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Sustainability Report: 2024 • Terrawatt ESG

Terrawatt Sustainability Report – 2024: Building a Sustainable Future for Nigeria's Energy Sector

Terrawatt, as a leading oil and gas servicing company based in Lagos, Nigeria, recognizes the urgent global need for sustainable business practices in the energy sector. In 2024, the company formalized its sustainability agenda to align with national policies and international ESG (Environmental, Social, and Governance) standards.

Sustainability became an integrated strategy rather than a standalone program, touching operations, community relations, resource management, and employee engagement. The company aimed not only to reduce its environmental footprint but also to positively impact host communities and foster transparency in governance.

1. Introduction to Sustainability Commitment

As oil and gas face increasing scrutiny for their climate impact, Terrawatt positioned itself as a forward-looking partner in Nigeria's energy transition. This report outlines the initiatives, progress, and future direction of Terrawatt's sustainability journey throughout 2024.

2. Environmental Policy and Governance

In 2024, Terrawatt adopted a comprehensive Environmental Management Policy that was approved by the executive board and communicated company-wide. The policy outlines clear accountability for environmental compliance, waste control, emissions tracking, and resource conservation.

An Environmental and Sustainability Committee was formed, consisting of senior leadership, HSE experts, and independent advisors. This committee meets quarterly to assess progress, approve budgets, and align initiatives with business goals.

3. Energy Consumption and Emissions Reduction

Energy efficiency was a major pillar of Terrawatt's 2024 sustainability strategy. Diesel, which powers much of the company's operations, was closely monitored through IoT-based fuel tracking systems installed in generators and transport vehicles.

  • Total diesel consumption was reduced by 16% year-over-year, despite increased project activity
  • The company also adopted low-energy lighting and cooling systems at its operational bases
  • Emissions tracking began in earnest this year, with carbon output estimated across various business units using international GHG protocols
  • This data now serves as the baseline for future carbon reduction targets, with the aim of achieving a 30% emissions cut by 2027

4. Renewable Energy Initiatives

Terrawatt took its first steps into renewable energy deployment in 2024, beginning with the hybridization of its Lagos operations hub. Solar panels were installed to supplement diesel generators, reducing generator runtime by over 40% during daylight hours.

Battery storage units allowed the site to maintain power during off-peak periods, enhancing reliability while lowering emissions. The success of this pilot project prompted feasibility studies at two additional sites in Warri and Port Harcourt.

5. Water Management

Water usage and discharge were closely monitored in 2024, particularly in pressure testing and hydro-blasting operations. Terrawatt implemented closed-loop water systems for equipment cleaning at two of its bases, recycling up to 75% of used water.

Boreholes and water tanks were equipped with smart meters to track usage trends and prevent waste. In regions facing water scarcity, operations were adjusted to minimize demand and prevent resource strain on local communities.

6. Waste Management and Reduction

Waste management protocols were standardized across all project sites in 2024. The company introduced color-coded segregation bins for different waste streams—hazardous, recyclable, and organic—making compliance easier for all staff.

  • A third-party recycling firm was contracted to manage non-hazardous waste, including scrap metals, plastics, and used oil filters
  • Hazardous waste, such as chemical containers and spent lubricants, was transported to government-approved disposal facilities
  • Monthly waste audits were introduced to identify reduction opportunities and improve data accuracy
  • These initiatives reduced the company's landfill contributions by 32% and reinforced its zero-spill and zero-burn policy

7. Biodiversity and Site Protection

As Terrawatt expands its operational footprint, protecting biodiversity around its project sites has become increasingly important. In 2024, environmental impact assessments were conducted on all new sites before mobilization, with clear recommendations implemented to avoid sensitive areas.

Buffer zones were established near wetlands, mangroves, and wildlife habitats, especially in the Niger Delta. Noise and vibration controls were enforced during equipment operation to minimize disturbances.

8. Community Engagement and Sustainability

Sustainability at Terrawatt is also social. In 2024, the company invested in long-term community development programs designed to build capacity and improve livelihoods in host communities. Skill acquisition centers were funded in Rivers and Bayelsa states, training over 150 young people in welding, safety procedures, and plumbing.

Terrawatt's community development officers held bi-monthly forums to collect feedback, resolve disputes, and update stakeholders on upcoming projects. The company also provided clean water systems, solar-powered street lights, and refurbished schools in several communities.

9. Health and Safety Integration

Environmental sustainability cannot be separated from occupational health and safety. In 2024, Terrawatt implemented the "Safe and Green" initiative, which integrated environmental safety into daily job hazard analyses and toolbox talks.

Staff were trained to recognize and prevent environmental risks while performing routine tasks. Emergency drills were modified to include environmental containment scenarios, such as chemical spills and waste fires.

10. Green Procurement and Local Sourcing

Terrawatt revised its procurement policy to include sustainability criteria for vendors and materials. In 2024, 70% of procurement contracts required environmental compliance certifications or proof of eco-friendly practices.

Local sourcing was prioritized to reduce emissions associated with long-distance transportation and to support local economies. The procurement team also introduced biodegradable packaging and reusable containers for non-hazardous materials.

11. Climate Risk and Resilience Planning

Understanding and preparing for climate-related risks became a key part of Terrawatt's 2024 strategy. The company mapped out potential disruptions related to flooding, coastal erosion, and extreme weather events at its project sites.

Contingency plans were developed, including elevated equipment platforms and fortified drainage systems in flood-prone areas. Climate-related risks were factored into insurance, procurement, and logistics decisions to minimize exposure.

12. Employee Awareness and Engagement

Sustainability was not limited to top-down directives; employee engagement was critical to its success. Terrawatt launched an internal sustainability awareness campaign tagged "Think Green, Act Safe," which included training sessions, competitions, and green behavior pledges.

Employees participated in tree planting, waste cleanup, and knowledge-sharing forums throughout the year. A monthly "Green Champion" award recognized employees who contributed significantly to sustainability goals.

13. ESG Reporting and Transparency

In 2024, Terrawatt began preparing its operations for full ESG (Environmental, Social, and Governance) disclosure in line with global standards such as GRI and SASB. A baseline ESG report was developed, summarizing environmental data, social initiatives, and governance structures.

This report will serve as the foundation for external stakeholder engagement, including clients, regulators, and financiers. Terrawatt's leadership committed to publishing its first official ESG impact report by Q2 2025.

14. Innovation for Sustainability

Terrawatt explored several innovative technologies to further reduce its environmental impact in 2024. Trials were initiated on bio-based lubricants that degrade faster and pose less environmental risk. The company also evaluated digital twin technology to simulate energy usage scenarios for facility optimization.

In logistics, routing software was used to minimize travel distances and improve fuel efficiency. Partnerships with startups were explored to develop modular solar systems for mobile sites.

15. Conclusion and Future Outlook

The year 2024 marked a major step forward in Terrawatt's sustainability transformation. Through structured governance, community collaboration, environmental stewardship, and technological adoption, the company moved closer to its long-term ESG objectives.

While much progress has been made, Terrawatt acknowledges that sustainability is a continuous journey, not a destination. Future goals include deeper renewable energy integration, expanded ESG reporting, and formal alignment with the UN Sustainable Development Goals (SDGs).

The leadership remains committed to balancing profitability with responsibility. As Terrawatt grows, so will its commitment to building a cleaner, safer, and more sustainable oil and gas industry in Nigeria.