Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Anti-Corruption
• Health & Safety
• Environmental Impact

Environmental Achievements

• MHWirth's Ecotrack project to document environmental impact of products and services.
• KOP Surface Products reduced energy consumption and increased recycling rate.

Social Achievements

• MHWirth supported the Karanba project in Brazil.
• Frontica Business Solutions donated to SOS Children’s Villages instead of giving employee Christmas presents.
• AKOFS Offshore achieved 100% Brazilian staffing for a Petrobras contract.
• KOP Surface Products partnered with Indonesian universities for internships and scholarships.

Governance Achievements

• Implementation of Akastor's Code of Conduct and Integrity Policy across portfolio companies.
• Establishment of a whistleblowing system.
• Ongoing integrity training programs for employees.

Climate Goals & Targets

Environmental Challenges

• Adjusting to falling oil prices and workforce reductions in some portfolio companies.
• Corruption and integrity risks in various markets.
• Lack of recycling options in some operating locations (e.g., Angola for AKOFS Offshore).
• Data limitations and inconsistencies across portfolio companies.

Mitigation Strategies

• Fair and predictable workforce adjustment processes.
• Implementation of Akastor's Code of Conduct and Integrity Policy, including country risk evaluations and whistleblowing system.
• Continuous improvement of HSEQ management systems and training programs.
• Improved data collection and reporting processes.

Supply Chain Management

Responsible Procurement

• Akastor's Integrity Policy requires portfolio companies to ensure suppliers commit to ethical conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• Cool Sorption's vapor recovery technology

Environmental Metrics

ESG Focus Areas

• Health, Safety and Environment (HSE)
• Integrity
• Anti-corruption
• Human rights
• Environmental impact

Environmental Achievements

• Reduced CO2 emissions (scope 2) despite slight increase in total energy use due to reduction in MHWirth’s Asian operations.
• Achieved zero oil spills to sea by AKOFS Offshore.
• MHWirth launched updated RamRig HPU reducing fuel consumption and emissions.
• STEP Oiltools achieved zero environmental incidents.
• Increased recycling level by 4 percentage points.

Social Achievements

• Three lost time incidents and five recordable incidents, a decline from the prior year. No fatalities.
• Launched awareness campaigns to reduce workplace injuries.
• Improved integrity figures with more training and on-site reviews.
• MHWirth published a Diversity and Inclusion Guideline.
• Several portfolio companies engaged in local community initiatives (school renovation, tree planting, donations).

Governance Achievements

• Relaunched Code of Conduct, aligning it with Aker ASA’s updated Code of Conduct, including a new chapter on environmental protection.
• Implemented Akastor Integrity Program with integrity training, due diligence, and know your customer procedures.
• Undertook compliance reviews of operations in Azerbaijan, India, Russia, and Norway.
• All whistleblowing notifications investigated and resolved.

Climate Goals & Targets

Environmental Challenges

• Weak market conditions for MHWirth resulting in reduced revenues and employee numbers.
• Increased energy intensity due to reduced hours worked while energy-intensive operations remained constant.
• Increased total waste and hazardous waste due to changes in MHWirth’s waste reporting procedures.
• High proportion of men in the workforce, particularly in offshore operations.

Mitigation Strategies

• Divestment of parts of the portfolio and debt reduction to increase financial maneuverability.
• Awareness campaigns to reduce workplace injuries.
• Improved waste reporting procedures in MHWirth.
• Energy Efficiency Management Plan (EEMP) in AKOFS Offshore.
• MHWirth's Greener Drilling initiative to reduce fuel consumption.

Supply Chain Management

Responsible Procurement

• Supplier Declaration outlining ethical conduct, environmental and human rights respect, and HSE compliance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

UN Sustainable Development Goals

• Goal 8
• Goal 12
• Goal 13
• Goal 14
• Goal 16

Akastor aligns its operations with the principles of the UN Global Compact and several UN Sustainable Development Goals.

