Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Engagement
• Health and Safety
• Business Ethics
• Diversity and Inclusion
• Responsible Supply Chain
• Water Conservation
• Waste Management
• Biodiversity

Environmental Achievements

• 75%+ reduction in flaring at Peshkabir
• Reduced carbon intensity for producing assets to 7 kilograms CO2e/barrel
• 61% of total water used for drilling during 2017-18 was recycled from treated produced water
• 60% general waste was recycled at Taq Taq operations

Social Achievements

• 245 social investment and community projects funded and delivered since 2006
• Almost $60 million invested in social projects since 2006
• 262 university students from local areas received in-field training in 2019
• Up to 550 patients receive free treatment from the TTOPCO medical team each year
• 12 million working hours and five years without a single Lost Time Injury

Governance Achievements

• New CSR Policy introduced in 2019 aligned with ISO26000
• ESG metrics incorporated into corporate key performance indicators and remuneration evaluations of all employees for 2020
• Zero Tier 1 Loss of Primary Containment for two years

Climate Goals & Targets

Environmental Challenges

• Potential increases in operating costs associated with minimizing emissions and mitigating climate change
• Financial impacts associated with reduced global oil prices
• Growing concerns related to the risk of stranded assets as a result of the energy transition
• Increasing investor demand to disclose and strengthen ESG metrics
• Water stress in a semi-arid region

Mitigation Strategies

• Scenario analysis to stress test the resilience of its existing portfolio (applying a carbon price of $80 per metric ton of carbon)
• Development of a flaring standard aiming to achieve the elimination of routine flaring
• Adoption of an internal shadow carbon price of $80 per metric ton
• Evaluation of emission offsets
• Increasing water recycling capacity
• Using produced water for the mixing of drilling mud

Supply Chain Management

Responsible Procurement

• Prioritization of local community-centred companies (3Cs)
• Local Content Policy
• Inclusion of specific contractual prohibitions against modern slavery

Climate-Related Risks & Opportunities

Physical Risks

• Higher temperatures impacting personnel and assets

Transition Risks

• Regulatory changes
• Market shifts
• Risk of stranded assets

Opportunities

• Reduction of emissions
• Increased energy efficiency

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: OHSAS 18001:2007 (Taq Taq)

Third-party Assurance: ERM (GHG emissions)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 6
• Goal 8
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The report highlights how Genel's initiatives contribute to these goals through community investment, education, health programs, responsible resource management, and partnerships.

Environmental Metrics

ESG Focus Areas

• Climate change
• Responsible business practices
• Environmental management
• Contributions to society
• Health & safety
• Employee relations

Environmental Achievements

• Elimination of routine flaring at Peshkabir
• Development of a GHG emissions management standard
• 73% non-hazardous waste recycling rate at Sarta
• Installation of continuous air quality monitoring stations around Sarta production facility
• Minimisation of tree removal at Qara Dagh

Social Achievements

• 14 social investment and community projects funded and delivered near Qara Dagh and Taq Taq
• 217 Kurdish nationals employed by Genel and TTOPCO
• 28 local companies supported by Genel assets
• Introduction of Talent Management Process
• Rollout of a global Employee Assistance Program

Governance Achievements

• Board approval of GHG Emissions Management Standard
• Code of Conduct training for 100% of employees and contractors
• Commitment to commission independent human rights specialist to assess Genel policies

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and subsequent crash in oil prices
• Reduced access to capital due to ESG concerns
• Diminishing global oil demand

Mitigation Strategies

• Developed pandemic plan for ongoing field development work
• Transitioned to remote working
• Continued support for local communities through social projects and employment
• Developed low-carbon and low-cost asset strategy
• GHG Emissions Management Standard

Supply Chain Management

Responsible Procurement

• Local Content Policy
• Prioritizing local companies

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Reduced access to capital
• Diminishing global oil demand
• Introduction of punitive carbon taxation

Opportunities

• Development and commercialisation of KRI gas assets

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: ERM CVS (limited assurance of Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 13 (Climate action)

Genel's initiatives contribute to these goals through responsible resource management, local employment, and emissions reduction.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Community Engagement
• Diversity & Inclusion
• Business Ethics
• Environmental Management
• Human Rights

Environmental Achievements

• Zero waste to landfill from Sarta operations
• Improved CDP Climate score from D in 2020 to C in 2021
• Below industry average equity-based Scope 1 and 2 carbon intensity of 16kg CO2e/bbl
• Initiated a feasibility study into renewable options for Sarta operations
• Successful operation of solar-powered chemical injection pumps at Sarta
• Methane emissions reduction using LDAR resulting in only six leaks repaired

Social Achievements

• Launched Genel Wellness app-based program to promote physical and mental wellbeing
• 11 social investment and community projects funded and delivered, totaling $352,256
• 948 people hired from local communities at operational areas
• 237 machines hired from local communities at operational areas
• Continued community waste collection program at Taq Taq, collecting 615 tons of waste
• Construction of Qara Dagh youth center commenced
• Continued support for local communities through fuel provision to Elinjagh hospital and infrastructure repairs

Governance Achievements

• Independent human rights compliance assessment conducted
• Established the Strategy & Growth Execution (‘SAGE’) council for ESG discussion
• ESG component included in the Company’s annual performance scorecard
• Portion of annual remuneration for all employees linked to ESG goals

Climate Goals & Targets

Environmental Challenges

• Climate change risks and the energy transition
• COVID-19 pandemic
• Water scarcity
• Managing stakeholder expectations
• Maintaining a safe working environment
• Community grievances and land compensation claims

Mitigation Strategies

• GHG Emissions Management Standard
• Gas management initiatives at Sarta
• Renewable energy options for Sarta
• COVID-19 Steering Committee and vaccination program
• Water recycling and efficient consumption practices
• Regular stakeholder engagement
• Robust HSE management system
• Timely and respectful response to community grievances
• Land compensation in line with MNR policy

Supply Chain Management

Responsible Procurement

• Local Content Policy
• Prioritizing local companies
• Sustainability criteria in tendering process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Fluctuating oil demand and price
• Limited financing for fossil fuels
• Changes to climate-related legislation

Opportunities

• Development of low-carbon assets
• Renewable energy options

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Standards, TCFD

Third-party Assurance: ERM CVS (for Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• Good Health and Well-being
• Decent Work and Economic Growth
• Quality Education
• Life on Land

Alignment with these SDGs guides social investment programs and community engagement initiatives.

