Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• People
• Safety
• Environment

Environmental Achievements

• Reduced carbon intensity of operations by 30% (from 32.65 tonnes CO2 eq in 2018 to 22.73 tonnes CO2 eq in 2019), despite a 42% increase in absolute emissions due to operational growth.
• Zero significant spills to sea (spills > 1 metric cube).
• Extended ISO 14001 certification to corporate office.

Social Achievements

• Increased workforce from 1,243 in 2018 to 1,934 in 2019.
• Launched Borr Competency Assessment Management System (BCAMS) for offshore personnel training.
• Increased percentage of female board members from 0% in 2018 to 29% in 2019.
• Implemented a strategy of hiring local crews whenever possible, reducing air travel carbon footprint and positively impacting local communities.

Governance Achievements

• Conducted a Sustainability Stakeholder Engagement Workshop to identify material CSR topics.
• Partnered with EcoVadis for supplier CSR performance assessment.
• Partnered with TRACE International for anti-bribery and corruption (ABC) awareness training.
• Developed a three-phase approach for supply chain due diligence (Code of Conduct commitment, EcoVadis screening for top suppliers, and physical audits if necessary).

Climate Goals & Targets

Environmental Challenges

• Increase in absolute GHG emissions due to operational growth.
• Challenges related to the physically demanding nature of offshore work and extended work rotations impacting gender diversity.

Mitigation Strategies

• Researching the use of hybrid battery packs, energy management plans, and biofuels to reduce GHG emissions.
• Focusing on hiring and training local crews to improve gender diversity and reduce carbon footprint.
• Implementing BCAMS to improve workforce competency and career development.

Supply Chain Management

Responsible Procurement

• Supplier Procurement and Corporate Social Responsibility Policy
• Partnership with EcoVadis for supplier CSR assessment
• Partnership with TRACE International for ABC training

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standard (aiming for alignment in future reports)

Certifications: ISO 14001 (corporate office and select operations), ISO 45001 (corporate office)

Third-party Assurance: CEMAsys AS, Oslo, Norway (for GHG emissions)

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 14: Life Below Water

Borr Drilling aims to contribute to these SDGs through various initiatives.

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Safety
• Governance

Environmental Achievements

• Installed SCR system on Prospector 1, reducing NOx emissions by 92.6% (expected to reach 95%) and CO emissions by up to 95%
• 78% compliance with phasing out single-use plastics across all rigs and offices
• 75% compliance with using eco-friendly chemicals (100% in North Sea)

Social Achievements

• Increased female representation in Senior Management from 11% to 30%
• 21% reduction in Total Recordable Injury Frequency
• 18% reduction in Dropped Object Incident Frequency

Governance Achievements

• Achieved a silver rating from EcoVadis for sustainability performance
• 96% of invited suppliers registered on the EcoVadis platform, 61% completed assessment
• Code of Conduct training conducted for senior management and employees in various locations

Climate Goals & Targets

Environmental Challenges

• Reduced operations, travel restrictions, and office closures due to COVID-19 impacting financial liquidity and emissions data
• Postponement of projects and early termination of contracts by customers
• COVID-19 related travel restrictions suspending Trust and Verify Audit team

Mitigation Strategies

• Raised more than $100 million in liquidity from share issuances, deferred debt maturities, new-build deliveries, and postponed interest payments
• Implemented COVID-19 related protocols to safeguard personnel health
• Implemented flexible working model to align with the new normal, reducing commute and energy consumption

Supply Chain Management

Supplier Audits: 59 suppliers invited to EcoVadis, 61% completed assessment

Responsible Procurement

• Supplier CSR assessments through EcoVadis platform
• Supplier Procurement and Corporate Social Responsibility procedures

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, GHG Protocol, IPIECA

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Environment & climate change
• Social inclusion & wellbeing
• Ethical business & governance

Environmental Achievements

• 39% reduction in Total Recordable Injury Frequency (TRIF)
• 53% reduction in Dropped Object Incident Frequency (DOIF)
• Zero spills greater than 1m3
• 95% of rigs transitioned to environment-friendly alternatives for pipe dope, BOP fluid, and jacking grease

Social Achievements

• Launched an Employee Assistance Program for mental wellbeing
• Implemented hybrid working in London, Aberdeen, and Dubai
• 81% local workforce
• Social welfare project in Cameroon supporting an orphanage

Governance Achievements

• Achieved a Gold medal rating from EcoVadis
• Implemented a new digital application called Docmap to enhance safety communication
• Continued training on Anti-Bribery, Anti-Corruption, and Modern Slavery Act

Climate Goals & Targets

Environmental Challenges

• Rising demand for oil and gas alongside growing focus on clean energy and emission reduction
• Pandemic-related travel restrictions impacting internal audits

Mitigation Strategies

• Improving operational efficiency to reduce emissions
• Exploring opportunities to use technology to reduce fuel consumption
• Conducting feasibility study on green hydrogen production
• Implementing smart lighting on rigs
• Offsetting carbon footprint from business air travel
• Internal audits conducted by rig management with support from regional personnel

Supply Chain Management

Supplier Audits: 40 out of 77 critical suppliers rated by EcoVadis in 2021

Responsible Procurement

• Sustainable procurement practices
• Supplier screening through EcoVadis for sustainable practices, ethics, labor and human rights, and environment
• Commitment to Borr Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Green hydrogen production
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), TCFD (Task Force on Climate-Related Financial Disclosures)

Certifications: ISO 14001 (UK offices and North Sea rigs)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8 (Decent work and economic growth)

Local employment, skill development initiatives

Sustainable Products & Innovation

• Green hydrogen production (Project Haldane)
• Smart lighting technology

Awards & Recognition

• PTTEP CEO SSHE Excellence Award 2021 (Thailand regional team)

Environmental Metrics

ESG Focus Areas

• Environment & Climate Change
• Social Inclusion & Wellbeing
• Ethical Business & Governance

Environmental Achievements

• Achieved a 'B' rating from CDP (Carbon Disclosure Project), the highest rating category in their peer group.
• Achieved a Gold rating from EcoVadis, a leading provider of sustainability ratings.
• Started tracking all emissions data using external software.
• Purchased 672 tons of verified carbon credits through Respira.

Social Achievements

• Launched a mental health support project in their Aberdeen office (P3 Business Care) with 95% engagement.
• Implemented several enhancements at an orphanage in Douala, Cameroon (mud dams, water well, water tank).
• Made donations to orphanages in Gabon and Congo, including essential equipment, furniture, and food supplies.
• Offered work training to two young men from a Congolese orphanage.

Governance Achievements

• Adopted the Global Reporting Initiative (GRI) 2021 Standards, including the Oil and Gas Sector Standard.
• Initiated the process to be certified to ISO 27001 (obtained in March 2023).
• Relaunched the 'Trust and Verify' audit program, aiming to audit every rig by the end of 2023.

Climate Goals & Targets

Environmental Challenges

• Increased number of operating rigs leading to higher emissions.
• Limitations in the availability of Renewable Energy Certificates (RECs).
• Challenges in consolidating data for reporting, particularly water consumption and some governance metrics.
• Difficulties in ensuring compliance with laws and regulations across various geographical locations.

Mitigation Strategies

• Purchasing carbon offsets for emissions not covered by RECs.
• Working to expand climate accounting by implementing new procedures and requesting data from partners.
• Developing procedures for data consolidation and improved reporting.
• Allocating internal resources to ensure processes and procedures meet legislative standards.

Supply Chain Management

Supplier Audits: 12 suppliers rated by EcoVadis in 2022; additional suppliers assessed through SupplHi in 2023.

Responsible Procurement

• All suppliers must comply with Borr Drilling Code of Conduct.
• High-risk suppliers assessed by TRACE International.
• Critical vendors encouraged to undergo independent ESG assessment via EcoVadis.

