Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Innovation & Technology
• Performance
• People
• Community

Environmental Achievements

• 91% decrease in total spill volume from 53K liters to 5K liters (Loss of Containment)
• 38% decline in GHG emissions from 2015 to 2016
• 16% decrease in total waste generated offshore from 2015 to 2016

Social Achievements

• Improved LTI rate by 69% from 2015
• Reduced total recordable incident rate by 19% compared to 2015
• Zero fatalities in 2016
• Invested more than $27 million in education and training opportunities for employees
• Over 53,000 hours of training for offshore teams in 2016

Governance Achievements

• 100% compliance with Company’s Legal, Compliance & Ethics training in 2016
• Lowest annual Total Recordable Incident Rate (0.34) in company history
• Highest annual average revenue efficiency performance of 98%

Climate Goals & Targets

Environmental Challenges

• Reduced year over year activity impacting GHG emissions
• Variable power demand affecting fuel consumption and emissions
• Increased number of spills despite lower total spill volume
• Customer responsibility for fuel used and emissions reporting

Mitigation Strategies

• Development of hybrid power system to reduce fuel consumption and emissions
• Improved data monitoring and analysis to identify and address challenges
• Focus on prevention and mitigation with barrier management processes
• Continuous improvement model to reduce waste impact to landfills

Supply Chain Management

Responsible Procurement

• Selection of local and preferred vendors
• Comprehensive vendor evaluation process
• Contract awards based on total life cycle cost
• Commitment to vendor development
• Quality assurance function

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001

Sustainable Products & Innovation

• Hybrid Micro-Grid system
• Backup safety control system for subsea BOPs

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• People
• Community
• Governance

Environmental Achievements

• Reduced Scope 1 offshore CO2 emissions from 1.4+ million tons to 1.1+ million tons.
• Successfully deployed the world’s first hybrid energy storage system on the Transocean Spitsbergen, targeting a 14% reduction in fuel use during normal operations.
• Significant reduction in the total number of spills greater than one barrel (to 6 from 15 the previous year), with a corresponding reduction in spill volume.

Social Achievements

• Launched new programs to support the workforce, built on four key pillars: physical, emotional, social, and financial well-being.
• Launched a new training program for all offshore supervisors to create and maintain a safe and respectful workplace.
• Formalized the T.E.A.M. Fund, awarding seven grants totaling $25,000 to employees facing financial hardship.
• Added a woman to the Board of Directors.

Governance Achievements

• 100% of employees and officers completed Legal, Compliance, & Ethics training.
• Expanded the HSE committee to include sustainability (HSES committee).

Climate Goals & Targets

Environmental Challenges

• General turnover and a weak hiring market impacted gender diversity results.
• Reduction in activity impacted environmental metrics.

Mitigation Strategies

• Implemented various initiatives to improve workforce well-being and attract diverse talent.
• Continued to focus on engine load efficiency and power demand to reduce carbon footprint.

Supply Chain Management

Responsible Procurement

• Selection of local and preferred vendors based on total life cycle cost.
• Comprehensive vendor evaluation for safety, quality, anti-bribery, and anti-corruption compliance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs

Sustainable Products & Innovation

• aShear system
• HaloGuard system
• Hybrid power system

Awards & Recognition

• Las Palmas Ports Award
• Rigzone Ideal Employer Survey (No. 1 Drilling Contractor for 2017, 2018, and 2019)

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• People
• Community
• Corporate Governance

Environmental Achievements

• Reduced loss of containment volumes in 2020 relative to 2019
• Lower fuel consumption and emissions in 2020 due to fewer active rigs, increased uptime, and improved operational efficiency
• Significant reduction in both the number of spills and spill volumes in 2020 compared to 2019

Social Achievements

• Publication of Human Rights Policy Statement
• Implementation of Smart Equipment Analytics (SEA) on 19 rigs
• Launch of Offshore Development Program (ODP) to attract, develop, and retain women and underrepresented populations for technical leadership positions
• Initiation of a pilot Mental Health Ambassador Program offshore USA

Governance Achievements

• Addition of sustainability program oversight to the Board’s HSE Committee, renaming it the Health, Safety, Environment, and Sustainability (HSES) Committee
• Addition of a second woman to the Board of Directors in 2020 and a third in 2021
• 100% of employees, officers, and directors completed Legal, Compliance, & Ethics training in 2020

Climate Goals & Targets

Environmental Challenges

• Global pandemic upending lives, jobs, and plans
• COVID-19 related travel restrictions, safety protocols, and quarantine requirements
• Employee transport challenges

Mitigation Strategies

• Quick adaptation and innovation without compromising values
• Implementation of medical protocols (masks, social distancing, quarantines, PCR testing)
• Flexible routing, emergency charters, and online visas for travel
• Advanced COVID-19 testing capability on all offshore installations
• Support for offshore employees through compensation and EAP programs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection of local and preferred vendors
• Comprehensive vendor evaluation for safety, quality, anti-bribery, and anti-corruption
• Contract awards based on total life-cycle cost
• Commitment to vendor development

