Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity & Inclusion
• Governance
• Transparency

Environmental Achievements

• Approximately 40% of operational carbon offset from two produced water treatment projects
• Sale of ~530,000 horsepower of electric motor drive compressors in North America in 2022 (projected to displace significant carbon dioxide)

Social Achievements

• Total Recordable Incident Rate (TRIR) improved to 0.46 from 0.50 in 2021
• Values-based decision-making training completed for over 2,100 new employees
• Increased employee training hours

Governance Achievements

• 90% independent directors on the board
• 100% board committee independence
• 8% of annual bonus for executive officers tied to an ESG metric (TRIR)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Carbon capture, electrification, renewable natural gas, and hydrogen solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• ethics
• health and safety
• human capital management
• compensation and incentives
• cybersecurity and data privacy

Environmental Achievements

• Achieved a total recordable incident rate (TRIR) of 0.42 in 2023, the lowest annual TRIR in over two decades (improvement from 0.46 in 2022).
• Reduced freshwater usage by mandating recycled water for pressure testing and pressure washing at Houston manufacturing facility and one Contract Compression facility; using collected rainwater for pressure washing compressor packages in Colombia.
• Canadian and select USA manufacturing facilities use low VOC paint and VOC-free thinner; implemented an enterprise-wide policy to limit standby running for vehicles and operating equipment since 2021.

Social Achievements

• Implemented comprehensive well-being initiatives and resources, including employee assistance programs, online resources, medical coverage, dental and prescription plans, life and disability insurance, pensions, savings plans, financial resources, and health and well-being activities.
• Introduced a company-wide Learning platform with on-demand digital courses and resources.
• Integrated corporate cultures after the Exterran acquisition, focusing on collaboration, decision-making, and core values alignment.

Governance Achievements

• Updated the Code of Conduct in 2023 to address advancements in artificial intelligence and updated anti-money laundering requirements.
• Implemented a fulsome review of its anti-bribery, sanctions, and trade compliance programs in 2020.
• Updated its Code of Conduct in 2023 to explicitly address money laundering.

Climate Goals & Targets

Environmental Challenges

• Global supply chain issues impacting the availability of major components and skilled personnel.
• Highly competitive business environment with low barriers to entry.
• Fluctuations in interest rates affecting liabilities.
• Inflationary pressures impacting gross margin and profitability.
• Health and safety risks inherent in manufacturing, construction, and operations.
• Cyberattack risks, including data exposure and operational disruption.
• Inherent litigation risk and liability claims.
• Access to capital on reasonable terms.
• Potential impacts of public health crises.
• Cyclical nature of the energy industry and volatility of energy prices.
• Foreign exchange risk.
• ESG and investor sentiment related to the oil and gas business.
• Climate change and associated regulatory and policy changes.
• Reliance on technological advancements for energy transition success.
• Inherent risks in the energy transition.
• Corruption, sanctions, and trade compliance issues.
• Compliance with HSE regulations.
• Need for significant levels of insurance.
• Seasonal factors impacting demand.
• Project execution risk.
• Risks associated with international operations.
• Ability to hire and retain personnel and contractors.
• Financial reductions or restrictions of Enerflex client partners.
• Contract-related risks in the Contract Compression business.
• Terrorism and terrorist-related activities.
• Potential changes in credit ratings.
• Credit risk associated with client partners in the oil and gas business.
• Availability of raw materials, component parts, or finished products.
• Ability to continue to pay dividends.
• Maintaining adequate internal control over financial reporting.
• Changes in tax laws, interpretations, or rates.
• Unionization efforts and labor regulations.
• Ability to pursue or complete future acquisitions.

Mitigation Strategies

• Global footprint to broaden personnel access and manage inventory levels.
• Passing cost increases to client partners and proactive supply chain and human resource practices.
• Implementing HSE programs and processes, including “stop work” authority for employees.
• Implementing security measures, including incident monitoring, vulnerability testing, tabletop exercises, response planning, and employee training.
• Contracting strategies.
• Hedging policy to mitigate foreign exchange risk.
• Proactive engagement with stakeholders.
• Implementing quality management systems at manufacturing facilities.
• ERM program guided by ISO 31000.
• Continuous monitoring of regulatory trends and proactive compliance.
• Remediation plan to address material weaknesses in internal control over financial reporting.
• Developing and implementing robust ESG policies and practices.

Supply Chain Management

Supplier Audits: Periodic site visits and audits

Responsible Procurement

• Due diligence including examination of OSHA standards, safety protocols, and quality benchmarks.
• Further assessments for international suppliers to ensure alignment with social, safety, and environmental policies.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (hurricanes, flooding, droughts, etc.)
• Rising sea levels

Transition Risks

• Regulatory changes imposing carbon pricing schemes, carbon taxes, or emissions-reduction obligations.
• Technological advances and cost declines in alternative energy sources reducing demand for hydrocarbons.

Opportunities

• Providing CCUS, electrification, bioenergy, and hydrogen solutions.

Reporting Standards

Frameworks Used: GHG Protocol, SASB

Certifications: ISO 9001 (select facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CCUS solutions
• Electrification solutions
• Bioenergy solutions
• Hydrogen solutions
• Treated water solutions

Awards & Recognition

• Not disclosed