Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced total greenhouse gas intensity by 51%
• Reduced methane intensity by 50%
• Replaced nearly all natural gas-powered pneumatic devices with electric actuators
• Achieved a 96% gas capture rate in the Williston Basin
• Immediately repaired ~90% of leak detection and repair (LDAR) findings onsite
• Eliminated more than 352,000 truckloads of oil and produced water from roads
• Reduced freshwater intensity by over 45% since 2017
• 98% of all spills stayed within containment on location in 2020
• 73% reduction in the number of reportable spills from 2017 to 2020

Social Achievements

• 33% reduction in Total Recordable Incident Rate (TRIR) compared to 2019
• Successfully implemented crisis management program during the COVID-19 pandemic
• Increased the proportion of the total female workforce by 27%
• Increased the proportion of the total minority workforce by 24%
• Logged over 3,000 volunteer hours and over $300,000 in donations

Governance Achievements

• Implemented a peer-leading compensation program to align management compensation with shareholder interests
• Formalized an enterprise risk management (ERM) program
• Developed a Cybersecurity Council to manage cybersecurity risks

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions
• Managing climate-related risks
• Maintaining a strong safety culture in a high-risk industry
• Cybersecurity threats

Mitigation Strategies

• Activated Crisis Management Team (CMT) to address COVID-19
• Incorporated climate-related topics into long-term business plans
• Implemented comprehensive EHS management system
• Developed and implemented a Cybersecurity Council and program

Supply Chain Management

Responsible Procurement

• EHS Minimum Requirements for Contractors
• Contractor Participation Plan Certification

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, IPIECA, AXPC

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Workforce Diversity
• Governance
• Community Engagement
• Methane Emissions

Environmental Achievements

• Scope 1 GHG Intensity improved by 15% between 2020 and 2021 and by 56% between 2019 and 2021.
• Methane Intensity improved by 24% between 2020 and 2021 and by 59% between 2019 and 2021.
• Flare intensity improved by 6% between 2020 and 2021 and decreased by more than 60% from 2019 to 2021.
• Freshwater intensity improved by 28% since 2019.
• Introduced water re-use program and management practices with plans for expansion.
• Applied Continuous Emissions Monitoring System (CEMS) at several operating locations.

Social Achievements

• Launched a mental health campaign and website for employees and communities called Waves of Hope.
• Women represented 25% of the workforce in 2021.

Governance Achievements

• Maintained a Human Rights Policy, Environmental Policy, Vendor Management Policy, and Employee Handbook inclusive of a Whistleblower Program and Bribery and Corruption Policies.
• Working towards a Community Involvement/Charitable Giving Policy and Indigenous Relations Policy.
• Strengthened governance through a diverse, independent board and revised remuneration policies inclusive of ESG metrics.
• 63% of Chord’s independent directors are women.

Climate Goals & Targets

Environmental Challenges

• Total Recordable Incident Rate (TRIR) increased 18% since 2019.

Mitigation Strategies

• Actively working to improve safety performance through increased engagement, focusing on leading indicator performance, and increased training.
• Corporate, field, and EHS teams are enhancing best practices and training to minimize the likelihood of safety incidents.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, AXPC

Environmental Metrics

ESG Focus Areas

• Workforce health and safety
• Greenhouse gas (GHG) emissions
• Flare management
• Spill prevention and management
• Talent recruitment and attraction
• Corporate governance
• Ethics and integrity

Environmental Achievements

• 9% decrease in operated Scope 1 GHG emissions intensity in 2023 vs 2022
• 44% decrease in operated Scope 1 methane emissions intensity in 2023 vs 2022
• Replaced or retrofitted nearly 7,000 pneumatic devices, eliminating over 230,000 metric tons of CO2e methane emissions annually

Social Achievements

• 36% reduction in Total Recordable Incident Rate (TRIR) in 2023 vs 2022
• 7% voluntary turnover rate in 2023
• 100% of employees provided access to LinkedIn Learning and other development tools
• ~$1MM donated to charitable organizations

Governance Achievements

• 100% of our standing committees in 2023 were chaired by women who serve on the Board
• Integration of quantitative sustainability metrics into the 2023 annual performance-based bonus incentive program

Climate Goals & Targets

Environmental Challenges

• While Chord has continued to make year-over-year improvements in flaring, we are not yet where we strive to be.

Mitigation Strategies

• Established a team of experts in 2024 to help deliver repeatable gas capture performance in the high ninety percentile

Supply Chain Management

Responsible Procurement

• Robust vetting process of new suppliers; Evaluating technical capabilities, service complexity, environmental, and safety records; All suppliers are required to adhere to our Master Service Agreements (MSAs), which mandate compliance with Equal Employment Opportunity (EEO) laws, safety, and environmental standards; Suppliers must also adhere to our Human Rights policy

Climate-Related Risks & Opportunities

Physical Risks

• Acute risks (severe storms, droughts, floods)
• Chronic risks (long-term changes in temperature and precipitation)

Transition Risks

• Market risks (changes in demand and price of oil and gas)
• Technology risks (implementing lower emissions technology)
• Policy and legal risks (GHG emission taxation, increased regulatory requirements)
• Reputational risks (negative sentiment toward the oil and gas sector)

Opportunities

• Enhancing operational efficiency
• Implementing a large-scale drilling program
• Pursuing innovative water reuse projects
• Optimizing well-spacing design
• Expanding acreage

Reporting Standards

Frameworks Used: TCFD, SASB, GRI, AXPC ESG Metrics Framework