Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Safety
• Diversity and Inclusion
• Waste Reduction
• Employee Attraction and Retention
• Social Investment
• Ethical Conduct
• Business Continuity and Resiliency
• Public Policy and Government Relations
• Cybersecurity

Environmental Achievements

• Introduced ecoView, a proprietary emissions monitoring and diagnostics system.
• Implemented a system to capture methane during equipment shutdown.
• Recycled 6.30 tons of paper and 0.34 tons of plastic and aluminum in office recycling.
• Partnered with a catalyst vendor to establish a re-washing and recycling procedure, resulting in a 32% reduction in purchased elements and recoveries of over $50,000.

Social Achievements

• Reduced Total Recordable Incident Rate (TRIR) by 9% from the prior year.
• Created a custom diversity and inclusion training program.
• Launched a wellness initiative including mental health awareness and access to mental wellness resources.
• Forged a partnership with OSUIT to establish the Kodiak Gas Services Endowed Scholarship.
• Expanded professional development opportunities to include soft skills and advanced computer technology training.

Governance Achievements

• Established additional company-wide trainings in ethics and compliance, including anti-bribery and corruption, ethics and code of conduct, and workplace harassment training.
• Established cybersecurity prevention training.

Climate Goals & Targets

Environmental Challenges

• Global retention challenges impacting employee retention.
• Challenges with giving and volunteering due to the COVID-19 pandemic and social distancing requirements.

Mitigation Strategies

• Continued efforts to improve employee retention in 2022 and beyond.
• Maintained regular communication with employees regarding COVID-19 response, provided additional PPE, and reinstated virtual working arrangements as needed.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

• ecoView

Awards & Recognition

• Hart Energy's inaugural ESG Top Performers Award

Environmental Metrics

ESG Focus Areas

• Emissions Management & Energy Use
• Health & Safety
• Governance Structure and Oversight
• Human Capital Management
• Business Ethics
• Diversity, Equity & Inclusion
• Crisis & Risk Management
• Water Management
• Social Impacts of Supply Chain Management
• Cybersecurity
• Community Engagement

Environmental Achievements

• Publicly shared expanded scope 1 and scope 2 GHG emissions and fuel data for the first time.
• Achieved a 90% recycling rate for used oil, used oil filters, and used antifreeze.
• Implemented a comprehensive tracking system to monitor the number and volume of spills.

Social Achievements

• Continued safety program focused on education, training, Standard Operating Procedures, and reporting, resulting in reduced injury rates.
• Launched an operational safety award program.
• Offered 92 specialized technical training classes and developed a custom virtual reality compressor skid for training.
• Launched the development of Bears Academy, a physical training center in the Permian Basin.

Governance Achievements

• Board currently consists of nine members, eight of whom are independent.
• Implemented an extensive crisis and risk management strategy through the Audit & Risk Committee.
• Implemented a comprehensive cybersecurity strategy aligned with industry standards.

Climate Goals & Targets

Environmental Challenges

• Recent acquisition activity significantly expanded the scope and footprint of the business, requiring integration and consolidation to reduce energy usage.
• Evolving environmental laws and regulations.
• Potential for spills impacting soil and other materials.
• Potential for reduced demand for natural gas and oil in the long term.
• Limitations on investments in and financing for energy companies.
• Changes in stakeholder expectations in respect to sustainability practices.

Mitigation Strategies

• Working to integrate and consolidate the business to reduce energy usage and improve visibility into overall energy consumption.
• Implementing a comprehensive tracking system for spills.
• Actively converting systems to electric power where feasible and upgrading assets with the latest emissions control technologies.
• Developing a process for identifying and disclosing climate-related impacts, including risks and opportunities to the business.
• Engaging with suppliers to understand their capabilities in tracking GHG emissions and waste management.
• Implementing an extensive crisis and risk management strategy.

Supply Chain Management

Responsible Procurement

• Prioritize the use of repurposed or remanufactured materials.
• Actively engage with suppliers to understand their capabilities in tracking GHG emissions, waste management, and other areas that might result in environmental impacts.
• Procuring goods and services from local suppliers whenever possible.

Climate-Related Risks & Opportunities

Physical Risks

• Severe Wind & Tornados
• Severe Rain, Thunderstorms, Hail & Flashfloods
• Air Temperature Variation
• Water Availability

Transition Risks

• Evolving Current and Emerging Climate-Related Regulation
• Changes in Demand for Natural Gas and Oil
• Limitation of Investments in and Financing for Energy Companies
• Changes in Stakeholder Expectations in Respect to Sustainability Practices

Opportunities

• Electric Motor Driven Compression Expansion

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Sustainable Products & Innovation

• Electric motor-driven compression systems