DIVERSIFIED ENERGY COMPANY PLC.
DEC.LSE | Extraction of crude petroleum
Diversified Energy Company PLC is an independent energy company engaged in the production and sale of natural gas and oil. The company focuses on acquiring and enhancing existing producing wells and associated infrastructure in the Appalachian Basin and other regions of the United States. Their oper...Show More
Better Health for All
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The company's core products, natural gas and oil, cause severe, widespread health damage through climate change, methane emissions, toxic pollutants, and air quality degradation, leading to human morbidity.
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In 2024, 96% of its production mix was natural gas and NGLs.
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Roughly 85% of the company's revenue comes from selling natural gas, directly contributing to these harms.
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The company exhibits a catastrophic safety record impacting public health, with 659 violations related to wellbore integrity and potential methane leakage, over 400 failures to plug wells, and more than 1,600 environmental health and safety violations in Pennsylvania.
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Risk transparency is severely lacking, evidenced by an estimated $2 billion in deferred environmental liabilities, a 93% reduction in company-reported methane emissions contradicted by physical sampling, 3,238 instances of reporting wells 'inaccessible for testing' despite prior accessibility, and failure to file over 1,700 leakage reports.
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Despite a reported 56% reduction in methane intensity by 2024 and 152,000 leak detection surveys, the company's operations still generate significant health-harming externalities with ongoing community impacts.
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Its health equity programs are minimal, with community contributions of $2.1 million in 2024 representing only 0.264% of its $795 million total revenue.
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Fair Money & Economic Opportunity
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No evidence available to assess DIVERSIFIED ENERGY COMPANY PLC on Fair Money & Economic Opportunity.
Fair Pay & Worker Respect
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The company achieved a Total Recordable Incident Rate (TRIR) of 0.89 per 200,000 work hours in 2024.
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Its voluntary employee turnover rate was 10.1% in 2024.
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In the same year, 14.7% of employees were covered by collective bargaining agreements.
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Fair Trade & Ethical Sourcing
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No evidence available to assess DIVERSIFIED ENERGY COMPANY PLC on Fair Trade & Ethical Sourcing.
Honest & Fair Business
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No evidence available to assess DIVERSIFIED ENERGY COMPANY PLC on Honest & Fair Business.
Kind to Animals
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Diversified Energy Company PLC actively engages in wildlife conservation and habitat restoration.
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The company partners with the National Wild Turkey Federation and West Virginia State University on biodiversity initiatives
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, including a White Oak Restoration Initiative impacting approximately 4,000 acres across four states.
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It committed to planting 10,000 trees in West Virginia, supported by a $125,000 donation, with planting beginning in 2023.
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The company proactively includes native common milkweed in seed mixes to support Monarch Butterflies
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and conducts Wetland and Waters Delineation and Threatened and Endangered Species Habitat Assessments.
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Its biodiversity policy, effective August 2023, aims to minimize disruption, protect sensitive species and habitats, and includes reforestation.
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In terms of public policy engagement, Diversified Energy partners with state governments, co-managing a $12.5 million orphan well program in Ohio
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and committing $70 million over 20 years to West Virginia's Mountain State Plugging Fund to retire at least 1,500 wells.
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It also actively engages regulatory agencies, stakeholder groups, and biodiversity experts.
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No War, No Weapons
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The company states alignment with the UN Guiding Principles on Business and Human Rights
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and supports the UN Universal Declaration of Human Rights
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. Its Board annually reviews human rights policies
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, and the General Counsel oversees policies and practices related to human rights, accountable to the CEO and the Board
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. The company also states that it does not operate in areas characterized by destabilizing conflict, lack of security, political instability, or cultural clashes
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Planet-Friendly Business
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The company received 13 notices of environmental violation from the DEP in 2023.
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It has a net-zero Scope 1 and 2 GHG emissions target for 2040, but interim targets are undefined.
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The company's climate reporting is partially aligned with TCFD recommendations, explicitly excluding Scope 3 emissions, though climate scenario analysis is included.
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It has no validated science-based targets. Only 14% of its purchased electricity mix is from renewable sources.
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The company's operations are not connected to forest risk commodities, and it has a "No Net Deforestation Commitment" and participates in reforestation.
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It conducts comprehensive climate scenario analysis for multiple pathways, including 1.5°C, 2°C, and 3°C+, which are linked to strategic planning.
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The company consumed no water in High or Extremely High water stressed areas in 2024.
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It contributes approximately $2.1 million to community programs, with over 25% distributed to diverse and/or socio-economically disadvantaged geographic regions, indicating an established climate justice initiative.
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The company has a biodiversity strategy centered on Avoid, Mitigate, Restore, and Offset principles, and restores well sites to their natural condition.
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It provides minimal disclosure of climate asset risks, with generic statements without quantification.
Respect for Cultures & Communities
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The company recruited 97% of its new hires from local communities in 2024.
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It respects legally designated protected areas and does not operate in designated World Heritage sites.
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No specific incidents of cultural appropriation were reported.
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The company's operations on or near indigenous lands do not include new development or drilling, therefore Free, Prior and Informed Consent (FPIC) processes have not been required.
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The company has 3 formal partnerships with local community groups, including WVU Athletics, Country Roads Trust, and West Virginia’s Bridge Valley Community & Technical College.
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Safe & Smart Tech
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The company reported no cybersecurity incidents during the year ended December 31, 2024, that resulted in an interruption to operations, known losses of critical data, or material impact.
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The company explicitly states it does not trade, sell, or lease personal information entrusted to it.
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The company confirms that personal information is not shared.
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The network is designed using a Zero Trust Approach (ZTA) with segmented layers of security.
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The ZTA extends to identity, endpoints, infrastructure, data, and applications.
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The company focuses on continuous testing of its security posture from both trusted and untrusted sources, and collaborates with third-party managed security service providers for round-the-clock incident monitoring.
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An Information Security Management Team meets at least quarterly to discuss cybersecurity issues, risks, and strategies.
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Zero Waste & Sustainable Products
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The company faced a lawsuit from landowners for failing to promptly clean up abandoned wells.
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It is now required to clean up 2,600 wells across six states by 2034.
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Previously, agreements with state agencies dictated cleaning up only 580 wells.
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The company deals almost exclusively with non-hazardous waste.
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Diversified Energy has implemented several waste reduction initiatives, including eliminating paper statements for royalty owners
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, developing a Central Region waste management plan
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, repurposing an excess separator tank
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, donating scrap pipe
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, and redeploying recovered tubing strings.
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Circular design principles are evident through the repurposing of separator vessels into compressed air tanks
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and the reuse of recovered tubing strings from plugged wells.
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