Petro Matad has a unique and important story to tell when it comes to our Environmental, Social and Governance commitments. As an active oil explorer soon to transition to a producer based in Mongolia, we are aware that our activities may impact the communities where we operate and we have a responsibility to lead by example when it comes to operating to the highest environmental, social and governance standards.
We are proud of our track record of engaging with local communities and protecting the environment. With a majority of our staff being Mongolian nationals, we have an acute awareness of the sensitivities of the local culture, including its unique nomadic component. The fragile environment of Mongolia, comprising vast areas of steppe grasslands and rugged mountains with very low rainfall and a huge range of temperature through the seasons, makes it imperative that we concentrate efforts on protecting the areas in which we work. We also continue to improve our corporate governance in line with the QCA Corporate Governance Guidelines for AIM Companies (QCA Code) and to bring the highly developed governance regime of the UK market into the Mongolian business community.
More detail on our Environmental, Social and Governance:
Operating to the highest possible Environmental Standards
We operate in remote frontier locations in Mongolia and as such are entrusted to protect the environment and take the natural world into account in all decisions that we make when operating. Our environmental standards cultivate an environmental awareness throughout Petro Matad as well as within the contractors and third parties with which we operate. We take our commitment to environmental protection very seriously which is why within our Environmental Management Plan, we implement site monitoring prior to the commencement of any field programmes to ensure the environmental base lines are properly established.
In our operating areas we carry out detailed environmental and cultural sensitivity field studies using specialist consultants to ensure legal compliance when working near protected areas and to minimize all adverse environmental impacts.
In 2021 the company decided to take the exciting step to explore sustainable and renewable energy opportunities which involved studies to determine the status of the Mongolian renewable energy sector. A joint venture called SunSteppe Renewable Energy was established in early 2023 with an active and successful Mongolian renewable energy project developer. Petro Matad has identified a number of projects ranging in size from a few tens of megawatts to hundreds of megawatts, and our team is currently working to develop the projects to construction ready status.
Putting social wellbeing at the heart of our decision making
We are deeply aware of the local and nomadic communities that are located near our operations in remote locations in Central and Eastern Mongolia. Petro Matad has developed a Social Performance Plan to contribute to the social development of communities located near and impacted by our exploration and future production activities.
We value our engagement with all communities and stakeholders and are abundantly aware that when working to improve conditions for local communities, opportunities must be identified that are beneficial to everyone and accessible to the entire community. Our Social Performance Plan includes initiatives to create positive social impact in Mongolia across 6 different categories: Education, Health, Water Supply, Infrastructure, Environment, and Poverty Alleviation.
As of August 2023, approximately MNT2.18 billion (more than nine hundred thousand USD) have been provided in form of donations, assistance and community relations expenses.
Establishing Robust Governance Structures and HSSE Policies
We are committed to transparent and effective governance, and we have defined robust principles to deliver growth, maintain a dynamic management framework, and build trust across our stakeholder network. Petro Matad follows the QCA Corporate Governance Guidelines for AIM Companies, and the Board continually works to ensure that we are aligned with these standards. To guarantee our principles are applied across all areas of our company, the Board has delegated formal rules and responsibilities to an Audit Committee, a Remuneration Committee, and a Corporate Governance Social Action and Environmental (CGSAE) Committee.
We understand that it is our responsibility to establish and enforce comprehensive health and safety policies. The wellbeing of our employees is of the utmost importance to us, and we adhere to legal standards and industry best practice whenever applicable. We are proud that our commitment to these policies across operations has resulted in zero Lost Time Injuries (LTI) since 2017.
See our Environmental, Social and Corporate Governance Initiatives page for a full list of social outreach and environmental activities.