Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Workplace Safety and Environment
• Economic development
• Environmental Preservation
• Social development
• Cultural diversity

Environmental Achievements

• Reduction of 51% in the recordable incidents frequency rate (TFIR)
• Publication of the first greenhouse gas (GHG) inventory
• Compensation of 100% of CO2 emissions from direct sources
• Zero spills into the sea

Social Achievements

• Hiring of more than 2,000 Team Members
• Roll out of International Pension Plan (IPP) for non-US foreigners and 401k for Americans
• Implementation of the 12 Golden Safety Rules and Alcohol Abuse and Psychoactive Substances Restriction Programs
• 11% decrease in the non-work related lost time rate (TANRT)

Governance Achievements

• Implementation of the Compliance System
• Establishment of the Ethics Committee
• Ethics Line Channel
• Training of 5,239 Members (93% fulltime)

Climate Goals & Targets

Environmental Challenges

• Unscheduled maintenance shutdowns
• High accident frequency and absenteeism rates
• Political and macroeconomic uncertainty in Brazil (high inflation, currency devaluation, Petrobras crisis)
• High personnel turnover in the oil and gas sector

Mitigation Strategies

• Investments to make operating processes safer
• Heightened team training
• Implementation of important front-line changes through Leaders
• Selectivity in choosing new businesses
• Close monitoring of operating performance indicators
• Cost reduction program
• Investment policy that preserves liquidity

Supply Chain Management

Supplier Audits: 35 high-relevance suppliers (70% of purchase and contract value)

Responsible Procurement

• Sustainability criteria for Suppliers and Service Providers
• Contracts include clauses relating to health and safety, environmental and labor issues

Climate-Related Risks & Opportunities

Physical Risks

• Natural Catastrophes

Transition Risks

• Changes in legislation and regulation
• Market stagnation or decline

Opportunities

• Reduction of diesel consumption

Reporting Standards

Frameworks Used: GRI G4 - Essential

Certifications: ISO 14001:2004 and 18001 (FPSO Cidade de Itajaí), ISO 14001:2004 and OHSAS 18001:2007 (Maintenance and Offshore Services Support Logistic Base), CO2 Neutral Pratigi

Third-party Assurance: PricewaterhouseCoopers (financial information)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FPSO North Sea Producer (NSP): Winner of “Innovation in Safety” category of the UK Oil and Gas Industry Safety Awards
• First place in the Prêmio Destaque competition - Innovation Category (Production Increase through Reuse of Produced Gas)

Environmental Metrics

ESG Focus Areas

• Safety, Health, and Environment (SHE)
• Diversity and Inclusion
• Community Engagement
• Environmental Protection
• Emissions Reduction
• Energy Transition
• Compliance
• Corporate Governance
• Innovation

Environmental Achievements

• Reduced Scope 3 emissions by 4.8% (related to leased assets)
• Implemented Ocyan Zero Landfill Program to eliminate tailings disposal in landfills
• Achieved 90% waste diversion from landfills for noble purposes
• Reduced paper consumption by almost 3 metric tons through digitalization

Social Achievements

• Achieved Great Place to Work (GPTW) certification for the second time with a score of 85
• Launched the Ocyan Women Program, training 48 executives
• Launched the SeAmar Program to promote employee well-being
• Implemented Flex Office, offering flexible work arrangements
• Launched Pedala Macaé, refurbishing 233 bicycles and providing professional training
• Supported Norberto Odebrecht Foundation with R$7.4 million for local development programs
• Increased social investments by 122% compared to 2020

Governance Achievements

• Incorporated ESG vision into business strategy with short, medium, and long-term commitments
• Achieved ISO 37001 certification for the Compliance System
• Maintained 100% member training on anti-bribery and anti-corruption
• Established a robust supplier approval and monitoring process
• Included human rights clauses in 100% of contracts

