Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Environment
• Community

Environmental Achievements

• 53% reduction in GHG emissions compared to fuel oil, equivalent to removing 45,000 cars from the road

Social Achievements

• Promote local employment and training
• Ensure any voluntary social contributions are aligned with our CSR policies

Governance Achievements

• Committed to providing a safe & discrimination-free workplace
• Committed to safety with a zero incident goal

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Responsibly supplying energy
• Strengthening communities and our workforce
• Minimizing our impact

Environmental Achievements

• 53% reduction in GHG emissions relative to fuel oil
• 100% of produced water reinjected
• Voluntarily reforested nine square kilometers since 2019
• Preserved 65% of trees and vegetation during Murucututu pipeline construction

Social Achievements

• Zero Lost Time Incident Rate (LTIR)
• Completed a comprehensive community needs assessment, visiting over 190 families
• Commenced a formal voluntary social contribution program targeting seven communities
• 100% of workforce trained in Alvopetro Code of Conduct
• Murucututu Pipeline: new jobs created
• Caburé: permanent jobs added to the region

Governance Achievements

• 5/6 independent Board of Director members
• Annual training session to ensure employees understand and comply with our Anti-Corruption Compliance policy
• All employees, officers, and directors are required to certify annually that they understand the code of conduct

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact of upstream and midstream operations
• Reducing emissions from compressors, acid gas waste, and fugitive emissions from processing equipment
• Working with operating partners to mitigate emissions from assets

Mitigation Strategies

• Quantifying carbon footprint and measuring Scope 1 & 2 GHG emissions
• Studying new measures and technology to increase process efficiency, optimize diesel use, and detect leaks
• Investing in environmental programs for forest preservation and regeneration
• Prioritizing efficient machinery and systems in planning for new and expanding sites
• Utilizing condensate stabilization system and vapor recovery unit to reduce volatility and maximize recovery of natural gas liquids

Supply Chain Management

Supplier Audits: Consistent monitoring and audits by HSE team

Responsible Procurement

• Screening of potential suppliers to ensure materials are from licensed sources and contractors have high HSE standards
• HSE orientation for contractors
• Monthly meetings with project suppliers to review HSE performance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (Core), SASB, Greenhouse Gas Protocol (GHG Protocol), UN Guiding Principles Reporting Framework, 2030 Agenda for Sustainable Development

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 11: Sustainable Cities and Communities

Social investment program focused on education, economic development, and community sustainability

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Recognition from City Council for good social practice due to implementation of Music and Arts Program

Environmental Metrics

ESG Focus Areas

• Responsibly supplying energy
• Strengthening communities and our workforce
• Minimizing our impact

Environmental Achievements

• Installed solar panels for lighting at 11 well sites and facilities, reducing reliance on diesel generators and contributing to an overall reduction in emissions.
• Expanded and upgraded gas treatment facility to increase processing capacity and promote energy efficiency, reducing natural gas flared and optimizing condensate yields.
• Completed 3.3 km extension of Murucututu pipeline and Murucututu facility installation and construction, using 59.5% of grazing area and preserving 21.1% of the area.
• Installed a Vapor Recovery Unit (VRU) at the UPGN, recycling gas that would otherwise be flared back into the treatment process.

Social Achievements

• Increased social investment program spending by 156% from 2021, benefiting over 600 people.
• Maintained a zero lost-time incident rate (LTIR) in 2022.
• 53% of all goods and services were procured locally in Bahia state.
• 33% of all employees are female and 38% of the senior leadership team is female.
• Implemented Sow & Grow Program, benefiting 44 families with Biowater systems and providing training in agroecology.

Governance Achievements

• 100% of workforce trained in Code of Conduct.
• 5 of 6 board members are independent.
• No environmental penalties.

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact of upstream development.
• Managing risks associated with potential supply chain disruptions and rising energy costs.
• Cybersecurity risks.

Mitigation Strategies

• Implementing multi-well pad development to improve operational efficiency and minimize environmental footprint.
• Prioritizing measures to preserve biodiversity and restricting activities to already deforested areas.
• Partnering with a local conservation group to study and conserve the northeastern collared sloth habitat.
• Working with operating partners to mitigate emissions from assets.
• Studying new measures and technology to increase process efficiency, optimize diesel use, and detect leaks.
• Implementing a comprehensive risk analysis matrix and mitigation strategies for various risk factors.
• Focusing on cybersecurity risks in 2023 with goals to identify and mitigate risks, enhance employee awareness, and document detailed policies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing local suppliers (53% of goods and services procured locally).
• Screening suppliers for HSE management systems and compliance with legal and ethical requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (Core), SASB, Greenhouse Gas Protocol, UN Guiding Principles Reporting Framework, 2030 Agenda for Sustainable Development

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 11: Sustainable Cities and Communities

Social programs aligned with these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed