Climate Change Data

Environmental Metrics

ESG Focus Areas

• Air Emissions
• Water Management
• Community Engagement
• Employee Health and Safety
• Diversity and Inclusion

Environmental Achievements

• 41% decrease in global methane emissions intensity since 2015
• 95% of Apache’s total water consumption in 2019 was nonfresh water
• 284% increase in our use of recycled produced water for hydraulic fracturing since 2015
• 8% reduction in global greenhouse gas emissions intensity from 2018 to 2019
• Achieved a global methane emissions intensity of 0.37% in 2019 (six years ahead of schedule)

Social Achievements

• 46% decrease in Total Recordable Incident Rate for employees and contractors since 2015
• 54% decrease in Days Away, Restricted or Transferred Rate for employees and contractors since 2015
• ~15,000 girls educated in Apache-supported schools in Egypt since 2004
• 4.7 MILLION trees donated since beginning the Apache Tree Grant Program in the U.S. in 2005
• Increased U.S. female science, technology, engineering and math employee headcount by 26% since 2015
• 39% decrease in the vehicle incident rate from 2018 to 2019
• In 2019, approximately 99% of our workforce in the U.K. was local. In Egypt, our workforce was comprised of 77% local talent.

Governance Achievements

• 30% of Board members are women
• 20% of the 2020 annual incentive compensation plan is tied to ESG goals
• Improvements in corporate governance and compensation practices based on shareholder feedback
• Formation of a Sustainability Committee composed of cross-functional management-level employees

Climate Goals & Targets

Environmental Challenges

• Increased injury rates in the Permian Basin due to a less-experienced workforce
• Potential risks associated with climate change (regulatory changes, consumer demand shifts, competition from other energy sources, physical risks from changing weather patterns)
• Potential for induced seismicity from saltwater disposal and hydraulic fracturing

Mitigation Strategies

• Partners in Premier Program to improve contractor safety in the Permian Basin
• Scenario planning framework to assess climate-related risks and opportunities
• Proactive management of asset mix to mitigate carbon risk
• Focus on being a low-cost and resource-efficient operator
• Maximizing water recycling, especially in water-scarce areas
• Compliance with regulations regarding underground injection control for water disposal
• Collaboration with industry, government, and NGO partners to reduce emissions and develop effective technologies

Supply Chain Management

Supplier Audits: Regular contractor assessments and safety audits

Responsible Procurement

• Contracts requiring compliance with laws, regulations, and Apache's standards for safety, environment, and ethics
• Contractor vetting process assessing technical capabilities, product quality, service quality, financial qualifications, and cost

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns

Transition Risks

• Changes in regulatory frameworks, consumer demand, investor assessments, and competition from other energy sources

Opportunities

• Cost savings and revenue enhancements from resource-efficient technologies; financial and reputational benefits from managing climate-related risks; improved regulatory relationships; improved employee attraction and retention

Reporting Standards

Frameworks Used: GRI (Core level), IPIECA Oil and Gas Industry Guidance, SASB Oil and Gas Exploration and Production Standard, TCFD recommendations, UN SDGs

Certifications: Null

Third-party Assurance: Partial assurance on financial data in Form 10-K

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Apache's initiatives contribute to these goals through various programs and operations

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Trendsetter in Political Disclosure and Accountability (CPA-Zicklin Index); Beit El Helm Award; Winning “W” Company; One of the World’s Most Admired Companies; Top Workplace in Houston and San Antonio; Texan by Nature 20; America’s Most JUST Companies; Bruno Hanson Environmental Excellence Award; E&P Company of the Year; America’s Best Midsize Employers; DEG Corporate Award

Environmental Metrics

ESG Focus Areas

• Air
• Water
• Communities+People

Environmental Achievements

• 27% reduction in flaring emissions since 2016
• 41% reduction in venting emissions since 2016
• 16% reduction in Scope 1 emissions since 2016
• 55% reduction in Scope 2 emissions since 2016
• Achieved goal to end routine flaring in U.S. onshore operations by the end of 2021 (three months ahead of schedule)
• 91% of the water used in U.S. hydraulic fracturing operations in 2020 was nonfresh or recycled produced water
• 84% of the total water utilized for production operations since 2016 has been recycled or reused

Social Achievements

• Donated more than 500,000 PPE kits to hospitals, health care units, quarantine centers and first responders around the globe in 2020
• Provided over 20,000 meals to families in need in the U.S. and U.K. during the COVID-19 pandemic
• Expanded diversity and inclusion training programs
• Created and supported several Employee Resource Groups

Governance Achievements

• 20% of all employees’ annual incentive compensation is linked directly to ESG-related goals, including safety performance
• Established a dedicated, cross-functional ESG Management Committee
• Regular engagement with shareholders, government agencies, NGOs, and other stakeholders on ESG issues

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and associated market dynamics
• Water scarcity in some operating areas
• Managing naturally occurring radioactive material (NORM)

Mitigation Strategies

• Activated crisis management response teams and business continuity plans
• Implemented robust health and safety protocols
• Increased use of nonfreshwater sources and recycling of produced water
• Careful monitoring and handling of NORM, employee training, and decontamination by specialized service companies

Supply Chain Management

Supplier Audits: Frequent contractor safety audits

Responsible Procurement

• Minimum criteria for contractors concerning core training, insurance, and health and safety management
• Code of Conduct or Code of Ethics required for U.S.-based contractors
• Third-party supply chain management tools for contractor evaluations

Climate-Related Risks & Opportunities

Physical Risks

• Severe temperature changes
• Seasonal droughts
• Tornados
• Hurricanes
• Changes in rainfall or weather patterns
• Extended droughts
• Changes in water availability patterns
• Rising sea levels
• Sea temperature change

Transition Risks

• Changes in regulation
• Changes in national policies
• Changes in tax programs
• Equipment and technology advancements
• Stigma of fossil fuels

Opportunities

• Resource efficiency improvements
• Increased demand for natural gas for power generation
• Development of hydrogen and hydrogen-based technologies
• Development of new markets for refined products
• Expanding fossil fuel markets in developing economies
• Development of hydrogen and CCUS markets
• Access to green bonds and capital

Reporting Standards

Frameworks Used: GRI, IPIECA, SASB, TCFD, UN SDGs

Certifications: Null

Third-party Assurance: Internal Audit

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

Details on how initiatives contribute to each SDG are provided throughout the report

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Fortune's World's Most Admired Companies
• CPA-Zicklin Index Trendsetter
• Noble Services Best Safety Results
• Wood Mackenzie E&P Explorer of the Year
• Beit El Helm Award

Environmental Metrics

ESG Focus Areas

• Air
• Water
• Communities+People

Environmental Achievements

• Reduced upstream routine flaring in Egypt operations by 40% ahead of schedule.
• Eliminated routine flaring in the U.S.
• Increased the volume of produced water recycled and reused globally.
• Received the inaugural Industrial Reuse Champion Award at the 38th Annual WateReuse Symposium for best-in-class water recycling and reuse program.
• Completed $17 million of capital projects estimated to eliminate up to 860,000 tonnes of annual CO2e emissions.

Social Achievements

• Achieved the company’s lowest TRIR in nearly two decades and achieved all corporate leading and lagging safety targets.
• Launched a refreshed employee engagement survey globally with a 76% response rate.
• Founded Springboard Girls’ Schools in Egypt, educating over 15,000 girls.
• Donated more than 5 million trees since 2005 through the Apache Corporation Tree Grant Program.
• Partnered with the Clean Cooking Alliance to achieve universal access to clean cooking fuels.
• Established Supplier Diversity Program and disclosed Tier 1 spend by category.
• Added three employee resource groups.

Governance Achievements

• Maintained top-tier distinction from the CPA-Zicklin Index for six consecutive years.
• Implemented cybersecurity safeguards and programs based on the National Institute of Standards and Technology framework.
• Linked 20% of all executives’ and employees’ annual incentive compensation directly to ESG- and safety performance-related goals.

Climate Goals & Targets

Environmental Challenges

• Balancing increasing global energy demand with the imperative of reducing GHG emissions.
• Energy insecurity and price volatility due to geopolitical events and supply chain disruptions.
• Water scarcity in some operating areas.
• Maintaining safety performance with increased operational activity.

Mitigation Strategies

• Setting ambitious, near-term ESG goals tied to employee incentive compensation.
• Implementing a range of technologies and operational practices to reduce GHG emissions (e.g., electrification, reduced-emission completions).
• Prioritizing the use of nonfresh water and increasing produced water recycling.
• Adopting the IOGP Life-Saving Rules and focusing on leading safety indicators.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (e.g., Winter Storm Uri)
• Droughts
• Hurricanes
• Rising sea levels
• Sea temperature change

Transition Risks

• Changes in regulation
• Changes in national policies
• Changes in tax programs
• Costs of lower-emission technology
• Stigma of fossil fuels

Opportunities

• Improved transportation fuel efficiency
• Increased demand for natural gas
• Development of hydrogen markets
• Premium pricing for responsibly extracted resources
• Development of CCUS markets
• Expansion of markets in developing economies

Reporting Standards

Frameworks Used: GRI, Ipieca, SASB, TCFD, UN SDGs

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: GHD (for 1 million tonnes CO2e emissions reduction project)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

The report details how APA's initiatives contribute to each of the 17 UN SDGs.

Awards & Recognition

• Forbes America’s Best Midsize Employers
• CPA-Zicklin Index Trendsetter
• Energy Workforce & Technology Council ESG Accelerator Award
• Fortune World’s Most Admired Companies
• WateReuse Industrial Reuse Champion Award
• Fortune 500

Environmental Metrics

ESG Focus Areas

• Air
• Water
• Communities+People

Environmental Achievements

• Utilized 61% recycled produced water for completions in U.S. onshore operations
• Converted more than 2,800 pneumatic devices to reduce methane emissions in U.S. onshore operations
• Implemented projects across operations to switch to lower-emitting power sources
• Reduced methane emissions from glycol recovery units at U.K. offshore facilities

Social Achievements

• Provided comprehensive and inclusive family building tools for U.S. employees, including fertility treatment support services, adoption and surrogacy reimbursement, and backup care for children and elderly family members
• Expanded mental health benefits to include all employees and eligible family members worldwide
• Introduced Well Deserved, a new employee recognition program

Governance Achievements

• Adopted the industry-standard International Association of Oil & Gas Producers (IOGP) Life-Saving Rules
• Established a dedicated Cybersecurity Committee
• Linked 20% of all executives’ and employees’ annual incentive compensation directly to ESG- and safety-performance-related goals

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events and geopolitical instability
• Water scarcity in certain operating areas
• Meeting growing global energy demand while reducing emissions

Mitigation Strategies

• Increased use of recycled produced water
• Implementation of methane reduction projects
• Investment in water infrastructure
• Electrification of operations where feasible
• Collaboration with industry partners on emissions reduction initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• ESG expectations for suppliers
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (e.g., Winter Storm Uri)
• Droughts
• Hurricanes
• Rising sea levels

Transition Risks

• Changes in regulation
• Changes in national policies
• Changes in tax programs
• Costs of lower-emission technologies
• Stigma of fossil fuels

Opportunities

• Improved transportation fuel efficiency
• Increased demand for natural gas
• Development of hydrogen markets
• Premium pricing for responsibly extracted resources
• Development of CCUS markets
• Access to green bonds and capital

Reporting Standards

Frameworks Used: GRI, Ipieca, SASB, TCFD, UN SDGs

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: GHD (partial assurance)

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

APA's initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Trendsetter in Political Disclosure and Accountability (CPA-Zicklin Index)
• ISM 2023 Diversity Champion Trailblazer Award
• Fortune 500
• Fortune's Best Place for Working Parents