Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Equality
• Health and Safety
• Cybersecurity
• Employee Engagement
• Ethical and Transparent Behavior
• Human Rights
• Community Engagement
• Innovation

Environmental Achievements

• Reduced Scope 1 emissions from 629 mt of CO2e in 2019 to 385 mt of CO2e in 2020.
• Reduced Scope 2 emissions from 12,207 mt of CO2e in 2019 to 13,586 mt of CO2e in 2020 (Note: There's a discrepancy in the report; the reduction is not consistent with the provided numbers).
• Achieved zero recordable spills and unplanned releases to the marine environment since 2014.
• No reportable spills or releases in 2020 during TGS’ onshore operations.
• Norway office operates entirely on renewable energy.

Social Achievements

• Launched New Energy Solutions business unit.
• Implemented a new Human Rights policy.
• Enhanced supply chain review and monitoring to ensure compliance with human rights, labor and modern slavery laws.
• Conducted an employee engagement survey with 78% of respondents responding favorably across all five categories.
• Increased female hires in 2020 (35%) compared to 2019 (21%).
• Provided over 85 days of training as part of projects.

Governance Achievements

• Created an independent Cybersecurity department.
• Created a separate ESG department to oversee the implementation of TGS’ sustainability strategy.
• 100% of TGS employees completed Code of Conduct training.
• 100% of TGS employees completed anticorruption online training.
• No confirmed instances of corruption in 2020.
• Implemented a Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on workforce and field operations.
• Scope 3 emissions resulting from seismic operations.
• Maintaining employee engagement during the pandemic and remote work.
• Improving gender diversity in the workforce.
• Diversifying TGS data and service offerings.

Mitigation Strategies

• Developed global and local strategies to ensure employee health, safety, engagement, and wellness.
• Imposed measures to target and reduce Scope 1 and 2 emissions.
• Collaborated with industry and supply chain to address Scope 3 emissions.
• Implemented a new Human Rights policy and enhanced supply chain review.
• Created a New Energy Solutions business unit.
• Provided additional support to employees through EAPs and virtual social events.
• Increased communications from the CEO to employees.
• Conducted global and local polls of the workforce.

Supply Chain Management

Supplier Audits: All chartered vessels underwent required audits (IMCA/OVID).

Responsible Procurement

• Supplier Code of Conduct addressing business ethics, HSE, and labor/human rights.
• Contractual requirements for supplier compliance with laws and TGS policies.
• Due diligence questionnaires including specific questions on human rights and modern slavery.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Energy transition impacting oil and gas exploration; regulatory changes; market shifts.

Opportunities

• Diversification into new energy solutions (carbon capture, renewables).

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, IPIECA, World Economic Forum core set of ESG metrics

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16
• SDG 17

TGS aligns its actions with the UN Sustainable Development Goals (SDGs) and supports each SDG. Specific examples are highlighted throughout the report.

Sustainable Products & Innovation

• New Energy Solutions data portal.

Environmental Metrics

ESG Focus Areas

• Governance
• Risk Management
• Stakeholder Engagement
• Business Ethics
• Anticorruption
• Cybersecurity
• Tax
• Climate Impact
• Environmental Impact
• New Energy Solutions
• Human Capital
• Diversity and Equality
• Training and Development
• Compensation
• Health and Safety
• Human Rights
• Innovation

Environmental Achievements

• 13% decrease in scope 1 and 2 emissions between 2022 and 2021 and 21% decrease from 2020
• 12% decrease in kWh usage in data centers despite same on-premise compute power as in 2021 due to more energy-efficient equipment
• Transitioned TGS’ Houston headquarters to fully renewable energy sources
• Zero Reportable Quantity (RQ) spills to marine or land environments during seismic operations
• Removed 5.5 metric tons of debris as part of EnerGeo’s Ghost Net Initiative

Social Achievements

• Over 50% increase in female new hires since 2020
• 35% decrease in female voluntary turnover
• Met total recordable injury rate targets for both land (TRIR = 0.0) and marine (TRIR = 1.79) seismic operations
• Achieved full compliance with vessel and land crew HSE audit requirements
• Increased training hours per employee to 21.6 (from 18.6 in 2021 and 5.8 in 2020)

Governance Achievements

• 100% of TGS employees completed Code of Conduct training
• No significant issues of non-compliance with any laws or regulations in 2022
• Incorporated sustainability targets into long-term incentive plan and 2022 employee profit-sharing plan

Climate Goals & Targets

Environmental Challenges

• Significant workforce changes due to acquisitions (Magseis Fairfield, Prediktor, ION assets)
• Need to integrate new employees and cultures
• Expanding value chain beyond oil and gas
• Managing climate-related risks (increased environmental legislation, changing customer behavior, carbon pricing)
• Managing human rights risks within the supply chain

Mitigation Strategies

• Conducting new ESG materiality exercise and updating ESG strategy in 2023
• Focusing on integration and development of a common culture
• Diversifying business and revenue streams to serve carbon capture, storage, wind, solar, etc.
• Implementing risk-based due diligence approach with supply chain
• Requiring suppliers to comply with human rights and modern slavery laws and TGS’ Supplier Code of Conduct

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (addresses business ethics, HSE, and labor/human rights)

