Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Responsibility
• Social Responsibility
• Anti-Bribery and Corruption
• Modern Slavery
• Diversity and Inclusion

Environmental Achievements

• Zero environmental incidents during operations in 2019
• 3D seismic acquisition completed at Tapi Aike with minimum environmental impact
• Exploring projects to protect and preserve the local environment in Santa Cruz province, Argentina

Social Achievements

• Partnered with Love to Learn in London, piloting a successful internship scheme for young refugees
• Continued work with Children of Latin America (COLA) charity, contributing to life-saving heart operations and fundraising
• 40% female workforce
• Company-wide training on ABC standards

Governance Achievements

• Successful relinquishment of liabilities associated with CDL licenses
• Successful restructuring of partnership in Tapi Aike
• Completion of Santa Cruz Sur acquisition
• Continued cost-cutting and streamlining of General & Administrative (G&A) expenses

Climate Goals & Targets

Environmental Challenges

• Political instability in Argentina and Bolivia
• Breach of Bribery Act risk
• Macroeconomic uncertainty (FX rates, interest rates, inflation)
• Covid-19 pandemic (operational interruptions, demand downturn)
• Loss of key personnel
• Portfolio diversification (exposure to single jurisdiction)
• Argentina company registration delays
• Insufficient funding

Mitigation Strategies

• Work with local partners to manage political situations
• Regular political climate assessment
• Improved ABC policy, risk assessment, staff training, vendor risk assessment
• Cash position management, FX exposure management
• Procedures to ensure safe operations during Covid-19, adaptable working practices
• Travel policy, knowledge sharing, adequate remuneration
• Active evaluation of new business opportunities in Latin America
• Through our local lawyers and CGC continue the support to the local authorities ahead of the final approval
• Equity raising following exploration success, cost control, commercial contract negotiation, capital expenditure delay

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health, safety, and wellbeing of staff and communities
• Community relations
• Environmental management
• Environmental footprint reduction
• Anti-bribery and corruption
• Diversity and inclusion

Environmental Achievements

• Reduced environmental footprint through efficient resource use, water and energy consumption management, and waste and emissions management.
• Operated from compact drill sites to minimize disruption to natural habitats.
• Upgraded brownfield pipelines to modern materials with lower corrosion risk in Santa Cruz Sur.

Social Achievements

• Maintained positive relationships with communities.
• Implemented remote working in the UK, reducing office space costs.
• 30% female workforce.
• All staff trained in ABC standards.

Governance Achievements

• Implemented documented ABC policies and procedures with staff training.
• Successfully restructured debt facilities, improving financial flexibility.
• Maintained transparent relationships with investors through regular engagement.

Climate Goals & Targets

Environmental Challenges

• Major travel restrictions in Argentina due to COVID-19.
• Significant oil price drop in Q1 2020.
• Political instability and fiscal pressure in Argentina and Bolivia.
• Risk of interruption to operations due to COVID-19.
• Loss of key personnel.
• Portfolio diversification in a single jurisdiction.
• Government delays in assigning title to acquired assets in Santa Cruz.

Mitigation Strategies

• Swiftly adapted to challenges presented by COVID-19, implementing remote working and liaising with partners to ensure safe operations.
• Reduced operating costs, shut in oil production, and postponed capital spending in response to oil price drop.
• Restored a portion of shut-in oil production.
• Worked with local partners to manage political situations and build strong relationships with governments.
• Implemented travel policies to ensure safe business travel.
• Actively evaluated new business opportunities in Latin America.
• Continued support to local authorities for asset title approval.

Supply Chain Management

Responsible Procurement

• Risk assessment of all vendors and contractors
• Strict requirements for adherence to anti-bribery and corruption policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Environmental Metrics

ESG Focus Areas

• Health, safety, and wellbeing of staff and communities
• Respectful relationships with communities
• Environmental stewardship
• Anti-bribery and corruption
• Diversity and inclusion

Environmental Achievements

• Minimized environmental footprint through compact drill sites and responsible resource management
• Upgraded Santa Cruz Sur pipeline infrastructure to reduce maintenance costs and corrosion risk

Social Achievements

• Maintained positive relationships with communities
• Implemented anti-bribery and corruption policies and training
• Commitment to diversity and inclusion in the workplace

Governance Achievements

• Compliance with the Quoted Companies Alliance Corporate Governance Code
• Established an audit committee, a remuneration committee, and a nominations committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and finances
• Production challenges resulting in flat revenue year-on-year
• High creditor balances in the SCS joint venture
• Political and fiscal pressures in Argentina and Bolivia
• Risk of interruption to operations due to the COVID-19 pandemic
• Loss of key personnel
• Insufficient funding
• Cost overruns on operational work programmes
• Delays in payments from sales of existing hydrocarbon production
• Government of Santa Cruz not assigning title of acquired assets to Echo

Mitigation Strategies

• Liaised with partners to ensure safe operations during COVID-19
• Remote working maintained in the UK
• Improved market conditions enabled cashflow enhancing production opportunities
• Implemented cost reduction measures
• Successfully restructured all corporate debts
• Successful additional funding through issue of equity
• Implemented procedures with operators to ensure operations continued safely
• Adaptable working practices and systems in place to facilitate working from home
• Knowledge sharing across disciplines to minimise impact of lost capacity
• Adequate remuneration to ensure staff retention
• Active process to evaluate new business opportunities in Latin America
• Working with local lawyers and CGC to support local authorities

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety & Environment
• Community Relations
• Anti-Bribery and Corruption
• Diversity and Inclusion
• Sustainability

Environmental Achievements

• Reduced environmental footprint by efficient use of resources, management of water and energy consumption and management of waste and emissions.
• Operates from compact drill sites to minimize disruption to natural habitat.

Social Achievements

• Maintained positive and respectful relationships with communities.
• Commitment to extend equal employment opportunities.
• Provides direct support to employees and offers external training.

Governance Achievements

• Implemented documented ABC policies and procedures.
• All staff trained in ABC standards.
• All counterparties must adhere to ABC standards.

Climate Goals & Targets

Environmental Challenges

• Funding Risk – inability to meet financial obligations due to insufficient funds.
• Business development risk – reliance on successful acquisitions for growth.
• Regulatory and reporting risk – eroded internal capacity in these areas due to cost reduction.

Mitigation Strategies

• Cost reduction program.
• Ongoing ability to raise new funds (equity and debt).
• Prioritized business development and increased internal capacity.
• Strengthening internal resources in regulatory and reporting areas following successful growth strategy implementation.

Supply Chain Management

Responsible Procurement

• Strong relationships with key corporate suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code