Climate Goals & Targets

Environmental Challenges

• Increase in personal incidents on drilling rigs in 2021 due to increased work hours and maintenance activities
• Potential increase in frequency and intensity of cyclones and storms impacting operations
• New regulations and agreements potentially leading to higher fees or operational restrictions
• Long-term risk of reduced demand for oil and gas and upstream services
• Challenges in cost estimation for energy transition mitigation and opportunities

Mitigation Strategies

• Reinforcing disclosure of 12 Gold Safety Commitments and intensifying training for leaders
• Integrating climate change risks and opportunities into corporate risk management and operational safety practices
• Assessing long-term risks of reduced demand and exploring opportunities in renewable energy generation (e.g., offshore wind farms)
• Developing and implementing ESG strategy with short, medium, and long-term goals

Supply Chain Management

Supplier Audits: 254 suppliers underwent specific performance appraisal processes

Responsible Procurement

• Third-Party Code of Conduct requiring respect for human rights and compliance with labor legislation
• Supplier evaluation and classification based on criticality, quality, asset management, and SHE governance

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and intensity of cyclones and storms

Transition Risks

• New regulations and agreements
• Reduced demand for oil and gas and upstream services

Opportunities

• Development of energy-efficient products
• Opportunities in renewable energy generation (e.g., offshore wind farms)

Reporting Standards

Frameworks Used: GRI Standards: Essential option

Certifications: ISO 45001 (OH&S), ISO 14001 (Environmental), ISO 9001 (Quality), ISO 55001 (Asset Management), API Q2, ISO 37001 (Anti-bribery)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Goals are integrated into ESG strategy and action plans

Sustainable Products & Innovation

• Dynamic Risk Advisor system

Awards & Recognition

• Great Place to Work certification
• Inclusion in 100 Open Corps rankings

Environmental Metrics

ESG Focus Areas

• Ethics, integrity, and compliance
• Competitiveness and business growth
• Climate change
• Environmental impacts of operations
• Health and safety
• Human rights and diversity
• Responsible supplier management
• Community relations

Environmental Achievements

• 14% of Scope 1 emissions neutralized in 2022 through carbon credit purchase
• 100% of Scope 2 emissions neutralized in 2022 through I-RECs purchase
• 13% reduction in emissions intensity in Offshore Production
• 6.7% reduction in emissions intensity in Drilling
• 96% of waste diverted from landfill

Social Achievements

• 32% women and 33% Black people in leadership positions
• 38% reduction in the frequency of accidents compared to 2021
• Approximately 2,000 new employees hired due to new contracts
• R$ 7.5 million invested in social initiatives
• 634 hours of volunteer work

Governance Achievements

• Establishment of the ESG Committee in 2022
• 67% independent members on the Board of Directors in 2022
• Implementation of the Compliance System, certified according to ISO 37001 (anti-bribery management) since 2021

Climate Goals & Targets

Environmental Challenges

• Consolidation of DrillCo. (spin-off of the Offshore Drilling business)
• Analyzing the viability of decarbonization solutions and establishing a priority matrix
• Maintaining safety performance with increased hiring and maintenance shutdowns

Mitigation Strategies

• Collaboration and cooperation between Ocyan and DrillCo.
• In-depth analysis of decarbonization strategies in 2023
• Ongoing safety training and campaigns, behavioral audits, and improved risk management

Supply Chain Management

Supplier Audits: 105 suppliers audited for APIQ2 certification; 294 suppliers assessed for socio-environmental aspects.

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements
• APIQ2 certification for critical suppliers

Climate-Related Risks & Opportunities

Opportunities

• Offshore wind services
• Carbon capture and hydrogen green projects

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Certifications: ISO 45001, ISO 14001, ISO 9001, ISO 55001, APIQ2, SPIE

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 13
• Goal 14

Ocyan's initiatives contribute to these goals through various programs and commitments.

Sustainable Products & Innovation

• Dynamic Risk Advisor
• Smart Torque System
• Drill Pipe Integrity Management Tool

Awards & Recognition

• 100 Open Corps Award