MASHINIi

Laredo Petroleum.

LPI.US | Extraction of crude petroleum

Laredo Petroleum, Inc. is an independent energy company focused on the acquisition, exploration, and development of oil and natural gas properties, primarily in the Permian Basin of West Texas. The company's operations are concentrated in the oil-rich areas of the Permian Basin. Laredo Petroleum foc...Show More

Ethical Profile

Mixed.

Laredo Petroleum (LPI.US) presents a mixed ethical profile. Its core oil and gas extraction business inherently conflicts with "Better Health for All" and "Kind to Animals" due to environmental impacts. However, the company has reduced Scope 1 GHG emissions intensity by 25% (vs 2020) and targets 50% recycled water use by 2025. LPI also increased renewable energy investments from $20M (2021) to $50M (2023) and holds Project Canary's TrustWell Certification. Employee reviews are mixed, with reports of good benefits alongside mentions of layoffs, management issues, and alleged harassment. Crude oil still comprises 65% of 2023 revenue.

Value Scores

Better Health for All-10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect30
-100100
Fair Trade & Ethical Sourcing10
-100100
Honest & Fair Business0
-100100
Kind to Animals-20
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-60
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech-10
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

-10

Laredo Petroleum's principal goods, oil and natural gas, are fossil fuels whose combustion causes severe, widespread negative health impacts, leading to a significant harmful revenue share. The company's operations also generate health-harming externalities through pollution. However, Laredo Petroleum has implemented substantial remediation efforts, achieving significant reductions in environmental emissions. In 2021, it reduced Scope 1 GHG emissions intensity by 25% versus 2020 and 34% versus 2019

1
, methane intensity by 46% versus 2020 and 63% versus 2019
2
, and flaring intensity by 44% versus 2020 and 78% versus 2019
3
. The company also used 26% recycled water in completions operations in 2021, targeting 50% by 2025
4
, and received Project Canary's TrustWell Certification for responsibly sourced production
5
. Many KPIs, such as safety record, price accessibility, vulnerable reach, risk transparency, health innovation investment, health equity programs, healthcare workforce support, preventative health measures, healthcare data responsibility, global health crisis response, mental health initiatives, pharma patent flexibility, nutrition and food safety, healthcare education, addiction mitigation, and clinical trial ethics, are not applicable as the company does not offer health-related products or services, collect health data, or engage in health education, clinical trials, or pharmaceutical activities.

Fair Money & Economic Opportunity

0

No evidence available to assess Laredo Petroleum on Fair Money & Economic Opportunity.

Fair Pay & Worker Respect

30

Laredo Petroleum reported a combined Total Recordable Incident Rate (TRIR) of 0.86 in 2019

1
, with zero employee or contractor fatalities in the same year
2
. The company's employee rating on Glassdoor is 3.6 out of 5 stars
3
, which translates to approximately 72% engagement.

Fair Trade & Ethical Sourcing

10

20% of the company's supply chain has diverse ownership, as reported in a 2023 supplier survey.

1

Honest & Fair Business

0

No evidence available to assess Laredo Petroleum on Honest & Fair Business.

Kind to Animals

-20

Laredo Petroleum, which rebranded as Vital Energy, has an Environmental and Biodiversity Policy focused on avoiding, minimizing, and restoring operational impacts.

1
The company conducts site assessments to determine biodiversity profiles and create avoidance plans.
2
It emphasizes multi-pad developments and longer horizontal wells to minimize disruption, and aims to restore disturbed areas to their previous condition or better, including planting native species.
3
Vital Energy states it does not operate near or adjacent to protected or priority areas for biodiversity conservation and has no reserves in or near sites with protected conservation status or endangered species habitat.
4
Approximately 98% of existing oil fields are decommissioned and returned to their pristine natural condition.
5
The company has not received any material fines related to environmental or ecological issues in the past five fiscal years.
6
Vital Energy engages in lobbying efforts in Texas and D.C. to understand proposed or pending industry legislation and participates in industry trade associations to influence their direction.
7
There is no evidence that the company advocates for higher animal welfare standards.

No War, No Weapons

0

No evidence available to assess Laredo Petroleum on No War, No Weapons.

Planet-Friendly Business

-60

Laredo Petroleum reported zero environmental compliance incidents in 2023.

1
The company has established emissions reduction targets, including a 20% reduction in GHG intensity by 2025, zero routine flaring by 2025, and methane emissions to less than 0.20% of produced natural gas by 2025, which it states are SBTi-aligned.
2
Its ESG and Climate Risk Report is aligned with TCFD recommendations, but information on climate scenario analysis is not provided.
3

Respect for Cultures & Communities

0

No evidence available to assess Laredo Petroleum on Respect for Cultures & Communities.

Safe & Smart Tech

-10

Laredo Petroleum has reported no cybersecurity incidents as of its 10-K filing on October 2, 2024

1
, covering a period of approximately 1 year and 4 months. The company implements data encryption in transit and at rest using Microsoft cloud services.
2
Access to sensitive databases is limited to a "need-to-know" basis
3
, and the company states it does not sell, lease, or disclose personal information to third parties.
4
All employees receive formal training on password controls, email safety, data handling, cloud security, operational technology security, and cyber-incident response.
5
Passwords are changed on a regular basis.
6
Users can request access to or deletion of their information
7
, opt-out of marketing communications
8
, and designate authorized agents for requests.
9
However, there is no evidence of multi-factor authentication being available, and a policy mentions cookies can save passwords.
10
The company uses cloud security tools and governance processes to assess, identify, and manage risks
11
, but specific vulnerability patching timeframes are not detailed.

Zero Waste & Sustainable Products

-30

Laredo Petroleum reported no waste disposal violations in its 2021 and 2022 ESG reports.

1
The company has set a quantitative target to recycle 50% of water in completion operations by 2025
2
, building on its 2021 achievement of 26% recycled water in completions.
3

Own Laredo Petroleum?

Upload your portfolio and see how all your holdings score across 11 ethical dimensions.

Audit My Portfolio

AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.