PGS is committed to contributing substantially to energy security and climate change mitigation. Climate change and energy transitions present both risks and opportunities for our company. Using the framework recommended by the Task Force on Climate-Related Disclosures (TCFD), we have identified the most significant risks and opportunities we need to manage over the coming years and decades.
The nature of offshore seismic exploration means that acute- or long-term physical risks have the potential to disrupt or impede our operations. Increased severity of extreme weather events and variability in weather patterns may make these operations more complex and have higher health and safety risks. Onshore, our offices and data centers may also be vulnerable to extreme weather, floods, or disruptions to the power supply.
Our focus is to maintain and strengthen the operational resilience built up through 30 years of technology development and experience working in demanding offshore environments. Our vessels and seismic equipment are exceptionally resilient and enable us to work safely in challenging weather conditions across the globe. Moving most of our data library and processing to the cloud means we are much less vulnerable to local weather events and power disruptions and can seamlessly shift work around according to demand.
The energy transition is a significant risk and opportunity for us. Carbon dioxide emissions and other greenhouse gases must drop dramatically and ultimately end by 2050. At the same time, ensuring reliable access to affordable energy is crucial to sustain economies and improve the quality of life worldwide.
While there must be massive growth in renewable energy over the next two decades, it is likely that hydrocarbon-based energy will remain essential and will be used in new ways, employing technologies like carbon capture and storage (CCS).
For PGS, our core business supporting exploration and production will be augmented by carbon storage, and this hydrocarbon value chain will remain relevant for years. At the same time, the industrialization of renewable energy presents opportunities for us to use our technology and competence in new markets.
Building a sustainable income from our New Energy business unit features highly in our strategic ambitions. We are already a market leader in the characterization of reservoirs for carbon storage, and we are evaluating how we can support offshore wind development.
Our company is emission-intensive, as our seismic vessels use traditional marine fuels. We must cut those emissions in line with the Paris Climate Agreement targets and our stakeholders' expectations.
We have therefore committed to reaching net-zero emissions in 2050, with 100% renewable or carbon-free energy use onshore and at least an absolute reduction in the emissions from our vessels of at least 75%.
A more comprehensive overview of the risks and opportunities, including our management focus and progress on stated targets, can be found in our annual sustainability reports.
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