecting and analyzing data on an organization's GHG emissions, and using standardized methods and protocols to calculate the GHG emissions.

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Carbon footprint analysis is an important tool for helping organizations to understand and manage their GHG emissions, and to identify opportunities for reducing their environmental impact. It is used by a wide range of organizations, including companies, governments, and non-profit organizations, to track and manage their GHG emissions and to meet their sustainability goals.

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A carbon footprint is often used in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. It is also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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Carbon negative refers to a situation in which an organization, event, product, or service is able to remove more carbon dioxide (CO2) from the atmosphere than it is responsible for emitting. In other words, a carbon negative entity is one that is able to reduce the net amount of CO2 in the atmosphere, rather than simply offsetting or neutralizing its own GHG emissions.

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Carbon negative strategies can involve a variety of approaches, including carbon capture and storage, reforestation and afforestation, soil carbon sequestration, and the use of other GHG removal technologies.

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Carbon negative approaches are often used in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. They are also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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Carbon negative approaches are becoming increasingly important as the world works to address the challenges of climate change and reduce GHG emissions. By removing CO2 from the atmosphere, organizations can help to mitigate the impacts of climate change and to create a more sustainable future.

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Carbon neutral refers to a situation in which an organization, event, product, or service is able to offset or neutralize its own greenhouse gas (GHG) emissions through a variety of approaches. A carbon neutral entity is one that is able to balance the amount of GHGs it emits with an equivalent amount of GHGs that are removed from the atmosphere or reduced elsewhere.

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There are a variety of approaches that can be used to achieve carbon neutrality, including carbon offsetting, renewable energy, energy efficiency, and GHG reduction projects. Carbon offsets involve funding projects that reduce or remove GHGs from the atmosphere, such as reforestation or afforestation projects, renewable energy projects, or GHG capture and storage projects. Renewable energy and energy efficiency projects involve reducing GHG emissions by using clean, renewable energy sources and improving energy efficiency. GHG reduction projects involve reducing GHG emissions directly, through a variety of approaches such as energy conservation, waste reduction, and process improvements.

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Carbon neutral approaches are often used in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. They are also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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Carbon neutral approaches are becoming increasingly important as the world works to address the challenges of climate change and reduce GHG emissions. By offsetting or neutralizing GHG emissions, organizations can help to mitigate the impacts of climate change and to create a more sustainable future.

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Carbon reduction refers to the process of reducing greenhouse gas (GHG) emissions in order to mitigate the impacts of climate change and to create a more sustainable future. Carbon reduction can be achieved through a variety of approaches, including energy efficiency, renewable energy, carbon offsetting, and GHG reduction projects.

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Energy efficiency involves reducing the amount of energy that is used to perform a particular task or function, while renewable energy involves using clean, renewable energy sources to replace fossil fuels. Carbon offsetting involves funding projects that reduce or remove GHGs from the atmosphere, such as reforestation or afforestation projects, renewable energy projects, or GHG capture and storage projects. GHG reduction projects involve reducing GHG emissions directly, through a variety of approaches such as energy conservation, waste reduction, and process improvements.

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Carbon reduction is an important part of the global effort to address the challenges of climate change and reduce GHG emissions. It is often achieved through the use of policies and programs that create economic incentives for companies and individuals to reduce their GHG emissions, and through the development and deployment of clean technologies and practices that help to reduce GHG emissions.

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Carbon reduction is often used in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. It is also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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Carbon sequestration is the process of capturing and storing carbon dioxide (CO2) from the atmosphere or from industrial sources in order to mitigate the impacts of climate change and to create a more sustainable future. Carbon sequestration can be achieved through a variety of approaches, including reforestation and afforestation, soil carbon sequestration, and carbon capture and storage (CCS).

A carbon tax is a tax on greenhouse gas (GHG) emissions, such as carbon dioxide (CO2), that is imposed on organizations or individuals in order to reduce GHG emissions and mitigate the impacts of climate change. Carbon taxes are typically levied on GHG emissions from the production, distribution, and use of fossil fuels, such as coal, oil, and natural gas.

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Carbon taxes are typically set at a specific rate per ton of GHG emissions, and the tax is typically paid by the organization or individual emitting the GHGs. The tax is generally based on the amount of GHGs that are emitted, rather than on the value of the goods or services that are produced.

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Carbon taxes are often used in conjunction with other tools and approaches, such as carbon pricing, cap and trade, and emission reduction targets, to help organizations reduce their GHG emissions and to meet their sustainability goals. They are also used to track and verify GHG emissions reductions, and to report on an organization's progress towards its GHG reduction targets.

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Carbon taxes are an important part of the global effort to address the challenges of climate change and reduce GHG emissions. By imposing a price on GHG emissions, carbon taxes can create an economic incentive for organizations and individuals to reduce their GHG emissions and to adopt more sustainable practices.

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Dynamic Inertia Control (DIC) is a technology that is used to improve the stability and power quality of electrical power systems. It is typically used in large-scale power generation and transmission systems, such as those used in utility-scale power plants and electrical grids.

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DIC works by actively controlling the rotational inertia of a power system's generators, which helps to stabilize the system in the event of a disturbance, such as a sudden increase in load or a fault on the transmission lines. By controlling the rotational inertia of the generators, DIC can help to dampen oscillations and improve the stability of the power system.

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DIC is typically implemented using advanced control systems and algorithms, and can be used in combination with other power system stabilization technologies, such as frequency control and voltage control. It is an important tool for ensuring the reliability and stability of electrical power systems, and is increasingly being used in the development of renewable energy systems.

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Dynamic load compensation is the process of actively controlling the electrical load on a power system in order to maintain a stable and reliable supply of electricity. It is typically used in large-scale power generation and transmission systems, such as those used in utility-scale power plants and electrical grids.

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Dynamic load compensation involves the use of advanced control systems and algorithms to continuously monitor the load on the power system and adjust it as needed to maintain a desired level of stability and reliability. This can involve measures such as ramping up or down the output of power plants, or activating demand-side management programs to reduce the load on the system.

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Dynamic load compensation is an important tool for ensuring the stability and reliability of power systems, particularly in the context of the increasing integration of renewable energy sources into power systems. It helps to ensure that the supply of electricity is closely matched to the demand, and helps to minimize the risk of outages or other disruptions.

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Dynamic load prediction is the process of forecasting the changes in the electrical load on a power system over a given period of time. Load prediction is an important aspect of power system planning and operation, as it helps utilities and other power system operators to manage the supply and demand of electricity and ensure the reliability of the system.

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Dynamic load prediction involves the use of data analytics and machine learning techniques to analyze historical data on power system loads, as well as other factors that may affect load patterns, such as weather, economic conditions, and energy prices. By analyzing this data, power system operators can develop accurate and reliable predictions of the future load on the system, and use this information to optimize the operation of the system and minimize the risk of outages or other disruptions.

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Dynamic load prediction is an important tool for improving the efficiency and reliability of power systems, and is particularly important in the context of the increasing integration of renewable energy sources into power systems.

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Dynamic positioning (DP) is a technology that is used to maintain the position of an offshore drilling rig or vessel in the face of external forces, such as wind, waves, and currents. DP systems use a combination of sensors, thrusters, and control algorithms to continuously adjust the position of the rig or vessel in real-time, keeping it in a fixed location relative to a reference point.

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DP systems are commonly used on offshore drilling rigs and other vessels that operate in challenging offshore environments, where maintaining a fixed position is critical for the safety and efficiency of operations. DP systems allow these vessels to operate in areas where anchoring is not possible or practical, and can help to reduce the risk of accidents or damage to the vessel or the surrounding environment.

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DP systems are complex and highly technical, and require the expertise of trained professionals to operate and maintain them. They are an important tool for ensuring the safety and efficiency of offshore operations in the oil and gas industry.

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Decarbonization is the process of reducing the amount of carbon in the environment, typically by reducing the use of fossil fuels. The most common way to achieve this is by using renewable energy sources, such as solar and wind power, instead of fossil fuels, like coal and natural gas. The goal of decarbonization is to decrease the amount of carbon dioxide in the atmosphere, which is a leading contributor to climate change.

Direct emissions refer to the release of greenhouse gases (such as carbon dioxide, methane, and nitrous oxide) into the atmosphere as a result of human activities. These emissions come from a specific source, such as a power plant, factory, or vehicle. In other words, these are emissions that are generated directly from activities such as burning fossil fuels for energy or industrial processes. Direct emissions are also often called "Scope 1 emissions" in the context of greenhouse gas inventory and reporting.

In the context of carbon tracking, double-counting refers to the practice of counting the same emissions reduction or removal twice or more, in different carbon offset or credits programs or systems.

This can happen when different countries or organizations have different rules and standards for measuring and reporting emissions reductions or removals, and they do not coordinate or communicate effectively with each other.

For example, imagine a company that reduces its emissions by purchasing carbon credits from another company. If both companies then claim credit for the emissions reduction in their own carbon reporting, that would be double-counting.

Double counting can lead to misrepresentation of efforts of mitigation, leading to overstatement of progress, and will not lead to the actual reduction of greenhouse gases. To avoid double counting, international standards should be used for carbon tracking and credits, and coordination and transparency among different actors is crucial.

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Downstream emissions refer to the greenhouse gas emissions that occur as a result of the consumption of a product or service, rather than the production of it.

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For example, downstream emissions from the burning of fossil fuels to generate electricity would include emissions from power plants, as well as emissions from vehicles using that electricity to power their engines, and emissions from industrial processes using electricity.

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In other words, it is the emissions that happen as a result of using the energy produced from a power plant or any other source.

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Downstream emissions are also known as "Scope 3 emissions" in the context of greenhouse gas inventory and reporting. They can include a wide range of activities, including the extraction, production, transportation, and disposal of a product, as well as its end use.

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An emission factor is a measure of the quantity of a specific greenhouse gas emitted per unit of activity. Emission factors are typically used to estimate the total emissions from a particular source or activity, and they are often based on measurements or data from similar sources or activities.

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Emission factors are often used in calculating emissions from sources that are difficult to measure directly.

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Emission factors can be expressed as a ratio of the mass or volume of a specific greenhouse gas emitted to a specific activity or unit of input, such as the mass or volume of fuel consumed, or the distance traveled by a vehicle.

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Examples of Emission factors:

• Carbon dioxide emissions factor per tonne of coal burned
• Nitrogen oxide emissions factor per mile for a specific vehicle.
• Methane emissions factor per unit of milk production

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Emission factors vary depending on the type of fuel or activity and the conditions under which it occurs. Factors like technology and process conditions can also affect the emissions.

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In the context of offshore operations, an energy management plan is a key tool for improving the efficiency and sustainability of offshore facilities. It is used to identify opportunities for energy savings and to develop strategies for reducing energy use and increasing the use of renewable energy sources.

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An offshore energy management plan may include a range of actions and initiatives, such as ERIs, the use of renewable energy technologies, and the development of energy management policies and procedures. An energy management plan is an important tool for helping an organization to achieve its energy and sustainability goals, and to reduce its environmental impact.

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The Environmental Protection Agency (EPA) is a federal agency of the United States government that is responsible for protecting human health and the environment. The EPA was established in 1970 by the Environmental Protection Act, which was signed into law by President Richard Nixon.

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The EPA's mission is to protect human health and the environment by setting and enforcing standards for air and water quality, as well as for hazardous and toxic substances. The EPA also works to promote the development and use of environmentally safe technologies, and to provide research and information to the public about environmental issues.

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The EPA has a number of programs and initiatives to achieve its mission, including regulating greenhouse gas emissions, enforcing clean air and water standards, cleaning up contaminated sites, and promoting environmental education. The EPA works closely with other federal, state, and local agencies, as well as with private organizations and individuals, to protect the environment and human health.

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An emission reduction initiative is a program or technology designed to reduce the amount of energy that is consumed by an asset. Emission reduction initiatives can take many forms, and can be implemented at various levels. Emission reduction initiatives often involve the implementation of energy-efficient technologies and practices. Other common elements of energy reduction initiatives include the promotion of energy conservation behaviors.

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Emission reduction initiatives can have a variety of benefits, including cost savings, reduced greenhouse gas emissions, and improved energy security. They are an important part of efforts to address global climate change and to transition to a more sustainable energy system.

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Environmental factors refers to the company's impact on the environment, including the management of its carbon footprint, pollution, and waste, as well as its approach to natural resources and energy usage.

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Social factors refer to how a company manages its relationship with its stakeholders, particularly its employees, customers, and the communities in which it operates. This can include issues related to labor practices, human rights, and community engagement.

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Governance factors refer to the company's management structure and decision-making processes, including its transparency, accountability, and integrity. This can include issues related to board effectiveness, the rights of shareholders, and the management of potential conflicts of interest.

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ESG factors are becoming increasingly important for companies, investors, and other stakeholders, as they can have a significant impact on an organization's long-term financial performance, as well as its reputation and relationship with stakeholders. As a result, many companies and organizations now include ESG considerations in their strategies, operations, and reporting, and investors are increasingly interested in incorporating ESG factors into their investment decisions.

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ESG reporting, or Environmental, Social, and Governance reporting, is a type of reporting that helps organizations disclose information about how they manage environmental, social and governance risks and opportunities. This type of reporting is used by companies, investors, and other stakeholders to assess the sustainability performance of an organization.

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ESG factors can cover a wide range of topics, including but not limited to:

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• Environmental risks and opportunities, such as climate change, water scarcity, and biodiversity
• Social risks and opportunities, such as labor practices, human rights, and community engagement
• Governance risks and opportunities, such as board effectiveness, anti-corruption, and ethical leadership.

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ESG reporting can be done voluntarily or through a mandatory process as part of regulatory requirements. The report can be publicly available and can be shared to the stakeholders, investors and other interested parties. ESG reporting can be used by investors and stakeholders to assess the company's risk and opportunities profile, and to make informed decisions about their investments and partnerships.

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There are many frameworks and guidelines for ESG reporting such as the Global Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD).

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The European Green Deal's Corporate Sustainability Reporting Directive (CSRD) mandates over 50,000 companies, including large, listed, and third-country companies with EU undertakings, to report sustainability information under the European Sustainability Reporting Standards (ESRS). Reporting starts on or after 1 January 2024 for large public-interest companies, banks, and insurance companies already under the Non-Financial Reporting Directive (NFRD); 1 January 2025 for other large companies; and 1 January 2026 for small or medium-sized entities and other undertakings. The CSRD and ESRS incorporate double materiality, prospective information, information about the upstream and downstream value chain, and sustainability due diligence into their reporting requirements. All sustainability information in the management report must be verified by a third party. The first set of ESRS were approved in November 2022 and emphasizes the importance of tackling climate change. The ESRS aim to harmonize with various other standards like ISSB, TCFD, and GRI to avoid repeated disclosure efforts by companies.

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Background

On April 21, 2021, the European Commission (EC) proposed the Corporate Sustainability Reporting Directive (CSRD) requiring companies to report according to European Sustainability Reporting Standards (ESRS), with the European Financial Reporting Advisory Group (EFRAG) serving as the technical advisor. The first draft of ESRS was released for public consultation by EFRAG on April 29, 2022, with the process concluding in August 2022. After reviewing all feedback, the EFRAG Sustainability Reporting Board and Technical Expert Group approved a first set of ESRS on November 15, 2022, to be submitted to the EC, which is expected to adopt these standards by June 2023. This first set of ESRS consists of 12 standards covering environmental, social, and governance matters and includes both general and specific standards. Future plans include the publication of sector-specific standards and standards for small and medium-sized enterprises (SMEs) not covered in the public consultation. The Council approved the proposal on November 28.

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When do companies have the obligation to report sustainability information according to the ESRS?

The proposed CSRD shall apply for financial years starting on or after 1 January 2023, but based on the latest communication of the Council of the European Union, deadlines for implementation by companies (EU refers to undertakings) are proposed to change to:

• 1 January 2024 for undertakings already subject to the Non-Financial Reporting Directive (reporting in 2025 on 2024 data)
• 1 January 2025 for large undertakings not currently subject to the Non-Financial Reporting Directive (reporting 2026 on 2025 data)
• 1 January 2026 for listed small and medium-sized enterprises, as well as for small and noncomplex credit institutions and for captive insurance undertakings (reporting in 2027 on 2026 data)

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Is assurance mandatory?

Assurance of the sustainability reporting is proposed to be mandatory at the limited level, planning a transition to reasonable assurance in the upcoming years.

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What is the period covered by the sustainability reporting?

The sustainability reporting period should be aligned to the reporting period used for the financial statements.

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When will it be enforced on the NCS?

Scope 1, 2 & 3 to be enforced on the NCS as from 01.01.2024

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Overview of the initial steps

The first set of European Sustainability Reporting Standards (ESRS) establishes a structure for reporting sustainability information in a comprehensive manner. It includes four main reporting areas as set out in ESRS 2. These areas are:

1. Governance: This pertains to the processes, controls, and procedures used for monitoring and managing impacts, risks, and opportunities.
2. Strategy: This considers how a company's strategy and business models interact with material impacts, risks, and opportunities, and the approach to addressing them.
3. Impact, Risk, and Opportunity Management: This involves the processes by which impacts, risks, and opportunities are identified, assessed, and managed through policies and actions.
4. Metrics and Targets: This describes how a company measures its performance, including progress towards the targets it has set.

The first set of draft standards under the European Sustainability Reporting Standards (ESRS) includes only cross-cutting and sector-agnostic standards. Sector-specific standards and those proportionate for Small and Medium Enterprises (SMEs) are still under development and will be presented for separate public consultation in the near future. Companies are required to include the sustainability information mandated by the ESRS in their management reports.

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The EU taxonomy is a framework developed by the European Union (EU) that defines and classifies environmentally sustainable economic activities. The taxonomy is designed to provide a common language and set of standards for identifying and evaluating environmentally sustainable economic activities, and to support the transition to a low-carbon, resource-efficient, and climate-resilient economy.

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The EU taxonomy includes a list of criteria and requirements that must be met in order for an economic activity to be considered environmentally sustainable. These criteria are based on scientific evidence and are designed to reflect the environmental impacts and benefits of an activity.

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The EU taxonomy is an important tool for investors, companies, and other stakeholders who want to understand the environmental impact of different economic activities, and to identify opportunities for investing in and supporting sustainable activities. It is also an important tool for policymakers and regulators who want to support the transition to a more sustainable economy, and to encourage the development of sustainable technologies and practices.

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An emission performance indicator (EPI) is a metric that is used to measure the environmental impact of a particular system or process. In the context of offshore operations, EPIs are often used to measure the emissions of greenhouse gases and other pollutants that are generated by offshore drilling rigs, production platforms, and other offshore facilities.

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EPIs can be used to measure a wide range of emissions, including carbon dioxide (CO2), methane (CH4), and other greenhouse gases, as well as air pollutants such as sulfur dioxide (SO2) and nitrogen oxides (NOx). They can be used to track the emissions performance of individual systems or processes, or to compare the emissions performance of different facilities or assets.

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EPIs are an important tool for improving the environmental performance of offshore operations, and can help to identify opportunities for reducing emissions and minimizing the environmental impact of offshore activities. They are often used in conjunction with other tools and technologies, such as emission control systems and emission monitoring systems, to help manage and reduce emissions in offshore operations.

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Emissions refer to the release of pollutants or greenhouse gases into the atmosphere as a result of human activities. These pollutants can come in the form of gases, particulates, or other forms of matter.

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The most commonly studied emissions in relation to climate change are greenhouse gases, such as carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), which are released into the atmosphere by activities such as burning fossil fuels, deforestation, and industrial processes. These gases trap heat in the atmosphere, leading to global warming and climate change.

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Emissions can be classified into different categories, depending on the source and sector of the emissions. Common categories of emissions include:

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• Direct emissions, which come from specific sources such as power plants or factories
• Indirect emissions, which occur as a result of the consumption of products or services (downstream emissions)
• Scope 1, 2 and 3 emissions where scope 1 emissions are direct emissions from sources that are owned or controlled by a company, scope 2 emissions are indirect emissions from the consumption of purchased electricity, steam, heating and cooling, scope 3 emissions include all other indirect emissions that are not included in scope 2, such as the extraction of raw materials, transportation, and disposal of waste.

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Emissions can be measured in various units such as metric tons of CO2 equivalent, or kt CO2e.

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An energy performance indicator (EPI) is a metric that is used to measure the efficiency and effectiveness of energy use in a particular system or process. In the context of offshore operations, EPIs are often used to measure the energy performance of offshore drilling rigs, production platforms, and other offshore facilities.

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EPIs can be used to measure a wide range of factors, including energy consumption, energy efficiency, energy intensity, and energy productivity. They can be used to track the energy performance of individual systems or processes, or to compare the energy performance of different facilities or assets.

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EPIs are an important tool for improving the energy efficiency of offshore operations, and can help to identify opportunities for energy conservation and cost savings. They are often used in conjunction with other tools and technologies, such as energy management systems and energy monitoring systems, to help optimize the use of energy in offshore operations.

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Greenhouse gases (GHGs) are gases that absorb and radiate heat in the Earth's atmosphere, contributing to the warming of the planet's surface and atmosphere. Some common GHGs include carbon dioxide (CO2), methane (CH4), and water vapor (H2O).

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GHGs are produced by both natural and human activities. Natural sources of GHGs include the respiration of animals, the decomposition of plant material, and the emission of gases from the Earth's surface. Human activities that contribute to GHG emissions include the burning of fossil fuels, such as coal, oil, and natural gas, as well as deforestation and land use changes.

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The concentration of GHGs in the Earth's atmosphere has increased significantly over the past century due to human activities, leading to a warming of the planet's surface and atmosphere, a process known as global warming. GHGs are a major contributor to climate change, which is the long-term alteration of the Earth's climate patterns.

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The GHG Protocol, short for Greenhouse Gas Protocol, is a widely used international accounting tool for quantifying, managing, and reporting greenhouse gas emissions. It was developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) to provide a standardized and consistent methodology for measuring and reporting emissions from various sectors, organizations and activities.

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The GHG Protocol includes two main parts:

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1. The Corporate Accounting and Reporting Standard, which provides guidelines for companies to inventory and report their greenhouse gas emissions. It covers emissions from operations (Scope 1 emissions) as well as emissions from purchased electricity, heat or steam (Scope 2 emissions) and also covers emissions resulting from the use of sold products (Scope 3 emissions).
2. The Project Accounting and Reporting Standard, which provides guidance for quantifying, monitoring and reporting the greenhouse gas reductions from projects, such as renewable energy and energy efficiency projects, afforestation and reforestation projects.

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The GHG Protocol standards and guidelines are widely recognized and used internationally, by companies, governments, and other organizations, as a consistent and reliable method for measuring and reporting greenhouse gas emissions and reductions.

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The Global Reporting Initiative (GRI) is an international organization that promotes sustainability reporting. The GRI provides a framework for organizations to disclose information about their economic, environmental, and social performance. This framework is widely used by companies, governments, and other organizations around the world to report on their sustainability performance. The GRI framework is designed to be flexible, allowing organizations to tailor their reporting to their specific circumstances and stakeholders. The framework includes a set of indicators and guidelines for reporting on a wide range of sustainability topics, including governance, labor practices, human rights, and environmental impact.

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Greenwashing is the practice of making false or misleading claims about the environmental benefits of a product, service, or company. This can include exaggerating the environmental benefits of a product, or making claims that cannot be substantiated.

Greenwashing can take many forms, such as:

• Making vague or unverifiable claims about environmental benefits, such as "eco-friendly" or "carbon neutral" without providing any evidence or information to support these claims.
• Highlighting small, inconsequential aspects of a product or service as environmentally friendly, while downplaying or ignoring more significant environmental impacts.

Greenwashing is a serious issue as it can mislead consumers and create a false sense of environmental responsibility among companies. It can also detract from the efforts of companies that are making real, substantive efforts to reduce their environmental impact. To avoid greenwashing, it is important to be informed, and to use reliable resources to verify claims.

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Heating, ventilation, and air conditioning (HVAC) refers to the systems and equipment that are used to control the temperature, humidity, and air quality in a building or other enclosed space. In the context of offshore operations, HVAC systems are used to ensure the comfort and safety of workers on offshore drilling rigs, production platforms, and other offshore facilities.

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HVAC systems in offshore environments typically consist of a combination of heating and cooling equipment, ventilation systems, and air filtration systems. These systems work together to maintain a comfortable and safe indoor environment, even in challenging offshore conditions.

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Offshore HVAC systems are designed to be robust and reliable, and are typically built to withstand harsh weather conditions and other environmental challenges. They are an important tool for ensuring the comfort and safety of workers in offshore environments, and are essential for the successful operation of offshore facilities.

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ISO 14064 is an international standard for greenhouse gas (GHG) accounting and verification. It provides guidelines for organizations to accurately measure, report and verify their GHG emissions and to manage their carbon footprint. The standard was developed by the International Organization for Standardization (ISO) and was first published in 2006.

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ISO 14064 consists of three parts:

1. ISO 14064-1: Specifies requirements for GHG quantification, monitoring, reporting and verification.
2. ISO 14064-2: Provides specific guidelines for GHG validation and verification.
3. ISO 14064-3: Deals with the estimation and reporting of GHG emissions and removals from organizations.

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The standard covers all types of GHG emissions, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and fluorinated gases (F-gases). It provides a consistent and transparent approach for organizations to assess their GHG emissions and removals and to demonstrate their efforts to reduce their carbon footprint.

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By following the guidelines set out in ISO 14064, organizations can improve their GHG management practices, reduce their carbon footprint, and enhance their reputation as responsible and sustainable organizations. Additionally, the standard provides a framework for GHG reporting that can be used by organizations to communicate their GHG emissions and removals to stakeholders, including investors, regulators, customers, and the general public.

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ISO 50001 is an international standard for Energy Management Systems (EnMS) that provides a framework for organizations to systematically manage and improve their energy performance. It was developed by the International Organization for Standardization (ISO) and was first published in 2011.

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The standard covers all types of energy use within an organization, including electrical, thermal, and transportation energy, and provides a structured approach for improving energy efficiency, reducing energy consumption and greenhouse gas emissions, and optimizing energy use.

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ISO 50001 requires organizations to establish an Energy Management System (EnMS) and to regularly monitor and evaluate their energy performance. The standard covers the entire energy life cycle, from energy consumption and production to procurement, transportation and storage.

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In order to comply with the standard, organizations must demonstrate a commitment to continuous improvement by setting energy efficiency targets, regularly monitoring their energy performance, and implementing corrective actions where necessary. Organizations must also conduct regular internal audits to evaluate their energy management practices and to identify areas for improvement.

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Overall, ISO 50001 is a practical tool that can help organizations to manage their energy use more efficiently and to reduce their carbon footprint. By following the standard's guidelines, organizations can improve their energy performance, reduce energy costs, and enhance their reputation as responsible and sustainable organizations.

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Indirect emissions, also known as "Scope 2 emissions" in the context of greenhouse gas inventory and reporting, refer to emissions that occur as a result of the consumption of purchased energy, such as electricity, steam, heat, or cooling. These emissions are considered indirect because they are not emitted directly from sources that are owned or controlled by a company, but they are still considered to be part of the company's operations and are caused by the consumption of the energy.

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For example, a manufacturing plant that uses electricity from the grid to power its operations would have indirect emissions from the generation of the electricity consumed. Or a company which consumes steam from the network to heat its facility, would have indirect emissions from steam generation.

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Indirect emissions are different from direct emissions, which come from specific sources that are owned or controlled by a company, such as a factory or power plant. Indirect emissions are also different from downstream emissions, which occur as a result of the consumption of a product or service.

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In order to calculate and report the indirect emissions, companies often rely on the emission factors and grid emission factors provided by the relevant authorities or by energy companies, which are the average emissions of a unit of energy generated or consumed in a specific region or country.

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A kilowatt (kW) is a unit of power that is equal to one thousand watts (1,000 W). It is commonly used to measure the output of electrical generators, power plants, and other energy-producing systems.

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The kilowatt is a unit of power that is used to measure the rate at which energy is being produced or consumed. It is typically used to describe the capacity of electrical generators and other energy-producing systems, and is often used to compare the size and output of different systems.

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For example, a small solar panel system might have a capacity of 5 kW, which means that it is capable of producing 5,000 watts of electrical power. Similarly, a large wind turbine might have a capacity of 2 MW, which is equal to 2,000 kW.

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The kilowatt is an important unit of measure in the energy industry, and is used to describe the scale and capacity of energy-producing systems around the world.

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In the context of carbon emission tracking, leakage refers to the situation where efforts to reduce emissions in one place or sector result in an increase of emissions elsewhere.

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Leakage can occur in various ways such as, for example, when a company reduces its emissions by outsourcing production to a company in another country where emissions are higher. Or when a country reduces its emissions by shutting down a polluting industry and causes the industry to move to another country where the regulations are less strict.

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Leakage can also happen when carbon offset projects are not well-designed and monitored, leading to unintended emissions increases.

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Leakage can negate the emissions reductions from an emission reduction project, or policy, and thus it is important to consider and quantify leakage when evaluating the effectiveness of the project or policy.

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In order to avoid leakage, it is important to adopt a holistic approach when designing emission reduction projects and policies, and to ensure that they are implemented in a coordinated way, taking into account the potential impacts on other sectors and regions. Additionally, it is important to have good monitoring and reporting mechanisms in place to ensure that leakage is identified and addressed.

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A machine control diagnostic tool is a type of software or hardware that is used to diagnose and troubleshoot problems with machine control systems. These tools are used to identify and diagnose issues with machine control systems, and to help identify the root cause of problems and issues that may arise.

