Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Transparency
• Community Development
• Environmental Protection
• Human Rights
• Climate Change
• Local Content
• Entrepreneurship

Environmental Achievements

• Zero fines and zero spills in 2018.
• Implemented special measures to protect whales and turtles in São Tomé and Príncipe.
• Completed two major acquisitions in Equatorial Guinea and the U.S. Gulf of Mexico, creating new pathways for growth.
• Supported mangrove restoration projects in Suriname to mitigate coastal erosion.
• Completed a 34-month effort to obtain approval of the Greater Tortue Ahmeyim (GTA) Environmental and Social Impact Assessment (ESIA) and associated Environmental Management Plan in Mauritania and Senegal.

Social Achievements

• Achieved 100% local employment in Côte d’Ivoire, Ghana, Mauritania, and Senegal.
• Expanded Kosmos Innovation Center (KIC) into Mauritania, Senegal, and Côte d’Ivoire, training over 500 entrepreneurs.
• Supported clean drinking water projects in Ghana, bringing safe drinking water to over 300,000 people.
• Implemented social investment programs in Equatorial Guinea focused on education and health, including the Program for Educational Development of Equatorial Guinea (PRODEGE).
• Supported various social investment projects in Mauritania, including solar energy infrastructure and support for small-scale fish processing businesses.

Governance Achievements

• Published all contracts with host governments.
• First U.S. oil and gas company to disclose project-level payments to governments.
• Actively supported the Extractive Industries Transparency Initiative (EITI) in multiple countries.
• Established an independent advisory council in Ghana.

Climate Goals & Targets

Environmental Challenges

• Several incidents occurred on third-party marine vessels supporting seismic and drilling activities.
• Climate change is a serious challenge.
• Limited availability of qualified service companies in Suriname restricted the ability to award contracts for local goods and services.
• Draft limitations at port and river facilities in Paramaribo, Suriname.

Mitigation Strategies

• Actively working with contractors on a “One Team, One Goal” safety campaign.
• Completed a review of the approach to climate change and external policy and stakeholder environment.
• Aiming to report to the CDP (formerly the Carbon Disclosure Project) in 2019.
• Working with local providers in Suriname to build capacity within Surinamese companies and education systems.
• Engaging with Staatsolie and Suriname’s government to evaluate dredging the Suriname River and improve Suriname’s industrial capacity.

Supply Chain Management

Responsible Procurement

• Suppliers required to adhere to Kosmos Business Principles.
• Training and certification provided to local suppliers to meet HSE standards.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Expanding use of natural gas as a bridge to renewables.

Reporting Standards

Frameworks Used: IPIECA/API/IOGP Oil & Gas Industry Guidance on Voluntary Sustainability Reporting, GRI, UN Global Compact

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved carbon neutrality across Kosmos’ operations for Scope 1 and Scope 2 emissions by 2030 or sooner
• Implemented real-time emissions tracking application to monitor activity and emissions fluctuations
• Integrated emissions performance into supply decisions
• Invested in nature-based solutions for emissions mitigation (GreenTrees, Form Ghana Reforestation Project, Tierra Foundation)

Social Achievements

• Launched employee-led global Hunger Relief Program
• Achieved 100% local employees in all host country offices by September 2020
• Kosmos Innovation Center (KIC) supported young entrepreneurs and small businesses, generating sustainable jobs and economic impacts
• Provided critical medical equipment and funding during the COVID-19 pandemic in Ghana, Senegal, Equatorial Guinea, and Mauritania

Governance Achievements

• Published all contracts with host governments
• Strong advocate for transparency in dealings with host governments, including support for the Extractive Industries Transparency Initiative (EITI)
• Implemented a robust compliance program with zero tolerance for corruption
• Linked executive compensation to ESG performance, including zero ethics and compliance violations

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations, communities, and economies
• Reducing emissions in a non-operated business model
• Balancing energy needs with climate change mitigation

Mitigation Strategies

• Mobilized to provide critical medical equipment and funding during the COVID-19 pandemic
• Launched the Kosmos Hunger Relief Program
• Established the CEO-led Climate Change Task Force to drive strategy
• Integrated climate-related risk analysis into decision-making processes
• Prioritized capital investment in optimizing production and exploration in proven basins
• Engaged key suppliers and business partners to reduce operational emissions
• Invested in nature-based solutions to mitigate emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair and transparent contract allocation
• Preference for suppliers in host countries
• Requirement for contractors to respect human rights and adhere to Kosmos' Business Principles

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in demand for oil and natural gas
• Changes in laws, regulations, or other requirements related to climate change

Opportunities

• Development of energy-efficient products and services
• Investment in nature-based solutions

Reporting Standards

Frameworks Used: UN Global Compact, IPIECA, GRI, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

Kosmos' activities and social investment programs contribute to these goals through various initiatives (see report for details)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Named to the “Top 100 Places to Work” list in Dallas eight out of the last nine years
• Won “Best Benefits” award in Dallas in 2019
• Named to the “Top Workplaces” list in Houston in 2019

Environmental Metrics

ESG Focus Areas

• Climate Change
• Emissions Reduction
• Wetlands Restoration
• Hunger Relief
• Entrepreneurship Development
• Safety
• Diversity & Inclusion
• Human Rights
• Community Engagement
• Transparency
• Governance

Environmental Achievements

• Achieved carbon neutrality for operated Scope 1 and Scope 2 emissions in 2021 (significantly earlier than the 2030 target).
• Launched Climate Mitigation Workforce project in the U.S. Gulf Coast, restoring wetlands and providing job training.
• Agreed to eliminate routine flaring at Jubilee and TEN fields in Ghana by 2025.

Social Achievements

• Continued support for the Kosmos Hunger Relief program, adapting it to local needs in each operating country.
• Established the Kosmos Innovation Center in Ghana as an independent non-profit, securing US$16 million in funding from the Mastercard Foundation.
• Achieved 100% local employment across all host country offices in 2020.

Governance Achievements

• Independent review of select ESG indicators by Ernst & Young LLP.
• Reviewed and adjusted executive compensation targets to ensure they are sufficiently detailed and ambitious.
• Adopted a new charter for the Health, Safety, Environment and Sustainability Committee to strengthen oversight.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and volatility in the energy sector due to the Russia-Ukraine conflict.
• Need to report and reduce equity emissions from non-operated assets.
• Maintaining carbon neutrality in operated Scope 1 and Scope 2 emissions.

Mitigation Strategies

• Formulating specific plans to report and reduce equity emissions.
• Continual monitoring of emissions and purchasing/retirement of nature-based offsets to maintain carbon neutrality.
• Working with operating partners to reduce emissions and improve operational efficiency.

Supply Chain Management

Supplier Audits: Using ISNetworld to screen contractors and vendors against sustainability criteria.

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Master Services Agreements requiring contractors to respect human rights and labor standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise

Transition Risks

• Policy changes
• Legal actions
• Technology shifts
• Market changes
• Reputational implications

Opportunities

• Development of low-cost, lower-carbon gas assets
• Meeting growing global demand for natural gas as a transition fuel.

Reporting Standards

Frameworks Used: SASB, TCFD, UN Global Compact, UN Sustainable Development Goals (SDGs), GRI, IPIECA

Certifications: Null

Third-party Assurance: Ernst & Young LLP (independent review level attestation for select indicators)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure

Kosmos' initiatives contribute to these goals through hunger relief programs, investments in renewable energy, job creation, and support for entrepreneurship.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Named one of America’s Most Responsible Companies by Newsweek and Statista.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Ethics
• Communities
• Our People
• Human Rights

Environmental Achievements

• Achieved carbon neutrality for operated Scope 1 and 2 emissions in 2021 and 2022.
• Reduced absolute Scope 1 equity emissions by 25% by 2026 (target).

Social Achievements

• Achieved an injury- and incident-free workplace with zero recordable or lost time incidents.
• Expanded Kosmos Hunger Relief Program to all countries of operation.
• Launched Louisiana Coastal Restoration Workforce, providing job training and engaging workforce on wetland restoration.

