Climate Change Data

Environmental Metrics

ESG Focus Areas

• HSSEQ
• Ethical Operations
• Capacity Building
• Local Content
• Carbon Footprint
• Equal Opportunities
• Community
• Responsible Procurement

Environmental Achievements

• Reduced fuel and electricity consumption by 6.73% and 10.88% respectively, aiming for an annual reduction of 5%.

Social Achievements

• Supported Pertiwi Soup Kitchen, Stop Hunger Now! (packing over 60,000 relief meals), Malaysian Association Help for the Poor and Terminally Ill, and UNICEF programs.
• Organized free health screenings for employees.

Governance Achievements

• Strong safety performance with zero LTI and TRIFR of 0.69.
• Inclusion in FTSE4Good Bursa Malaysia Index, Dow Jones Sustainability Emerging Market Index, and MSCI Global Sustainability Index.

Climate Goals & Targets

Environmental Challenges

• Influencing factors on fuel and electricity consumption (business activity, new projects).

Mitigation Strategies

• Commitment to reduce fuel and electricity consumption by 5% annually.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• FTSE4Good Bursa Malaysia Index
• Dow Jones Sustainability Emerging Market Index
• MSCI Global Sustainability Index

Environmental Metrics

ESG Focus Areas

• Safety
• Health
• Security
• Environment
• Quality
• Ethical Operations
• Environmental Impact
• People
• Operational Compliance

Environmental Achievements

• Launched Environment Week Campaign including industrial training on Marine Pollution Preparedness and Response and internal initiatives to elevate environmental knowledge and awareness.
• Achieved "Zero Oil Spill to the Sea" with only two spills less than one barrel each.

Social Achievements

• Supported various charitable organizations including Cherating Turtle Sanctuary, Biosphere Foundation, and Forest Research Institute of Malaysia.
• Supported social initiatives in Malaysia, UK, and Indonesia, including disaster relief, community support, and educational programs.

Governance Achievements

• Introduced HSSEQ Management Team Committee to strengthen HSSEQ governance.
• Implemented a Code of Business Conduct and Ethics with zero tolerance for corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Two Lost Time Injury (LTI) cases in Offshore Marine Services (OMS) and one in Floating Production Operations (FPO).
• Increase in GHG emissions due to fleet growth.
• Two spills released to sea (less than one barrel each).

Mitigation Strategies

• Continuous improvement initiatives based on lessons learned from LTI cases.
• Focus on reducing GHG emissions by improving operational control.
• Strive for "Zero Oil Spill to the Sea" with continuous improvements.

Supply Chain Management

Responsible Procurement

• Suppliers are required to abide by the Code of Business Conduct and Ethics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: FTSE4Good Index

Certifications: ISO 9001:2015, ISPS, ISO 14001:2015, SMS, OHSAS 18001:2007, MODU, ISM

Environmental Metrics

ESG Focus Areas

• Safety
• Operational Performance
• Balance Sheet Strengthening
• Financial Performance & Cash Flow Improvement
• Asset Monetization
• Sustainability
• Health and Safety
• Environmental Management
• Corporate Governance
• Compliance

Environmental Achievements

• Launched Environment Week Campaign with #BeatPollution theme, including training on MARPOL, EMS, marine pollution prevention, environmental compliance, and plastic pollution.
• Initiated trial use of filtered potable water dispensers on OSVs to reduce plastic bottle usage.

Social Achievements

• Achieved zero Lost Time Injuries (LTIs) across the organisation.
• Increased management visits to vessels to promote safety awareness.
• Continued support for Forest Research Institute of Malaysia (FRIM) and Cherating Turtle Sanctuary (CTS).
• Co-operated with Rise Against Hunger (RAH) to sponsor and pack 50,000 ready meals for low-income families.
• International offices conducted CSR activities (Aberdeen, Indonesia).

Governance Achievements

• Introduced Corporate Health, Safety and Environment (HSE) Committee.
• Strengthened HSSEQ governance through the HSSEQ Governance Framework and Business Management System (BMS).
• Enhanced Corporate Compliance Framework and Policies to comply with Section 17A of the Malaysian Anti-Corruption Commission (Amendment) Act 2018.
• Implemented a Code of Business Conduct and Ethics and a Speak Up Policy.

Climate Goals & Targets

Environmental Challenges

• Armada Kraken FPSO had significant performance issues in Q1 and Q2 2019.
• Wax blockage in Karapan Armada Sterling III GTU prevented meeting gas export targets.
• SC sub-segment struggled due to lack of new contracts in the Caspian Sea.
• 14% decline in revenue compared to 2018 due to lack of revenue from the SC sub-segment.
• Woodside litigation resulted in a non-cash provision.
• Low oil prices impacted the O&G sector.
• COVID-19 outbreak in late 2019 and its global spread significantly impacted the global economy and oil demand.

Mitigation Strategies

• Improved Armada Kraken performance to above 95% production efficiency in Q4 2019.
• Delayed Karapan Armada Sterling III shutdown until January 2020 to meet Indonesian gas supply requirements.
• Active vessel monetisation programme, disposing of 11 vessels and reactivating 6 OSVs.
• Cost structure reduction (almost 40% decrease in selling & distribution and administrative expenses compared to FY2018).
• Restructured outstanding term loans and revolving credit facilities into a consolidated USD660.0 million facility.
• Refinanced the Malta bridge loan facility and raised USD30.0 million for the 98/2 FPSO project.
• Repaid USD225.0 million of debt in FY2019.
• Implemented COVID-19 preventive controls based on WHO, International SOS, CDC, and Malaysian regulator recommendations.

Supply Chain Management

Responsible Procurement

• Code of Business Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Securities Sustainability Reporting Guidelines, Malaysian Code on Corporate Governance 2017, Main Market Listing Requirements of Bursa Malaysia Securities Berhad

Certifications: ISO 9001:2015, OHSAS 18001:2007, ISO 14001:2015

Third-party Assurance: PricewaterhouseCoopers PLT

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 5
• SDG 10
• SDG 2
• SDG 13
• SDG 14

Contributions to SDGs through various initiatives, including employee well-being, local employment, gender equality, CSR activities, and environmental protection.

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced CO2 equivalent emission through improved operation efficiency across the fleet (Specific figures provided in the report but not easily quantifiable without further calculation)
• Zero Tier-1 and two Tier-2 Process Safety Events (PSEs)
• Two cases of minor spills released to sea (down from previous years)

Social Achievements

• Zero Lost Time Injury (LTI) cases
• Various CSR activities supporting charitable organizations and communities in Malaysia, UK, Angola, and India (details provided in the report)
• Continued focus on employee well-being and fitness through "Bumi Life" initiatives

Governance Achievements

• Established an Integrated Management System (IMS) based on ISO 45001:2018, ISO 14001:2015, and ISO 9001:2015 standards
• Implemented a comprehensive Governance framework with a Zero-Tolerance policy towards bribery and corruption, supported by various policies (ABC Policy, Code of Conduct, etc.)
• Mandatory training and awareness sessions for all Directors and Employees on Anti-Bribery and Corruption Policy

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on global business activities and monetisation initiatives
• Slowdown in global business activities affecting Subsea Construction vessels (idle)
• Increased bunker fuel consumption due to increased OSV vessel startups in Malaysia

Mitigation Strategies

• Prioritised employee safety and operational excellence despite logistical challenges from COVID-19
• Implemented COVID-19 preventive controls and received an "EXCELLENT" rating from AON UK Ltd. for COVID-19 Energy Risk Framework assessment
• Continued commitment to monetising non-core assets
• Fuel Management Program and Ship Energy Efficiency Management Plan to optimise natural resource use and reduce emissions

