Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Environmental impact
• Safety and security
• Responsible ship recycling
• Employee competence and development
• Responsible supply chains
• Business integrity
• Compliance
• Innovation

Environmental Achievements

• Reduced CO2 emissions by approximately 50% with the new E-Shuttle tankers (projected, not yet realized in 2019)
• Reduced annual fuel consumption by 22% with E-Shuttles
• Reduced annual NOx emissions by 80% with E-Shuttles
• Reduced annual SOx emissions by more than 95% with E-Shuttles
• Reduced annual VOC emissions by 95% with E-Shuttles
• Saved an estimated 70,000 single-use water bottles per year by installing water filters on towing vessels
• Saved an estimated 78,000 pairs of plastic shoe covers per year and vessel by removing single-use shoe covers on FPSOs
• Industry leading role in VOC reduction through VOCIC

Social Achievements

• Launched several safety campaigns (process safety, IMS, health risk awareness, healthy eating, safety day, hand and finger)
• Opened a new state-of-the-art emergency response center
• Provided approximately 15,000 hours of training to employees
• Donated a bridge simulator to the Marine Institute of Memorial University of Newfoundland
• Partnership with Dream Learn Work to support young Brazilians from less developed areas

Governance Achievements

• Strengthened audit and inspection regime for ship recycling facilities beyond Hong Kong Convention standards
• Active participation in industry forums and membership in the Ship Recycling Transparency Initiative (SRTI)
• Successful issuance of $125 million senior unsecured Green Bonds
• Implemented a rigorous risk-based due diligence process to screen business partners
• Annual compliance training for employees covering anti-corruption, conflict of interest, and gift/hospitality

Climate Goals & Targets

Environmental Challenges

• Three Lost Time Injuries (LTIs) in 2019
• Increased oil content in produced water (attributed to fields nearing end of production)
• Seven spills in 2019, including a serious lube oil leak
• Ongoing legal proceedings related to suspected violations of Norwegian pollution and export laws

Mitigation Strategies

• Investigation of root causes of incidents to prevent recurrence
• Focus on operational optimizations and new technologies to minimize emissions
• Improved spill response and emergency preparedness procedures
• Continued cooperation with Økokrim and relevant authorities

Supply Chain Management

Responsible Procurement

• Due diligence process to screen potential business partners
• Engagement with suppliers sharing environmental and sustainability policies

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (E-Shuttles, E-FPSO)
• Offshore carbon capture

Reporting Standards

Frameworks Used: GRI Standards, Norwegian Shipowners’ Association’s ESG reporting guidelines, TCFD recommendations

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• E-Shuttles
• E-FPSO concept
• ALP Future Class tugs

Awards & Recognition

• Rystad’s Green Initiator of the Year
• Seatrade Fuel Efficiency Award
• Marine Money Green Finance Award
• Tanker Shipping & Trade Environmental Award 2018
• Sulphur Cap Emissions Reduction Award 2020
• Equinor’s Working Safely With Suppliers Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Safety
• Ethical business practices
• Responsible ship recycling
• Responsible supply chain
• Local community investment
• Workforce diversity
• Innovation
• Digitalization

Environmental Achievements

• Reduced overall energy consumption by 5% compared to 2019
• Reduced total CO2 emissions for 2020 compared to 2019
• E-Shuttles achieved a 40% reduction in annual CO2 equivalent emissions compared to previous vessels
• E-Shuttles achieved an 80% reduction in annual NOx emissions compared to previous vessels
• E-Shuttles achieved a >95% reduction in annual SOx emissions compared to previous vessels
• E-Shuttles achieved an 11% reduction in annual fuel consumption compared to previous vessels
• E-Shuttles achieved a 95% reduction in annual VOC emissions compared to previous vessels
• Installed filters to refine drinking water on towing vessels, saving 70,000 single-use bottles annually
• Reduced single-use cutlery, cups, and shoe covers on FPSOs

Social Achievements

• Launched a new Code of Conduct
• 98% of onshore employees and crew confirmed commitment to the Code of Conduct
• Implemented annual compliance training for board members, employees, and contract staff
• Maintained an excellent safety record despite the pandemic
• Introduced new mental health awareness training for managers and the ‘Make a Change’ campaign
• Provided more than 127,000 hours of training to employees
• Secured new placements for 36 of 98 offshore employees made redundant due to contract terminations

Governance Achievements

• Board has ultimate authority for sustainability
• Board reviews and approves Code of Conduct and compliance program
• Implemented several practices and procedures to integrate business ethics and compliance into decision-making
• Built a system interface between master financial system and due diligence application

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and employee well-being
• Flaring as a major source of emissions
• Methane slip from LNG-powered vessels
• Maritime corruption risks
• Potential personal data breaches
• Maintaining a high safety record while aiming for zero incidents

Mitigation Strategies

• Implemented preventive measures, protocols, and guidelines to prevent the spread of COVID-19
• Increased focus on good mental health and wellbeing
• Continuous focus on eliminating routine flaring
• Implemented specific onboard procedures to manage and resist requests for bribes
• Reported potential data breaches to relevant authorities
• Investigating and learning from each incident to improve safety

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct
• Sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Carbon capture and storage solutions

Reporting Standards

Frameworks Used: GRI Standards, Norwegian Shipowners’ Association’s ESG reporting guidelines

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• E-Shuttles
• Next-generation FPSOs

Awards & Recognition

• Tanker Shipping & Trade Environmental Award 2018
• Rystad Gullkronen - Green Initiator of the Year Award 2019
• Seatrade Fuel Efficiency Award 2019
• Sulphur Cap Emissions Reduction Award 2020

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Commitment to the energy transition
• The power of our TEAM
• Safe and clean operations
• Responsible business

Environmental Achievements

• Reduced total GHG emissions (Scope 1, 2, and 3) by 16% from 2020 to 2021. Scope 1 emissions reduced by 25% in the same period.
• Achieved no serious safety incidents, no serious or critical gas leaks, and no accidents with major accident hazard potential in 2021.
• Recorded no gas leaks above 0.1 kg/s across our FPSO fleet in 2021 for the first time in 10 years.
• Reduced absolute flaring numbers by 35% in 2021 compared to prior years.
• Reduced fuel consumption by 24% from 2020 to 2021.

Social Achievements

• Implemented a new accountability planning tool and an effectiveness review tool for personal development in 2021.
• Provided more than 61,000 hours of health, safety, and environment training in 2021.
• Organized beach-cleaning days and knitting projects for employees.
• Partnered with Dream Learn Work to support young Brazilians.

Governance Achievements

• Developed a sustainability framework in 2021.
• 100% of board members, onshore employees, and 98% of assigned crew completed Code of Conduct training.
• Joined the Maritime Anti-Corruption Network (MACN).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions caused by chronic or acute weather events.
• Increased regulation and pricing of GHG emissions.
• Transitioning vessels to lower emissions fuel and technology.
• Stigmatisation of offshore oil and gas.
• Changing demand for oil and gas and related services.
• High voluntary turnover rate (7.6% overall, 11.4% onshore).

Mitigation Strategies

• Developing alternative sourcing strategies.
• Working to define concrete emission reduction targets and pathways aligned with the goals of the Paris Agreement.
• Investing in low-emission technologies (e.g., E-shuttles).
• Developing a more robust assessment of climate-related risks.
• Developing a package of measures to improve retention rate (benchmarking compensation, talent development, improved monitoring, increased focus on leadership and communication).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct incorporated by reference in general terms and conditions; rigorous risk-based due diligence process for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Disruption to crewing schedules due to weather or other climate-impacted events
• Supply chain disruption due to weather events

Transition Risks

• Increased regulation and pricing of GHG emissions
• Transitioning vessels to lower emissions fuel and technology
• Stigmatisation of offshore oil and gas
• Changing demand for oil and gas and related services

Opportunities

• Development of energy-efficient products and services; new ventures in the energy transition (e.g., Stella Maris CCS project).

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• E-shuttles
• Next-generation FPSO technology incorporating VOC recovery systems, waste heat recovery units, smart use of VFDs, closed flare systems, and efficient water treatment processes.

Awards & Recognition

• President HSE Award

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Commitment to the energy transition
• The power of our TEAM

Environmental Achievements

• 16.5% decrease in total emissions (Scope 1, 2, and 3) from 2021
• 30.3% fall in total Scope 1 emissions from FPSOs in 2022 compared to 2021
• 1% improvement in the fleet-average CII for shuttle tankers in 2022 compared to 2021
• No chemical spills and one oil spill (0.5 liters) to sea in 2022

Social Achievements

• Consolidated voluntary turnover rate of 6.5% in 2022 (below the 7.5% target)
• No serious safety incidents in 2022
• USD 15,000 donated to the IFRC to support Ukraine relief efforts
• NOK 30,000 donated to the Salvation Army in Norway
• Clothes and other items donated to the Church City Mission in Trondheim to support Ukrainian refugees

Governance Achievements

• Adoption of a Supplier Code of Conduct in 2022
• No instances of maritime corruption in 2022
• No reportable personal data breaches in 2022
• No material fines or non-monetary sanctions for non-compliance with laws or regulations in 2022

Climate Goals & Targets

Environmental Challenges

• Historically high LNG prices leading to increased use of MGO in some vessels
• Decommissioning of three Altera-operated FPSOs in 2022, leading to increased emissions intensity
• Incomplete Scope 3 emissions inventory
• High demand for technical expertise and talent within the industry leading to higher than expected employee turnover

Mitigation Strategies

• Setting emissions intensity targets for each fleet
• Prioritizing emissions reductions and removals over the use of carbon offsets (except for project-level carbon neutrality)
• Developing alternative sourcing strategies
• Creating internal development opportunities and offering new career opportunities aligned with the energy transition

Supply Chain Management

Supplier Audits: 3 audits conducted with a human rights scope

Responsible Procurement

• Supplier Code of Conduct
• Rigorous risk-based due diligence for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Disruption to crewing schedules due to weather or other climate-impacted events
• Supply chain disruption due to weather events

Transition Risks

• Changing market conditions
• Shifting political and regulatory frameworks
• Stigmatisation of the oil and gas industry

Opportunities

• Development of energy-efficient products and services
• New business models aligned with the energy transition (e.g., Stella Maris CCS)

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• E-shuttle tankers
• Stella Maris CCS project

Awards & Recognition

• President HSE Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Pollution
• Biodiversity and ecosystems
• Resource use and circular economy
• Own workforce
• Workers in our value chain
• Affected communities
• Business conduct

Environmental Achievements

• Total emissions (Scope 1, 2, and 3) of 982,835 t CO2e in 2023, 13% lower than 2022. Scope 1 emissions from shuttle tankers fell 13% due to increased LNG use. Scope 1 emissions from FSOs fell 33% due to fleet size reduction. Zero oil spills to sea. Average oil content of produced water discharged was 7.6 ppm.
• Achieved a fleet average emissions intensity of 18 kg CO2e/boe, a 48% decrease from 2022.
• Shuttle tanker fleet average CII was 3.0 g CO2/dwt-nm, a 6.3% improvement from 2022.
• FSO fleet average carbon intensity was 2.78 kg CO2/boe, a 43.8% decrease from 2022.
• 1,826 tonnes of waste generated from redeployment projects, with 1,775 tonnes non-hazardous and recycled, and 52 tonnes hazardous waste. 40,273 kg of steel recycled for reuse.

Social Achievements

• Total workforce increased by 15% to 2,639. No major accidents. Consolidated group LTI frequency rate fell 55% and TRC frequency rate fell 34%.
• Improved voluntary turnover rate to 4% from 6.5% in 2022.
• Initiated a mandatory cybersecurity training campaign for onshore workforce.
• Completed human rights impact assessment of a key supplier in Dubai.
• Organized tree planting and beach clean-up initiatives.

Governance Achievements

• No breaches of Anti-corruption policy. 97% of assigned users completed anti-corruption training.
• Implemented a Global Whistleblowing Policy and Reporting Hotline.
• Maintained memberships in various industry associations to promote best practices.

Climate Goals & Targets

Environmental Challenges

• Climate-related regulation of existing products and services could increase costs.
• Reduced access to capital and talent due to sector stigmatization.
• Disruption to operations from extreme weather events.
• Pollution from natural resource extraction and manufacturing of purchased goods.
• Potential for human rights violations in the supply chain (particularly shipyards and recycling yards).

Mitigation Strategies

• Tracking absolute emissions and emissions intensity, setting emissions intensity targets.
• Investing in low-emission technologies (e.g., E-shuttle tankers, combined cycle steam turbines).
• Developing Stella Maris CCS project.
• Implementing strict safety protocols, comprehensive training, and effective communication.
• Conducting human rights impact assessments, supplier screening, and risk-based audits.

Supply Chain Management

Supplier Audits: 15 supplier human rights governance screenings conducted in 2023; 1 new supplier audit initiated.

Responsible Procurement

• Supplier Code of Conduct requiring compliance with applicable health and safety legislation, human rights standards, and Altera's expectations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Geopolitical instability

Transition Risks

• Climate-related regulation
• Increased GHG emission pricing
• Sector stigmatization

Opportunities

• Development of climate-efficient offerings
• Competitive advantage from existing low-carbon vessels

Reporting Standards

Frameworks Used: CSRD, ESRS, GRI, SASB, TCFD, NSA ESG reporting guidelines

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• E-shuttle tankers
• Stella Maris CCS project

Awards & Recognition

• Canada’s Safest New Employer Award 2023 (Altera Atlantic Management ULC)