Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental impact of energy industry
• Diversity, Equity & Inclusion
• Ethical and sustainable business practices
• Operational efficiency and productivity

Environmental Achievements

• Developing products that drive increased drilling efficiency and improved wellbore placement, helping reduce carbon footprint of overall industry.
• Environmentally responsible cleaning, recycling and disposal of equipment returned from field operations.
• Investing in solar and energy storage markets through Energy Toolbase.

Social Achievements

• Unique and inspiring workplace culture with a focus on total employee well-being.
• Inclusive work environment supporting diversity, equity and inclusion.
• Unwavering commitment to safety of workforce and protection of assets.

Governance Achievements

• Significant investments in digital security infrastructure and systems protecting Pason and customer data.
• Experienced, independent and diverse Board of Directors.
• Strong corporate governance policies and practices, including annual ‘say on pay’.
• Executive compensation tied to safety, financial and strategic targets, and shareholder returns.
• Comprehensive Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Maintaining operational effectiveness amidst changing public health guidelines and restrictions related to COVID-19.
• Minimizing environmental impact of vehicle fleet and support service structure.
• Managing risks related to data security and cybersecurity.

Mitigation Strategies

• Disciplined management of operating costs, capital expenditures and working capital.
• Adoption of standard procedures for vehicle maintenance and usage, including timely repair, speed monitoring, and idle warnings.
• Implementation of a robust information security framework, including vulnerability assessments, penetration testing, employee training, and incident response measures.

Supply Chain Management

Responsible Procurement

• Sustainable manufacturing model; expectation that contract manufacturers follow similar principles.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Core Option, SASB

Sustainable Products & Innovation

• Drilling intelligence products aiming to optimize well construction, reducing overall environmental impact.
• Energy Toolbase products and services for solar power and energy storage.

Awards & Recognition

• Alberta’s Top 75 Employers (2021)
• The Globe & Mail’s 2021 Report on Business “Women Lead Here” list

Environmental Metrics

ESG Focus Areas

• Health, Safety and Environment
• Environmental Responsibility
• Employees
• Cyber Security
• Business Ethics

Environmental Achievements

• Achieved a global Total Recordable Injury Rate (TRIR) of 0.95 in 2023.
• Pason’s products and services play a critical role in ensuring the safety of drilling operations for its customers and help reduce the carbon intensity of the overall hydrocarbon extraction process.

Social Achievements

• Maintained a strong safety culture and unwavering commitment to providing a safe and healthy work environment.
• Continued to find new ways to obtain and attract new talent and establish a more purpose-driven and engaged workforce.
• Employees are free to perform to their fullest potential in an open and collaborative environment that supports and promotes a healthy lifestyle.

Governance Achievements

• Board of Directors oversight over the development, implementation and monitoring of the Company’s HSE policies.
• Cyber risk oversight is conducted by the Board’s Audit Committee.
• All of Pason’s directors, officers, employees and contractors must acknowledge that they have read, understood and will abide by the Code of Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic conditions were challenging in 2023 due to geopolitical instability, recession risk, and higher interest rates, introducing significant volatility in commodity prices.
• Increased consolidation amongst E&P companies put pressure on industry drilling activity in 2023.
• Global supply chain disruptions and labor shortages.
• Seasonal factors impacting drilling activity in Canada.
• Credit risk from customers experiencing financial difficulty.
• Competition from large US service companies and other niche service providers.
• Attracting and retaining qualified personnel.
• Cybersecurity risks.
• Availability of raw materials, parts, or finished products.
• Geopolitical risks in international operations.
• Foreign exchange risk.
• Climate-related risks (regulatory, policy, and physical).
• Alternative energies risk (transition to low-carbon economy).
• Investor sentiment towards the oil and natural gas industry.
• Insurance market strains.
• Taxation changes.
• Litigation and legal claims.

Mitigation Strategies

• Continued growth in revenue generated per day and record North American Revenue per Industry Day in 2023.
• Continued investments in R&D and capital expenditures to support long-term value creation.
• Acquisition of Intelligent Wellhead Systems Inc. (IWS).
• Strong balance sheet with no interest-bearing debt and significant cash on hand.
• Diversification into solar and energy storage markets through ETB.
• Proactive recruiting and retention initiatives.
• Meaningful investments in cybersecurity measures.
• Dedicated procurement team to manage equipment and hardware needs.
• Corporate insurance program to protect against liabilities.
• Operational and emergency response procedures and safety and environmental programs.
• Tax efficient operations.
• Mitigation strategies to address climate-related risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and extreme weather events, natural disasters such as flooding and forest fires, shifts in temperature and precipitation, and changing sea levels

Transition Risks

• Government regulations and other developments could have a material impact on Pason’s client base

Opportunities

• Exploring new opportunities to apply the Company’s expertise in instrumentation and data services to markets beyond of oil and gas drilling

Environmental Metrics

ESG Focus Areas

• Safety
• Inclusion
• Innovation
• Sustainability of the energy industry
• Operational efficiency
• Ethical business practices

Climate Goals & Targets

Environmental Challenges

• Measuring and reducing Scope 3 emissions

Mitigation Strategies

• Working with suppliers, encouraging virtual meetings, promoting public transport and commuting

Supply Chain Management

Climate-Related Risks & Opportunities