Supply Chain Management

Responsible Procurement

• Suppliers are required to abide by the standards laid out in the Code of Business Conduct and Ethics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: ISO 45001:2018, ISO 14001:2015, ISO 9001:2015

Awards & Recognition

• International Safety Award – Occupational Health and Safety (from UK British Safety Council)
• Five Star Process Safety Audit (from UK British Safety Council)
• 4-Star rating from PETRONAS
• EXCELLENT performance for YTD 2020 from ExxonMobil Exploration and Production Malaysia Inc
• The Marine League Champion by SHELL Malaysia
• Finalists in the SHELL overall Safety Awards with Special Merit Recognition for Sustained Performance

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity & Inclusion
• Community Investment
• Good Governance
• Human Rights
• Biodiversity

Environmental Achievements

• Reduced CO2 Emissions Per Unit of Hydrocarbon by 11% below the IOGP baseline.
• Achieved a 7.8% reduction of GHG emission through improved operational efficiency and enhanced flare management across the fleet.
• Recorded two incidents of minor spills released to the surrounding marine waters by our FPSO fleet. However, no fines (RM Nil) or penalties in relation to spills or any other form of environmental pollution was recorded in 2021.

Social Achievements

• Zero workplace fatalities recorded.
• 43% of onshore female staff for FY2021.
• 86% increase in training hours per employee from the previous reporting year.
• Contributions made to the Rise Against Hunger and Ecotourism & Conservation Society to provide food aide to indigenous communities in Malaysia.
• The Group contributed to the construction of three check dams to harvest rainwater in Rajasthan, India.

Governance Achievements

• Implemented a Climate Change Policy.
• Established a Code of Business Conduct and Ethics, Speak Up (Whistleblowing) Policy, Anti Bribery and Corruption Policy, Gift and Hospitality Policy, Board Committees Terms of References, and a Board Charter.
• Successfully extended the final maturity date for Tranche 1 of the unsecured corporate term loan facility.

Climate Goals & Targets

Environmental Challenges

• Ongoing impact of COVID-19 pandemic.
• Supply chain disruptions.
• High levels of corporate debt.
• Russian-Ukrainian conflict and potential sanctions.
• Armada Kraken FPSO unplanned shutdown.
• Delays in the Kakinada Project due to COVID-19.

Mitigation Strategies

• Various preventative measures encompassing Health, Safety, Operations and Supply Chain Management.
• Sale of 20 OSVs and Ice Class Vessel Companies.
• Streamlining operations and focusing on core FPO business.
• Debt reduction through asset sales and refinancing.
• Close monitoring of events and taking appropriate action as required in response to the Russian-Ukrainian conflict.
• Resetting Kakinada Project baseline to 2022.

Supply Chain Management

Responsible Procurement

• Know Your Counterparty Procedure
• Anti-bribery provisions in contracts

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Offshore carbon sequestration business
• LNG regasification business

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs

Certifications: ISO 14001:2015

UN Sustainable Development Goals

• Goal 7
• Goal 13
• Goal 14

Contributions to food aid, zero workplace fatalities, equal opportunities hiring, onshore female staff percentage, check dam construction, energy efficiency, green technologies, competitive remuneration, compliance with labor laws, climate change policy, collaboration on sea turtle conservation, compliance with laws and regulations, and establishment of various policies.

Sustainable Products & Innovation

• Zero Greenhouse Gas (GHG) emissions FPSOs and Floating Liquefied Natural Gas (“FLNG”) vessels
• Post combustion carbon capture and storage facilities

Awards & Recognition

• AON UK rating of “EXCELLENT” through their independent COVID-19 Energy Risk Framework assessment

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Human Rights
• Diversity and Inclusion
• Community Development

Environmental Achievements

• 2.5% reduction in GHG emissions intensity for FPSO/FSU operations compared to 2021
• Zero spills released to sea by FPSO fleet
• 13.6% reduction in methane emissions compared to 2021