Sustainable Products & Innovation

• MHWirth's updated RamRig HPU
• Cool Sorption's Vapor Recovery Units

Awards & Recognition

• STEP Oiltools BV obtained RoSPA Gold achievement

Environmental Metrics

ESG Focus Areas

• Health, Safety and Environment (HSE)
• Integrity
• Anti-corruption
• Human rights
• Environmental impact

Environmental Achievements

• Reduced CO2 emissions (scope 1 and 2) due to reduction in MHWirth’s operations in Asia and energy saving operations in Erkelenz, Germany.
• STEP Oiltools reduced electricity use by 14% in Thailand by implementing new energy saving routines.
• MHWirth's Erkelenz operations will use certified hydropower from January 1, 2019, reducing CO2 emissions by an estimated 1,600 tons/year.
• MHWirth's “Greener drilling” initiative aims to reduce the overall environmental footprint of drilling operations, with an estimated 25% fuel reduction on an Awilco rig compared to similar rigs from the early 2000s.

Social Achievements

• No fatalities occurred in any of the companies or their sub-contractors.
• STEP Oiltools obtained the RoSPA Gold achievement for HSE performance.
• MHWirth launched a “Diversity and Inclusive Guideline” to promote diversity and inclusion.
• Akastor AS participates in “Stiftelsen VI”, a non-profit supporting disabled people.
• MHWirth donated furniture and electronics to a local NGO in Brazil.

Governance Achievements

• Implementation of a new dilemma-based classroom training course on integrity.
• Updated Data Protection Standard for Processing and Transfer of Personal Data to ensure compliance with GDPR.
• On-site compliance reviews undertaken in Denmark, Singapore, Aberdeen, Dubai, and Houston.
• All whistleblowing notifications received in 2018 were investigated and resolved.

Climate Goals & Targets

Environmental Challenges

• Slight increase in HSE incidents (7 recordable incidents, all eye, hand, and foot injuries, all in MHWirth).
• Significant increase in total waste in 2018 due to higher activity level at MHWirth’s Mobile location.
• Low utilization and many idle drilling rigs in the oil and gas service market.
• Challenges to ensure segregation of duties in offices with few employees, documentation of know your customer assessments and conducting Supplier Declaration based audits in the supply chain.

Mitigation Strategies

• MHWirth thoroughly analyzed HSE incidents and took actions to avoid similar incidents.
• MHWirth implemented a Mobile Equipment and Lifting operations awareness campaign.
• MHWirth is actively working with contractors to design filtration systems optimized for recycling of water.
• Akastor’s Legal and Compliance function supports and monitors policy implementation through continuous dialogue with the portfolio companies, quarterly compliance status reports, and by undertaking reviews of portfolio company operations.

Supply Chain Management

Supplier Audits: 2

Responsible Procurement

• Supplier Declaration outlining key requirements to ethical conduct, respect for environment and human rights, and compliance with HSE requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, UN Global Compact’s guidelines, Oslo Børs (Oslo Stock Exchange) guidance

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8 (Decent work and economic growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Change)
• SDG 14 (Life below water)
• SDG 16 (Peace, justice and strong institutions)

Akastor's initiatives aim to contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• MHWirth’s “Greener drilling” initiative
• Cool Sorption’s Vapour Recovery Units

Awards & Recognition

• STEP Oiltools RoSPA Gold achievement

Environmental Metrics

ESG Focus Areas

• Health, Safety and Environment (HSE)
• Integrity
• Climate Change
• Responsible Consumption and Production
• Climate Action
• Decent Work and Economic Growth

Environmental Achievements

• Reduced CO2 emissions (Scopes 1 and 2) by 10% due to increased use of lower emission-based energy and switching from oil to electricity for heating.
• MHWirth Erkelenz installed new LED lighting, reducing electricity use by approximately 200 MWh.
• STEP Oiltools reduced electricity use by switching to LED bulbs.
• STEP Oiltools treated over 12.1 million tonnes of drill cuttings using a green solar energy system.

Social Achievements

• Zero fatalities in 2019.
• Slight decrease in HSE incidents from 2018 to 2019 (six recordable injuries).
• STEP Oiltools received the RoSPA Gold Award for HSE performance.
• MHWirth implemented PEAKON to monitor working environment and employee engagement.
• Akastor made donations to Doctors Without Borders and the Red Cross; MHWirth donated to the Red Cross; STEP Oiltools sponsored the Thailand Oilmen’s Charity Invitational Golf Tournament.

Governance Achievements

• Launched Akastor Integrity Survey, showing 90% trust in the whistleblowing channel.
• No data breaches in 2019.
• Two whistleblowing notifications received in 2019.
• Compliance reviews conducted in Erkelenz, Germany and Macae, Brazil.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption in 2019 despite reduced CO2 emissions.
• Increase in incidents due to power tool use (MHWirth).
• Decline in participation in integrity classroom training due to new employees.
• Challenges in ensuring segregation of duties, documentation of Know Your Customer assessments, and conducting Supplier Declaration-based audits (compliance reviews).
• Potential for extreme weather events to damage assets or halt operations.
• Restrictive regulations on the oil and gas industry increasing costs and reducing demand.
• Potential for reduced demand for some products and services due to regulatory changes.
• Potential for skilled worker shortage due to environmental concerns.
• Potential for acts of demonstration or eco-terrorism against the oil industry.
• Long-term risk of product lines becoming obsolete due to reduced reliance on fossil fuels.

Mitigation Strategies

• Implementing 'Greener Drilling' initiative at MHWirth to reduce fuel consumption (estimated 25% reduction).
• Rolling out a global power tool safety campaign at MHWirth.
• Providing tailored integrity training for employees without computer access.
• Increased focus on integrity through courses and on-site compliance reviews.
• Implementing risk-based evaluations and monitoring of suppliers.
• Restrictive approach to third-party representatives.
• Country Watch List to manage risks in high-risk countries.
• Rebalancing product lines and services to ensure sustainable operations.
• Investing in new knowledge and technology for sustainable solutions.
• Developing sustainable solutions for new energy sources.
• Effectively managing the closing down of obsolete installations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Declaration outlining requirements concerning ethical conduct, environmental respect, human rights, and HSE compliance.
• Supplier management system (LeanLinking) implemented at MHWirth.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, lightning, rising temperatures)

Transition Risks

• Restrictive regulations on the oil and gas industry
• Changes in government regulations affecting demand for products and services

Opportunities

• Development of energy-efficient products and services (e.g., MHWirth's 'Greener Drilling', Cool Sorption's vapour recovery, STEP Oiltools' slop water treatment system)
• Increased demand for CCS services (AGR)

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, TCFD, OECD Guidelines for Multinational Enterprises, UN Global Compact

Certifications: ISO 9001 (MHWirth)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13
• SDG 16

Akastor aligns its operations with the UN Global Compact and supports the UN Sustainable Development Goals (SDGs) as outlined in the report.

Sustainable Products & Innovation

• MHWirth's 'Greener Drilling' initiative
• Cool Sorption's vapour recovery technologies
• STEP Oiltools' Advantage slop water treatment system

Awards & Recognition

• STEP Oiltools' RoSPA Gold Award

Environmental Metrics

ESG Focus Areas

• Climate change mitigation and adaptation
• Reduce own adverse impact on the environment
• Employee health and wellness
• Community engagement
• Board oversight and active ownership
• Anti-corruption

Environmental Achievements

• AKOFS Offshore invested NOK 45 million in a battery system and ECR for the AKOFS Seafarer, reducing fuel consumption by ~15% and CO2 emissions by ~2,500 tonnes per year. NOx emissions reduced by ~87% (~280 tonnes per year).
• MHWirth's 'Greener Drilling' initiative focused on utilizing batteries, reducing pump power consumption, and power regeneration.
• Cool Sorption's VRUs reduce VOC emissions, impacting climate change and smog reduction.

Social Achievements

• Akastor supports Stiftelsen VI ('The WE Foundation'), promoting equal opportunities for people with disabilities.
• Donations made to Doctors Without Borders and the Red Cross.
• MHWirth implemented HSSE management systems and campaigns (Just Rules, power-tool safety, first-aid training).

Governance Achievements

• Akastor implemented a compliance program and conducts compliance reviews.
• Akastor has a whistleblowing channel.
• Akastor's Code of Conduct outlines requirements for business practices and personal conduct, with a focus on anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Accelerated transition to more energy-efficient solutions in the oil and gas industry.
• Increased governmental regulation of GHG emissions.
• Challenges in obtaining financing due to lenders shifting to green markets.
• Reduced demand in the oil and gas sector.
• Increased customer requirements for zero-/low-emission products/services.