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 50001 (one rig), Energy Star (corporate office), LEED Silver (corporate office)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smart Equipment Analytics (SEA)
• HaloGuardSM
• Kinetic Blowout Stopper (KBOS)
• Drilling Automation Applications
• Enhanced Kick/Loss Detection
• Hybrid energy storage system

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health, safety, and wellbeing
• Loss of containment
• Reliability and efficiency of operations
• Scope 1 and 2 emissions reduction
• Energy transition strategy
• Talent Management with emphasis on Diversity, Equity and Inclusion (DEI)
• Human rights
• Corporate governance and ethics
• Transparency, accountability and reporting

Environmental Achievements

• Net decrease in Scope 1 emissions intensity relative to 2020 achieved through better operational efficiency and technology deployments.
• All active rigs developed an energy management plan aligned with ISO 50001 and IMO SEEMP frameworks.
• Reduction in NOx and non-GHG emissions due to reduced fuel consumption.

Social Achievements

• Revamped and relaunched Offshore Development Program (ODP) to funnel diverse talent into technical leadership roles, with over half of participants being women.
• Launched a similar development program in Angola to create a pipeline of local technical talent.
• Initiated Mental Health Ambassador Program in the U.S. Gulf of Mexico.

Governance Achievements

• Annual training on Legal Compliance and Ethics (LCE) program conducted for all employees.
• Established a Code of Integrity Committee to discuss LCE controls and initiatives.
• Stringent vetting, training, and auditing process for third-party intermediaries (TPIs).

Climate Goals & Targets

Environmental Challenges

• Balancing energy security and climate neutrality in the energy industry.
• Insufficient investment in conventional energy resources.
• Compromised supplies of global energy and rare earth minerals.
• Influence of customer engagement on emission reduction initiatives.

Mitigation Strategies

• Two-pronged strategy: reducing emissions intensity of hydrocarbon business and exploring renewable business opportunities.
• Investing in new technologies and initiatives to reduce fuel consumption and optimize power management.
• Exploring projects supporting energy transition, including Northern Lights carbon sequestration project and investment in offshore rare earth minerals company.
• Implementing rig-specific energy management plans.

Supply Chain Management

Responsible Procurement

• Vendor selection based on total life-cycle cost and environmental impact, local content, and human rights.
• Compliance with Transocean’s Code of Integrity.

Climate-Related Risks & Opportunities

Opportunities

• Opportunities in carbon capture, utilization, and storage (CCUS) and seabed minerals exploration.

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Safety and well-being
• Loss of containment
• Reliability and efficiency of operations
• Emissions reduction
• Energy expansion strategy
• Human rights
• Talent management (inclusion, diversity, equity)
• Corporate governance and ethics
• Transparency, accountability, and reporting

Environmental Achievements

• 25% decrease in the number of loss of containment events to sea compared to the previous year
• Implementation of several new technologies on some vessels in Northwest Europe, including waste heat recovery and variable frequency drives on certain pumps, resulting in reduced fuel usage and emissions.

Social Achievements

• TRIR of 0.21 outperformed the 2022 target of 0.24, with 18 rigs operating without a recordable incident throughout the year.
• 22% reduction in serious near-hit dropped objects year-on-year.
• Introduction of WorkSight, a digital assurance and verification application to foster a culture of continuous improvement among rig teams.

Governance Achievements

• Development of an internal control framework over sustainability reporting for implementation in 2023.
• Integration of the end-to-end sustainability-reporting process into the Company Management System (CMS).
• Addition of a module to the existing audit management software tailored to data disclosed in the sustainability report.

Climate Goals & Targets

Environmental Challenges

• Slight increase in operating emissions intensity in 2022 attributed to adverse weather conditions and operation of many rig power systems in an open bus configuration.
• Challenges in unified data reporting and meaningful comparisons of waste generation, water generation, and water consumption data due to varying requirements from region to region.

Mitigation Strategies

• Upgrading certain aspects of power management systems and planning to move to closed bus configurations over the next two years.
• Implementing new technologies to reduce power waste.
• Upgrading the waste-tracking module of the operations system to improve data collection processes.

Supply Chain Management

Responsible Procurement

• Rigorous evaluation process for vendors to ensure adherence to safety, quality, anti-bribery, anti-corruption, and human rights standards.
• Requirement for vendors to comply with the principles in Transocean’s Code of Integrity.

Climate-Related Risks & Opportunities

Opportunities

• Energy expansion strategy (offshore wind, ocean minerals, carbon capture and storage)

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB

Awards & Recognition

• 2019 Las Palmas Ports Award (Canary Islands)