Social Achievements

• 86% increase in training hours per employee from 2021
• Various CSR programs including Rise Against Hunger, computer donations to Teach For Malaysia, mangrove planting, and turtle conservation

Governance Achievements

• Appointment of Vice President of Sustainability & External Relations
• Linking top management compensation to sustainability KPIs
• Reinstatement into the Bursa Malaysia FTSE4Good Listing

Climate Goals & Targets

Environmental Challenges

• Two Lost Time Injury (LTI) cases in 2022
• High levels of corporate debt
• Technical issues affecting Armada Kraken and Karapan Armada Sterling III (KASIII) performance
• Russia-Ukraine conflict impacting Caspian Sea operations
• Higher interest rates, volatility in the supply chain, lower oil prices, and global climate change policies

Mitigation Strategies

• Increased leadership vessel visits and embedded senior safety expert to reinforce safety culture
• Asset monetisation and OSV divestment programs, debt reduction
• Improved maintenance management and strategies for Armada Kraken and KASIII
• Detailed screening of counterparties to ensure compliance with sanctions
• Cost containment, increased operational performance, and debt reduction

Supply Chain Management

Responsible Procurement

• Know Your Counterparty (KYC) reviews/updates
• HSE audits or reviews

Climate-Related Risks & Opportunities

Physical Risks

• Coastal flooding
• Typhoon
• Changing temperature (air, freshwater, marine water)
• Sea level rise
• Heat stress
• Wind pattern
• Severe weather

Transition Risks

• Emerging regulations
• Mandates on and regulation of existing products and services
• Increased stakeholders concern or negative feedback
• Shift in consumer preferences
• Changing customer behaviour
• Policy/Legislation change

Opportunities

• Development of energy-efficient products
• Offshore injection of CO2 to create negative emissions
• Capture of CO2 from produced gas
• Gas infrastructure vessels (FSU, FSRU, FLNG, FPU)
• Electrification of offshore vessels with renewable energy

Reporting Standards

Frameworks Used: GRI Standards 2021, Bursa Malaysia Securities Berhad Sustainability Reporting Guidelines, Malaysian Code on Corporate Governance 2017

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015

Third-party Assurance: PricewaterhouseCoopers PLT

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)

Initiatives contribute to these goals through GHG emission reduction, biodiversity conservation, and sustainable resource use.

Environmental Metrics

ESG Focus Areas

• Climate Action
• Health and Safety
• Resource Efficiency
• Community Engagement
• Board Accountability
• Biodiversity Conservation
• Human Rights
• Ethical Business Conduct
• Stakeholder Engagement

Environmental Achievements

• Successfully executed a structured examination of sustainability practices through strategic engagement with key stakeholders, identifying 21 material topics.
• Extended GHG emissions scope to include flaring across the fleet.
• Reported 128.7 tonnes CO2-e per thousand tonnes production from FPSO operations (Scope 3).
• Scope 1 emission for 2023 (SC assets, OSV, company vehicles) reported as 1.85 thousand tonnes CO2-e.
• Achieved 11% decrease in water consumption on assets from FY 2022.
• Recorded zero cases of spills released to sea by FPSO, FSU, and SC fleets.
• 31% of waste (19.1 tonnes hazardous, 144.9 tonnes non-hazardous) reused, recycled, or recovered.

Social Achievements

• 40% increase in training hours per employee from the previous reporting year.
• Launched 3 Key Pillars of Physical, Mental, and Social Wellbeing through employee engagement initiatives.
• Implemented 3 key community programs in India (farmer income enhancement, cultural preservation, water purifier installation).
• Partnered with Greyhope Bay in the UK to revitalise Girdle Ness.
• Collaborated with Econinja in Malaysia on an Eco Tree Planting programme.
• Donated beds to community centers in Angola and supported healthcare research.
• Partnered with Rise Against Hunger, packing 50,000 meals.
• Organized a technical knowledge sharing event with University of Widyagama in Indonesia.