Climate-Related Risks & Opportunities

Transition Risks

• Increased environmental legislation
• Changing customer behavior
• Carbon pricing mechanisms
• Regulations on existing products and services
• Transition to lower-emissions operations
• Technology advancements

Opportunities

• Access to new markets
• Expansion of data and service offerings

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Sustainable Development Goals, UN Guiding Principles on Business and Human Rights Reporting Framework, IPIECA, World Economic Forum core set of ESG metrics

Certifications: ISO 27001 (Prediktor acquisition)

Third-party Assurance: KPMG AS

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 15 (Life On Land)

Report details actions taken to support these SDGs

Sustainable Products & Innovation

• Wind Axiom insight platform
• Multi-client offshore wind measurement campaign

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity & Ecosystems
• Resource Use
• Human Rights
• Health & Safety
• Business Conduct

Environmental Achievements

• 33% decrease in Scope 2 emissions since 2020
• Despite an 11% increase in on-prem compute in 2023, Kwh/Tflops decreased by 10% due to use of more energy-efficient equipment.
• Zero Reportable Quantity (RQ) spills to marine or land environments during seismic operations in 2023.
• Removed over 8.07 metric tons of discarded fishing gear and marine debris from the ocean during TGS operations in 2023.
• TGS Prediktor’s asset management software is deployed for over 9 GW of renewable assets.
• Expanded TGS innovative multi-client business model aimed at collecting wind and metocean data using self-powered floating LiDAR buoys. Launched five additional buoys in 2023.
• Recycled 7.8 metric tons of lithium metal batteries and 3.1 metric tons of lithium-ion batteries in 2023.

Social Achievements

• 99% of TGS workforce participated in diversity and inclusion training.
• 100% of TGS workforce entitled to family-related leave.
• Signatory to the UN’s Women’s Empowerment Principles and included on the Bloomberg Gender Equality Index in 2023 for the third year in a row.
• TGS met its annual total recordable case frequency (TRCF) target of <6.0, achieving a combined (office + field operations) TRCF of 1.12, with 0 fatalities for employees or contractors.
• TGS achieved full compliance with vessel and land crew HSE audit requirements.

Governance Achievements

• No material incidents of discrimination or harassment resulting in fines or penalties against the company, or that were grounds for termination of employment in 2023.
• No incidents of human rights abuses, including child labor, forced labor or human trafficking, were reported in 2023.
• No material issues of non-compliance with the TGS Code of Conduct nor did TGS receive any fines or penalties related to any violations of laws or regulations related to human rights, insider trading, antitrust and anti-competition, corruption, trade controls or sanctions, or financial fraud in 2023.

Climate Goals & Targets

Environmental Challenges

• Increase in severity or frequency of severe weather may result in impacts to marine and onshore operations, such as delays.
• Increased environmental regulation, permitting requirements, or prohibitions on exploration activity may negatively impact projects or result in delays and cost impacts to projects.
• Potential disruption to marine environment if proper mitigation measures are not imposed or enforced.
• Non-compliance with environmental permits without proper due diligence and project management.
• Proper resource management of batteries used throughout TGS OBN operations is necessary when dealing with lithium batteries due to their potential ignitability, reactivity and impact on the environment.
• Potential for serious incidents and fatalities in operations if proper safeguards and procedures are not followed.
• Potential for disruption to local communities by operations or suppliers in the value chain.

Mitigation Strategies

• Assess and account for weather risk as part of project evaluations.
• Engage in extensive coordination with key stakeholders, including local communities and regulators throughout our permitting process for our projects. Diversified product and service offerings across the energy spectrum.
• Employ protected species observers (PSOs) and utilize passive acoustic monitoring (PAM) to ensure that our field operations do not have a negative effect on cetaceans, turtles, marine mammals, etc.
• Conduct environmental impact assessments (EIAs), site surveys, public or social consultations, engaging with environmental consultants, participation and membership in industry trade organizations (e.g., EnerGeo, IOGP), project-specific hazard assessments and consultation with regulators and permitting agencies.
• Implement battery waste management procedures and safety data sheets outlining proper storage and handling, lithium battery hazards, risks and mitigations and transport procedures.
• Implement a robust QHSE Management System and procedures to continually strive to identify hazards and reduce risks to as low as reasonably practicable.
• Work with local communities, indigenous people, fishing communities, landowners and other stakeholders to address local issues and concerns when conducting operations around the globe.

Supply Chain Management

Supplier Audits: Full compliance with vessel HSE audit requirements; QHSE-MS audit of one field contractor.

Responsible Procurement

• Supplier Code of Conduct
• Due diligence process for high-risk suppliers
• Contractual requirements for compliance with laws and TGS policies

Climate-Related Risks & Opportunities

Physical Risks

• Increase in severity or frequency of severe weather

Transition Risks

• Increased environmental regulation

Opportunities

• Expanding business model and service offerings to the renewable energy industry
• Vessel and equipment optimization to mitigate climate impact

Reporting Standards

Frameworks Used: GRI Standards, EU Corporate Sustainability Reporting Directive (CSRD), European Sustainability Reporting Standards (ESRS), UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 27001

Third-party Assurance: KPMG (limited assurance)

Sustainable Products & Innovation

• Wind Axiom analytics platform
• 4C Offshore market intelligence product
• Carbon Axiom web-based analytics platform
• Prediktor SaaS solution for Solar PV asset management