SRJ Technologies Group PLC (ASX:SRJ) will adopt an environmental, social and governance (ESG) framework with 21 core metrics and disclosures created by the World Economic Forum (WEF).
The specialised engineering services and containment management solutions company is charting a course to build resilience and enhance its social licence through a greater commitment to long-term, sustainable value creation that embraces the wider demands of people, planet and shared prosperity.
The company’s board has resolved to adopt the WEF ESG framework and instructed management to set up an impact measurement plan for each sustainability area which includes, but is not limited to, governance, anti-corruption practices, ethical behaviour, human rights, carbon emissions, land use, ecological sensitivity, water consumption, diversity and inclusion, pay equality and tax payments.
ESG journey
Chief executive officer Alexander Wood said: “I am proud to be part of the introduction of ESG reporting and the ESG journey of SRJ Technologies.
“Adopting ESG reporting and transparency will accelerate our company’s ability to achieve and report provable ESG status with regular updates on the company’s progress.
Engaged Socialsuite
To ensure that SRJ Technologies can measure, monitor, and report on its ESG progress, the company has engaged impact monitoring technology platform Socialsuite to streamline the outcomes measurement and ongoing ESG reporting process.
The company’s goal is to demonstrate commitment and progress on its ESG scorecard, but more broadly, requires progress on a range of ESG benchmarks as set out by the WEF’s ESG White Paper.
Already paying off
While SRJ’s business is creating an inherent positive impact, the adoption of the WEF framework has already paid ESG dividends.
The company will update the market regularly on its ESG progress and seek to ensure that its business remains an impact investment for shareholders and local communities.
Strategic initiative
In a letter to shareholders, Wood said SRJ has implemented a strategic initiative to locate inventory and train local partners in key territories In an effort to build its presence in the market in recent months.
This enables SRJ to rapidly mobilise to meet the needs of global operators and highlights its capabilities to reduce production downtime when repairs are needed.
“We are beginning to see our efforts paying off, with several important announcements in the past week on the back of our June quarter result, demonstrating that our target industries are continuing to recover and normalise amid the global COVID-19 pandemic and that our pipeline is growing and beginning to realise its potential.
The company has also secured a hot bolting campaign on one of MODEC’s FPSO units, and consulting work has also commenced scoping two further bolting campaigns.
“This is a significant validation of our strategy, and we see many other similar opportunities arising due to delayed maintenance,” he added.
Grow pipeline exponentially
The two announcements are the culmination of months of work by SRJ and both contract wins have the potential to grow its pipeline exponentially with similar opportunities from these and other global operators.
Wood said: “While we continue to execute our primary business strategy and are excited about the signs of recovery, the period of downturn has provided our company with the chance to explore new opportunities and pathways that could enable us to deliver future growth.
“This may be through adding to our current capabilities, research and development or new acquisitions.”
With multiple further campaigns in the final stages of negotiation, SRJ is embedding itself as the solution provider for asset integrity with its existing clients and is advancing efforts to replicate this across other operators.
BoltEx® is proving to be a powerful client entry point creating visibility to a wide range of asset integrity opportunities in addition to any future campaigns for bolting anomaly rectification.
Business opportunities continue to present themselves with both new and existing clients, and this is expected to continue as SRJ product adoption and brand awareness increases within the industry.
Despite the COVID-19 pandemic, SRJ has positioned itself to be a leading asset integrity solutions provider to global operators.
It has the cornerstone clients and has commenced product placement.
Acquisition opportunities
The pandemic has also presented opportunities to add value to shareholders through the acquisition of complementary businesses at attractive valuations.
SRJ remains open to pursuing such opportunities which is consistent with its objective of growth set out in the prospectus.
Curtin University collaboration
The company is also working on developing hydrogen compatible pipe technologies, in collaboration with Curtin University in WA and Perth engineering company SixDe.
It has applied for a government grant for the project and is awaiting a decision.
The project presents an exciting opportunity to expand its skills in a growth industry.
Next six months pivotal
Wood continued: “We continue to investigate other options that may be complementary to our current operations, and we will provide news and updates on these should they develop.
“The next six months are a pivotal time for our company, but we are confident that the foundations built since our IPO and ASX listing will enable us to execute on our strategy and convert opportunities into revenue.”