Environmental Metrics

ESG Focus Areas

• GHG emissions
• Ecological impact
• Air quality
• Health and safety
• People and diversity
• Human Rights & modern slavery
• Social investments
• Crisis and emergency management
• Business ethics
• Regulatory compliance
• Water and wastewater management
• Community engagement
• Supply chain management

Environmental Achievements

• Over 8 tonnes CO2e saved through installation of solar panels at Sarta-1D wellsite
• Zero waste to landfill from Sarta operations (91% recycled, 9% incinerated)
• 7,500 tons of drill cuttings recycled from Qara Dagh with zero residual waste

Social Achievements

• Zero Lost Time Injuries (LTIs) across all Genel operations with 3 million hours worked incident free
• Launched Genel20 Scholars programme providing university education for 20 students from disadvantaged backgrounds in KRI
• $850,000 invested in social projects in Somaliland, including drought relief (drinking water to 99 villages benefiting over 118,000 people and food aid to over 9,300 households)

Governance Achievements

• Launched HSE Leadership programme
• Improved CDP climate change and water security scores
• Enhanced Scope 3 GHG emissions reporting

Climate Goals & Targets

Environmental Challenges

• Climate change and the energy transition
• Gas management at Sarta (flaring)
• Supply chain sustainability risks
• Community grievances (particularly at Sarta)
• Water scarcity in operating regions

Mitigation Strategies

• GHG Emissions Management Standard
• Exploration of gas management solutions at Sarta
• Development of a two-year supply chain sustainability roadmap
• Focused community engagement to resolve grievances
• Increased water recycling practices and re-injection of produced water

Supply Chain Management

Responsible Procurement

• Inclusion of sustainability criteria in procurement process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water-related risks

Transition Risks

• Fluctuating oil demand and price
• Limited financing for fossil fuels
• Regulatory changes

Opportunities

• Development of energy-efficient products
• Solar power capabilities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Third-party Assurance: ERM CVS

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 3 (Good Health and Well-being)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)
• SDG 6 (Clean Water and Sanitation)

Genel's initiatives contribute to these goals through education programs, health initiatives, job creation, emissions reduction efforts, and drought relief projects.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Community Engagement
• Human Rights & Modern Slavery
• Social Investments
• Business Ethics
• Regulatory Compliance
• Supply Chain Management

Environmental Achievements

• Zero waste to landfill from Sarta operations
• 100% of hazardous waste from Sarta operations remediated or recycled
• 25,336m3 of drill cuttings treated and disposed
• 24,271 tonnes of drill fluids and produced water transferred to licenced facilities for treatment
• Maintained CDP climate score of B
• Carbon Intensity of 13.6 kg CO2e/bbl

Social Achievements

• $626,000 invested in social projects in 2023
• Genel20 Scholars programme reaches first year milestone
• Zero LTIs across all Genel operations with over 4 million hours worked incident free
• Successful restructuring of the HSE and Security and Emergency Response teams during the changes in activities in Somaliland and KRI
• Treatment and disposal of Sarta fluids and drill cuttings successfully completed prior to handover of the asset to the MNR

Governance Achievements

• Zero Tier 1 or Tier 2 Process Safety Events
• Successful roll out of the Life Saving Rules across the business
• Implementation of a software database (Synergi-Life) which centralised all incident reports

Climate Goals & Targets

Environmental Challenges

• Changes to operational activities in 2023 tested Genel’s agility
• Exit from Sarta prevented Genel from bringing planned emissions reduction projects to fruition
• Shutdown of the Kurdistan export pipeline in March 2023 resulted in variable production rates
• Potential compliance risks which exist in relation to our operational activities

Mitigation Strategies

• Restructuring of the HSE and Security and Emergency Response teams
• Implementation of GHG Emissions Management Standard
• Continued focus on climate-related risks
• Development of a safety improvement plan
• Implementation of an in-vehicle monitoring system (‘IVMS’) for all high-risk journeys
• Establishment of a two-year roadmap to support identification of ESG risks in the supply chain

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Inclusion of ESG criteria in Genel’s established procurement process

Climate-Related Risks & Opportunities

Physical Risks

• Acute physical: Water-related risks, extreme weather events
• Chronic physical: Longer-term climate changes

Transition Risks

• Market: Fluctuating oil demand and price, limited financing for fossil fuels
• Legal: International changes to climate-related legislation
• Technology: Availability and cost of technology to minimise carbon emissions
• Supply chain: Availability of suppliers, climate-related impacts in supply chain
• Emerging regulation: Potential future climate-related regulation

Opportunities

• Reputation: Stakeholder and investor perceptions and expectations throughout the energy transition
• Technology: Availability and cost of technology to minimise carbon emissions

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: Null

Third-party Assurance: ERM Certification and Verification Services Limited

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 13: Climate Action

Genel’s social investment initiatives are broadly guided by these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed