Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Engagement
• Environmental Impact Assessment

Environmental Achievements

• Successful stakeholder meetings and public exhibition for Islandmagee project; on target to submit full planning application before year-end.
• Preliminary works started on site to build natural gas storage facility at Upper Osprey on Portland.

Social Achievements

• Founded The Portland Gas Trust, a registered charity supporting education, environment, and geology initiatives; sponsored workshops and awards.
• Planned to establish a similar charity in Northern Ireland linked to the Islandmagee Project.
• Anticipated creation of 300 jobs during peak construction and 24 permanent jobs once the Portland project is complete; pledged to recruit locally.

Governance Achievements

• Executive team salaries frozen for the coming year due to economic conditions.
• Board comprises three Executive Directors and four Non-executive Directors.

Climate Goals & Targets

Environmental Challenges

• Halted funding process for Portland Project due to the 'credit crunch' in November 2008.
• Difficult financial conditions diverted funds from Islandmagee project's confirmatory borehole drilling.
• Securing funding for Islandmagee project's Front End Engineering Design and confirmatory borehole drilling in 2010.

Mitigation Strategies

• Launched a new funding process for the Portland Project in July 2009.
• Established a Co-operation Group of five companies to conduct a feasibility study for the Portland Project.
• Seeking additional gas storage opportunities in mainland Europe (Spain and Germany).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community Investment
• Environmental Protection

Environmental Achievements

• No reportable health, safety or environmental incidents during the period.

Social Achievements

• Portland Gas Limited continues to support local communities; Portland Gas Trust supported local projects; Islandmagee Storage Limited intends to set up a Trust with objectives around education, geology and the environment; initial investment of £1 million over three years, with a further £50,000 per annum for a minimum of six years thereafter is planned; assistance with community center upgrade.

Governance Achievements

• The Company has received notification of the following interests in 3% or more of the Company’s issued share capital; The UK Corporate Governance Code; The Board; Audit Committee; Remuneration Committee; Nomation Committee; Relations with Shareholders; Internal Controls; Risk Management

Climate Goals & Targets

Environmental Challenges

• Challenging year for the company against a general backdrop of economic uncertainty; no significant improvement in the gas storage market; planning process in Northern Ireland has been more drawn-out than anticipated; failure to meet financial obligations; future deterioration of capital markets, reducing ability to raise new equity funding; misalignment with co-venturers; shareholder sentiment; mix of storage and upstream interests; loss of key employees; delays in planning application awards; sustained exploration failures; failure of third party services; cost inflation and overruns; access to working capital

Mitigation Strategies

• Introduction of partners in both the Portland and Islandmagee projects; pursuing plan to secure planning permission for the project at Islandmagee; secured the interest of a major energy company as potential partner; obtained funding at subsidiary company level to raise £3m before costs; freezing salaries for the coming year; developing a balanced portfolio of projects; recruitment and retention of suitably skilled personnel; compliance with applicable legislation; careful management of cash resources and requirements; obtaining appropriate financing through equity financing, farm downs, disposing of interest in projects or other means; prudent application of available cash resources; issuance of new capital to meet working capital requirements; completion of the Portland Gas Limited disposal transaction with eCORP; progressing the proposed Islandmagee Storage Limited funding transaction

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community Investment
• Environmental Responsibility

Environmental Achievements

• Completion of dry stone walling around the back of the Old Engine shed (Portland Gas Trust)

Social Achievements

• Portland Gas Trust supported local community initiatives around education, geology and the environment; Islandmagee Storage Limited intends to set up a Trust with similar objectives, including a £1 million investment over three years and £50,000 annually for at least six years thereafter.
• Successful responsible dog owner campaign (Portland Gas Trust)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Poor market conditions for seasonal gas storage (Portland project)
• Securing funding for projects
• Delays in planning application awards

Mitigation Strategies

• Repositioning the business and identifying routes to build shareholder value
• Securing investment from BP Gas Marketing in the Islandmagee storage project
• Exploring alternative projects for the Portland site (salt solution mining)
• Restructuring agreement with eCORP
• Farm-outs to bring investment into projects and de-risk the programme

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Difficult market for securing new funding for exploration activities due to poor market sentiment and significant fall in oil prices.
• Larne Oil & Gas Limited's inability to meet funding obligations on licenses PL1/10 and P2123.
• Uncertainties remain including the timing and extent of additional cash consideration from Corallian.
• Company remains dependent upon direct investment in projects.

Mitigation Strategies

• Strategic review resulting in the disposal of the majority of exploration assets, retaining interest in future exploration success.
• Divestment of exploration assets in exchange for cash and retained interest to focus on gas storage project development.
• Cost reduction measures resulting in a 35% reduction in project management and company administration costs since October 2014.
• Seeking additional funds from existing and new shareholders to meet working capital requirements and progress project delivery.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Wellbeing of employees

Social Achievements

• Improved Investor Relations activity and community relationships

Governance Achievements

• Adopted the QCA code for corporate governance

Climate Goals & Targets

Environmental Challenges

• Financing – the risk of not obtaining sufficient financing
• Strategic and external risks – failure to manage and grow the business while creating shareholder value
• Operational risks – damage to shareholder value, environment, personnel or communities caused by operational failures

Mitigation Strategies

• Work closely with our professional advisers and brokers to identify the optimum approach and timing to secure new equity financing to provide working capital
• Place a premium on recruitment and retention of suitably skilled personnel, compliance with applicable legislation and careful management of cash resources and requirements
• Restructured its board with relevant skills to manage the operational risks of our projects and ensure they are progressed in the shortest possible timescales in a cost effective manner

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Third-party Assurance: Nexia Smith & Williamson Audit Limited

Environmental Metrics

Social Achievements

• Retained 100% of 79 employees at Harland and Wolff after acquisition; plans to significantly increase workforce size in the next five years.

Governance Achievements

• Appointed Clive Richardson as Chairman; intends to appoint a further non-executive director.

Climate Goals & Targets

Environmental Challenges

• Difficult capital market conditions; Brexit uncertainties; geo-political tensions; opposition from local protest groups to the Islandmagee gas storage project; DAERA requiring updates to marine-related reports for the Islandmagee project.
• Cashflow pressures due to limited revenue generation.

Mitigation Strategies

• Limited cash burn rate; raised funds in capital markets for specific purposes; secured a binding term sheet for a gas storage capacity offtake deal with Vitol; completed acquisition of Harland and Wolff assets; seeking to explore new funding options post-Brexit; undertook additional environmental surveys and baseline establishment works for Islandmagee project to mitigate concerns of local protest groups.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Islandmagee gas storage project suitable for hydrogen storage; potential for involvement in carbon capture and hydrogen markets.

Environmental Metrics

ESG Focus Areas

• Sustainable Growth
• Operational Excellence
• Shareholder Value
• Energy Transition
• Hydrogen
• Renewables

Environmental Achievements

• Not disclosed

Social Achievements

• Reactivation of Belfast and Appledore shipyards, creating jobs (400 direct and 800-1200 indirect during construction, 60 direct and 120-180 indirect during operation for Islandmagee project).
• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Delays in obtaining the Marine License for the Islandmagee Energy Hub project due to regulatory issues and DAERA's actions.
• COVID-19 pandemic impacting project timelines.

Mitigation Strategies

• Seeking legal advice to address regulatory challenges.
• Maintaining communication with DAERA.
• Highlighting the economic benefits of the project.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Hydrogen storage and production

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 8 (Decent Work and Economic Growth)

The Islandmagee project contributes to these goals through energy storage, infrastructure development, and job creation.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed