Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Participation in CDP reporting in efforts to identify and exploit potential opportunities for greenhouse gas emissions reduction

Social Achievements

• Major Drilling Mongolia employees twice donated to the National Emergency Management Agency in its continued fight against the COVID-19 pandemic.
• The Major Drilling Argentina team delivered COVID-19 relief supplies to a pensioner’s home in Las Flores in the province of San Juan.
• Multiple Major Drilling branches made donations to organizations in their communities (e.g., $10,000 donation to the Timmins and District Hospital Foundation)

Governance Achievements

• Formalized global ESG Framework underpinned by an ESG Policy reflecting the organization’s core values and ESG commitments.
• Adoption of ESG Policy in fiscal 2021, complementing existing policies (Code of Ethics and Business Conduct, Diversity Policy, Anti-Corruption Policy), mechanisms (global Whistleblower Program), and Health and Safety Program.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacts on operations and labor shortages.
• Shortage of experienced drill crews putting pressure on labor costs and productivity.
• Country risk (social, political, and economic instability; currency fluctuations; changes in laws and regulations; corruption; etc.)
• Repatriation of funds or property restrictions.
• Taxation complexities and disagreements with tax authorities.
• Foreign currency exchange rate fluctuations.
• Dependence on key customers.
• Safety risks inherent in the nature of the work.
• Integration challenges from acquisitions.
• Regulatory and legal risks (environmental regulations, compliance, permits).
• Corruption, bribery, and fraud risks.
• Climate change risks (physical and financial, including regulatory changes).
• Pandemics, force majeure, and natural disasters.
• Specialized skills and cost of labor increases.
• Equipment and parts availability.
• Reputational risk.
• Cybersecurity risk.

Mitigation Strategies

• Business continuity plan implemented (remote work, cautious return to workplace with safety protocols).
• Increased efforts across training centers to improve retention rates and qualify candidates for driller-trainee programs.
• Wage increases and retention bonuses implemented.
• Contracting in U.S. dollars where practical and legally permitted to reduce foreign exchange risk.
• Policy of carrying limited foreign currencies in local bank accounts.
• Continuous monitoring of counterparties' credit ratings.
• Extensive health and safety initiatives.
• Investment in technology security initiatives (vulnerability assessments, user training, security audits).
• Expanding client base and geographic field of operations.
• Full compliance with all applicable laws and regulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather conditions, natural disasters

Transition Risks

• regulatory changes relating to gas emission levels

Reporting Standards

Frameworks Used: CDP (formerly the Carbon Disclosure Project)

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Reduced emissions intensity by 12% from 2021
• Transitioned 16 heated drill shacks in Canada to a more fuel-efficient model
• Deployed Solid Removal Centrifuge units globally, resulting in up to 90% lower water consumption in some cases

Social Achievements

• Achieved over 9 million hours worked Lost Time Injury (LTI) free
• All branches submitted plans to attract more women into the industry

Governance Achievements

• Appointed Kim Keating as Chair of the Board (female leader)
• Maintained gender parity on the Board (50% female representation)

Climate Goals & Targets

Environmental Challenges

• Decarbonization challenges due to remote operations, varying fuel quality, and engine compatibility issues
• Gender gap in the drilling industry

Mitigation Strategies

• Global assessment of GHG emissions and roadmap for emission reduction opportunities
• Collaboration with clients and suppliers on technological advancements for low-emission equipment
• Branch-level innovations for wider deployment
• Plans submitted by all branches to attract more women to the industry

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with suppliers on technological advancements for low-emission equipment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, natural disasters

Transition Risks

• Regulatory changes, market shifts, technology changes

Opportunities

• Use of lower-emission energy sources, resource efficiency, access to new markets, resilience, low-emission goods and services

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SafeGrip hands-free rod handling system
• Remote control water pump system
• Fuel-efficient drill shack heating

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Longstanding Indigenous partnerships in Canada and frequent community initiatives worldwide.
• Industry-leading workforce Health and Safety Program

Governance Achievements

• Established ESG Framework in fiscal 2020, ESG Policy in fiscal 2021, Code of Ethics and Business Conduct, Diversity Policy, Anti-Corruption Policy, and Human Rights Policy; global Whistleblower Program

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Global inflation
• Volatility in foreign exchange markets
• Seasonal shutdowns in some regions (Brazil, Suriname)
• Currency controls in Argentina, Indonesia, and Mongolia

Mitigation Strategies

• Maintaining a strong balance sheet and liquidity to navigate challenging periods
• Improved pricing and enhanced productivity to offset inflation
• Policy of carrying limited foreign currencies in local bank accounts
• Close monitoring of currency control situations in Argentina, Indonesia, and Mongolia

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

• Digitized mobile underground drills, modernized surface rigs

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Leadership & Governance

Environmental Achievements

• Set an initial target to reduce Scope 1 and Scope 2 GHG emissions intensity (t CO2e / thousand work hours) by 5% by 2030, relative to 2022 levels.
• Developed a decarbonization roadmap, launching a Decarbonization Action Plan and establishing a working group.
• Deployed the Trailblazer Aqualink Remote Water Pump system at drilling projects to reduce water usage.

Social Achievements

• Achieved a Total Recordable Incident Rate of 1.14 for fiscal 2024, a new company record.
• 56% of Major Drilling's Board of Directors was represented by women.
• Ingrained an ESG-minded culture through training sessions and an ESG 101 video.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions, including financing challenges for junior and intermediate mining companies.
• Reduced activity levels in the mining industry (60% of 2012 peak levels).
• Financing constraints for junior and intermediate miners impacting North American operations.
• Subdued investment sentiment in Mexico and Argentina.
• Argentina experienced a significant devaluation of the Peso.

Mitigation Strategies

• Prioritized investment in people, equipment, and innovation.
• Maintained a strong balance sheet, making a discretionary payment on its revolving-term facility.
• Modernized and innovated its fleet, spending $73.5 million on capital expenditures.
• Adopted a policy of carrying limited foreign currencies in local bank accounts.
• Continued to monitor and leverage all available options in managing ARS exposure.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, natural disasters

Transition Risks

• Regulatory changes related to greenhouse gas emissions and energy efficiency.

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

• Safety Group Achievement Award for 3rd Quarter Surface Over 100,000 hours
• Safety Award Class A over 100,000 hours Underground
• Best evolution in the application of Critical Activities Requirements-RAC from Vale