Permian Resources : 2025 Corporate Sustainability Report – MarketScreener

Permian Resources 2025 Sustainability Report: A Commitment to the Sustainable Development Goals

Introduction: Aligning Operations with Global Sustainability

The 2025 Permian Resources Sustainability Report outlines the company’s dedication to responsible energy development, operational excellence, and long-term value creation, framed within the context of the United Nations Sustainable Development Goals (SDGs). This report details performance across governance, environmental, and social metrics, demonstrating a clear strategy to contribute positively to global sustainability targets.

Governance and Institutional Strength (SDG 16)

Permian Resources has established a robust governance framework to ensure accountability, transparency, and alignment with shareholder interests, directly supporting SDG 16: Peace, Justice and Strong Institutions.

Highlights of Governance in 2024

• Board Structure: A declassified board structure with all directors elected annually promotes accountability.
• Board Independence: 7 of 11 directors are independent, including an Independent Board Chair, ensuring effective and transparent oversight.
• Shareholder Alignment: A unique compensation model fosters a culture of ownership and long-term performance, contributing to SDG 8: Decent Work and Economic Growth.
  • 100% of Directors’ annual compensation is in the form of stock.
  • 100% of Co-CEOs’ compensation is structured as performance stock units with no cash salary or bonus.
  • All employees receive long-term stock grants, with management owning over 6% of total shares outstanding.
• Stakeholder Engagement: Over 200 meetings were conducted with institutional investors to maintain transparent communication.
• Sustainability Committee: A dedicated committee, led by the Chief Financial Officer, oversees sustainability initiatives.

Environmental Stewardship and Climate Action

The company has made significant strides in environmental performance, with targeted investments in technology and infrastructure that support key environmental SDGs.

Climate Action (SDG 13)

Efforts to reduce emissions are central to the company’s strategy, directly addressing SDG 13: Climate Action.

• Greenhouse Gases: Combined Scope 1 + 2 intensity was reduced to 12.9 tons CO2e / MBOE, a 43% decrease since 2020.
• Methane Emissions: Methane intensity was lowered to 0.06 tons CH4 / MBOE, marking a 58% reduction since 2020.
• Flaring: Flare intensity was reduced to 1.0% of gas produced, an 83% decrease since 2020, contributing to SDG 7: Affordable and Clean Energy by minimizing resource waste.
• Emissions Monitoring: Continuous emission monitoring was expanded to cover 60% of production, a significant increase from 25% in 2023.

Clean Water and Sanitation (SDG 6)

Water management practices demonstrate a strong commitment to SDG 6: Clean Water and Sanitation through conservation and responsible use.

• Freshwater Use: The company achieved a 100% elimination of freshwater reliance in its operations.
• Water Recycling: 47% of water used for operations was recycled, a substantial increase from 23% in 2020.
• Water Transportation: Over 98% of produced water was transported via pipeline, minimizing surface impact and spill risk.

Protecting Ecosystems (SDG 14 & SDG 15)

By minimizing spills, the company actively works to protect terrestrial and aquatic ecosystems, in line with SDG 14: Life Below Water and SDG 15: Life on Land.

• Spill Prevention: Oil and water spills were limited to 0.0018% and 0.0019%, respectively, representing reductions of 41% and 87% since 2020.

Social Responsibility and Community Engagement

Permian Resources is committed to fostering a safe work environment, retaining talent, and supporting local communities, aligning with multiple social development goals.

Decent Work and Economic Growth (SDG 8)

The company prioritizes the well-being and security of its workforce, a core tenet of SDG 8: Decent Work and Economic Growth.

• Safety Performance: Maintained a Total Recordable Incident Rate (TRIR) of 0.57 per 200,000 manhours, even as manhours increased fivefold since 2020.
• Employee Retention: Achieved a low employee turnover rate of 5%, despite a threefold increase in headcount since 2020.

Sustainable Communities and Partnerships (SDG 11 & SDG 17)

Through direct investment and volunteerism, the company supports the development of resilient communities, contributing to SDG 11: Sustainable Cities and Communities and fostering collaboration as outlined in SDG 17: Partnerships for the Goals.

• Community Support: Invested $3 million in charitable giving, supporting over 60 unique initiatives through financial aid or volunteer efforts.

About This Report

Reporting Standards and Frameworks

To ensure transparency and credibility, this report utilizes best-in-class standards and frameworks for sustainability disclosures.

1. Sustainability Accounting Standards Board (SASB): Adherence to industry-specific standards for the oil and gas sector.
2. American Exploration & Production Council (AXPC): Use of guidelines that promote standardization and comparability across the industry.
3. Task Force on Climate-Related Financial Disclosures (TCFD): Application of the framework to guide the disclosure of climate-related risks and opportunities.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 6: Clean Water and Sanitation
   • The article explicitly discusses water management practices, including the elimination of freshwater use, increased use of recycled water, and safe transportation of produced water via pipelines. These actions directly contribute to ensuring the availability and sustainable management of water.
2. SDG 7: Affordable and Clean Energy
   • While the company is in the oil and gas sector, its efforts to reduce flaring intensity (down 83% since 2020) relate to improving energy efficiency and minimizing waste in energy production, which aligns with the principles of sustainable energy management.
3. SDG 8: Decent Work and Economic Growth
   • The report highlights a strong focus on employee safety, with a low Total Recordable Incident Rate (TRIR). It also mentions low employee turnover and providing all employees with stock-based compensation, which points to creating a stable and secure work environment that promotes sustained economic growth.
4. SDG 11: Sustainable Cities and Communities
   • The company’s social initiatives, including investing “$3MM in charitable giving” and supporting over “60 unique initiatives,” demonstrate a commitment to making communities inclusive, safe, and sustainable by providing financial and volunteer support.
5. SDG 12: Responsible Consumption and Production
   • The article details significant reductions in oil and water spills, which is a key aspect of ensuring sustainable production patterns. By minimizing spills, the company works towards the environmentally sound management of resources and the reduction of waste and pollution.
6. SDG 13: Climate Action
   • The report’s environmental section is heavily focused on climate action. It details significant reductions in greenhouse gas (GHG) and methane intensities, expanded emissions monitoring, and reduced flaring. These are direct measures to combat climate change and its impacts.
7. SDG 16: Peace, Justice and Strong Institutions
   • The governance section describes a corporate structure designed for transparency and accountability. Features like a declassified board, a majority of independent directors, an independent Board Chair, and a dedicated sustainability committee are all elements that contribute to building effective, accountable, and inclusive institutions at the corporate level.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 6.3: By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally.
   • The article supports this target by stating the company “Used 47% recycled water for operations” and limited water spills to “0.0019%… down 87% since 2020,” which directly addresses water recycling and pollution reduction.
2. Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity.
   • The company’s achievement to have “Eliminated 100% reliance on freshwater use from our operations” is a direct and significant contribution to this target by increasing water-use efficiency and eliminating freshwater withdrawals.
3. Target 7.3: By 2030, double the global rate of improvement in energy efficiency.
   • The reduction of “Flare intensity at 1.0% of gas produced, down 83% since 2020” is an indicator of improved energy efficiency, as it represents a significant reduction in the waste of energy resources during production.
4. Target 8.8: Protect labour rights and promote safe and secure working environments for all workers.
   • The company’s focus on safety, evidenced by a “total workforce TRIR at 0.57 per 200k manhours,” directly aligns with creating a safe working environment for its employees.
5. Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.
   • The company’s investment of “$3MM In charitable giving” and support for “+60 unique initiatives” contributes to strengthening the social fabric and development of the communities in which it operates.
6. Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle… and significantly reduce their release to air, water and soil to minimize their adverse impacts on human health and the environment.
   • The report’s data on limiting “oil and water spills to 0.0018% and 0.0019% respectively” demonstrates a commitment to managing operational byproducts and reducing their release into the environment.
7. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • At a corporate level, the company integrates climate change measures into its strategy, as shown by its actions to reduce “Combined Scope 1 + 2 intensities… down 43% since 2020” and “Methane intensity… down 58% since 2020.”
8. Target 16.6: Develop effective, accountable and transparent institutions at all levels.
   • The governance structure with “7 of 11 directors are independent,” an “Independent Board Chair,” and a “Dedicated sustainability committee” reflects an effort to create an accountable and transparent institution.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 6 (Clean Water and Sanitation):
   • Indicator: Percentage of freshwater use in operations. The article states this is 0%, as the company has “Eliminated 100% reliance on freshwater use.”
   • Indicator: Percentage of recycled water used. The article provides the figure of “47% recycled water for operations.”
   • Indicator: Volume of water spills as a percentage of water handled. The article reports this as “0.0019%.”
2. For SDG 7 (Affordable and Clean Energy) & SDG 13 (Climate Action):
   • Indicator: Greenhouse gas (GHG) emissions intensity. The article specifies “Combined Scope 1 + 2 intensities at 12.9 tons CO2e / MBOE.”
   • Indicator: Methane emissions intensity. The article states “Methane intensity at 0.06 tons CH4/ MBOE.”
   • Indicator: Gas flaring intensity. The article reports “Flare intensity at 1.0% of gas produced.”
3. For SDG 8 (Decent Work and Economic Growth):
   • Indicator: Occupational safety rate. The article uses the Total Recordable Incident Rate (TRIR), reporting it as “0.57 per 200k manhours.”
   • Indicator: Employee turnover rate. The article provides a specific figure of “5%.”
4. For SDG 11 (Sustainable Cities and Communities):
   • Indicator: Financial investment in community support. The article quantifies this as “$3MM In charitable giving.”
   • Indicator: Number of community initiatives supported. The article states this is over “60 unique initiatives.”
5. For SDG 12 (Responsible Consumption and Production):
   • Indicator: Volume of oil spills as a percentage of oil handled. The article reports this as “0.0018%.”
6. For SDG 16 (Peace, Justice and Strong Institutions):
   • Indicator: Proportion of independent members on the board of directors. The article states “7 of 11 directors are independent.”
   • Indicator: Existence of a dedicated sustainability oversight body. The article mentions a “Dedicated sustainability committee.”

Summary Table

4. SDGs, Targets, and Indicators Table

Source: marketscreener.com