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In the context of offshore operations, machine control diagnostic tools are often used to diagnose and troubleshoot problems with the machine control systems that are used on drilling rigs, production platforms, and other offshore facilities. These tools are used to help identify and fix issues with the operation of various systems and equipment, including electrical, mechanical, and process control systems.

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Machine control diagnostic tools are an important tool for improving the reliability and performance of machine control systems in offshore environments. They are used by maintenance and engineering teams to diagnose and fix problems with machine control systems, and to help ensure that offshore facilities are operating safely and efficiently.

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A mobile offshore drilling unit (MODU) is a specialized vessel that is used for the exploration, development, and production of oil and gas deposits in offshore environments. MODUs are designed to be able to move from one location to another, and can be used to drill wells in a variety of different offshore environments, including shallow and deep waters, and in harsh weather conditions.

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There are several different types of MODUs, including drillships, semi-submersibles, and jack-up rigs. Drillships are self-propelled vessels that are equipped with drilling equipment and other specialized systems, and are used to drill wells in deepwater environments. Semi-submersibles are floating platforms that are supported by pontoons or other buoyant structures, and are used to drill wells in deeper waters. Jack-up rigs are platforms that are supported by legs that can be lowered to the sea floor, and are used to drill wells in shallow waters.

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MODUs are an important tool for the exploration and production of oil and gas in offshore environments, and are used by oil and gas companies around the world to support their offshore operations.

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A megawatt (MW) is a unit of power that is equal to one million watts (1,000,000 W). It is commonly used to measure the output of power plants, electrical generators, and other energy-producing systems.

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The megawatt is a unit of power that is used to measure the rate at which energy is being produced or consumed. It is typically used to describe the capacity of electrical generators and other energy-producing systems, and is often used to compare the size and output of different systems.

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A large wind turbine might have a capacity of 3 MW, which means that it is capable of producing 3 million watts of electrical power.

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According to the Norwegian Ministry of Climate and Environment, the average energy consumption for a Norwegian household is around 20,000 kWh per year. If we assume that an average Norwegian home uses around 20,000 kWh per year, and that a 1 MW power plant has an efficiency of 50%, it would be able to power around 50 homes in a year.

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According to data from Statistisk sentralbyrå, the central statistics bureau of Norway, the total annual electricity consumption for the city of Oslo was around 3,000 GWh in 2019. This is equivalent to around 3,000,000 MW, or 3 TWh, per year.

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The megawatt is an important unit of measure in the energy industry, and is used to describe the scale and capacity of energy-producing systems around the world.

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The Non-Financial Reporting Directive is a piece of legislation passed by the European Union that requires large companies to disclose information on their environmental, social, and governance (ESG) performance. The directive applies to companies with more than 500 employees that are listed on an EU stock exchange or that are public-interest entities (PIEs) such as banks and insurance companies. These companies are required to include a non-financial statement in their annual reports that describes their policies, risks, and outcomes related to environmental and social issues, human rights, and anti-corruption, among others. The goal of the directive is to promote greater transparency and accountability in corporate sustainability practices, by providing investors and other stakeholders with a more complete picture of a company's performance and potential risks.

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NOx is a term used to refer to a group of air pollutants that are produced by the burning of fossil fuels. The term NOx is short for nitrogen oxides, which include nitrogen dioxide (NO2) and nitrogen monoxide (NO). NOx is produced when fossil fuels are burned at high temperatures, and is a major contributor to air pollution and environmental degradation.

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NOx is known to have a range of harmful effects on human health, including respiratory problems and cardiovascular disease. It is also a major contributor to acid rain and smog, and can damage crops, forests, and other ecosystems.

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NOx emissions are regulated by many governments around the world, and efforts are being made to reduce NOx emissions in order to protect public health and the environment. This includes measures such as the use of low-NOx technologies, the implementation of emission limits, and the promotion of clean energy alternatives.

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The Norwegian Petroleum Directorate (NPD) is a government agency that is responsible for regulating and supervising the exploration, development, and production of oil and gas resources in Norway. The NPD is responsible for issuing licenses, permits, and approvals related to the exploration and production of oil and gas in Norway, and for enforcing compliance with regulations and laws related to the petroleum industry.

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The NPD is also responsible for collecting, analyzing, and publishing data and information on the Norwegian petroleum industry, including data on exploration, production, and reserves. It is an important source of information and expertise for the Norwegian petroleum industry, and plays a key role in ensuring that the industry is operating safely and sustainably.

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The NPD is headquartered in Stavanger, Norway, and is an agency of the Norwegian Ministry of Petroleum and Energy. It is an important player in the Norwegian petroleum industry, and is responsible for ensuring that the industry is regulated and managed in a way that is safe, sustainable, and in the best interests of the Norwegian people.

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Net Zero refers to the balance between the amount of greenhouse gases emitted into the atmosphere and the amount removed from the atmosphere. In other words, it means that an organization, sector or country's greenhouse gas emissions are balanced by an equivalent amount of sequestration or removal through carbon sinks or other means.

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Net zero can be achieved by reducing emissions as much as possible through energy efficiency, renewable energy, and other mitigation strategies, and then compensating for any remaining emissions by removing an equivalent amount of carbon from the atmosphere through activities such as afforestation, reforestation, or carbon capture and storage.

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A Net Zero target can be set by a company, government, or other organization, committing to reduce their emissions as much as possible, and then offsetting remaining emissions through mitigation activities.

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For example, a company might set a target to achieve net-zero emissions by a certain date, by reducing emissions as much as possible and then offsetting any remaining emissions through a combination of measures such as renewable energy, carbon capture, reforestation and other activities.

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The target to achieve net-zero emissions is seen as crucial in order to avoid the worst effects of climate change. Many countries and companies have now set targets to achieve net-zero emissions by mid-century or sooner.

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A Net Zero journey refers to the process of transitioning towards achieving net zero emissions.

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This journey typically starts with the baseline emissions assessment of the organization, sector, or country, identifying the major sources of emissions, and setting goals and targets for reduction in line with the Paris Agreement and the global goal of limiting warming to well below 2 degrees Celsius.

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The journey towards Net Zero involves a combination of mitigation and adaptation strategies, including:

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• Increasing energy efficiency
• Increasing the use of renewable energy
• Adopting carbon pricing
• Investing in carbon capture and storage technologies
• Increasing investment in research and development
• Adopting sustainable land use practices
• Encouraging behavioural change

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The Net Zero journey can also involve collaboration with stakeholders and the development of partnerships, to share knowledge and support the implementation of the necessary policies, regulations, and investments.

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It's important to note that achieving net-zero emissions is not a one-time event, but a continuous journey that requires ongoing efforts and monitoring of progress, with regular review of targets and adjustment of policies as needed.

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In the energy industry, OEMs are companies that manufacture and sell products or equipment that are used in the exploration, extraction, and production of oil and gas. These products can include drilling rigs, pipelines, valves, and other types of equipment and infrastructure.

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OEMs in the oil and gas industry often work closely with oil and gas companies, providing them with customized solutions that are designed to meet their specific needs and requirements. OEMs may also provide maintenance and repair services for the products they sell, ensuring that they are operating at their optimal performance.

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OEMs in the oil and gas industry play a critical role in supporting the exploration, extraction, and production of oil and gas, and are an important part of the industry's supply chain. They provide a range of products and services that help oil and gas companies operate safely and efficiently, while minimizing their environmental impact.

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In the context of carbon reporting, offsetting refers to the practice of compensating for emissions by funding emission reduction projects or activities in other sectors or locations. The idea behind offsetting is that the emissions reduction achieved by the offset project is greater than the emissions produced by the activity or organization that is buying the offset.

