Scope 1 Emissions
2022 Communication on Progress
Core Laboratories Inc.
Published date
July 7, 2022
No. of questions
62
Supplemental files
Core_Lab_Annual_Sustainability_Report_2020.pdf1110_ETHICS HELPLINE Nov 2017.pdf165_HARASSMENT, DISCRIMINATION, AND UNPROFESSIONAL BEHAVIOR.pdf185 Commitment to Human Rights.pdf110_EQUAL OPPORTUNITY.pdfclb_ethics_poster.pdfSupplier_Code_of_Conduct.pdf2018-science-base-targets.pdfCore Laboratories Value Chain Footprint_Final Report_09 August 2021.pdf185 Commitment to Human Rights.pdfCodeofBusinessConduct.pdfEnergy Saving Plan.pdfCore Laboratories NV Biodiversity Policy.pdfCore Laboratories NV Environmental Policy.pdf20190826_Core Laboratories_SBTI_2019_Report_v1.0.pdfCore Labs_PhysicalRisk_Results_Report.pdf2020-value-chain-report.pdfCore Laboratories Value Chain Footprint_Final Report_22 July 2022.pdfCore_Lab_Annual_Sustainability_Report_2021.pdfCodeofBusinessConduct.pdfclb_ethics_poster.pdfCEO Statement
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
2. Does the company have a publicly stated commitment regarding the following sustainability topics?
Optional commentCore Lab is committed to respecting human rights. Our commitment to human rights is reflected in our Core Values of honesty, integrity, and building trust, and we strive to protect the rights of people in the communities where we operate to ensure that they are all treated with dignity and respect. To accomplish this, our Human Rights Policy, in conjunction with a network of codes of conduct, policies, and statements, provides a worldwide framework for responsible operations consistent with the spirit and intent of the International Labour Organization's Declaration on Fundamental Principles and Rights at Work and the United Nations' Universal Declaration of Human Rights. Additionally, we adhere to guidelines established in the United Nations' Guiding Principles on Business and Human Rights. Commitment Areas As part of our commitment to human rights, we uphold the following: 1. Freedom of Association and Right to Collective Bargaining We recognize and respect our employees' right to join associations and choose representative organizations for the purpose of engaging in collective bargaining in a manner consistent with applicable laws, rules, and regulations as well as local customs, as appropriate. 2. Policy Against Modern Slavery Core Laboratories does not utilize servitude or forced or compulsory labor. We recruit our employees and provide working conditions, including payment of wages and benefits, that comply with applicable laws and regulations. Throughout our worldwide operations, we prohibit the use of child labor in our workforce. All Core Lab employees are at or above the legal employment age in the country of their employment. We also prohibit human trafficking and any action that could be construed as supporting or leading to the trafficking of others. 3. Policy Against Workplace Discrimination, Harassment, and Unprofessional Behavior Core Lab upholds the belief that everyone, regardless of characteristics including, but not limited to, race, color, sex, sexual orientation, gender identity, national origin, age, disability, religion, genetic information, protected veteran or uniformed service member status, and any other characteristic protected under applicable law, should enjoy a work environment free from all forms of harassment, discrimination, and unprofessional behavior. 4. Equal Opportunity Initiatives Core Lab is an equal opportunity employer, and it is our policy, in accordance with applicable laws, to treat each individual with dignity and respect, regardless of characteristics including, but not limited to, race, color, sex, sexual orientation, gender identity, national origin, age, disability, religion, genetic information, protected veteran or uniformed service member status, and any other characteristic protected under applicable law. 5. Upholding Women's Rights Recognizing that women are amongst those most threatened by acts of modern slavery and unequal treatment, Core Lab is committed to taking steps to support and uphold women's rights under the guidance set forth in the United Nations' Women's Empowerment Principles. 6. Protecting Privacy Rights We are committed to safeguarding intellectual property rights and personal data, which includes protecting assets, proprietary information, and personal information from unauthorized access and ensuring their efficient and proper use. 7. Supply Chain Standards As stated in our Supplier Code of Conduct, Core Lab is committed to the highest standards of product quality, safety, and business integrity in our dealings with suppliers. Compliance with laws and ethical principles is the responsibility of all Core Lab employees as well as our suppliers. 8. Policy Against the Use of Conflict Minerals We recognize the dangers of improperly sourcing minerals (tin, tantalum, tungsten, gold) and are committed to ensuring our sourcing practices do not fund armed groups in the Democratic Republic of Congo and adjoining countries. Communication and Action Stakeholder understanding of Core Lab's commitment to human rights is crucial to success. We therefore take several steps to embed our policy and expectations: 1. Onboarding Program ensures new employees obtain information on our commitment from day one. 2. Core Compliance e-learning curriculum ensures current employees are reminded annually of the importance of human rights and Core Lab's commitment. 3. Ethics and Corporate Responsibility Helpline enables employees to report issues immediately and confidentially. When issues are raised, we diligently investigate and take timely and transparent action to resolve the issues in a fair and equitable manner. 4. Network of codes of conduct, policies, and statements explain the principles and rules that guide how Core Lab conducts business and outlines our expectations: Core Lab Code of Ethics and Corporate Responsibility Core Lab Supplier Code of Conduct Policy 185: Commitment to Human Rights Policy 110: Equal Opportunity Policy 165: Harassment Discrimination and Unprofessional Behavior Policy 1110: Helpline Statement on safeguarding intellectual property and personal data. 5. CoreConnect Quarterly Newsletters promote and showcase Core Lab's commitment and activities associated with, but not limited to, Human Rights; Corporate Social Responsibility; Diversity, Equity, and Inclusion; Nondiscrimination and Equal Opportunity. 6. Partnerships with organizations and service groups in the communities in which we operate. 7. Participation in human rights organizations such as the United Nations through their Global Compact and Women's Empowerment Principles. By building awareness and instilling a sense of empowerment, our onboarding, training, and reporting systems provide ways to identify, avert, and correct compliance issues.3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
Optional commentCode of Ethics and Corporate Responsibility is publicly available at: https://www.corelab.com/cr/cms/docs/CodeofBusinessConduct.pdf and https://www.corelab.com/cr/human-rights4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
Optional commentCore Labs Environmental, Social and Governance Steering Committee's purpose is to provide a structured advisory forum to deal with the issues and opportunities relating to sustainability and ESG for all stakeholders.5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Optional commentIn response to the emerging importance of sustainability within the Energy industry, the Environmental, Social and Governance (ESG) Steering Committee’s purpose is to provide a structured advisory forum to deal with the issues and opportunities relating to sustainability and ESG for all stakeholders. The ESG Committee will assist the CEO of the Company in (a) setting general strategy relating to ESG Matters, (b) developing, implementing, and monitoring initiatives and policies based on that strategy, (c) overseeing communications with employees, investors, and stakeholders with respect to ESG Matters, and (d) monitoring and assessing developments relating to, and improving the Company’s understanding of ESG Matters. The ESG Steering Committee’s charter is to evaluate, develop, promote, implement, and monitor ESG principles and practices through the organization which will deliver value to our investors, employees, and clients, while: • using resources in an efficient manner • anticipating and managing risks and opportunities across all levels of business • meeting stakeholders’ expectations regarding governance, social and environmental performance. The Committee’s function • Review the emergence of ESG matters within the energy industry and identify trends which may have an impact on the organization’s long-term viability. • Examine current standards and procedures that encompass corporate ESG and measure these against organization policy and industry best practice. • Where shortfalls exist between current and best practice, evaluate the case for adopting best practice within relevant business units. • Look for opportunities to better promote the organization’s policies and progress with implementing ESG matters to the energy industry. • Develop, implement, promote, and track company goals to achieve ESG objectives. • Report to senior management (and provide information they need to report to the Board of Directors) on recommendations for implementing additional ESG initiatives within the organization. • Where appropriate, set up and coordinate a team of volunteers to champion workplace ESG awareness and activities (e.g., waste recycling, energy management and procurement, STEM initiatives and community service events). • Consult with the corporate and business unit personnel who are responsible for implementing and managing the organization’s ESG / Sustainability. Membership and responsibilities • The Committee will be made up of no less than six employees from various corporate departments to represent G&A and Operations. • The Committee Chair will approve the members of the ESG Committee. The ESG Committee will include officers and employees the Chair deems appropriate, taking into account such employee’s expertise in relevant and varied disciplines, including environmental, health and safety, security, operations, design & construction, legal, investor relations, corporate governance, finance, human resources and communications. • Committee membership will be reviewed annually. • The role of the Committee Chair is to lead the meetings ensuring they proceed within the allocated time and in accordance with the agenda. The Chair will also be responsible for reporting and making recommendations to senior management.Prevention
6. Does the company have a process or processes to assess risk?
Optional commentCommunication and Action Stakeholder understanding of Core Lab's commitment to human rights is crucial to success. We therefore take several steps to embed our policy and expectations: 1. Onboarding Program ensures new employees obtain information on our commitment from day one. 2. Core Compliance e-learning curriculum ensures current employees are reminded annually of the importance of human rights and Core Lab's commitment. 3. Ethics and Corporate Responsibility Helpline enables employees to report issues immediately and confidentially. When issues are raised, we diligently investigate and take timely and transparent action to resolve the issues in a fair and equitable manner. 4. Network of codes of conduct, policies, and statements explain the principles and rules that guide how Core Lab conducts business and outlines our expectations: Core Lab Code of Ethics and Corporate Responsibility Core Lab Supplier Code of Conduct Policy 185: Commitment to Human Rights Policy 110: Equal Opportunity Policy 165: Harassment Discrimination and Unprofessional Behavior Policy 1110: Helpline Statement on safeguarding intellectual property and personal data. 5. CoreConnect Quarterly Newsletters promote and showcase Core Lab's commitment and activities associated with, but not limited to, Human Rights; Corporate Social Responsibility; Diversity, Equity, and Inclusion; Nondiscrimination and Equal Opportunity. 6. Partnerships with organizations and service groups in the communities in which we operate. 7. Participation in human rights organizations such as the United Nations through their Global Compact and Women's Empowerment Principles. By building awareness and instilling a sense of empowerment, our onboarding, training, and reporting systems provide ways to identify, avert, and correct compliance issues.7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
Optional commentThe Company believes it promotes a positive workplace environment through the following: Background investigations and reference checks - These investigations, which include verifying a candidate's education, employment history, criminal record, and professional references, are performed for individuals being considered for employment. Delegation of Responsibility - Management has developed policies and procedures to ensure that employees to whom significant responsibility has been delegated have the necessary skills and experience. Effective HR-related practices, such as training and regular performance evaluations. Management and development - The Company has a Human Resources department that promotes the management and development of effective human resources programs. Ethics Hotline Program We continuously monitor and enforce compliance with our Code of Ethics and Corporate Responsibility and other corporate policies through confidential and non-confidential reporting mechanisms. An anonymous hotline, mail, and email are the primary means for reporting fraud or ethics violations in a confidential manner. Face-to face meetings are also encouraged with the Company's General Counsel. All issues are sorted and categorized (legal, ethics or other) by the Ethics & Compliance Officer, who reports to the General Counsel. All calls of a legal nature are handled by General Counsel. These reporting procedures have been made available to all employees of the Company. "Whistleblower" Policy All information reported by our employees is reviewed by the General Counsel, HR Department and/or our Compliance Officer and follow-up investigations are conducted, as appropriate. The General Counsel ensures that there is no retaliation against any employee who has utilized our reporting mechanism to come forward with concern about their co-workers, supervisor or management. Deterrence, Detection, & Remediation of Fraud Our anti-fraud program and internal controls have been implemented throughout the Company and they are considered an entity-level control which management relies upon to establish the Company's "tone at the top" relative to fraud and financial reporting. The program and controls address each element of the Internal Control-Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission, generally known as the COSO framework. Accordingly, it is tested at Corporate, at Level 1 locations, and Level 2 locations selected for entity-wide testing and the use of an internal control questionnaire. We evaluate the effectiveness of our anti-fraud program through a detailed analysis of specific organizational policies and procedures. Through discussions with management, each part of our Ethics Program is compiled and reviewed for appropriateness and availability to appropriate personnel.8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Optional commentDeterrence, Detection, & Remediation of Fraud Our anti-fraud program and internal controls have been implemented throughout the Company and they are considered an entity-level control which management relies upon to establish the Company's "tone at the top" relative to fraud and financial reporting. The program and controls address each element of the Internal Control-Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission, generally known as the COSO framework. Accordingly, it is tested at Corporate, at Level 1 locations, and Level 2 locations selected for entity-wide testing and the use of an internal control questionnaire. We evaluate the effectiveness of our anti-fraud program through a detailed analysis of specific organizational policies and procedures. Through discussions with management, each part of our Ethics Program is compiled and reviewed for appropriateness and availability to appropriate personnel.Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Optional commentThe Company Compliance Officer captures all related sustainability topic and analysis those in two half yearly and one annual report to the NEO's and Board of Directors. The report includes an Executive Summary, Compliance Officer Half-Yearly Reports, Helpline Usage Report and Summary Log, and upcoming year Compliance Objectives.Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Optional commentAbsolute performance accounts for 25% of the annual NEOs incentive award. The Compensation Committee evaluates the Company’s year-over-year improvement in the areas of safety and ESG. The Compensation Committee bases its determination primarily on objective third-party reports and may award up to 25% of the maximum bonus possible depending on the Company’s overall improvement in these areas. If the Compensation Committee determines that the Company’s performance has declined, it may award as little as zero bonus for this metric.Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
13. Do you produce sustainability reporting according to:
Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Optional commentCore Lab is committed to respecting human rights. Our commitment to human rights is reflected in our Core Values of honesty, integrity, and building trust, and we strive to protect the rights of people in the communities where we operate to ensure that they are all treated with dignity and respect. To accomplish this, our Human Rights Policy, in conjunction with a network of codes of conduct, policies, and statements, provides a worldwide framework for responsible operations consistent with the spirit and intent of the International Labour Organization's Declaration on Fundamental Principles and Rights at Work and the United Nations' Universal Declaration of Human Rights. Additionally, we adhere to guidelines established in the United Nations' Guiding Principles on Business and Human Rights. Commitment Areas As part of our commitment to human rights, we uphold the following: 1. Freedom of Association and Right to Collective Bargaining We recognize and respect our employees' right to join associations and choose representative organizations for the purpose of engaging in collective bargaining in a manner consistent with applicable laws, rules, and regulations as well as local customs, as appropriate. 2. Policy Against Modern Slavery Core Laboratories does not utilize servitude or forced or compulsory labor. We recruit our employees and provide working conditions, including payment of wages and benefits, that comply with applicable laws and regulations. Throughout our worldwide operations, we prohibit the use of child labor in our workforce. All Core Lab employees are at or above the legal employment age in the country of their employment. We also prohibit human trafficking and any action that could be construed as supporting or leading to the trafficking of others. 3. Policy Against Workplace Discrimination, Harassment, and Unprofessional Behavior Core Lab upholds the belief that everyone, regardless of characteristics including, but not limited to, race, color, sex, sexual orientation, gender identity, national origin, age, disability, religion, genetic information, protected veteran or uniformed service member status, and any other characteristic protected under applicable law, should enjoy a work environment free from all forms of harassment, discrimination, and unprofessional behavior. 4. Equal Opportunity Initiatives Core Lab is an equal opportunity employer, and it is our policy, in accordance with applicable laws, to treat each individual with dignity and respect, regardless of characteristics including, but not limited to, race, color, sex, sexual orientation, gender identity, national origin, age, disability, religion, genetic information, protected veteran or uniformed service member status, and any other characteristic protected under applicable law. 5. Upholding Women's Rights Recognizing that women are amongst those most threatened by acts of modern slavery and unequal treatment, Core Lab is committed to taking steps to support and uphold women's rights under the guidance set forth in the United Nations' Women's Empowerment Principles. 6. Protecting Privacy Rights We are committed to safeguarding intellectual property rights and personal data, which includes protecting assets, proprietary information, and personal information from unauthorized access and ensuring their efficient and proper use. 7. Supply Chain Standards As stated in our Supplier Code of Conduct, Core Lab is committed to the highest standards of product quality, safety, and business integrity in our dealings with suppliers. Compliance with laws and ethical principles is the responsibility of all Core Lab employees as well as our suppliers. 