Climate-Related Risks & Opportunities

Opportunities

• Opportunities to adapt to the energy transition
• Offering carbon neutrality as part of rig offerings.

Reporting Standards

Frameworks Used: GRI 2021 Standards, GRI Oil and Gas Sector Standard 2021, CDP, EcoVadis

Certifications: ISO 14001, ISO 27001

Third-party Assurance: Position Green

UN Sustainable Development Goals

• SDG 9
• SDG 12
• SDG 13
• SDG 14
• SDG 5
• SDG 8
• SDG 17

Alignment with SDGs is explained through connections between material topics and specific SDG targets.

Sustainable Products & Innovation

• Carbon compensated rig offering (planned for 2024).

Environmental Metrics

ESG Focus Areas

• Environment & Climate Change
• Social Inclusion & Well-being
• Ethical Business & Governance

Environmental Achievements

• Achieved a Carbon Disclosure Project rating of B for the 2023 submission—the highest rating amongst our peer group of drilling contractors.
• Implementation of a carbon footprint reporting tool to enable more precise tracking and reporting of our carbon emissions across operations.
• Pilot project rolled out to leverage sensor-based real-time software analytics to optimize energy performance and reduce emissions.
• Three pilot rigs had smart lighting installed, each expected to reduce carbon emissions by an estimated 50 MtCO2e annually.
• Greener Chemical Working Group established to identify greener chemical alternatives for use onboard our rigs.

Social Achievements

• Achieved target of offshore personnel being a local workforce.
• Total Recordable Incident Frequency (TRIF) significantly below IADC TRIF of 1.66 for 2023.
• Diversity, Inclusion, and Equity (DI&E) training included in Onshore Minimum Training standard and rolled out across the organization.
• Launched an electronic Behavior Based Safety (BBS) system.
• Various community investment projects in Congo, Thailand, Singapore, Malaysia, and Brunei (details provided in report).

Governance Achievements

• Sustainability reporting and ESG disclosures expanded and strengthened with alignment to GRI standards.
• Sustainability Steering Committee created to establish key targets and initiatives in relation to ESG material topics and track progress.
• Implementation of a carbon footprint reporting tool to enable more precise tracking and reporting of our carbon emissions across operations.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions accounting is challenging.
• Data collection and consolidation for certain metrics (e.g., water consumption) is ongoing.
• Balancing innovation with market demands and operational stability during the transition to lower-emission technologies.
• Limitations in the availability of Renewable Energy Certificates (RECs).

Mitigation Strategies

• Planning a thorough Scope 3 screening to expand reporting.
• Improving data collection and consolidation processes.
• Exploring opportunities to scale emission reduction technology across assets in collaboration with customers.
• Purchasing carbon offsets for emissions not covered by RECs while monitoring markets for renewable energy opportunities.

Supply Chain Management

Supplier Audits: 51 vendors added to Borr-approved independent ESG audit platforms (Eco Vadis/SupplHi); 16 critical vendors obtained rating in 2023. Total of 177 vendors engaged.

Responsible Procurement

• All suppliers must commit to complying with the Borr Drilling Code of Conduct.
• Encouraging suppliers to respond to EcoVadis and SupplHi ESG auditing platforms.

Climate-Related Risks & Opportunities

Physical Risks

• More extreme weather

Transition Risks

• Carbon taxations schemes
• Carbon emission caps or tariffs
• Climate-related policies or regulations restricting offshore licenses

Opportunities

• Operational optimization
• Collaboration projects with clients on technology development
• Rig electrification

Reporting Standards

Frameworks Used: GRI Standards, CDP, TCFD, TNFD

Certifications: ISO 14001, ISO 27001

Third-party Assurance: Position Green

UN Sustainable Development Goals

• Goal 5
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 14
• Goal 17

Mapping of SDGs to material topics is detailed in the report.

Sustainable Products & Innovation

• Offering carbon neutrality as part of the rig offering to clients (future goal)