Climate Change
Empowering The Transition To A Low-carbon Future
With sustainability at the core of our business operations, we are committed to addressing climate change through active environmental stewardship. This includes giving our customers the products and solutions they need to provide people everywhere with greater access to affordable, reliable energy.
Human Progress On A Global Scale
As a participant in the United Nations (UN) Global Compact, we support the organization's Ten Principles on human rights, labor, environment and anti-corruption. The global scope of our operations provides powerful leverage for advancing two of the UN's Sustainable Development Goals (SDGs) — SDG 7 Affordable and Clean Energy and SDG 13 Climate Action.
By providing universal access to clean, reliable, and affordable energy, we spur economic growth, raising the standard of living for all, creating employment opportunities and improving health globally.
Responsible Energy Through Innovation
At Dril-Quip, technology is the engine that drives efficiency. That’s why we continually develop differentiating solutions designed to help our customer achieve their carbon reduction targets while lowering emissions from our own manufacturing operations.
With R&D deeply engrained in our Power of e™ culture, we have engineered our e-Series products to be Green By Design™ and enable our customers to reach their goals while lowering costs and meeting best-in-class health and safety standards.
We have focused our capabilities and dedicated our R&D to align with the energy transition, which includes making a positive impact on climate change — today and tomorrow.
Risk And Opportunity, Assessed From Every Angle
As part of our overall risk assessment and strategy, we address climate risk management from a wide range of perspectives. From physical to financial, regulatory to reputational, our approach is coordinated among both our senior management and board of directors to maximize the impact of our efforts.
Physical Risks
Such risks include extreme weather, hurricanes and flooding, which can result in damages, loss of property and equipment impacting our operational capabilities, along with our customers.’ With business continuity plans, we can flex our capabilities to mitigate these risks and their impact.
Transition Risks
Such risks include energy regulation, carbon pricing, loss of business, higher costs, technology transition, lower demand, oversupply, loss of customers /suppliers, and difficulties accessing funding.
Opportunities
As with any change, the energy transition brings an abundance of opportunities, including resource efficiency, energy sourcing, new product development, access to new markets, recycling, waste management, energy efficiency, renewable and distributed energy sourcing, business diversification, greater alignment with customers, suppliers and markets, along with increased resilience of operations from acute physical risk or value-chain disruption.
Over the long term, we view carbon storage and geothermal as our greatest opportunities in the transition. So we are investing in low-carbon solutions and manufacturing efficiencies to reduce our footprint, reinforced by market-leading collaborations.
In 2022, we will continue to evaluate various climate-scenario analyses, incorporating them into our existing risk management and opportunity assessment processes. We publicly report our management of climate-related risks through periodic filings with the U.S. Securities and Exchange Commission and in our TCFD Framework.