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Offsets are typically in the form of carbon credits, which represent a reduction or removal of one metric ton of carbon dioxide equivalent (CO2e). These credits can be bought and sold on carbon markets, and can be used to offset emissions that an organization is unable to reduce through its own operations.

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The most common types of carbon offset projects include:

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• Renewable energy projects, such as wind and solar power
• Energy efficiency projects, such as building retrofits
• Forest conservation and reforestation projects, which increase the capacity of forests to store carbon
• Methane capture and destruction projects, such as capturing methane from landfills or livestock operations

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Offsetting can be a useful tool for organizations to reduce their emissions, but it is important to ensure that the offsets purchased are additional, verifiable, and permanent. Additionally, offsetting should not be used as a substitute for reducing emissions at the source, it should be seen as a complementary measure.

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A programmable logic controller (PLC) is a type of computer that is used to control and automate industrial and manufacturing processes. PLCs are used in a wide variety of industries, including the oil and gas industry, and are an important tool for improving the efficiency and reliability of automated systems and processes.

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In the context of offshore operations, PLCs are often used to control and automate the operation of drilling rigs, production platforms, and other offshore facilities. They are used to monitor and control the operation of various systems and equipment, including electrical, mechanical, and process control systems.

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PLCs are designed to be robust and reliable, and are built to withstand the harsh conditions that are often found in offshore environments. They are an important component of the automation systems and equipment that are used in offshore operations, and are essential for the safe and efficient operation of offshore facilities.

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A power management system (PMS) is a system that is used to monitor, control, and optimize the use of electrical power in a facility or system. PMSs are used in a wide range of applications, including offshore assets and industrial facilities.

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PMSs typically consist of hardware and software components that are used to monitor and control the use of electrical power in a facility. This can involve the use of sensors, meters, and other monitoring devices to measure the use of electrical power, as well as control systems and algorithms to optimize the use of power.

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PMSs can be used to improve the efficiency of electrical power use, reduce energy costs, and minimize the environmental impact of power generation and use. They can also help to improve the reliability and stability of power systems by providing advanced monitoring and control capabilities.

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Permanence is a term used in the context of carbon offsetting, to refer to the long-term stability of the emissions reduction or removal achieved by the offset project.

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For an offset project to be considered permanent, the emissions reductions or removals that it generates must be expected to last for the full length of the project’s crediting period, and should not be reversible or subject to future emissions.

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The permanence of carbon offsets can be affected by various factors such as changes in land use, technological changes, policy changes, natural disasters, and so on. For example, a reforestation project can be considered permanent, only if the trees planted are expected to live for the full length of the crediting period and the land use is not expected to change, otherwise the carbon storage would be lost.

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Ensuring permanence of carbon offset projects is crucial in order to ensure that the emissions reductions or removals achieved by the project can be counted towards meeting emissions reduction targets or offsetting emissions. Additionally, proper monitoring, verification and certification of offset projects, and long-term monitoring of projects and its sinks is important to ensure the permanence of the carbon sequestration or emission reduction.

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In the context of offshore operations, rate of change (RoC) refers to the speed at which a particular parameter or condition is changing over time. RoC can be used to describe a wide range of parameters or conditions, including weather conditions, sea states, vessel positions, and equipment performance.

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RoC is an important concept in offshore operations, as it can help to inform decision-making and risk assessment. For example, knowing the RoC of weather conditions can help offshore operators to anticipate and prepare for changes in conditions that could affect the safety or efficiency of operations. Similarly, understanding the RoC of vessel positions can help to ensure that vessels remain within safe operating limits and do not drift into hazardous areas.

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RoC can be measured using a variety of sensors and monitoring systems, and is often used in conjunction with other data and information to inform decision-making in offshore operations.

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A single-board computer (SBC) is a type of computer that is built onto a single circuit board and is designed to be small, lightweight, and easy to use. SBCs are often used in embedded systems and other applications where a small, powerful, and reliable computer is required.

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In the context of offshore operations, SBCs are often used to control and automate the operation of drilling rigs, production platforms, and other offshore facilities. They are used to monitor and control the operation of various systems and equipment, including electrical, mechanical, and process control systems.

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SBCs are designed to be robust and reliable, and are built to withstand the harsh conditions that are often found in offshore environments. They are an important component of the automation systems and equipment that are used in offshore operations, and are essential for the safe and efficient operation of offshore facilities.

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The Sustainable Development Goals (SDGs) framework is a set of 17 global goals adopted by the United Nations in 2015 as part of the 2030 Agenda for Sustainable Development. These goals aim to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. The SDGs cover a wide range of sustainable development issues, including poverty, hunger, health, education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequalities, sustainable cities and communities, responsible consumption and production, climate action, life below water, life on land, peace, justice and strong institutions, and partnerships for the goals. The SDGs are intended to be integrated and indivisible and balance the three dimensions of sustainable development: economic, social, and environmental. The SDGs provide a framework for countries, organizations, and individuals to work towards a sustainable future.

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SDG goal 13 is specifically dedicated to Climate Action, it aims to take urgent action to combat climate change and its impacts by strengthening the ability of countries to deal with the impacts of climate change and fostering climate resilience, and by strengthening the capacity for low greenhouse gas emissions development. The target of this goal is to strengthen the ability of countries to deal with the impacts of climate change, and to integrate climate change measures into national policies, strategies and planning.

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Other SDGs also have targets and indicators that are related to climate action and the environment. For example, SDG 7 (Affordable and Clean Energy) has targets to increase the share of renewable energy in the global energy mix, and SDG 9 (Industry, Innovation and Infrastructure) has targets to increase the access to affordable, reliable, sustainable and modern energy for all. SDG 14 (Life below water) and SDG 15 (Life on land) have targets to conserve and sustainably use the oceans, seas, and terrestrial ecosystems, and SDG 12 (Responsible Consumption and Production) has targets to reduce the environmental impact of consumption and production.

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Overall, the SDGs provide a comprehensive framework for addressing climate change and environmental issues, and call for a concerted effort by all sectors of society to achieve a sustainable future.

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The Securities and Exchange Commission (SEC) is an independent federal agency that oversees the securities industry and protects investors. In relation to the environment, the SEC plays a role in ensuring that companies disclose accurate and relevant information about the material risks and impacts of climate change and environmental issues on their business operations and financial performance. The SEC has issued guidance to companies on the disclosure of climate-related risks in their financial filings, and has taken enforcement actions against companies that have failed to provide adequate disclosure of such risks. Additionally, SEC has also issued interpretive guidance on the use of Non-GAAP measures and encourage companies to include Environmental, Social, Governance (ESG) information in their financial filings. The SEC also monitors the activities of companies and investors to ensure compliance with securities laws and regulations, and to detect and prevent fraud and other forms of misconduct related to environmental issues.

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In the context of offshore operations, a subject matter expert (SME) is an individual who has a deep and comprehensive understanding of a particular subject, topic, or area of expertise that is relevant to offshore operations. This could include areas such as offshore drilling, production, engineering, safety, and environmental management, among others.

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Offshore SMEs are often highly skilled and knowledgeable in their area of expertise, and are often sought out for their insights and expertise in relation to offshore operations. They may be responsible for providing guidance, advice, and support to other team members, and for developing and implementing best practices, policies, and procedures related to their area of expertise.

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Offshore SMEs may also be called upon to provide training, mentorship, and support to other team members, and to help develop and implement strategies and initiatives related to offshore operations. They are an important resource for organizations that rely on specialized knowledge and expertise to achieve their goals and objectives in the offshore sector.

