Dril-Quip, Inc. ( DRQ Quick Quote DRQ - Free Report) laid out decarbonization targets to align with a global warming pathway of 1.5 degree Celsius, in line with the Paris Agreement.
The company is planning to reduce its combined Scope 1 and Scope 2 emissions by more than 50% by 2030.
Dril-Quip’s decarbonization process involves shifting to renewable sources of energy at particular manufacturing sites, restructuring facilities, investing in infrastructure to reduce emissions, reducing vehicle fleet and assessing opportunities related to electrification.
Dril-Quip commits to protecting the environment not only throughout the organization but also in the broader energy sector. More than 75% of the company’s Scope 3 emissions are believed to be associated with equipment, products and services purchased by it and the use of equipment leased by customers. Hence, it is engaging with suppliers and customers to explore ways to further decarbonize their operations.
The company is collaborating with major suppliers to reduce upstream emissions in the sourcing process to reduce their carbon footprint and meet long-term emission-reduction targets. Beside this, the drilling and manufacturing company is attempting to develop engineered solutions to reduce emissions, while fitting and installing products by aligning their solutions with their long-term decarbonization goals.
Dril-Quip continues to invest in technologies and services, which reduce carbon and environmental effects through both internal R&D efforts and collaborations. This is backed by the company’s innovative e-Series products, which help customers reduce their carbon footprint. Also, the company’s recently-announced collaboration with Aker Solutions will provide customers with an optimal carbon capture, utilization and storage solution.
Headquartered in Houston, Dril-Quip is a leading developer, manufacturer and provider of highly engineered equipment, services and innovative technologies for the energy sector. The company also provides installation and reconditioning services, and rents tools for use in the installation and retrieval of its products.
Dril-Quip currently has a Zacks Rank #3 (Hold). Investors interested in the energy space might look at the following companies, each sporting a Zacks Rank #1 (Strong Buy). You can see
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