Wood: The journey to decarbonisation and net-zero

What is Wood's energy strategy going forward? 

The shift towards low-carbon energy systems is happening globally and across all industries. You don’t need to work in energy to realise the scale of the challenge in achieving net-zero and, as more and more countries set legally binding emissions targets, there is a growing focus on how these ambitious goals can be achieved.  

At Wood, we recognise this unstoppable momentum, and we see it as our role to apply our global expertise and talent to engineer practical solutions to these unprecedented challenges. 

In many ways this has driven us to undergo our own transition as an organisation and we are constantly examining and building on the key elements of our energy strategy. The fundamental drivers of our strategy include supporting our clients on their decarbonisation journeys, rapid transition to lower-carbon energy sources and smarter use of technology and energy.  

How are you approaching the energy transition? 

We have repositioned our business very deliberately, broadening our portfolio beyond a traditional strength in oilfield services, across all of energy and the built environment.   

Wood supports clients on both the supply and demand sides, and we operate in adjacent industries that have significant impact on global energy use. 

Our broad view looks at the established value chain for energy and how we can move this to a more sustainable footing as well as looking at the new energy models of the future and how they too can be optimised to deliver the best energy mix. We also look across the other industries we support in the wider resource value chain to see how their operations and outputs can become more efficient and sustainable.  

As part of this, strengthening our client relationships is very important and we have been working together in new ways to create partnerships to successfully navigate challenging markets and deliver sustainable solutions. By leveraging our collective strength and commitment to positive change, we can drive the energy transition and enable sustainable infrastructure to deliver a cleaner future. 

Our broad view looks at the established value chain for energy and how we can move this to a more sustainable footing

What are the main challenges the industry faces in terms of a clean energy transition? 

The landscape is continually evolving and there are myriad interrelated societal, economic and commercial complexities which present challenges for a swift energy transition.  

Reaching net-zero goals will be dependent on a number of factors including access to renewable sources, renewable energy funding, and the need for foreign investment.  

The systemic change required will need alignment and unprecedented levels of collaboration between all stakeholders including government, investors, society, our employees, the business community, and the communities where we live and work. 

How is Wood creating a roadmap to decarbonising its assets? 

We have committed to reduce Wood’s carbon emissions by 40% by 2030 as part of our pledge towards net-zero. In line with the Paris Agreement goals, we have also committed to setting science-based targets to limit global warming to below 2°C. This includes an absolute reduction in our scope 1 (direct fuel consumption) and scope 2 (indirect purchased electricity and steam) greenhouse gas emissions.  

We use our lifecycle delivery model SCORE (Substitute, Capture, Offset, Reduce, Evaluate) methodology to create a roadmap and guide our journey as well as a range of other internal capabilities to deliver our emissions targets. 

The landscape is continually evolving and there are myriad interrelated societal, economic and commercial complexities which present challenges for a swift energy transition.  

How important will oil and gas sectors remain for Wood? 

Climate concerns are driving a positive shift towards cleaner forms of energy, but this shift will not happen overnight. Global energy demands continue to rise and oil and gas resources are required for energy security, as key contributors as part of a broader and more diverse energy mix. Wood is helping traditional oil and gas companies to decarbonise their operations with technical solutions, in areas like carbon capture and storage and developing alternative uses for their traditional products (such as feedstock rather than fuel). 

Many of our oil and gas clients are reinventing their businesses and we are optimising and decarbonising their current portfolio while supporting them to enter new markets such as power generation, transportation and infrastructure.  

We are experiencing success in partnering with our International Oil Company clients as they transform into Integrated Energy Companies and are leading key projects in areas such as electric vehicle charging infrastructure and the electrification of traditional assets. As our clients adapt, we adapt with them, drawing on the diversified strength of Wood to unlock solutions to new challenges.  

Many of our oil and gas clients are reinventing their businesses and we are optimising and decarbonising their current portfolio

How are you looking to diversify your portfolio? 

We have a rich heritage in traditional hydrocarbon markets which is an excellent platform for accelerated and diversified growth. The transformation of our business in recent years has been significant. Our strategy has seen us deliberately broaden our business to both provoke and prepare for the energy transition. These are not just aspirations or empty words.   In 2014, over 90% of our revenue came from the oil and gas sector whereas today, upstream activities account for just one third of our business. Crucially, we now offer a blend of consulting, projects and operations solutions and hold strong positions in a wide range of end markets. 

This includes a fast-growing renewables business where we have delivered more than 200 solar projects and supported 20% of the total installed global wind capacity.  We have completed more than 130 Carbon Capture and Storage studies in the last 30 years, and build on our market-leading position in hydrogen, having licenced, designed and installed over 120 hydrogen units globally over the last 60 years. 

While traditional hydrocarbon markets will remain core to our business, we have recognised the need to deliver balance across our portfolio. We are enjoying success in a variety of new markets including transportation, power generation, water, pharmaceuticals and government infrastructure and we now seek to maximise the potential of this as these markets grow at pace.