Climate Change Data

Rex International Holdings Limited

Climate Impact & Sustainability Data (2019, 2021, 2022)

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Economic
  • Social
  • Environmental
  • Governance

Environmental Achievements

  • 100% compliance with environmental laws and regulations (with one minor incident in Norway addressed with corrective action).
  • 6.5% lower electricity consumption in Singapore office compared to 2018.
  • 45.9% savings in annual report production cost and 78.5% savings in postage cost due to e-communication.

Social Achievements

  • Zero fatality rate in drilling operations in Norway and Oman.
  • No downtime related to HSSE issues in drilling operations.
  • 15.5 hours of average staff training per employee in Singapore.

Governance Achievements

  • No instance of whistle-blowing, bribery, or corruption.
  • 100% compliance with environmental laws and regulations.
  • Ranked No. 123 in the Singapore Corporate Transparency Index 2019.

Climate Goals & Targets

Long-term Goals:
  • Become profitable.
Short-term Goals:
  • Unlock value by achieving more oil discoveries and building up contingent resources and reserves.
  • Unlock value by selling oil-in-the-ground.
  • Achieve commercial oil production as a stable revenue stream.

Environmental Challenges

  • Continued volatility in oil prices.
  • Heightened climate change activism.
  • Breaches in business ethics and trust.
  • Changing investor expectations on the role of corporates.
  • One minor incident of non-compliance with environmental laws and regulations in Norway (discharge of drilling fluids).
Mitigation Strategies
  • Implementation of Operations Risk Management System (ORMS).
  • Corrective actions taken for environmental non-compliance incident.
  • Detailed tender process for contractors and service providers.
  • Risk Management Committee overseen by the Audit Committee.
  • Code of ethics and business conduct policy, conflict of interest policy, and whistle-blowing policy in place.

Supply Chain Management

Responsible Procurement
  • Detailed tender process for appointment of contractors and service providers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Oil & Gas Exploration & Production Sustainability Accounting Standard

Sustainable Products & Innovation

  • RVD technology (minimizes resource use and environmental impact by reducing dry wells).

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • 100% compliance with environmental laws and regulations.
  • 26.3% lower electricity consumption in Singapore office compared to 2020 due to Work-From-Home arrangements.
  • 84.3% decrease in water consumption in Singapore office compared to 2020.
  • Used Borgland Dolphin drilling rig for Fat Canyon prospect due to its low CO2 emissions.
  • Entered agreement with Nautilus Carbon Services AS to participate in CO2 storage project.

Social Achievements

  • Zero fatality rate and no HSSE issues in Norway and Oman drilling operations.
  • No instances of whistle-blowing, bribery, or corruption.
  • Average 6.2 hours of staff training per employee in Singapore.
  • No departures and one new hire in Singapore office.

Governance Achievements

  • Ranked No. 38 in the Singapore Governance and Transparency Index (SGTI) 2021.
  • No incidence of whistle-blowing, bribery, corruption, anti-competitive behavior, or fines for non-compliance with the law.
  • All board committees chaired by independent non-executive directors.

Climate Goals & Targets

Long-term Goals:
  • Sustain profitability.
Medium-term Goals:
  • Unlock value by selling oil-in-the-ground.
Short-term Goals:
  • Unlock value by achieving more oil discoveries and building up on its contingent resources and reserves.
  • Achieve commercial oil production as a stable revenue stream.

Environmental Challenges

  • Continued volatility in oil prices.
  • Heightened climate change activism.
  • Breaches in business ethics and trust.
  • Changing investor expectations on the role of corporates.
  • Transition to a lower carbon economy.
  • Potential decrease in demand for fossil fuels due to increased renewable energy production.
  • Global shift towards net-zero carbon emissions.
Mitigation Strategies
  • Implementation of the Group's Operations Risk Management System (ORMS).
  • Strict adherence to HSSE regulations.
  • Code of ethics and business conduct policy, conflict of interest policy, and whistle-blowing policy.
  • Outsourcing internal audit function to Ernst & Young Advisory Pte Ltd.
  • ESG initiatives such as carbon capture projects.
  • Prudent cash management strategy.
  • Consideration of business diversification into sustainable energy and related technologies.
  • Adjustment of business strategies, policies, and growth plans according to changes in the external or internal environment.

Supply Chain Management

Responsible Procurement
  • Detailed tender process for contractors and service providers.
  • Spending on local suppliers (majority of contracts for drilling in Norway and Oman were procured from local service providers).

Climate-Related Risks & Opportunities

Transition Risks
  • Transition to a lower carbon economy.
  • Potential decrease in demand for fossil fuels.
  • Global shift towards net-zero carbon emissions.
Opportunities
  • Opportunities to invest in assets made available by other oil & gas companies transitioning to renewables.
  • Carbon capture projects to minimize emissions.

