Sustainability

Here at EnCap, we are proud of being a good steward of our investors’ capital. Our sustainability efforts are underpinned by a foundation of strong, principled governance. We’ve been investing in the energy space for more than three decades and have worked hard to maintain a reputation and culture of integrity.

Risk management has always been at the core of what we do. EnCap controls the boards of virtually all of our portfolio companies. When we evaluate a management team, we look for professionals who have proven track records, extensive operational backgrounds and deep expertise in incorporating environmental, regulatory and health and safety concerns into their business decisions. While we are in frequent dialogue with our portfolio companies, we require them to report and discuss significant sustainability matters at board meetings.

EnCap and our employees have a long philanthropic history. We consider this an important part of our sustainability efforts and are committed to making a meaningful impact in our communities.

As we look ahead, we are excited about the opportunity set for energy investments. Billions of people around the world do not have access to affordable energy. We expect the demand for energy to continue to grow and improve the quality of life for people around the globe. The challenge we face as an industry is to meet this demand while reducing overall emissions. EnCap is committed to staying informed of sustainability standards as they evolve and striving to deliver leading performance.

EnCap’s Sustainability Principles

ESG Principles Environmental

Environmental

  • Promote the importance to our operators of being responsible stewards of air, land, and water.
  • Encourage our Upstream companies to monitor and reduce emissions.
  • Invest in decarbonization efforts via our Energy Transition companies.
  • Prioritize innovative technologies and practices to improve environmental performance where commercially feasible.
ESG Principles Social

Social

  • Attract talented employees and provide them an environment to grow. 
  • Foster an inclusive and respectful work environment. 
  • Strive for leading practices regarding health and safety in our portfolio company operations. 
  • Support our companies in their engagement with local communities. 
  • Give back to philanthropic organizations that employees are passionate about. 
ESG Principles Governance

Governance

  • Commit to conducting our business with integrity. 
  • Manage risk by leveraging board representation at the portfolio company level in virtually all investments. 
  • Seek to review sustainability matters at quarterly board meetings. 
  • Expect portfolio companies to implement sustainability-related policies and procedures. 
  • Collect standardized metrics from our portfolio companies to emphasize areas of focus and assess improvement. 

EnCap’s Sustainability History

We are proud of the progress we have made in our sustainability journey. A few key milestones are represented in the timeline below. You will notice in 2021, we promoted Sophia Friese to Head of Sustainability. We are pleased to have a talented professional fully dedicated to evaluating, enhancing, and implementing our sustainability practices. 

2008

to

2012

Policies and Procedures

ESG History 1

  • Formally established sustainability-related policies and procedures
  • 2009: Responsible Investment policy
  • 2011: EH&S policy
  • 2012: ESG policy

2014

Requirements

ESG History 2

  • Required portfolio companies to report on material sustainability matters at board meeting

2019

Energy Transition

ESG History 5

  • Added Energy Transition platform
  • Highly experienced leadership team
  • Became a UNPRI signatory

2020

Communication

ESG History 6

  • Published first sustainability report
  • Hosted sustainability summit

2021

Implementation

ESG History 7

  • Enhanced standardized data collection
  • Published second sustainability report
  • Established Head of Sustainability role and hired energy sustainability consultant

2024

Reporting

ESG History 3

  • Established quarterly reporting for Upstream portfolio.

Current

Improvement

ESG History 4

  • Continue to publish annual sustainability reports
  • Continue to develop the quality of our sustainability data

EnCap Cares

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EnCap EnGage logo

Citizenship is a core value at EnCap. We believe that to whom much is given, much is expected. We express this philosophy through our Charitable Contribution and Sponsorship program and volunteering with a range of nonprofit organizations through our EnCap Engage program. Formed in 2019, EnCap Engage is focused on organizing volunteer events that allow EnCap employees to have a hands-on impact in the local community. Previous events have included volunteering at the Houston Food Bank, assembling COVID-19 safety kits and school supply kits for local elementary school children, and home repair with Rebuilding Together Houston.

In addition, EnCap matches dollar-for-dollar certain employee donations to nonprofit organizations, including those focused on education and health care. Beyond EnCap Engage, the firm continues to participate in multiple service and charitable giving programs and individual team members donate time and talent by serving on nonprofit boards.

Learn more about the EnCap Engage program

December 2024- EnCap EnGage with Memorial Assistance Ministries.

Portfolio Company Initiatives

We are also very proud of the various sustainability initiatives at our current and past portfolio companies. Here are a few examples:

  • Image
    Enduring Resources logo

    Enduring Resources
    Innovative Completions
    Enduring owns and operates an integrated water management system that allows for slickwater completions instead of the nitrogen foam method commonly used across the San Juan Basin. Under the method used by its competitors, nitrogen becomes entrained in the natural gas, requiring regional operators to flare until nitrogen levels decrease below acceptable pipeline standards. Enduring’s approach allows it to connect wells to midstream operators during flowback, eliminating the need for flaring.

  • Image
    Double Eagle logo

    Double Eagle
    Investment in Water Recycling Infrastructure
    Double Eagle has invested significantly in its water recycling infrastructure, which includes pipelines, recycle ponds, storage pits, and saltwater disposal facilities. Since its system became operational, Double Eagle has recycled a significant portion of the water it has produced. This reflects a continued commitment to responsible water management and operational efficiency.

  • Image
    Parliament Energy logo

    Parliament
    Commitment to Operational Excellence
    Parliament Solar seeks to foster a proactive safety-first culture at its solar facility near Houston, Texas. To safeguard its workforce, Parliament holds daily safety standdowns at the beginning and end of each workday, as well as before new tasks. Any near-miss incidents are recorded, and individuals are re-trained to reinforce safe work practices. There is also a dedicated on-site safety headquarters, which enables direct collaboration between construction leadership and personnel for any issues that may arise. All of these efforts underscore Parliament’s commitment to maintaining operational excellence.

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