Governance Achievements

• Earned a AAA rating from MSCI.
• Strengthened Health, Safety, Environment, and Sustainability (HSES) Committee oversight.
• Tied executive compensation to ESG objectives.

Climate Goals & Targets

Environmental Challenges

• Energy transition risks (government policies, technology shifts, market changes).
• Physical risks from climate change (extreme weather events).

Mitigation Strategies

• Focus on optimizing responsible production of low-cost, lower-carbon oil and gas.
• Investment in low-cost, lower-carbon natural gas projects.
• Exploration in proven basins to reduce carbon intensity.
• Monitoring physical risks and maintaining contact with business partners on mitigation plans.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• ISNetworld screening for HSE and ESG criteria

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Emerging regulation
• New technologies
• Market risks

Opportunities

• Growth of low-carbon natural gas business
• Exploration in proven basins

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, IPIECA

Third-party Assurance: EY (limited assurance for select indicators)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Kosmos' operations and social investment programs contribute to these goals.

Awards & Recognition

• America’s Most Responsible Companies (Newsweek and Statista)
• Top Workplace (Dallas Morning News and Houston Chronicle)
• The Corps Networks’ 2023 Project of the Year Award

Environmental Metrics

ESG Focus Areas

• Climate Change & the Energy Transition
• Our People
• Communities
• Human Rights
• Health & Safety
• Ethics

Environmental Achievements

• Maintained carbon neutrality for operated Scope 1 and Scope 2 emissions for the third consecutive year.
• Announced a new near-term target to reduce Scope 1 equity emissions by 25% in 2026 from a 2022 baseline.
• Disclosed Scope 3 category 11 (use of sold products) emissions using the GHG Protocol and Ipieca guidance.

Social Achievements

• Zero fatalities.
• 0.21 Lost Time Incident Rate (LTIR) and 0.42 Total Recordable Incident Rate (TRIR).
• Kosmos Innovation Center (KIC) programs contributed to healthier and more diverse economies in host nations.
• KIC Mauritania developed Ra’idat, a workshop for female entrepreneurs.
• KIC Senegal expanding its reach through a new program in Saint Louis.

Governance Achievements

• Awarded AAA rating by MSCI for the second consecutive year.
• Named one of America’s Most Responsible Companies by Newsweek and Statista for the fourth consecutive year.
• Transparency in dealings with host governments; disclosing terms of petroleum agreements and payments made.

Climate Goals & Targets

Environmental Challenges

• Energy crisis in Africa (lack of access to energy and clean cooking fuels).
• Climate change and emissions.
• Transition risks (government policies, legal actions, technology shifts, market changes).
• Physical risks (extreme weather events, sea level rises).

Mitigation Strategies

• Investing in growth of low-cost, lower-carbon natural gas and LNG.
• Focusing on infrastructure-led exploration in proven basins.
• Production optimization of low-cost, lower-carbon oil and gas.
• Working with partners to eliminate routine flaring in Ghana and Equatorial Guinea.
• Using carbon offsets to achieve carbon neutrality for operated Scope 1 and Scope 2 emissions.
• Developing alternative sourcing strategies.
• Maintaining hurricane response plan and Loss of Production Income insurance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing goods and services from vendors in host countries when feasible.
• Requiring suppliers to adhere to Kosmos’ Business Principles and policies.
• Using ISNetworld to screen contractors against HSE criteria and past performance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise

Transition Risks

• Emerging regulation
• New technologies
• Market risks

Opportunities

• Growth in natural gas and LNG
• Infrastructure-led exploration
• Production optimization

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, Ipieca

Certifications: Null

Third-party Assurance: EY (review-level assurance for operated Scope 1 and 2 emissions, Scope 1 equity emissions, and Scope 3 Category 11 emissions)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-Being
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Kosmos' operations and social investment programs contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• MSCI AAA rating
• Newsweek and Statista’s America’s Most Responsible Companies
• The Corps Networks’ 2023 Project of the Year Award (Louisiana Coastal Restoration Workforce)