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Oil & Gas Exploration & Production Sustainability Accounting Standard (October 2018)

Sustainable Products & Innovation

  • RVD technology (minimizes resource use and environmental impact by reducing dry wells).
  • Investment in Xer Technologies Pte. Ltd. (commercial drone company promoting sustainable practices).

Awards & Recognition

  • Runner-Up of SIAS Investors’ Choice Awards 2021 - Most Transparent Company Award – Energy.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:90,968 tonnes CO2e (operational control); 78,565 tonnes CO2e (equity share)
Scope 1 Emissions:27,567 tonnes CO2e (operational control); 25,309 tonnes CO2e (equity share)
Scope 2 Emissions:6.5 tonnes CO2e (location-based, operational control); 6.4 tonnes CO2e (location-based, equity share)
Scope 3 Emissions:63,395 tonnes CO2e (operational control); 53,250 tonnes CO2e (equity share)
Renewable Energy Share:Not disclosed
Total Energy Consumption:176.7 TJ
Water Consumption:636 megalitres (seawater withdrawn in Oman)
Waste Generated:72 tonnes
Carbon Intensity:162 tonnes CO2e/$mil USD revenue

ESG Focus Areas

  • Upholding Governance and Ethics
  • Prioritising Health and Safety
  • Resilience for Climate Change
  • Protecting our Environment
  • Creating Inclusive Communities

Environmental Achievements

  • Zero environmental non-compliance
  • One high-consequence work-related injury recorded (twisted ankle)

Social Achievements

  • Zero fatality rate for operations in both Norway and Oman
  • Majority of contracts for drilling in Norway and Oman were procured from local service providers

Governance Achievements

  • No instances of non-compliance with laws and regulations in environmental, social, or economic areas
  • No reported incidents of corruption
  • Runner Up of Singapore Corporate Governance Awards (SCGA) 2022, Mid Cap Category

Climate Goals & Targets

Long-term Goals:
  • Sustain profitability
  • Minimize environmental impact on marine biodiversity
Medium-term Goals:
  • Explore the commercial feasibility of renewable energy projects
  • Unlock value by selling oil-in-the-ground
  • Assess all existing and new suppliers on social and environmental considerations
  • Achieve at least 10 hours of training programs per employee
Short-term Goals:
  • Zero workplace fatalities
  • No downtime related to HSE issues
  • Recycle and reuse waste materials
  • Monitor and reduce resource consumption
  • Provide performance reviews for 100% of employees
  • Assess new suppliers based on social and environmental considerations
  • Procure all services from local suppliers where possible
  • Increase number of community engagements

Environmental Challenges

  • Transition to a low-carbon economy poses a strategic challenge
  • Potential exposure to risk of climate litigation
  • Increasing societal pressure on the oil and gas sector to minimize environmental damage
Mitigation Strategies
  • Business diversification into sustainable solutions (Xer Technologies, Moroxite T AB)
  • Exploring carbon capture and storage solutions in Norway
  • Implementing stringent environmental regulations and HSE management
  • Hedging short-term oil prices
  • Prudent cash management and strong banking relationships

Supply Chain Management

Supplier Audits: 100% of new suppliers in Oman screened using HSE criteria; 70 suppliers assessed for environmental impacts

Responsible Procurement
  • Supplier assessment for sustainability performance
  • Prioritization of local suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Sea storms
  • Cyclones
  • Inland freshwater depletion
  • Changes in seasons
Transition Risks
  • Lower demand for fossil fuels
  • Increase in carbon tax
  • Climate litigation
  • Technological advancements
  • Consumer preference for greener energy
  • Increase in cost of capital
Opportunities
  • Resource efficiency
  • Resilience (RVD technology)
  • Markets (carbon capture and storage)

Reporting Standards

Frameworks Used: GRI Standards 2021, GRI 11: Oil and Gas Sector 2021 Standards, TCFD framework, UN SDGs

Certifications: Null

Third-party Assurance: Internal review by RSM Risk Advisory Pte Ltd

UN Sustainable Development Goals

  • Not disclosed

The Group contributes to the UN SDGs through its daily operations, strategy development and collaboration with its stakeholders.

Sustainable Products & Innovation

  • Rex Virtual Drilling (RVD) technology

Awards & Recognition

  • No. 1 in the Straits Times / Statista Singapore’s Fastest Growing Companies 2023 list
  • Runner Up of the Singapore Corporate Governance Awards (SCGA) 2022
  • Best Managed Board (Mid-cap) (Bronze) – Singapore Corporate Awards 2022
  • Best Investor Relations (Mid-cap) (Bronze) – Singapore Corporate Awards 2022
  • No. 55 in the Singapore Governance and Transparency Index (SGTI) 2022