8. Policy Against the Use of Conflict Minerals We recognize the dangers of improperly sourcing minerals (tin, tantalum, tungsten, gold) and are committed to ensuring our sourcing practices do not fund armed groups in the Democratic Republic of Congo and adjoining countries.Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Stakeholder understanding of Core Lab's commitment to human rights is crucial to success. We therefore take several steps to embed our policy and expectations: 1. Onboarding Program ensures new employees obtain information on our commitment from day one. 2. Core Compliance e-learning curriculum ensures current employees are reminded annually of the importance of human rights and Core Lab's commitment. 3. Ethics and Corporate Responsibility Helpline enables employees to report issues immediately and confidentially. When issues are raised, we diligently investigate and take timely and transparent action to resolve the issues in a fair and equitable manner. 4. Network of codes of conduct, policies, and statements explain the principles and rules that guide how Core Lab conducts business and outlines our expectations: Core Lab Code of Ethics and Corporate Responsibility Core Lab Supplier Code of Conduct Policy 185: Commitment to Human Rights Policy 110: Equal Opportunity Policy 165: Harassment Discrimination and Unprofessional Behavior Policy 1110: Helpline Statement on safeguarding intellectual property and personal data. 5. CoreConnect Quarterly Newsletters promote and showcase Core Lab's commitment and activities associated with, but not limited to, Human Rights; Corporate Social Responsibility; Diversity, Equity, and Inclusion; Nondiscrimination and Equal Opportunity. 6. Partnerships with organizations and service groups in the communities in which we operate. 7. Participation in human rights organizations such as the United Nations through their Global Compact and Women's Empowerment Principles. By building awareness and instilling a sense of empowerment, our onboarding, training, and reporting systems provide ways to identify, avert, and correct compliance issue From public page: https://www.corelab.com/cr/human-rightsLabour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commentFrom Code of Ethics and Corporate Responsibility: C. Corporate Responsibility Employees must review and certify compliance with the Company’s Corporate Responsibility Guidelines as part of their annual Ethics Refresher training. Global Human Rights • Conduct business with awareness of basic global human rights, including as defined by the United Nations Universal Declaration of Human Rights. • Recognize and respect employees’ freedom of association and to choose representative organizations for the purpose of engaging in collective bargaining. • Refuse to engage in or use forced or compulsory labor in our workforce. • Refuse to employ or use child labor in our workforce. • Report any observed instances of human rights’ violations to the Law Department, Human Resources or Compliance Officer. Employment Practices • Provide payment of wages and benefits that comply with applicable laws and regulations. • Provide sanitary and reasonable working conditions for employees. Protection of the Environment • Utilize reasonable means to conserve natural resources. • Avoid environmental contamination. • Consider the environmental consequences of the workplace and work practices. D. People and Safety Health and Safety of Workplace • Conduct activities in compliance with all relevant environmental and worker health and safety laws and regulations. • Promote an accident-free workplace and minimize risk to self, others, workplace and the environment. • Accept responsibility for maintaining a safe and healthy workplace for all employees by following safety and health rules and practices and reporting accidents, injuries and unsafe equipment, practices or conditions. • Perform last minute risk assessments. • Use my “Stop Work Authority” when unsafe conditions are observed. • Report to work in condition to perform my duties, free from the influence of illegal drugs, alcohol or other performance limiting substances.1.1. For each labour rights policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
4. Who receives training for the following labour rights issues?
5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Performance
6. What is the percentage of employees covered under collective bargaining agreements?
7. What is the percentage of employees in a trade union or other workers' organization?
Optional comment3% of FTE's are covered by a union agreement while 9 percent are covered by a collective bargaining agreement. 1% of these FTE's are covered by both a union and CBA.8. In the course of the reporting period, what was the percentage of women in:
9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional comment7891207 hours worked / 19 recordable injuries11. In the course of the reporting period, what was the company’s incident rate?
