Carnarvon acknowledges that GHG emissions are produced in its business through operating facilities, office locations, in the supply chains from which they source goods and services, and the developments in which they are a non-operating Joint Venture Partner.
These GHG emissions contribute to the global accumulation of GHGs in the atmosphere, resulting in global warming of the atmosphere, leading to potential negative impacts on the environment and human health locally, regionally and globally as well as the financial consequences associated with these impacts. Carnarvon also recognise the importance of reducing and offsetting emissions from oil and gas operations.
Carnarvon’s current GHG emissions profile is comprised of Scope 2 emissions generated from electricity consumption at its Perth office. As the Company had no assets in operation or exploration activities during the reporting period, it did not have any Scope 1 emissions and no obligations to report under the National Greenhouse and Energy Reporting Scheme (NGERS) Act. Carnarvon includes reporting of Scope 2 emissions in the “ESG Report” section of its Annual Report on a voluntary basis.
Carnarvon intends to develop a Scope 3 emissions profile when their operational activities recommence. The operations phase is expected to generate their most significant Scope 3 emissions profile.
Carnarvon recognises that the GHG forecast for the Dorado development is significant and annual reductions will be required under the National Safeguard Mechanism. These reductions will primarily be achieved using offsets. To demonstrate its ability to meet this requirement, Carnarvon purchased bulk offsets in 2024 (referred to as Carnarvon’s Carbon Bank). This bank is expected to meet the reduction requirements for the first five years of the development. Making this upfront purchase of offsets has supported Carnarvon to manage the risk of price increases, as the GHG emissions obligations of other Australian commercial entities continues to grow.
Continuing to manage the Carbon Bank and working to identify and assess carbon abatement and reduction opportunities when the development recommences, aims to ensure that Carnarvon can continue to meet its regulatory requirements.