In our second sustainability report, we aim to build upon our inaugural 2021 report by focusing on material topics during the 2022 calendar year. We also provide selected data for the previous three years, namely 2019, 2020, and 2021. Our aim is to develop pragmatic and ambitious long-term objectives by analyzing historical trends. The past few years’ data will also provide context for certain results that may have been impacted by the global pandemic from 2020 to 2022. For this second edition, our report boundaries include entities in which Neo held a controlling interest before 2022. We particularly emphasize environmental data for our five largest plants.
Sustainability Accounting Standards Board
SASB facilitates the connection between businesses and investors regarding the financial effects of sustainability. By utilizing SASB Standards, companies worldwide can identify, manage, and communicate financially relevant sustainability information to investors. These standards are industry-specific and are designed to be useful for investors as well as cost-effective for companies. The development process of these standards is evidence-based and informed by market research.
Global Reporting Initiative
GRI Standards are a set of guidelines for sustainability reporting created by the Global Reporting Initiative. These standards offer a comprehensive structure for reporting on environmental, social, and governance (ESG) performance, encompassing areas such as climate change, labor practices, human rights, and anti-corruption measures. In this 2nd sustainability report, Neo is incorporating GRI reporting standards along with SASB standards.
United Nations Global Compact
Neo is a signatory to the UN Global Compact since 2021. Neo integrates the 10 Principles of the UN Global Compact into its operations to fulfill basic responsibilities to the planet and people and achieve long-term success. These principles are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption.
United Nations’ Sustainable Development Goals
The SDGs, established by the United Nations General Assembly in 2015 through the 2030 Agenda, are 17 interrelated global objectives that aim to create a better and more sustainable future for all. These goals are expected to be accomplished by the year 2030. In 2022, Neo issued HESS goals in line with UN sustainable development goals and received UN approval.
Neo’s 2021 inaugural Sustainability Report was initiated with a clear mandate from the Board of Directors and CEO to establish an internal working group to deliver an ESG report on 2021. This internal working group became the Working Group on Sustainability who developed and executed on the reporting strategy in 2022. For the 2022, second overall, sustainability report, the working group aims to expand on the scope of the report to align with Neo’s continuous improvement vision on sustainability and to incorporate stakeholder and internal feedback on the 2021 inaugural report. In 2022, Neo’s Working Group on Sustainability enlisted external advisors to enhance their in-house knowledge base. This included educational material and training courses on ESG Reporting Standards and Frameworks. Together with the external advisor, Neo developed a shortlist of relevant topics to be considered for inclusion in their 2021 Sustainability Report. The 2022 report enhances the coverage of ESG topics by providing more comprehensive insights and incorporating new material topics, in order to create a report that accurately represents the economic, environmental, and social impacts of the organization. Neo’s Working Group on Sustainability determined material topics with reference to standard disclosure guidance set by GRI, SASB, and UN SDG frameworks.