Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Impact
• People and Safety
• Ethics and Governance

Environmental Achievements

• CO₂ emissions from operations on contract dropped by 2% despite a 12% increase of contract days compared to 2020.
• Successful installation of battery and hybrid solution on Deepsea Atlantic.
• Norwegian NOₓ Fund payment of NOK 40.5 million in Q4 2021 after successfully documenting negative NOₓ emission trends.
• 60% reduction of total spills to sea and land in 2021 compared to 2020.
• Deepsea Bergen was recycled according to life cycle asset philosophy, relevant legislation and industry practice.

Social Achievements

• No Covid-19 outbreaks during 2021.
• Global Working Environment Survey for 2021 showed no negative trends due to working from home.
• 40% reduction in recordable injuries in 2021 compared to 2020 for the Group.
• Major improvements in data analysis tools.
• Diversity, equality and inclusion chapter included in the global Working Environment Survey.

Governance Achievements

• All employees were encouraged to file annual confirmation of compliance for 2021, including reporting of any potential conflict of interest.
• New high-risk third-party procedure to secure ethical third parties.
• Updated version of the COBC course launched December 1st.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic.
• Transitional climate risks (market risk, policy and legal risk, technology risk, reputational risks).
• Acute or chronic physical risks from climate change.

Mitigation Strategies

• Corporate Covid-19 Task Force and Business Area Covid-19 Task Forces implemented and maintained infection control measures.
• Strategy and diversification, providing efficient and lower emission services, maintaining high operational and QHSE performance, reducing environmental impact, ESG reporting and keeping a good stakeholder dialogue.
• Following increased acute or chronic physical risks climate change has on the environmental loads design for worldwide operation of our fleet.
• Dedicated courses for leaders and employees to help them manage unpredictability of remote work.

Supply Chain Management

Supplier Audits: 61 supplier reviews in 2021

Responsible Procurement

• Supplier Code of Conduct
• Environmental risk assessment
• Life cycle perspective in supply chain processes

Climate-Related Risks & Opportunities

Physical Risks

• Acute or chronic physical risks from climate change

Transition Risks

• Market risk
• Policy and legal risk
• Technology risk
• Reputational risks

Opportunities

• Expanding service lines; new ventures; energy efficient operations and services; zero emission drilling.

Reporting Standards

Frameworks Used: GRI 2016, Core option

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 12 (Responsible Consumption and Production)
• SDG 3 (Good health and well-being)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 16 (Peace, Justice and Strong Institutions)

Emission reduction efforts fall under SDG 13; spills to sea and emissions to air affect oceans (SDG 14); responsible consumption and waste management aligns with SDG 12; occupational health and safety, diversity and equal opportunities, and health and well-being relate to SDG 3 and 5; responsible employment and labour practices, and ethics and governance relate to SDG 8 and 16.

Sustainable Products & Innovation

• Battery and hybrid solutions for MODU fleet

Environmental Metrics

ESG Focus Areas

• Environmental Impact
• People and Safety
• Ethics and Compliance

Environmental Achievements

• CO₂ emissions from operations on contract dropped by 11% per contract day compared to 2021
• Energy optimization package including PowerBlade™ Hybrid installed on all owned rigs
• Successful renewable biofuel pilot on Deepsea Atlantic resulting in >80% reduced CO₂ emissions from MGO comparator
• $21 million invested in carbon-efficiency projects in 2022

Social Achievements

• Implementation of stand-alone Human Rights policy and strengthened human rights risk assessment
• 90% of all global procurement was locally sourced

Governance Achievements

• New membership agreement with Norma Cyber for cybersecurity support

Climate Goals & Targets

Environmental Challenges

• Market Risk: Changes in fossil energy demand due to policies and consumer behaviour
• Market Risk: Access and cost of capital and funding
• Physical Risk: Impact of extreme weather on offshore operations
• Transition to a low carbon economy and the reputational, technological, market, and regulatory changes

Mitigation Strategies

• Analyse future demand for oil and gas when considering acquiring assets
• Look at alternative uses for assets aligned with the transition to alternative energies and carbon capture storage
• Consider debt structure and ensure energy and carbon reducing initiatives are well understood by lenders/capital markets
• Review critical spare parts kept offshore
• Planning for impact of weather delays for crew changes
• Address commercial robustness of contracts for weather events
• Investing in zero emission concepts

Supply Chain Management

Supplier Audits: 114 supplier reviews in 2022

Responsible Procurement

• Local procurement is a priority whenever possible and practical
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Impact of extreme weather on offshore operations

Transition Risks

• Market Risk: Changes in fossil energy demand due to policies and consumer behaviour
• Market Risk: Access and cost of capital and funding

Opportunities

• Specialisation in harsh environment makes us well equipped to service areas which will deteriorate in weather conditions
• Zero emission drilling projects make us a preferred supplier as the least carbon intensive rig provider

Reporting Standards

Frameworks Used: GRI 2021 Sustainability Reporting Standards, GRI 11 Oil and Gas Sector

Certifications: ISO 14001

UN Sustainable Development Goals

• 3
• 5
• 8
• 12
• 13
• 14
• 16

Each Environmental, Social and Governance (ESG) domain addresses and supports different Sustainable Development Goals (SDG) put forward by the United Nations.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Occupational Health and Safety
• Governance
• Emissions
• Water Management
• Waste Management
• Anti-corruption
• Diversity and Equal Opportunity
• Supply Chain Social Responsibility

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: GRI 2021 Sustainability Reporting Standards, GRI 11 Oil and Gas Sector, SASB Oil & Gas – Services standard, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed