At ARR, we recognize that climate change is one of the defining challenges of our time, and we believe that businesses play a critical role in helping to address and mitigate climate change.
As a newly formed company, we are in the initial stages of understanding our climate impacts and developing our climate strategy. We have begun the process to measure and report our GHG emissions and are continuously monitoring evolving global standards to ensure our alignment. We are also actively assessing and managing climate change risks and opportunities associated with our operations.2022 Sustainability Report
We recognize the critical role that businesses play in responsible environmental stewardship. We are proud of the role we play in the energy transition.
1OUR ROYALTY OPERATORS DO NOT CURRENTLY PROVIDE PUBLIC DISCLOSURE OF THEIR GHG EMISSIONS ON AN ASSET-BY-ASSET BASIS, AND AS A RESULT WE DO NOT CURRENTLY HAVE THE ABILITY TO DISCLOSE OUR SCOPE 3, CATEGORY 15 EMISSIONS
The successful funding and launch of ARR has played a role in decarbonization efforts in the U.S. In 2022, five of ARR's royalties on wind and solar projects were operating for the full year. These projects collectively generated 2 million megawatt hours (“MWh”) of renewable electricity with zero emissions.
The primary source of electricity generation in Texas and Kansas, where our projects are located, is natural gas. Converting the total MWh generated into tonnes of carbon dioxide equivalent (“CO e”), we estimated the amount of CO e that would have been emitted if our renewable generation had not been added to the grids. Considering our royalty percentages, which vary across projects, 95,043 tonnes of CO e were avoided as a result of renewable energy generation replacing predominantly non-renewable sources in the ERCOT and SPP South grids of Texas and Kansas.
Find more information about avoided emissions on page 19 of our 2022 Sustainability Report.