Optional commentTotal Recordable Injury Rate (TRIR) 19 injuries x 200,000 hours/ 7891207 hours worked.Response and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Ethics Program Management Employees around the globe completed the annual Code of Ethics and Corporate Responsibility training. In 2021, over 3,300 employees, comprising approximately 96% of the employee population, completed our ethics training, up from a completion rate of 87% in 2020. The training was offered through our Talent Management System (TMS) in several languages, including French, Dutch, Spanish, and Russian. Due to Microsoft licensing restrictions, contractors and employees of franchise companies were not granted access to TMS and therefore did not receive or complete required corporate trainings. We believe the increase in completion rate can be attributed to various factors. Among them, a more direct approach was implemented to contact employees who had not completed their training. Targeted mails from the Manager, Corporate Safety and Compliance, were sent with increased frequency in the final six weeks of the year reminding employees of the deadline to complete their training. The Business Unit President was copied on each of these emails as well as the direct manager of the employee. Additionally, a technical flaw identified in 2020 on the CoreNet homepage dashboard was corrected. Previously, it was not properly updating to remind employees of trainings upcoming, due and past due. With the dashboard fix now applied, employees are alerted in real time of upcoming trainings to be completed throughout the year, and importantly when those trainings are due. These combined efforts proved to be effective in increasing participation numbers in 2021.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
1.1. For each environmental policy, is it:
Optional commentSuppliers must comply with all environmental laws and regulations and have applicable environmental permits and registrations for the business sector in which they operate. Suppliers should work to reduce the environmental impacts of their operations including natural resource consumption, material sourcing, waste generation, wastewater discharges and air emissions. Suppliers should take necessary precautions to prevent accidental releases of hazardous materials into the environment.Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
Optional commentIn FY2021, Core Lab emitted 33,775 tCO2e of GHG emissions throughout is value chain. This represents a decrease of 7% from FY2020 emissions. During FY2021 while the revenue decreased by 4%, the full time employees (FTEs) increased by 17%. Emissions from Scope 1 have increased due to increased consumption of gasoline and diesel compared to FY2020. The emission from Scope 2 (location-based) have decreased due to continued impact of COVID-19 on business operations across all sites.7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
8. Has the organization acted to support climate change adaptation and resilience?
Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Optional commentThe majority of operational GHG emissions stem from electricity consumption (scope 2 emissions), contributing 68% to the operational GHG emissions. In FY2021, the total electricity sourced from renewable sources continues to be approximately 18% up from 17% in FY2020.Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
Optional commentGround water is extracted from two wells at our manufacturing facility in Godley, TX. Our Office, Laboratory and Inspection facilities purchase water from the local water utilities.13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Optional commentMost of Core Laboratories revenues are generated from technical laboratory testing, consulting and inspection services.Sector-specific: Forest, biodiversity, and land use
14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).
15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?
16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?
Sector-specific: Air pollution
17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.
Sector-specific: Waste
18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.
19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.
20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.
Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
Core Laboratories sustainability management system focuses the Company’s efforts to reduce our environmental footprint, increase performance and improve the sustainability of our Company. It is a conviction that these principles drive Company success by reducing waste, consumption of non-renewable resources, and even the cost of operations. These principles make our Company stronger, socially responsible, efficient and profitable well into the future. Respecting and Minimizing Community and Environment Impact We recognize the diversity the communities and people where we operate. We commit that we will act responsibly and will obey all applicable laws, minimize the impact of our operations on the environment, protect the communities' health and safety and respect cultural backgrounds. Our operational footprint is primarily its office buildings and laboratories rather than field locations. Our six Advanced Technology Centers (“ATC”) located in Aberdeen, Abu Dhabi, Calgary, Houston, Kuala Lumpur, and Rotterdam along with our Production Enhancement manufacturing facility in Godley, Texas comprise our more significant operating locations. The primary type of energy consumed by these facilities is electricity. However, low-carbon emission natural gas is also consumed for heating the facilities in some regions. We may choose responsible alternative sources of electricity when there are options available, in contribution to our efforts to reduce greenhouse gas (GHG) emissions. For example we may have the option to use electricity from a renewable source in place of electricity generated from a non-renewable source, such as coal. A second alternative may be an option to elect electricity sourced from natural gas (reduce GHG emissions) compared with electricity sourced from coal. As natural gas continues to be one of the most environmentally friendly and cost efficient fossil fuel sources of electricity, this reduces our environmental footprint. We also consume fuel to operate field vehicles, however this is limited to our staff working in the field, and is not a significant emission component of our total operations. Our operations outside of our offices are conducted on our clients’ property. Although those operations are not conducted within our own facilities while we are on our clients’ property, we continue to follow our corporate policies regarding health, safety and environment as well as our Code of Ethics and Corporate Responsibility. For the most part, we remain in our locations for extended periods of time, decades in many cases. In the event we do leave a particular location, we ensure that the land and building are properly put back to their agreed condition. We also take steps to ensure that any potential environmental conditions have been dealt with as required by local regulation and standards. Given that we do not have locations under our control that are in a natural, rural environment, we do not have programs regarding restoration or rehabilitation of natural lands. Company Environment Goals and Achievements With respect to our six ATCs, our Aberdeen facility continues to lead our effort in reducing our energy consumption and reduce our GHGs by completing their ISO 14001 Environmental Management system certification audit and setting aggressive targets to reduce energy consumption and surpassing those targets. Operational and Value Chain Footprint To better understand the Company impact, we engaged Trucost, a sustainability data company. With their expertise, we are able to assess Core Lab's operational and value chain greenhouse gas emissions in line with the WRI/WBCSD Corporate Standard (Scope 1 and 2) and Corporate Value Chain (Scope 3) Guidelines (GHG Protocol). The assessment allows us to report Scope 1, 2 and 3 GHG emissions in annual accounts and to the CDP Climate Change Questionnaire. We have already been reporting company-wide Scope 1 and 2 GHG emissions to the CDP since 2014. Currently, we use estimates of companywide emissions based on our sector of operation and revenue for reporting purposes. Engaging Trucost allows us to improve our operational (Scope 1 and 2) GHG emission quantification methodology by integrating primary data. Furthermore, Trucost quantified Scope 3 GHG emissions according to the fifteen Scope 3 categories outlined in the Guidelines to help understand and disclose its Scope 3 emissions for the first time. This operational and value chain GHG emission footprint will focus on our six Advance Technology Centers (ATCs) and which comprise our more significant operating locations. Finally, Trucost has helped us set science-based targets for its Scope 1, 2 & 3 emissions. Science based targets aim to help Core Lab work towards meeting the limits needed to avoid global average temperatures to be WB2C, a limit agreed upon by leading climate scientists and governments to ensure long-term sustainability and profitability. The following documents have been issued and available on our public website: https://www.corelab.com/cr/environmental-focus Physical Risk Analysis 2021 Trucost Report 2020 Trucost Report 2019 Trucost Report 2018 Science Based Targets Setting 2018 Trucost Report 2017 Trucost Report 2016 Trucost Report 2015 Trucost Environmental Register CDP Discloser CDP Discloser The CDP Score Report allows companies to understand their score and indicate which categories require attention to reach higher scoring levels. This enables companies to progress towards environmental stewardship through benchmarking and comparison with peers, in order to continuously improve their climate governance. Core Laboratories N.V. received a C which is in the Awareness band. This is same as the Europe regional average of C, and higher than the Industrial support services sector average of D.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Optional commentEmployee Reporting Process… I am Courageous Observant Respected Ethical Reporting any Illegal or Unethical Behavior • Promptly report to the Law Department, my supervisor or manager, or to the Compliance Officer or the Helpline any suspected illegal or unethical behavior. • Cooperate in internal investigations of alleged misconduct. • The Law Department and Compliance Officer is responsible for the development, maintenance and enforcement of Core Laboratories Code. Our Compliance Officer is accountable of the oversight of the Code and may designate other officers and advisors to assist in carrying out the intent and purposes of the Code. o Violations of our Code may result in disciplinary action up to and including termination. Core Laboratories encourages speak up culture; if you see something, say something. Please note, every employee has a duty to report any known or suspected unethical, real or perceived fraud, potential or real conflicts of interest or unlawful conduct observed in the Company. Compliance Procedures • Certify compliance with the Company’s Code annually via the Company’s Talent Management System (TMS). • Endeavor to ensure prompt and consistent action against violations of this Code. However, I may encounter a situation in which it is difficult to determine how to proceed, while also complying with this Code. Since not every situation that will arise can be anticipated, it is important to have a way to approach a new question or problem. When considering these situations, I will: o Consider all relevant information. o Focus on the specific question or issue. o Identify who is involved. o Discuss the problem with a supervisor. o Seek help from Company resources. o Report ethical violations in confidence and without fear of retaliation. o Always ask first.Prevention