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Software as a Service (SaaS) is a software delivery model in which software is provided on a subscription basis and accessed over the internet, rather than being installed locally on a user's computer or device. In a SaaS model, the software provider hosts and maintains the software, and users access it through a web browser or other internet-based interface.

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SaaS allows users to access software on a pay-as-you-go basis, without the need to purchase and install the software locally. This can be particularly useful for  organizations that do not have the resources to maintain and update software on their own.

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SaaS can offer a number of benefits, including lower upfront costs, reduced maintenance and support costs, and the ability to access software from any device with an internet connection.

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Scope 1 emissions are direct greenhouse gas (GHG) emissions that are emitted by an organization's own activities or facilities. These emissions are under the direct control of the organization and are typically the result of the consumption of fossil fuels, such as coal, oil, and natural gas, for energy purposes.

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Scope 1 emissions can include emissions from stationary and mobile sources, such as fuel used for transportation, on-site electricity generation, and heating and cooling systems. These emissions are typically the most easily measurable and controllable, as they are directly associated with the organization's operations.

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Organizations typically report their Scope 1 emissions as part of their GHG inventory, which is a detailed accounting of all GHG emissions that an organization is responsible for. GHG inventories are used to help organizations understand their GHG emissions and identify opportunities for reduction.

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In relation to Offshore Drilling:

Direct, Operator-owned and/or controlled resources.​

Emissions generated as a direct result of a set of fuel consumption from the Offshore Drilling Vessel that produces GHG emissions are included in Scope 1​.

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Scope 2 emissions are indirect greenhouse gas (GHG) emissions that are generated from the consumption of purchased electricity, steam, heating, and cooling by an organization. These emissions are not directly under the control of the organization, but are instead associated with the generation of the energy that the organization consumes.

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Scope 2 emissions can be significant for organizations that rely heavily on purchased electricity, as the electricity they consume may have been generated using fossil fuels, such as coal, oil, or natural gas. The GHG emissions associated with the generation of this electricity are considered Scope 2 emissions.

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Organizations typically report their Scope 2 emissions as part of their GHG inventory, which is a detailed accounting of all GHG emissions that an organization is responsible for. GHG inventories are used to help organizations understand their GHG emissions and identify opportunities for reduction.

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In relation to Offshore Drilling

Indirect, Operator-owned emissions from the generation of purchased energy, from a utility provider. In other words, all GHG emissions released into the atmosphere, from the consumption of purchased electricity, steam, heat and cooling to the Offshore Drilling Vessel.​

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Scope 3 emissions are indirect greenhouse gas (GHG) emissions that are a result of the activities of an organization, but are not directly associated with the organization's own operations or facilities. These emissions are not under the direct control of the organization, but are instead associated with the upstream and downstream activities of the organization's value chain.

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Examples of Scope 3 emissions include emissions from the transportation of goods and materials, employee commuting, waste disposal, and the use of purchased goods and services. These emissions can be significant for organizations that have long supply chains or that rely heavily on the transportation of goods and materials.

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Scope 3 emissions are typically the most difficult to quantify and manage, as they are not directly associated with the organization's own operations and may involve many different stakeholders and activities. Organizations typically report their Scope 3 emissions as part of their GHG inventory, which is a detailed accounting of all GHG emissions that an organization is responsible for. GHG inventories are used to help organizations understand their GHG emissions and identify opportunities for reduction.

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In relation to Offshore Drilling

Indirect, sub-contracted by the Operator​. Occur in the value chain of the reporting company, including both upstream and downstream emissions. In other words, emissions are linked to the Operator’s well-construction procurement process.​

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Though not officially recognised, Scope 4 often refers to:

1. Avoided Emissions: Reductions in emissions that occur outside a company’s value chain as a result of its products or services. For example, a renewable energy company providing wind turbines that reduce the need for fossil fuel-based energy production.
2. Enabling Emissions Reductions: Actions taken by a company that enable other entities to reduce their emissions. This might include technology solutions, efficiency improvements, or behaviour change initiatives.
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Scope 4 highlights the role of companies in contributing to systemic changes and influencing reductions that go beyond their immediate operations. It emphasises innovation and collaboration in driving broader decarbonisation efforts.The concept aligns well with corporate sustainability strategies aimed at achieving net zero targets by leveraging broader societal and value chain impacts​​​​.

Scope 4 emissions, often referred to as ‘avoided emissions,’ represent an innovative concept in environmental sustainability and carbon accounting, especially pertinent to the offshore oil and gas sector. Introduced by the World Resources Institute in 2013, this perspective shifts the focus from traditional emissions scopes to the broader impact of a company's products and services on greenhouse gas (GHG) reductions.

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Unlike Scope 1, 2, and 3 emissions—which address direct and indirect emissions within a company's operations and value chain—Scope 4 emissions account for the reductions in GHG emissions that occur as a result of using a product or service. For the offshore oil and gas industry, this means considering how the implementation of advanced technologies and services can lead to significant emission reductions beyond the immediate operational boundaries.

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For example, if an offshore oil and gas company adopts Stepwise’s advanced decision support systems, which enhance energy efficiency and optimize operational processes, the resulting reduction in emissions from these improvements would be classified as Scope 4 emissions. This could include lower emissions from reduced fuel consumption due to more efficient drilling operations or the deployment of cleaner technologies that reduce the carbon footprint of offshore platforms.

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Stepwise’s pioneering solutions enable operators to systematically plan, monitor, report, and reduce emissions, thus achieving continuous improvement in sustainable performance. By leveraging these solutions, companies not only comply with stringent regulations but also contribute to global decarbonization efforts by ensuring that their technological advancements and operational efficiencies lead to substantial avoided emissions.

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In summary, Scope 4 emissions extend carbon accounting to include the significant positive impact of innovative products and services in the offshore oil and gas sector. This broader approach aligns with Stepwise’s mission to accelerate emission reductions and drive the industry towards net zero by focusing on efficiency-driven sustainability initiatives.

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Supply chain emissions, also known as "Scope 3 emissions" in the context of greenhouse gas inventory and reporting, refer to the emissions that occur as a result of the activities that are associated with the production, transportation and disposal of a product or service, but that are not directly controlled by the company that sells or uses the product or service.

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These emissions can occur at any point in the supply chain, including upstream emissions from the extraction and production of raw materials and downstream emissions from the use and disposal of a product or service.

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Examples of supply chain emissions include:

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• Emissions from the extraction and transportation of raw materials
• Emissions from manufacturing and assembly of goods
• Emissions from distribution, logistics and transportation of products
• Emissions from end-of-life disposal of products.

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Supply chain emissions can often represent a significant proportion of an organization's overall emissions, and thus it is important for companies to understand and manage their supply chain emissions in order to reduce their overall environmental impact. This can be done through implementing sustainable procurement policies, reducing energy use in logistics, and working with suppliers to improve their environmental performance.

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Sustainability reporting is the process of measuring, disclosing and being accountable for an organization's economic, social, and environmental performance and impacts. This type of reporting is used by companies, governments, and other organizations to communicate their sustainability performance to stakeholders, such as investors, customers, employees, and the public.

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Sustainability reporting typically includes the measurement and reporting of a variety of performance indicators such as energy use, greenhouse gas emissions, water usage, waste generation, and employee engagement, as well as more qualitative information on an organization's sustainability policies, targets, and governance structures.