Governance Achievements

• Established a Sustainability Policy with a commitment to achieving Net Zero by 2050.
• Formalisation of a dedicated Sustainability Division.
• Appointment of Vice President of Sustainability and External Relations.
• Strengthened sustainability governance with the appointment of Tunku Alizakri bin Raja Muhammad Alias to the board.
• Implemented Anti-Bribery and Corruption Policy.
• Introduced online incident, non-conformance, audit, and assurance management modules.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks to supply chain (extreme weather causing delays in supply delivery and crew changes).
• Chronic physical risks (sea level rise, heat stress, wind pattern changes impacting FPSO operations).

Mitigation Strategies

• Climate-related risk assessment for all FPSO, FSU, and SC assets.
• Annual HSE legal and regulatory review to monitor and assess regulatory changes.
• Integration of new and established green technologies into engineering design for new projects.
• Agile adaptation to new technologies and opportunities to improve operational efficiency.

Supply Chain Management

Supplier Audits: Compliance reviews (Annually)

Responsible Procurement

• ESG guidelines/criteria/statistics evaluation of suppliers and subcontractors (in progress).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Rise of sea level
• Heat stress
• Wind pattern changes

Transition Risks

• Current regulations (UK Emission Trading Scheme)
• Emerging regulations
• Market shifts (increased demand for cleaner energy)

Opportunities

• Development of low-carbon fuel growth demand
• Offshore carbon sequestration business
• LNG re-gas business
• Electric-driven liquefaction trains for FLNG
• Incorporating marine CCS into new proposals
• Post-combustion carbon capture and storage facilities
• Offshore production of Blue Ammonia

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide, GRI Standards, IPIECA/IOGP Sustainability Reporting guidelines, Greenhouse Gas Protocol

Certifications: ISO 45001:2018, ISO 14001:2015, ISO 9001:2015

Third-party Assurance: Internal audit by IAD

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 2: Zero Hunger

Community development programs, food packing initiatives.

Awards & Recognition

• 8th Global Good Governance (3G) Awards 2023: 3G Excellence in ESG Practices
• 8th Global Good Governance (3G) Awards 2023: 3G Leadership in Sustainability Reporting
• The Edge Billion Ringgit Club Corporate Awards 2023: Highest Returns to Shareholders Over Three Years
• The Edge Malaysia ESG Awards 2023: Equity Awards Silver Award

Environmental Metrics

ESG Focus Areas

• Health, Safety & Environment
• Corporate Social Responsibility
• Good Governance

Environmental Achievements

• Extended Scope 3 GHG Emission monitoring with Employee Commuting Category

Social Achievements

• PT AGN received a HSSE Recognition Award (Gold) from HCML for maintaining safe operation in KASIII during the period of July 2022 to June 2023.
• For Indonesian Independence Day, PT AGN collaborated with Sampang District in Madura, to provide food and drinks for the locals.
• The Angola team has donated folding beds with mattresses to a local charity – The Mama Muxima Shelter.
• The Indian team continued to support underprivileged farmers, facilitated water facilities in schools and supported various local culture & and heritage events.
• Bumi Armada has won two (2) awards at the 8th Global Good Governance (3G) Awards 2023 held in Dubai; i.e., the 3G Excellence in ESG Practices and 3G Leadership in Sustainability Reporting Awards 2023.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Root cause analysis is ongoing for transformer issues on Armada Kraken.

Mitigation Strategies

• Successfully re-instated HSP PF pumps D and A and returned production to 100% of target on Armada Kraken.
• Received two newly procured HSP PF Pump transformers. One installed offshore and thereafter achieved full HSP PF pump redundancy on Armada Kraken.
• New transformer installed on Kraken in September 2023. Additional new transformer received and awaiting good weather to enable transport to the vessel and installation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 3G Excellence in ESG Practices
• 3G Leadership in Sustainability Reporting Awards 2023