3. Who receives training on anti-corruption and integrity?
3.1. How often is such training provided?
4. Does the company monitor its anti-corruption compliance programme?
Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
Ethics Program Management - Employees around the globe completed the annual Code of Ethics and Corporate Responsibility training. In 2021, over 3,300 employees, comprising approximately 96% of the employee population, completed our ethics training, up from a completion rate of 87% in 2020. The training was offered through our Talent Management System (TMS) in several languages, including French, Dutch, Spanish, Russian, and Chinese. Due to Microsoft licensing restrictions, contractors and employees of franchise companies were not granted access to TMS and therefore did not receive or complete required corporate trainings. We believe the increase in completion rate can be attributed to various factors. Among them, a more direct approach was implemented to contact employees who had not completed their training. Targeted mails from the Manager, Corporate Safety and Compliance, were sent with increased frequency in the final six weeks of the year reminding employees of the deadline to complete their training. The Business Unit President was copied on each of these emails as well as the direct manager of the employee. Additionally, a technical flaw identified in 2020 on the CoreNet homepage dashboard was corrected. Previously, it was not properly updating to remind employees of trainings upcoming, due and past due. With the dashboard fix now applied, employees are alerted in real time of upcoming trainings to be completed throughout the year, and importantly when those trainings are due. These combined efforts proved to be effective in increasing participation numbers in 2021. Anti-Corruption and Export Controls Training - Given the countries in which we operate have a higher corruption index as measured by Transparency International, and therefore a greater potential for bribery or other improper conduct, it is vital that we provide employees with the necessary tools to identify and prevent corruption. Employees must understand the risks of doing their jobs in regions around the globe where corrupt practices are implicitly sanctioned or consistent with cultural norms. The Company’s anti-corruption and export controls training addresses red flags associated with engaging business partners, including clients, but also agents and representatives we engage to assist with our selling efforts and operations. We are particularly exposed to the Foreign Corrupt Practices Act (FCPA) through our frequent interaction with governmental agencies and national oil companies, given that the employees of these governmental and quasi-governmental organizations are regarded as “public officials” under the FCPA. In 2021, over 3,300 employees, comprising approximately 96% of the employee population, completed training on anti-corruption and export controls. 2022 Emerging Compliance Trends - ESG factors are becoming more prominent in evaluating organizations such as Core Lab, requiring a more critical assessment of our compliance program with a view toward proactive training, issue spotting and risk mitigation. Emerging compliance trends for 2022 include the following: • Place increasing emphasis on the culture within Core Lab by providing guidance on ethical business practices. • Build a community of “compliance advocates” to serve as subject matter experts across the organization. Non-English-speaking employees in key locations (e.g., Middle East, Latin America, Russia, France) may present a barrier to reporting. Having a local person as first compliance point of contact may increase reporting. • Identify opportunities to embed knowledge in the organization through rules interpretation, regulatory updates, and online and in-person training. • Compliance team skillsets must include the ability to: o Effectively communicate, persuade and connect with employees; o Collect and evaluate data into meaningful information; o Develop and embed effective compliance training strategies; o Build relationships, implement change and project-manage in order to drive the evolution of the function and the Company’s culture; o Effectively connect with the business unit to build trust.