Environmental

Greenhouse Gas EmissionsOpen

ACCOUNTING METRIC
Gross global Scope 1 emissions, % methane, % covered under emissions-limiting regulations
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and analysis of performance against those targets.

 


CODE
EM-MD-110a.1
EM-MD-110a.2

 


DISCLOSURE
More information about our GHG emissions and our strategy to manage our footprint can be found here.

Emissions Reduction Services and Fuels ManagementOpen

ACCOUNTING METRIC
Total fuel consumed, percentage renewable, the percentage used in (1) on-road equipment and vehicles and (2) off-road equipment
Discussion of strategy or plans to address air emissions-related risks, opportunities, and impacts
Percentage of engines in service that comply with the highest level of emissions standards for non-road diesel engine emissions

 


CODE
EM-SV-110a.1
EM-SV-110a.2
EM-SV-110a.3

 


DISCLOSURE
Total Scope 1 and Scope 2 Energy consumed was equal to 129,886 gigajoules (GJ), which includes Stationary Fuel (26%), Mobile Vehicle Fuel (11%), and Acquired Electricity (59%).
Renewable electricity represented 4% of the Total Energy Consumed (4% of 129,886 GJ). Mobile Vehicle Fuel represented 11% of the Total Energy Consumed (11% of 129,886 GJ), where 8% was On-Road use and 3% was Off-Road use. (Note: as Dril-Quip does not perform services for drilling and pressure pumping, these references are only related to forklift movement and loading products.)
Percentage of engines in service that comply with the highest level of emissions standards for non-road diesel engine emissions data NA.

Air QualityOpen

ACCOUNTING METRIC
Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) volatile organic compounds (VOCs), and (4) particulate matter (PM10).

 


CODE
EM-MD-120a.1

 


DISCLOSURE
Dril-Quip believes clean air is needed for a healthy population, environment, and economy. We annually review our equipment, processes, and operations and track our air emissions from NOx, SOx, Volatile Organic Compounds (VOCs), and Particulate Matter (PM10). We believe maintaining compliance with regulations and local legislation helps us on our environmental journey to continuously improve and reduce our impacts on the environment.

Energy ManagementOpen

ACCOUNTING METRIC
(1) Total energy consumed, (2) percentage grid electricity, (3) percentage alternative, (4) percentage renewable.


CODE
EM-CM-130a.1


DISCLOSURE
(1) 2022: 129,886 gigajoules (GJ), (2) 2022: 59% grid electricity, (3) 2022: 4% of total energy

Water Management ServicesOpen

ACCOUNTING METRIC
(1) Total volume of fresh water handled in operations; (2) percentage recycled
Discussion of strategy or plans to address water consumption and disposal-related risks, opportunities, and impacts.

 


CODE
EM-SV-140a.1
EM-SV-140a.2

 


DISCLOSURE
(1) 58,082.51 m3 (Global)
(2) 35%
More information regarding our water management and efficiency can be found here.
 

Waste ManagementOpen

ACCOUNTING METRIC
Amount of waste generated, percentage hazardous, percentage recycled.

 


CODE
EM-CM-150a.1

 


DISCLOSURE
(1) 13,008.3 metric tonnes (mt), (2) 4.3%, (3) 82.7%

Chemicals ManagementOpen

ACCOUNTING METRIC
Volume of hydraulic fracturing fluid used, percentage hazardous
Discussion of strategy or plans to address chemical-related risks, opportunities, and impacts.

 


CODE
EM-SV-150a.1
EM-SV-150a.2

 


DISCLOSURE

Dril-Quip’s Environmental Management System (EMS), centered around the ISO 14001 principles, is the foundation for how we operate, and it includes sound environmental practices designed for protecting our planet. Environmental risks are mitigated from our activities by incorporating best practices and procedures designed to enhance our global performance. By design, our policies, procedures, and engineering controls act to reasonably control our impact on the environment caused by our processes, people, contractors, and suppliers at our worksites.

Our EMS, coupled with our skillful people, has allowed us to successfully record ZERO industry-recognized spills of 55 gallons or greater over the last five years. This includes our engineered products used offshore, such as our VXTe™ Vertical Subsea Tree System, which effectively helps our customers mitigate potential fluid loss by eliminating the need to remove the BOP stack after drilling is complete. This technology reduces the potential for environmental release in deep-water applications.

Ecological Impact ManagementOpen

ACCOUNTING METRIC
Average disturbed acreage per (1) oil and (2) gas well site
Discussion of strategy or plan to address risks and opportunities related to ecological impacts from core activities.

 


CODE
EM-SV-160a.1
EM-SV-160a.2

 


DISCLOSURE
Sustaining the balance in alignment with the United Nations (UN) Convention on Biological Diversity is something we are committed to doing, and we will demonstrate this in our business execution. We regularly perform Environmental Site Assessments of our operational practices as part of our environmental management. Assessments and due diligence of potential and current sites for impacts to land, natural resources, ecosystems, and biodiversity are included, and our management system is audited annually by external accredited organizations such as DNV in order to maintain ISO 14001-certification status.
More information regarding our biodiversity practices can be found here.

Social

Workforce Health and SafetyOpen

ACCOUNTING METRIC
(1) Total recordable incident rate (TRIR); (2) fatality rate; (3) near-miss frequency rate (NMFR); (4) total vehicle incident rate (TVIR); and (5) average hours of health, safety, and emergency response training for (a) full-time employees, (b) contract employees, and (c) short-service employees
Description of management systems that integrate a safety culture throughout the value chain and project life cycle.

 


CODE
EM-SV-320a.1
EM-SV-320a.2

 


DISCLOSURE

1) TRIR: .46
2) Fatality rate: 0
3) NMFR: 1.24
4) TVIR: 2.36
5) Average hours of safety and emergency response training: 18,686.3

Dril-Quip‘s success is built on the health and well-being of its employees, stakeholders, and global community, driven by our Goal ZERO initiative. The Goal ZERO initiative spans across our organization and to our suppliers and supply chain. We require that our employees, stakeholders, and supply chain partners meet the highest health and safety standards in our direct operations and supply chain.

Each employee is responsible for maintaining a safe and healthy workplace by following safety and health rules and practices and reporting all incidents and unsafe acts, behaviors, and conditions. Our principal manufacturing facilities comply with ISO 45001: 2018 for occupational health and safety.

From 2015 to 2022, we have had a year-over-year reduction in key KPIs with a zero fatality rate and over a 50% and 60% reduction in NMFR and TRIR, respectively.

[More information regarding our management of HSE is available here.

Workforce Diversity and InclusionOpen

ACCOUNTING METRIC
Percentage of gender and racial/ethnic group representation for (1) management and (2) all other employees.

 


CODE
CG-MR-330a.1

 


DISCLOSURE
Gender Breakdown for Management (M1 - E)
Global Female - 11% Male - 89%
 
Gender Breakdown for Non-Management
Global Female - 15% Male - 85%
 
Racial/Ethnic Group Breakdown for Management (M1-E) for U.S.
White - 71.30%
Asian - 9.26%
Black - 1.85%
Hispanic - 14.81%
Other - 2.78%
 
Racial/Ethnic Group Breakdown for Non-Management for U.S.
White - 39.06%
Asian - 8.50%
Black - 8.68%
Hispanic - 34.54%
Other - 9.22%

Human Rights and Rights of Indigenous PeopleOpen

ACCOUNTING METRIC
Discussion of engagement processes and due diligence practices with respect to human rights, indigenous rights, and operation in areas of conflict.

 


CODE
EM-EP-210a.3

 


DISCLOSURE

Dril-Quip, Inc. supports universal human rights as described in the United Nations Universal Declaration of Human Rights. We recognize our responsibility to respect human rights and are committed to preserving these rights across the Company's operations. We respect the rights of people in the communities where Dril-Quip operates (including those of indigenous people). Our engagement with suppliers and business partners includes communicating our opposition to human rights violations.

This is reflected in our Code of Business Conduct and Ethical Practices and our Supplier Code of Conduct and is further supported by our status as an active participant in the UN Global Compact.

Core to our corporate social responsibility commitment, we support the local communities across our operations and review any potential impact our operations could have locally.

Corporate Governance

Business Ethics and Payments TransparencyOpen

ACCOUNTING METRIC
Amount of net revenue in countries that have the 20 lowest rankings in Transparency International’s Corruption Perception Index.
Description of the management system for prevention of corruption and bribery throughout the value chain.

 


CODE
EM-SV-510a.1
EM-SV-510a.2

 


DISCLOSURE

We have zero revenues from those countries that have the 20 lowest rankings in the Transparency International Corruption Perception Index.

The Company maintains an Anti-Corruption Policy and conducts training for all of its employees under that Policy.  The Company also conducts anti-corruption and bribery due diligence on certain third parties under that Policy. Dril-Quip is committed to upholding high ethical standards across business practices.  Our Code of Business Conduct and Ethical Practices articulates our corporate values and explains how they should guide ethical decision-making for all of our employees, officers, directors, and subsidiaries.

Dril-Quip does not tolerate bribery or corruption in any form. We prohibit all forms of bribery. This included the payment of money, offers, gifts, promises to give, or authorizations of the giving of anything of value to any foreign officials (including employees of foreign national oil companies) for the purpose of securing a business advantage. We require compliance from the top down and extend this to our supply chain.

More information regarding how Dril-Quip manages our anti-bribery commitments can be found here.

Management of the Legal and Regulatory EnvironmentOpen

ACCOUNTING METRIC
Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social factors affecting the industry.

 


CODE
EM-SV-530a.1

 


DISCLOSURE
The Company has an in-house legal department, human resources department, and QHSE department that monitors compliance with governmental regulations and addresses environmental and social factors affecting our industry.  The Company has also enlisted a director to lead the identification, definition, and development of the pathway toward an energy transition.  This individual is responsible for the development of market strategies, the creation of new technology road maps, and the building of critical collaborations and partnerships.

Critical Incident Risk ManagementOpen

ACCOUNTING METRIC
Description of management systems used to identify and mitigate catastrophic and tail-end risks.

 


CODE
EM-SV-540a.1

 


DISCLOSURE

 The Company engages an international accounting firm as its in-house internal audit function, and that same firm conducts regular enterprise risk assessments in conjunction with the Company’s management.

Activity Metrics

ACTIVITY METRIC CATEGORY UNIT OF MEASURE DISCLOSURE
Number of active rig sites Quantitative Number Dril-Quip does not own, lease, or operate any rig sites.
Number of active well sites Quantitative Number Dril-Quip does not own, lease, or operate any rig sites.
Total amount of drilling performed Quantitative Meters (m) Dril-Quip does not perform drilling operations.
Total number of hours worked by all employees Quantitative Hours N/A

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