How Axxela Creates Value

Stakeholder Engagement

As a company that prioritises value creation, we believe that engaging with our stakeholders is essential to our business. We engage with our stakeholders regularly through various channels and utilise their feedback to validate, enhance and optimise our sustainability strategy.

In our stakeholder discussions, we frequently collaborate with our business units to address concerns related to customers, employees and suppliers.

More about how we engage our stakeholders

The Outcomes of Our Stakeholder Engagement

Customers

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Postive Feedback:

1. Excellent attention to client safety.
2. Increased safety awareness programs for clients.
3. Good commercial & technical support/expertise.
4. Clean and cheaper source of fuel.
5. Energy cost savings.
6. Pollution-free environment.
7. Reduction in operations and maintenance costs.

Recommendations for Improvement:

1. Gas supply-related issues.
2. Regular calibration & meter proofing.
3. Provision of a backup solution to Pipeline Natural Gas.
4. Improve communication on gas availablity.
5. Prompt resolution of technical/safety issues.

Board Members/Shareholders

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Postive Feedback:

1. An overarching OHS management system (ISO 45001:2018) is actively implemented. Attention is given to planning processes, vendor qualification, risk assessment and technical expertise. Outside the core Axxela team, operations at the various assets are managed by third-party contractors with procedures in place for execution and monitoring.
2. Resourcing, Training and Awareness, Contractor Management and Controls and Health, Safety and Security Monitoring and Performance are good.
3. Proper Asset integrity carried out via proper design, construction and maintenance.
4. Good monitoring of basic resource usage (energy, waste, etc).
5. Monitoring of energy savings and operational emissions.
6. Fully matured HR processes and procedures with workplace diversity (gender, ethnicity & disability) in place.

Recommendations for Improvement:

1. Establish a stakeholder engagement standard to ensure a consistent approach to stakeholder engagement.
2. Establish an overarching labour policy which sets the tone and defines management's commitment to labour and human rights issues.
3. Improve existing waste management plan to consider waste reduction procedures, chain of custody and tracking procedures, and other good practices, to minimise potential risks to the environment and human health.

Employees

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Postive Feedback:

1. Employees were happy about the amenities provided by the organisation to ease Working at Home (e.g., data, functional vehicles, etc).
2. Cost of Living adjustments based on company revenue exchange rate benchmark.
3. Provision of lunch in the organisation.
4. Implementation of an Enhanced Mortgage plan to enable staff to become homeowners.
5. Leadership/Succession planning development training organised for employees.
6. Assisted employees in accessing COVID-19 booster shots.

Recommendations for Improvement:

1. Concentrated development approach and regular check-ins to ensure staff are happy with working conditions.
2. Improving work environment and exploring hybrid/full remote working for roles that apply.
3. Improve retention strategy to reduce attrition rate.

Host Communities

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Postive Feedback:

1. Assurance of the safety of our Pipeline System.
2. Creation of a joint sense of ownership of the assets/projects between the communities and Axxela.
3. Employment opportunities created for the indigenous communities.
4. Knowledge transfer of sustainability and the use of greener fuels (Natural Gas).
5. CSR support and Inclusion. Additional requests for more CSR projects continue to be requested, but this is being managed.
6. Well-meaning recommendations from communities.

Gas Suppliers/Off-takers

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General Feedback:

1. Prompt settlement of invoices by offtakers.
2. Prioritising supplies to Axxela during gas shortages.

Regulatory Agencies

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General Feedback:

1. Ensure all regulatory requirements are adhered to, regulatory filings are completed, and requests for information are responded to.
2. Participation in events and fora, collaboration on government/industry campaigns and programs, tours of operations and site visits.

Contractors

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Postive Feedback:

1. Axxela's continuous improvement in payable days has been laudable.
2. Vendor milestones have been structured to aid financial fluidity for high-capital projects.
3. High vendor participation at the last vendor forum was commendable.

Media

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Postive Feedback:

1. Our media partners expressed gratitude for continuous support for their activities and initiatives.

We strive to maintain the highest standards and believe that industry associations play an important role in shaping our values and enabling external stakeholders to hold us accountable.

Our active participation in several industry and membership associations, as well as national or international advocacy organisations are listed below:

Customer Satisfaction

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Satisfied with the safety & quality of our products

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Satisfied with our technical issues resolution

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Satisfied with our customer service processes

Materiality Assessment

We deemed the material topics used in this 2022 report to be still relevant and updated, based on the latest reassessment we conducted in 2021. We evaluated the importance of the information to stakeholders and the impact of our organisation on economic, environmental, and social aspects when determining materiality. We conduct a materiality assessment every year to identify the key strategic sustainability topics and ensure that they remain relevant to our stakeholders.

The list of most material topics identified was aligned with the GRI guidelines and standards and was validated and approved by the Management Board.

Although we consider all material topics important, this report includes information only on the topmost significant topics identified by our stakeholders.

Our 2022 Achievements

Economic (Profit)

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1. Achieved GCR Rating of A-Short Term and A2 long term with a positive outlook
2. Deployment of UFG data management system.
3. Achieved maintenance of our ISO 9001:2015, 14001:2015, and 45001:2018 Integrated Management Systems certification.
4. Achieved 6.9Million LTI Man-Hrs.
5. Zero Regulatory Infraction.
6. Increased gas sales volume in 2022 (849MMSCM) when compared to 2021 (829MMSCM).

More about our Economic Achievements

Social (People)

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1. Back-to-School scholarship for 100 pupils.
2. Created employment opportunities for local community members.
3. Construction of six blocks of classrooms at St John Anglican Primary School, Ilado.
4. CSR donations/support in communities along our pipeline ROW in Ogun State.
5. CSR donations to the Federal Road Safey Corps Lekki Command.

More about our Social Achievements

Environmental (Planet)

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1. 42.75% and 31.25% reduction in direct and indirect C02 emissions, respectively.
2. 24% reduction in energy consumption in Axxela.
3. 11% reduction in total energy consumption.
4. Reinstated all bio life along our RoW.
5. Contributed about N5,000,000 to LASPARK Tree Planting Initiative.

More about our Environmental Achievements

Material Topics