Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Our People
• Communities
• Good Governance

Environmental Achievements

• Transitioned active hydraulic fracturing equipment portfolio from approximately 10% lower GHG emissions equipment in 2021 to approximately 35% in 2022, expecting to increase to approximately 60% by the end of 2023.
• Taken delivery of seven Tier IV Dynamic Gas Blending (DGB) or dual-fuel hydraulic fracturing fleets as of June 2023, displacing up to approximately 70% of diesel consumed with natural gas.
• Began deploying four electric fleets powered by natural gas-fueled mobile generators, expecting to have the first two operational by the end of 2023 and the remaining two in the first half of 2024.

Social Achievements

• Launched a formal, anonymous employee survey in 2022, performing above the relevant industry benchmark by approximately 10% in key areas of employee engagement.
• Revitalized the Women of ProPetro employee resource group in 2022, providing networking, mentorship, and development opportunities.
• Developed and delivered anti-harassment and anti-discrimination training for all managers and supervisors in 2022.
• Optimized health plan design, lowering the cost of dependent coverage.
• Implemented quarterly onsite financial wellness learning opportunities and transitioned 401(k) vesting to immediate vesting.

Governance Achievements

• Included ESG metrics in the Amended and Restated ProPetro Holding Corp. Executive Incentive Bonus Plan since 2021, weighting them at 10% in 2022.
• Established an external Ethics and Compliance Hotline available 24/7 for anonymous reporting.
• Adopted a Code of Ethics and Conduct addressing conflicts of interest, confidentiality, and compliance with laws.

Climate Goals & Targets

Environmental Challenges

• Climate change may result in various physical risks, such as increased frequency or intensity of extreme weather events, impacting operations and increasing costs.
• Market risk from fuel conservation measures, alternative fuel requirements, and reduced demand for oil and natural gas.
• Regulatory risk from government proposals to limit GHG emissions.
• Reputational risk from unfavorable sustainability and ESG ratings and activism.

Mitigation Strategies

• Strategic fleet transition to Tier IV DGB and electric fleets to reduce emissions and costs.
• Risk management processes overseen by the Board to address climate change and other environmental risks.
• Continuous improvement in energy efficiency and GHG emissions monitoring.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in meteorological and hydrological patterns

Transition Risks

• Reduced demand for oil and natural gas
• Increased attention to climate change
• Regulatory changes

Opportunities

• Fleet transition to lower-emission equipment

Reporting Standards

Frameworks Used: SASB Oil and Gas Services standard, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Tier IV DGB and electric fleets

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Social
• Governance

Environmental Achievements

• 60% of hydraulic fracturing fleet transitioned to lower-emissions Tier IV DGB dual-fuel and FORCE® electric by the end of 2023; expecting 75% by end of 2024
• Deployment of first two FORCE® electric-powered frac fleets
• Initiated conversion of facility lighting to energy-efficient LEDs
• ~19.5 million gallons of diesel displacement in the last 9 months of 2023

Social Achievements

• Implemented a new health, safety, and environment (HSE) management system
• 1,775 employee volunteer hours
• First employee engagement survey conducted

Governance Achievements

• 100% of corporate employees acknowledged Code of Conduct
• 33% diverse board by gender, race, and/or ethnicity

Climate Goals & Targets

Environmental Challenges

• Growth of business and higher operating intensity of equipment increased Scope 1 and 2 GHG emissions.
• Customer decisions influence many aspects of completion services (pumping hours, equipment use intensity, crew size, fuel type) impacting GHG emissions.
• Cybersecurity threats

Mitigation Strategies

• Investing in next-generation, lower-emissions fleet (Tier IV DGB dual-fuel and electric technology).
• Collaborating with customers to optimize efficiency.
• Implementing an Information Security Management System (ISMS) to meet NIST and CIS cybersecurity standards; annual security awareness training; mechanisms to detect unusual network activity; containment and incident response tools; third-party service providers for assessments, consulting, and audits; security-risk assessments for third-party providers; security and privacy addenda to contracts.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in meteorological and hydrological patterns
• Water use curtailments due to drought
• Reduced demand for energy due to warmer winters

Transition Risks

• Fuel conservation measures
• Alternative fuel requirements
• Increased consumer demand for alternatives to oil and gas
• Regulatory changes
• Technological advances

Opportunities

• Next-generation fleet transition to lower emissions and costs

Reporting Standards

Frameworks Used: SASB Oil and Gas Services standard, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• FORCE® electric fleets
• Tier IV DGB dual-fuel fleets

Awards & Recognition

• Not disclosed