Climate Change Data

Buru Energy Limited

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:13,116 tCO2e (Scope 1 & 2)
Scope 1 Emissions:9,681 tCO2e
Scope 2 Emissions:40 tCO2e
Scope 3 Emissions:1,484 + 1,878 + 104,406 tCO2e
Total Energy Consumption:84,812 GJ
Carbon Intensity:0.34 kg CO2e/boe (Upstream emissions intensity)

ESG Focus Areas

  • GHG Emissions
  • Climate Adaptation, Resilience & Transition
  • Asset Integrity & Critical Risk Management
  • Biodiversity
  • Non-Discrimination & Equal Opportunity
  • Engagement with Indigenous Peoples
  • Occupational Health & Safety
  • Economic Impacts

Environmental Achievements

  • Continued high standards of environmental performance
  • Continued high levels of procurement and contracting with local Aboriginal and Kimberley businesses
  • Zero incidents of discrimination were reported in the business
  • Achieved zero Tier 1 or Tier 2 process safety events in operations

Social Achievements

  • Confirmed and published the Company’s Aboriginal Participation and Local Content Policy
  • 25% of all staff at the Ungani Oilfield are Indigenous

Governance Achievements

  • Continued development and formalisation of this ESG Framework
  • Set a Net Zero by 2050 Target
  • Initiated the inaugural sustainability reporting process
  • Published the Company’s Carbon Management Policy

Climate Goals & Targets

Long-term Goals:
  • Commence development of a road map to net zero GHG emissions by 2050
Medium-term Goals:
  • Continue to progress an integrated energy strategy
  • Further integrate climate considerations into business planning and processes
Short-term Goals:
  • Develop a complete Scope 3 methodology (all relevant categories)
  • Develop a Fugitive Emissions Program to measure fugitive emissions from production operations and identify opportunities for reduction

Environmental Challenges

  • The need for reduction of GHG emissions while meeting growing global demands for reliable and affordable energy
  • Potential moratorium on exploration licences in certain jurisdictions
  • Physical risk to assets, associated supply/export bases and infrastructure including roads and ports
  • Increased costs due to production downtime
  • Increased costs for insurance, repairs
  • Project delay
Mitigation Strategies
  • Emissions reduction initiatives
  • Portfolio diversification
  • Carbon Management Plan for all future developments
  • Model climate forecasts for operational areas
  • Emissions reduction initiatives
  • Portfolio diversification
  • Consultation on new oil and gas strategy and through APPEA membership

Supply Chain Management

Responsible Procurement
  • More than $17 million spent on goods and services from 108 entities in the Kimberley region

Climate-Related Risks & Opportunities

Physical Risks
  • Physical risk to assets, associated supply/export bases and infrastructure including roads and ports
Transition Risks
  • Implementation of carbon pricing
  • Increased CAPEX for GHG reduction initiatives
  • Access to finance for future oil and gas developments
  • Potential moratorium on exploration licences in certain jurisdictions
Opportunities
  • Participation in the carbon market (ACCU development)
  • Portfolio diversification opportunity

Reporting Standards

Frameworks Used: GRI 11: Oil and Gas Sector 2021, GRI Universal Standards 2021, TCFD

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:10,136 tCO2e (Scope 1)
Scope 1 Emissions:10,136 tCO2e
Scope 2 Emissions:48 tCO2e
Scope 3 Emissions:79,524 tCO2e (Categories 4, 9, 11)
Total Energy Consumption:55,415 GJ
Carbon Intensity:43 kg CO2e/boe (2022)

ESG Focus Areas

  • Greenhouse Gas Emissions
  • Climate Adaptation, Resilience & Transition
  • Closure and Rehabilitation
  • Non-discrimination and Equal Opportunity
  • Engagement with Aboriginal Peoples
  • Occupational Health & Safety
  • Asset Integrity & Critical Incident Management
  • Economic Impacts

Environmental Achievements

  • Zero breaches of environmental performance objectives
  • Scope 3 methodology developed
  • Fugitive emissions method drafted for 2023 implementation

Social Achievements

  • Zero lost time injuries
  • Aboriginal Engagement, Procurement & Employment Standard implemented
  • Over 65 hours of training per employee on average
  • Aboriginal employment target at Ungani met
  • Zero reported incidents of discrimination
  • $11.48 million spent on local Kimberley suppliers

Governance Achievements

  • Major Projects Management System implemented
  • Standardised reporting of Tier 1 and 2 safety events implemented
  • Zero non-compliance with external laws and regulations or internal policies

Climate Goals & Targets

Long-term Goals:
  • Net zero scope 1 and 2 emissions by 2050
Medium-term Goals:
  • Continue to develop net zero approach
  • Continue to integrate climate considerations into business planning and processes, aligned to TCFD
  • Workshop and test scenario analysis methodology
Short-term Goals:
  • Trial calculation of full Scope 3 inventory
  • Conduct fugitive emissions survey at Ungani
  • Implement fugitive emissions monitoring at Ungani

Environmental Challenges

  • One Tier 2 spill occurred, although fully contained.
  • Other injuries (first aid and alternative duties) did occur.
Mitigation Strategies
  • A thorough investigation was undertaken to determine the root cause and other contributing factors, with corrective actions assigned.
  • Standardised reporting of Tier 1 and 2 process safety events implemented.
  • Regularly reviewing performance against these health and safety objectives and incident investigations

Supply Chain Management

Responsible Procurement
  • Giving preference to Aboriginal businesses
  • Tendering and negotiation system for local businesses

Climate-Related Risks & Opportunities

Physical Risks
  • Physical risk to assets, associated supply/export bases and infrastructure including roads and ports
Transition Risks
  • Access to finance for future oil and gas developments
  • Costs associated with emissions reduction targets for future developments
  • Lack of organisational capability in energy transition industry
Opportunities
  • Participation in the carbon market (ACCU development)
  • Portfolio diversification opportunity

Reporting Standards

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

UN Sustainable Development Goals

  • Target 13.2
  • Target 13.3
  • Target 12.6
  • Target 15.1
  • Target 8.5
  • Target 8.3
  • Target 16.7
  • Target 8.8
  • Target 8.1
  • Target 9.2

Goals aligned with IPIECA SDG Roadmap for the Oil and Gas Sector.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:23,607 tCO2e (operational); 11,902 tCO2e (equity share)
Scope 1 Emissions:3,127 tCO2e (operational); 1,642 tCO2e (equity share)
Scope 2 Emissions:41 tCO2e (operational); 41 tCO2e (equity share)
Scope 3 Emissions:19,706 tCO2e (operational); 9,853 tCO2e (equity share)
Total Energy Consumption:25,850 GJ
Carbon Intensity:61 kg CO2e/boe (2023)

ESG Focus Areas

  • GHG Emissions
  • Climate Adaptation, Resilience and Transition
  • Biodiversity
  • Closure and Decommissioning
  • Occupational Health and Safety
  • Non-Discrimination and Equal Opportunity
  • Engagement with Aboriginal Peoples
  • Asset Integrity and Critical Incident Management
  • Economic Impacts

Environmental Achievements

  • Zero Tier 1 and Tier 2 spill incidents
  • 252 tonnes of steel from decommissioned infrastructure recycled
  • Ongoing environmental monitoring of seismic lines completed

Social Achievements

  • Zero Harm achieved (no lost time injuries)
  • Aboriginal employment target met at Ungani prior to suspension of production
  • Formal written policy and approach to Aboriginal engagement implemented
  • Buru Energy Senior Management Team received cultural awareness training with relevant Traditional Owners (TOs)
  • All on-ground personnel received relevant cultural inductions

Governance Achievements

  • Zero critical concerns reported to the Board
  • All Safety Critical Element maintenance completed on time in accordance with AIMP or MOC
  • Emergency response drills reflecting operational risk developed and implemented

Climate Goals & Targets

Long-term Goals:
  • Achieve 40:40:20 gender diversity target
Medium-term Goals:
  • Continue partnerships to advance energy transition direction
  • Continue to integrate climate considerations into business planning and processes, aligned to the intentions of TCFD and GRI 11.2
  • Commence on-ground operations for 2H Resources
  • Advocate for the establishment of a commercially viable, safe, and environmentally responsible CCS industry in Western Australia
  • Participation in the carbon market (ACCU development)
Short-term Goals:
  • Continue to refine data capture and collation for Scope 3 emissions
  • Investigate options for renewable energy use at company sites and/or offices
  • Implement fugitive emissions monitoring at Ungani

Environmental Challenges

  • Suspension of Ungani Production Field for the foreseeable future due to uncertain availability of the Fitzroy River crossing
  • Legal action from community/Exposure to litigation for carbon-intensive industries
  • Lack of support from a range of sources (e.g., community, investors, government etc.) for carbon capture and storage technology and projects
  • Rainfall intensity may increase under future climate scenarios
  • Fossil fuel screening by creditors/access to finance
  • Technologies do not deliver expected reductions
Mitigation Strategies
  • Offered assistance in finding other positions in the industry or region for Ungani staff
  • Demonstratively robust community consultation program
  • Transparent and accurate climate disclosures supported by evidence
  • Early consultation with all stakeholders to identify concerns
  • Elevation considerations during site selection
  • Drainage and wastewater to be considered in site design
  • Use of one-in-100-year flood levels rather than one-in-20
  • Transparent and accurate climate disclosures supported by evidence
  • Develop carbon management plans on a project level
  • Develop a climate transition plan
  • Look at depleted fields as back up to primary CCS option
  • Geovault investigation commenced

Supply Chain Management

Responsible Procurement
  • Prioritise procurement of goods and services from local Aboriginal and Kimberley businesses

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding to site and supply and export routes
  • Rainfall intensity may increase under future climate scenarios
Transition Risks
  • Legal action from community
  • Lack of support for carbon capture and storage technology
  • Fossil fuel screening by creditors
  • Technologies do not deliver expected reductions
Opportunities
  • Competitive advantage around Rafael phase 1
  • Participation in the carbon market

Reporting Standards

Frameworks Used: GRI 11: Oil and Gas Standard (2021), GRI Universal Standards (2021), TCFD