Mitigation Strategies

• MHWirth is seeking non-oil and gas-related business opportunities (offshore wind, subsea mineral mining).
• Akastor portfolio companies are pursuing opportunities in renewable energy (carbon capture, offshore wind).
• Focus on maintenance services due to reduced interest in new projects.
• Portfolio companies are developing low-carbon solutions.

Supply Chain Management

Responsible Procurement

• Suppliers must complete a questionnaire regarding HSE, quality, integrity and human rights; sign and agree to the Supplier Declaration; and pass a due-diligence screening.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage to installations or delays in projects.

Transition Risks

• Increased regulations with GHG reduction targets.
• Increased costs due to changes in GHG pricing.
• Restrictions on the use of assets.
• Reduced demand in the oil and gas sector.
• Declining access to and increased cost of capital.

Opportunities

• Increased need for products and services such as repairs, maintenance, and more robust equipment.
• Increased demand for low-carbon and efficient products and services.
• Continued demand for specialized products and services.
• Current product and services portfolio can be used for other markets.
• Increased demand if able to invest and develop attractive technologies and solutions.

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, UN Sustainable Development Goals

Certifications: ISO 9001, ISO 14001, OHSAS 18001

UN Sustainable Development Goals

• Goal 8
• Goal 12
• Goal 13
• Goal 16

Akastor has identified four priority SDGs and encourages the portfolio companies to identify and work towards relevant SDGs in their work and strategy.

Sustainable Products & Innovation

• MHWirth's 'Greener Drilling' initiative.
• Cool Sorption's VRUs.

Environmental Metrics

ESG Focus Areas

• Climate change mitigation and adaptation
• Employee health and wellness
• Community engagement
• Active ownership and engagement
• Anti-corruption

Environmental Achievements

• Reduced CO2 emissions by 14% in the industrial portfolio compared to 2020
• Reduced CO2 emissions by 2,500 tonnes per year for AKOFS Seafarer due to a 15% reduction in fuel consumption
• Reduced NOx emissions by approximately 89% (250 tonnes per year) for AKOFS Seafarer

Social Achievements

• Achieved ISO 45001:2018 certification at HMH for occupational health and safety
• Implemented robust routines to reduce the negative impact of the global pandemic on operations
• Supported Stiftelsen VI ('The WE Foundation') to provide equal opportunities for people with disabilities

Governance Achievements

• Implemented a compliance program and conducts compliance reviews
• Established a whistleblowing channel
• Conducted integrity training and awareness campaigns for employees

Climate Goals & Targets

Environmental Challenges

• Global transition towards more energy-efficient solutions or renewable energy taking place more rapidly than anticipated
• Increased governmental regulation of GHG emissions
• Challenges in obtaining necessary financing due to lenders' preference for green investments

Mitigation Strategies

• Conservative cost/break-even targets for oil production
• Focus on maintenance services due to reduced interest in new exploration projects
• Providing low-carbon solutions to balance the need for hydrocarbons and climate targets

Supply Chain Management

Responsible Procurement

• Supplier questionnaire on HSE, quality, integrity, and human rights
• Supplier declaration on ethical conduct, environmental respect, human rights, and HSE compliance

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of extreme weather events
• Disruptions in operations, logistics, or infrastructure

Transition Risks

• Increased regulations with GHG emission reduction targets
• Increased costs due to changes in GHG pricing
• Reduced demand for services in the oil and gas sector

Opportunities

• Increased need for maintenance services
• Increased demand for low-carbon and efficient products and services
• New business opportunities in renewable energy

Reporting Standards

Frameworks Used: GRI Standards (core option), TCFD, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 8
• Goal 12
• Goal 13
• Goal 16

Akastor's initiatives contribute to these goals through various programs and policies related to economic growth, sustainable consumption, climate action, and anti-corruption.

Sustainable Products & Innovation

• VRUs from Cool Sorption
• Hybrid battery power installation for AKOFS Seafarer
• DEAL™ technology from HMH

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• AKOFS Offshore invested NOK 45 million in an energy storage (battery) system and ECR, reducing fuel consumption by 15% and CO2 emissions by 2,500 tonnes per year.
• AGR involved in a collaborative project evaluating CO2 storage in Australia.

Social Achievements

• Akastor supports Stiftelsen VI, which works to provide equal opportunities for disabled people.
• HMH achieved ISO 14001:2015 and ISO 45001:2018 certifications.
• All portfolio companies conducted human rights risk assessments.

Governance Achievements

• Akastor formally became a signatory to the UN Global Compact.
• Akastor implemented an Integrity Programme to combat corruption.
• 100% of Akastor AS employees received integrity training.

Climate Goals & Targets

Environmental Challenges

• Global transition to more energy-efficient solutions may occur faster than anticipated.
• Increased governmental regulation of GHG emissions.
• Difficulty obtaining financing for oil and gas projects.
• Risk of human rights breaches within the supply chain.

Mitigation Strategies

• Conservative cost/break-even targets for oil production.
• Implementation of risk-mitigating initiatives to address human rights risks.
• Development of low-carbon solutions.
• Diversification into renewable energy markets.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers must complete a questionnaire regarding HSE, quality, integrity and human rights; sign and agree to the supplier declaration; and pass a due diligence screening.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of extreme weather events causing damage to installations or delays in projects.

Transition Risks

• Increased regulations with GHG emission reduction targets.
• Increased costs due to changes in GHG pricing.
• Reduced demand for services in the oil and gas sector.

Opportunities

• Increased demand for low-carbon and efficient products and services.
• Continued demand for specialized products and services.
• Opportunities in offshore wind, geothermal, hydrogen, and subsea mining.

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations

Certifications: ISO 9001, ISO 14001, ISO 45001 (portfolio companies)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8
• Goal 12
• Goal 13

Akastor encourages its portfolio companies to identify and work towards relevant SDGs.

Sustainable Products & Innovation

• Energy storage systems for vessels.
• Carbon capture and storage services.
• Software for geothermal drilling cost estimation.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social
• Human Rights

Environmental Achievements

• HMH reduced GHG emissions (Scope 1-3) by 4,890 tonnes.
• AKOFS Offshore reduced GHG emissions (Scope 1-3) by 2,426 tonnes.
• AKOFS Offshore implemented a battery pack on the AKOFS Seafarer, significantly reducing fuel consumption.

Social Achievements

• HMH completed a large integration exercise.
• HMH performed a comprehensive Due Diligence Assessment of its suppliers.
• AKOFS Offshore launched an updated e-learning training for offshore crew.
• AKOFS Offshore initiated a separate Human Rights Policy.

Governance Achievements

• HMH updated its ten main governing policies.
• AKOFS Offshore updated its standard terms and conditions for the purchase of goods and services.
• Akastor continued its integrity training program.

Climate Goals & Targets

Environmental Challenges

• Transition risks related to the shift away from fossil fuels in the oil and gas industry.
• Physical risks related to extreme weather events.
• Maintaining a skilled workforce in a small corporate organization.
• Ensuring human rights and decent working conditions throughout the global supply chain.

Mitigation Strategies

• Diversification into other industries and segments.
• Development of new products and services within existing business areas.
• Comprehensive and competitive benefit packages for employees.
• Risk assessments, policies, procedures, and contractual terms to address human rights and decent working conditions.
• Due diligence during onboarding and ongoing monitoring of business partners.

Supply Chain Management

Supplier Audits: HMH performed a comprehensive Due Diligence Assessment of its suppliers in 2023. AKOFS screens suppliers to ensure compliance with sanction regimes.

Responsible Procurement

• Akastor's Code of Conduct, Sustainability Policy, and Integrity Policy.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of extreme weather events causing off-hire or delays in projects.

Transition Risks

• Increased regulations with GHG emission reduction targets.
• Increased costs due to changes in GHG pricing.
• Reduced demand for services in the oil and gas sector.

Opportunities

• Increased demand for low-carbon and efficient products and services.
• New regulation creating opportunities for new business.
• Continued demand for specialized products and services with a smaller carbon footprint.

Reporting Standards

Frameworks Used: GRI Standards, Greenhouse Gas Protocol (GHG Protocol), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 9001, 14001, and 45001 (HMH & AKOFS Offshore)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Akastor encourages its portfolio companies to identify and work towards relevant SDGs in their work and strategies.

Sustainable Products & Innovation

• HMH's automated drilling systems.
• AKOFS Offshore's hybrid-system on the AKOFS Seafarer.

Awards & Recognition

• Not disclosed