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The reporting can be voluntary or mandatory, as per the regulations of a country. There are different frameworks and guidelines for sustainability reporting such as Global Reporting Initiative (GRI) Standards, Integrated Reporting (IR) Framework, Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD)

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Sustainability reporting enables organizations to identify and manage environmental and social risks and opportunities, to improve their performance, and to communicate their sustainability performance to stakeholders. It also helps stakeholders make informed decisions about the organizations they engage with.

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The Task Force on Climate-related Financial Disclosures (TCFD) is an initiative established in 2015 by the Financial Stability Oversight Council of the G20's Financial Stability Board (FSB) to develop a set of recommendations for voluntary, consistent climate-related financial disclosures that companies can use to provide information to investors, lenders, insurers, and other stakeholders.

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The TCFD recommends that companies disclose information in the following four thematic areas:

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1. Governance: the company's governance around climate-related risks and opportunities, including the board of directors' role in oversight
2. Strategy: the company's strategy, including targets and plans, for managing climate-related risks and opportunities
3. Risk Management: the company's processes for identifying, assessing, and managing climate-related risks
4. Metrics and Targets: the company's metrics and targets for assessing and managing climate-related risks and opportunities

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The TCFD recommendations are voluntary and not mandatory, however, more and more companies are disclosing their information according to the TCFD recommendations, as a way of providing useful and comparable information for stakeholders in relation to the financial implications of climate change. The TCFD also provides guidance and support to companies, investors and other stakeholders to enhance their understanding and implementation of the recommendations.

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The Paris Agreement is an international treaty that was adopted under the United Nations Framework Convention on Climate Change (UNFCCC) in 2015. The Paris Agreement aims to limit global warming to well below 2°C above pre-industrial levels, and to pursue efforts to limit the temperature increase to 1.5°C, in order to reduce the risks and impacts of climate change.

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The Paris Agreement establishes a global framework for action on climate change that is based on the principle of common but differentiated responsibilities, which acknowledges that different countries have different capabilities and responsibilities when it comes to addressing climate change. The Agreement also acknowledges that developed countries have a greater responsibility to take the lead in reducing GHG emissions, due to their historical contribution to the problem and their greater capacity to address it.

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This includes support for the development and deployment of low-carbon and climate-resilient technologies, as well as support for climate-related adaptation and capacity-building.

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• Transparency and accountability: The Paris Agreement establishes a transparent and accountable system for reporting and reviewing Parties' progress in implementing their NDCs. This includes the establishment of an international facilitative, multilateral process to help Parties enhance the implementation of their NDCs and to track progress towards the goals of the Paris Agreement.
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The Paris Agreement has been ratified by nearly all countries in the world, and it has become the cornerstone of the global effort to address the challenges of climate change. The Agreement has set the stage for a transition to a more sustainable and low-carbon future, and it has established a framework for international cooperation and action on climate change that will continue to evolve over time.

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The United Nations Global Compact (UNGC) is a voluntary initiative launched by the United Nations in 2000. It is a strategic policy platform for companies to align their strategies and operations with ten universally accepted principles in the areas of human rights, labor, the environment, and anti-corruption, and to take actions in support of UN goals.

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The principles of the UNGC are:

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1. Human Rights: Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence, and make sure they are not complicit in human rights abuses.
2. Labor: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining, eliminate all forms of forced and compulsory labor, and abolish child labor.
3. Environment: Businesses should support a precautionary approach to environmental challenges, undertake initiatives to promote greater environmental responsibility, and encourage the development and diffusion of environmentally friendly technologies.
4. Anti-Corruption: Businesses should work against corruption in all its forms, including extortion and bribery.
5. Transparency: Encourage the transparency of their business operations, and advocate for transparency of their industry more broadly
6. Responsible consumption and production: Encourage the responsible consumption and production of their products, by taking into account their life cycle impacts
7. Climate Action: Taking actions to combat climate change, and promote greater energy efficiency and clean energy sources
8. Life below Water: Undertaking actions to conserve and sustainably use the oceans, seas, and marine resources for sustainable development
9. Life On Land: Undertaking actions to protect, restore and promote sustainable use of terrestrial ecosystems, forests, wetlands, mountains and other ecosystems
10. Peace, Justice and Strong Institutions : Promoting peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable institutions at all levels.

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The UNGC is not a regulatory or standard-setting body, but it encourages companies to adopt sustainable and socially responsible policies and practices, and to report on their progress through an annual Communication on Progress (COP) report. Additionally, UNGC provides various tools, guidance, and support for companies to implement the principles and improve their performance.

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Participation in the UNGC is open to any company, of any size and sector, committed to implementing the Ten Principles in its strategies and operations, and making a public commitment to do so through a Communication on Progress (COP) report.

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Upstream emissions, also known as "Scope 1 emissions" in the context of greenhouse gas inventory and reporting, refer to the emissions that are directly caused by the activities of an organization, and that are under its control or ownership. These emissions come from sources that are owned or controlled by the organization, such as a factory, power plant, or vehicle fleet.

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Examples of upstream emissions include:

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• Emissions from combustion of fossil fuels for energy production in power plants or boilers
• Emissions from transportation vehicles such as cars, buses, and trucks
• Emissions from industrial processes, such as cement production, manufacturing and agriculture.

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Upstream emissions are different from indirect emissions, which occur as a result of the consumption of purchased energy, such as electricity, steam, heat, or cooling. And different from downstream emissions, which occur as a result of the consumption of a product or service.

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Managing upstream emissions is a crucial step for organizations to reduce their environmental impact. This can be done by increasing energy efficiency, switching to renewable energy, and implementing carbon capture and storage technologies. It is also important for organizations to measure and monitor their upstream emissions in order to understand their sources and take action to reduce them.

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A variable frequency drive (VFD) is a type of electrical controller that is used to regulate the speed and torque of motors and other electrical loads. VFDs work by controlling the frequency and voltage of the electrical power that is supplied to the motor, which in turn allows the motor to operate at different speeds and with different levels of torque.

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In the context of offshore operations, VFDs are often used to control the speed and torque of motors and other electrical loads on offshore drilling rigs, production platforms, and other offshore facilities. They are an important tool for optimizing the performance of electrical systems and equipment in offshore environments, and are used to improve energy efficiency, reduce maintenance costs, and extend the life of electrical equipment.

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Offshore VFDs are designed to be robust and reliable, and are built to withstand the harsh conditions that are often found in offshore environments. They are an important component of the electrical systems and equipment that are used in offshore operations, and are essential for the safe and efficient operation of offshore facilities.

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Value chain emissions, also known as "Scope 3 emissions" in the context of greenhouse gas inventory and reporting, refer to the emissions that occur as a result of the activities that are associated with the production, transportation, and disposal of a product or service, but that are not directly controlled by the company that sells or uses the product or service. These emissions include all the activities in the value chain from the extraction of raw materials, through the production and distribution of goods and services, to the final disposal of the product.

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Examples of value chain emissions include:

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• Emissions from the extraction and transportation of raw materials
• Emissions from manufacturing, assembly and transportation of goods
• Emissions from the use of the product by the end consumer
• Emissions from the disposal of the product at end of life.

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Value chain emissions can often represent a significant proportion of an organization's overall emissions. Companies can manage the value chain emissions by implementing sustainable procurement policies, reducing energy use in logistics, and working with suppliers to improve their environmental performance. Additionally, companies can encourage their customers to reduce the environmental impact of the products, by providing information and support.

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Measuring and reporting on value chain emissions can help companies to identify areas where they can make a meaningful impact and take actions to reduce the emissions. It is also important for companies to consider the life cycle of their products in order to account for all the emissions throughout the value chain and make decisions to reduce them.

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