Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change and the energy transition
• Safety and security
• Creating shared value
• Responsible operations

Environmental Achievements

• Maintained a carbon intensity of 9kg CO2 per barrel of oil equivalent (boe) for operated upstream production (considerably lower than the industry average of 18kg CO2/boe)
• Delivered 264,000 tonnes of CO2 emission reductions
• Reduced regular discharges of oil to water by about 10%
• Decreased hazardous waste quantities

Social Achievements

• Achieved the lowest ever Serious Incident Frequency (SIF) of 0.5 incidents per million work hours
• Increased percentage of women reporting to the corporate executive committee from 37% to 44%
• Introduced a global parental leave policy with a minimum of 16 weeks paid leave for all employees
• Introduced a health insurance scheme for all employees in Equinor ASA

Governance Achievements

• Updated the anti-corruption compliance manual
• Implemented mandatory Code of Conduct e-learning for all employees
• Updated joint ventures’ anti-corruption compliance programme
• Published global tax strategy

Climate Goals & Targets

Environmental Challenges

• Managing environmental impact on the marine environment (produced and processed water, biodiversity impacts)
• Managing psychosocial risk factors in the workplace
• Addressing security risks (terrorism, criminal violence, cyber-attacks)
• Ensuring support to local industries and suppliers without compromising quality, safety, cost efficiency and other sustainability and business requirements

Mitigation Strategies

• Improved management of produced and processed water and chemicals
• Strengthened efforts on sustainable management of the oceans
• Strengthened security culture and organization
• Engaged in dialogue with local communities and stakeholders
• Implemented a series of strategic safety initiatives
• Introduced “Life-Saving Rules”
• Implemented a roadmap with specific focus on benzene exposure

Supply Chain Management

Supplier Audits: 75 supplier verifications in 2018

Responsible Procurement

• Human rights training mandatory for all employees with responsibility for contracts and procurement
• Co-established an industry initiative on human rights in the supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Chronic effects (sea-water rise, increased scarcity of water)
• Acute effects (more frequent extreme weather events)

Transition Risks

• Stricter climate regulations
• Changing demand for oil and gas
• Disruptive technologies
• Market shifts

Opportunities

• Growth in new energy solutions
• Development of energy-efficient products
• Opportunities for low-carbon technologies (CCS, hydrogen)

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, IPIECA, TCFD

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 7: Affordable and clean energy
• SDG 8: Decent work and economic growth
• SDG 13: Climate action
• SDG 4: Quality education
• SDG 14: Life below water
• SDG 17: Partnerships for the goals

Equinor's activities contribute to these goals through energy provision, economic value creation, job creation, emission reduction efforts, safe and responsible operations, support for education in STEM, and collaboration on sustainable ocean business.

Sustainable Products & Innovation

• Hywind floating wind technology
• Batwind (battery for offshore wind)

Environmental Metrics

ESG Focus Areas

• Safety
• Security
• Sustainability
• Climate Change
• Human Rights

Environmental Achievements

• Johan Sverdrup field came on stream with record-low CO2 emissions of 0.7kg per barrel.
• 303,000 tonnes of CO2 emission reductions in 2019.
• Reduced CO2 intensity of globally operated oil and gas production.
• Reduced flaring intensity.

Social Achievements

• Total recordable injury frequency (TRIF) improved to 2.5 per million hours worked.
• Mar Atento project expanded in Brazil, training 300 fishermen for oil spill response.
• Global parental leave policy implemented.
• Health insurance scheme implemented for Equinor ASA employees.

Governance Achievements

• Active adherence to good corporate governance standards.
• Compliance with Norwegian Code of Practice for Corporate Governance (with two explained deviations).
• Implementation of IFRS 16 Leases.

Climate Goals & Targets

Environmental Challenges

• Serious incident frequency increased.
• Hurricane Dorian caused damage to South Riding Point terminal.
• Lower liquids and gas prices affected financial results.
• Climate change and transition to a lower carbon economy.
• Security and cybersecurity threats.
• Competition in all areas of operations.
• Risks related to state ownership.
• International political, social and economic factors.

Mitigation Strategies

• Company-wide improvement project "Safety beyond 2020" implemented.
• Strengthened security culture and organization.
• New Climate Roadmap launched with short, mid, and long-term ambitions.
• Internal carbon price of at least USD 55 per tonne of CO2 in investment analysis.
• Portfolio sensitivity tests performed against IEA energy scenarios.
• Collaboration with peers and business partners to reduce emissions.
• Human rights risk assessment methodology implemented.
• Anti-Corruption Compliance Programme maintained.

Supply Chain Management

Supplier Audits: Onsite assessments of more than 50 suppliers across 16 countries

Responsible Procurement

• Human Rights Expectations to Suppliers launched in 2019.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea level
• Changes in sea currents
• Restrained water availability

Transition Risks

• Stricter climate regulations
• Changing demand for oil and gas
• Technological disruptions
• Reputational damage

Opportunities

• Growth in renewable energy
• Development of low-carbon technologies
• Carbon capture, utilization, and storage (CCUS)

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: DeGolyer and MacNaughton

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Equinor's initiatives contribute to these goals through renewable energy development, emission reduction efforts, and sustainable ocean business.

Sustainable Products & Innovation

• Floating offshore wind technology

Environmental Metrics

ESG Focus Areas

• Getting to net zero
• Protecting the environment
• Caring for people and society
• Governance and transparency

Environmental Achievements

• Reduced total scope 1 and 2 GHG emissions to 12.1 million tonnes CO₂e in 2021, a decrease of 1.5 million tonnes from 2020. Upstream CO₂ intensity decreased from 8.0 to 7.0 kg CO₂/boe.
• Achieved a reduction for nearly all indicators on emissions to air, discharges to sea, accidental spills and waste, compared with 2020.
• Methane intensity remained low at approximately 0.02%, significantly lower than the industry average.
• Upstream flaring intensity was 0.9 tonnes/1000 tonnes of hydrocarbon produced, significantly lower than the industry average.

Social Achievements

• Diversity index score improved to 39%, and inclusion index score remained at 77%.
• Launched a corporate framework for prevention of major accidents.
• Strengthened socio-economic reporting; 91% of procurement spend was local.

Governance Achievements

• Zero confirmed corruption cases.
• Improved Code of Conduct completion rate to 84% (target 95%).

Climate Goals & Targets

Environmental Challenges

• Code of Conduct completion target not met (84% vs 95% target).
• Environmental compliance in Norway not satisfactory with regards to spills.
• Too many personal injuries compared to target.
• Continued improvements in execution needed to secure sustained and measurable outcomes for people (human rights).

Mitigation Strategies

• Equinor will address Code of Conduct completion in 2022.
• Initiated an improvement project to address governance, competence awareness and performance in environmental compliance (spills).
• Strengthening performance through a systemic and coordinated approach across the company (safety).
• Introduction of new and specific human rights indicators in 2022 to help better understand performance and drive progress.

Supply Chain Management

Supplier Audits: 30 supplier human rights verifications conducted

Responsible Procurement

• Inclusion of human rights clauses in significant agreements and contracts
• Supplier safety and sustainability qualification based on ISO 9001, 14001, 27001, and 45001 principles, and UN Guiding Principles on Business and Human Rights

Climate-Related Risks & Opportunities

Physical Risks

• Acute effects (e.g., more frequent extreme weather events)
• Chronic effects (e.g., sea water rise, increased scarcity of water)
• Changed weather patterns affecting weather-dependent energy sources

Transition Risks

• Changes in oil and gas demand and prices
• Changes in renewable energy profitability
• Changes in CO₂ storage and hydrogen demand
• Changes in carbon costs and taxes
• Changes in regulations on greenhouse gas emissions
• Changes in energy subsidy policies and tax systems
• Development of new technologies affecting supply-demand balance
• Energy policy shifts
• Changing tax regimes
• Lack of financial frameworks for emerging markets

Opportunities

• Scaling up investments in renewables and low carbon solutions
• Strengthening low carbon R&D
• Venture investments
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (2016, Core option), UNGC, World Economic Forum Stakeholder Capitalism reporting metrics

Certifications: ISO 14001

Third-party Assurance: EY

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 17 (Partnerships for the Goals)

Contributions described in Appendix 1.

Sustainable Products & Innovation

• Low-carbon hydrogen
• Ammonia
• Zero-emission fuels

Awards & Recognition

• Ranked number one on Norway’s SHE diversity index

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• Governance & Transparency
• Energy Transition
• Net zero by 2050
• Just transition
• Nature positive approach

Environmental Achievements

• Reduced net scope 1 & 2 GHG emissions
• Completion of Hywind Tampen
• Gina Krog electrification
• Energy efficiency at Peregrino and Mariner
• Approval of the Snøhvit Future project
• Preparing Troll West and Sleipner electrification for start-up in 2024
• First power Dogger Bank A
• Acquired Bayou Bend CCS stake
• Reduced upstream CO2 intensity to 6.7 kg/BOE in 2023 from 10.5 kg/BOE in 2015
• Reduced operated methane intensity to 0.02% in 2023

Social Achievements

• Increased supplier disclosure of emissions data to CDP
• Onsite supplier assessments in 2023
• Workers interviewed in 2023
• Supporting resilient host communities

Governance Achievements

• Integrated annual report combining financial and sustainability reporting
• Strong governance practices to promote transparency and accountability
• Key indicators linked to remuneration
• Energy transition plan & progress reports
• Sustainability data hub

Climate Goals & Targets

Environmental Challenges

• Significant oil, natural gas and electricity price volatility
• Unfavorable macroeconomic conditions and inflationary pressures
• Changes in market demand and supply for oil, gas, renewables and low carbon solutions
• Inability to meet strategic objectives
• Social and/or political instability
• Failure to prevent or manage digital and cyber disruptions
• Operational problems, including cost inflation
• Climate change and changes in stakeholder sentiment and regulatory requirements regarding climate change
• Physical climate risks

Mitigation Strategies

• Robust financial framework ensuring value over volume focus and robustness to lower prices
• Capturing climate-related risks including carbon pricing
• Building a broad portfolio to capture upside in different energy transition pathways
• Portfolio prioritisation to maintain flexibility
• Transition stress test
• Collaborating with partners in non-operated assets to drive emissions reductions and increase transparency
• Active participant in key industry initiatives and signatory to the Oil and Gas Decarbonisation Charter
• Cross-BA collaboration in core countries
• Emissions Reduction Action Plan
• Methane site survey
• Biodiversity site-specific inventory
• Fuel switch
• Vent gas recovery unit

Supply Chain Management

Responsible Procurement

• Net-zero and near-term emissions reduction ambitions
• Disclosure of scope 1, 2 & 3 emissions
• Reporting to CDP Supply Chain Program
• Fair treatment and non-discrimination
• Safe, healthy, and secure workplace
• Fair wages and reasonable working hours
• Respect freedom of assembly and association
• Prevent modern slavery, child labor, and protect young workers
• Respect affected communities and provide remedy

Climate-Related Risks & Opportunities

Physical Risks

• Physical climate hazards

Transition Risks

• Carbon pricing
• Market shifts

Opportunities

• Renewables
• Low carbon solutions
• Hydrogen
• CCS