Climate Change Data

Environmental Metrics

ESG Focus Areas

• Our Company
• Our Employees
• Our Environment
• Our Communities

Environmental Achievements

• Reduced TRIR (Total Recordable Incident Rate) from 1.19 in 2012 to 0.82 in 2013, outperforming industry average.
• Successfully constructed a 7.2-acre oyster reef mitigation site in Galveston Bay, Texas with >95% survival rate.
• Completed data recovery of cultural artifacts along the Greencore Pipeline in Wyoming.
• Implemented multi-well drilling pads to reduce surface area impact.
• LEED certification for Phase I and II of corporate headquarters.

Social Achievements

• Maintained low employee turnover rate (approximately 4% per year).
• Launched Drops of Excellence employee recognition program, awarding over $1 million.
• Implemented Wellness Works program including on-site screenings and health club reimbursements.
• Offered various benefits including medical, dental, vision, life insurance, disability insurance, 401k matching, and educational assistance.
• Nominated the first female to the Board of Directors in 2012.

Governance Achievements

• Expanded Reserves and HSE Committee’s oversight to include corporate social responsibility.
• Established a Risk Committee in 2013.
• Modified Corporate Governance Guidelines to include consideration of all stakeholders in decision-making.
• Refreshed Code of Conduct and Ethics in 2013 and 2014.

Climate Goals & Targets

Environmental Challenges

• Managing spills and releases in older oil fields.
• Addressing existing environmental issues in acquired properties.
• Minimizing impact on wildlife and natural resources.

Mitigation Strategies

• Implemented spill prevention and emergency response programs.
• Developed internal review process to evaluate wellbore integrity.
• Followed a mitigation sequence of Avoid, Minimize, Restore, Compensate in new projects.
• Implemented noise control mitigation measures.
• Conducted sage-grouse and sharp-tailed grouse surveys.

Supply Chain Management

Responsible Procurement

• Ethical, diverse, and highly distributed supply chain.

Climate-Related Risks & Opportunities

Opportunities

• CO2 EOR as a method for reducing carbon emissions from industrial facilities.

Reporting Standards

Frameworks Used: GRI G4 Core

Awards & Recognition

• Dallas Morning News Top 100 Best Places to Work (2009-2014)
• American Heart Association Gold Level “Fit-Friendly Worksite” (2012)

Environmental Metrics

ESG Focus Areas

• Our Company
• Our Employees
• Our Environment
• Our Communities

Environmental Achievements

• Reduced CO2 emissions to de minimis levels by capturing low-pressure CO2 from tanks in EOR operations.
• Successfully mitigated impacts from Green Pipeline construction by creating a 7.2-acre oyster reef in Galveston Bay.
• Completed cultural data recovery along the Greencore Pipeline in Wyoming.

Social Achievements

• Voted Top 100 Places to Work 7 years in a row (2009-2015).
• Launched employee wellness program, Vitality.
• Established a women's group to develop leaders and promote professional growth.

Governance Achievements

• Expanded Reserves and HSE Committee’s oversight to include corporate social responsibility.
• Established a Risk Committee.
• Changed primary responsibility language to include consideration of all stakeholders.

Climate Goals & Targets

Environmental Challenges

• Oil price uncertainty.
• Correcting existing adverse environmental issues in acquired mature properties.
• Managing the potential impacts of operations on adjacent populated areas.

Mitigation Strategies

• Improved operating efficiency and reduced costs.
• Comprehensive environmental assessment and remediation plans.
• Noise control mitigation measures (sound barriers, silencers, landscaping).

Supply Chain Management

Responsible Procurement

• Ethical, diverse, and highly distributed supply chain.

Climate-Related Risks & Opportunities

Opportunities

• CO2 EOR as complementary to reducing carbon emissions from industrial facilities.

Reporting Standards

Frameworks Used: GRI G4 Core

Environmental Metrics

ESG Focus Areas

• Our Company
• Our Employees
• Our Environment
• Our Communities

Environmental Achievements

• Between 2016 and 2018 utilized an average of over 2.8 million metric tons of CO2 per year from industrial sources for CO2 EOR operations that could have otherwise been released into the atmosphere.
• Successfully restored over 200 miles of Greencore pipeline construction areas, exceeding reclamation standards.

Social Achievements

• Consistently outperformed industry average TRIR and DART in employee safety.
• Implemented Zero by Choice program to proactively address safety hazards.
• Raised over $28,000 to help employees impacted by Hurricane Harvey.
• Matched employee donations of approximately $82,000 to various charities.

Governance Achievements

• Separated the position of Chairman and CEO.
• Created the Lead Technical Director position.
• Adopted a formal clawback policy.
• Engaged in a robust shareholder engagement campaign.

Climate Goals & Targets

Environmental Challenges

• Managing spills and releases in older oil fields.
• Addressing existing environmental issues in acquired properties.
• Maintaining well integrity in previously plugged and abandoned wells.

Mitigation Strategies

• Implemented a comprehensive environmental assessment and remediation plan.
• Developed an internal review process to evaluate well integrity.
• Instituted a thermography program for leak detection and reporting.
• Implemented an emission compliance inspection and corrective action program.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Seeking an ethical, diverse, and highly distributed supply chain.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• CO2 EOR reducing carbon emissions

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• North Dakota Petroleum Council Excellence in Safety Award

Environmental Metrics

ESG Focus Areas

• Our Company
• Our People
• Our Environment
• Our Communities

Environmental Achievements

• In 2017, operations removed more than one and a half times the amount of CO2 from the atmosphere than emitted to produce oil; in 2018, operations removed nearly twice the amount of CO2 from the atmosphere than emitted to produce oil.
• Between 2018 and 2019, utilized an average of over 3.2 million metric tons of CO2 per year from industrial sources for CO2 EOR operations that could have otherwise been released into the atmosphere.
• Achieved best Total Recordable Incident Rate (TRIR) in 2019.

Social Achievements

• Matched >$250,000 employee charitable donations over last 5 years.
• In 2018, women and minorities accounted for approximately 20% and 13% of the workforce, respectively; in 2019, women and minorities accounted for approximately 21% and 13% of the workforce, respectively.
• Implemented Zero by Choice (ZBC) Program and ZBC Reporting Tool in 2018, receiving the North Dakota Petroleum Council’s annual Excellence in Safety Award.

Governance Achievements

• 7 out of 8 directors are independent, including independent Chairman of the Board.
• Executive compensation linked to ESG performance.
• ISS Governance Rating of “1” (Best Possible).

Climate Goals & Targets

Environmental Challenges

• Managing GHG emissions and developing procedures and methods to collect data critical for calculating these emissions.
• Correcting existing adverse environmental issues in acquired mature properties, in addition to minimizing future impacts.

Mitigation Strategies

• Implementing updates and changes throughout operations to reduce carbon footprint and increase efficiency.
• Implementing a comprehensive environmental assessment and remediation plan that addresses environmental issues, equips the field with updated technology and results in a more environmentally benign operation.

Supply Chain Management

Responsible Procurement

• Ethical, diverse, and highly distributed supply chain

Climate-Related Risks & Opportunities

Transition Risks

• Changes in government regulations and policy

Opportunities

• Expanding impact in carbon capture, utilization, and storage (CCUS)

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Awards & Recognition

• North Dakota Petroleum Council’s Excellence in Safety Award (2018)

Environmental Metrics

ESG Focus Areas

• Our Company
• Our People
• Our Environment
• Our Communities

Environmental Achievements

• Delivered negative Scope 1 and Scope 2 carbon emissions for each year (2019 and 2020)
• Transported, injected and stored an annual average of over 2.8 million metric tons of industrial-sourced CO2 (2019-2020)
• Reduced carbon footprint of oil produced through CO2 EOR

Social Achievements

• Reduced employee and contractor combined total recordable incident rate by 28% to a company record low level (2019-2020)
• Provided training and development programs related to safety, leadership, and diversity for field and office employees
• Achieved 100% annual employee attestation of the Code of Conduct

Governance Achievements

• Established a Sustainability Committee of the Board of Directors in 2020 to oversee health and safety, climate change, environmental, social, and community risks
• Diverse Board of Directors with 25% female representation and ethnic diversity since 2020
• Executive compensation linked to ESG performance

Climate Goals & Targets

Environmental Challenges

• Maintaining well integrity in mature oil fields
• Managing spills and releases
• Minimizing environmental impact of operations

Mitigation Strategies

• Implemented an internal review process to evaluate and repair wells
• Developed and implemented an emission compliance program
• Established a company-wide Emergency Response Plan
• Follows Avoid, Minimize, Restore, Compensate mitigation sequence for new projects

Supply Chain Management

Responsible Procurement

• Ethical, diverse, and highly distributed supply chain

Climate-Related Risks & Opportunities

Transition Risks

• Changes in government regulations and policy
• Forecasts of future oil supply and demand and pricing in energy markets

Opportunities

• Leadership in the CCUS industry

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Awards & Recognition

• 2019 World Oil Awards finalist for ‘Best Health, Safety, Environment / Sustainable Development – Onshore Award’

Environmental Metrics

ESG Focus Areas

• Our Company
• Our Conduct & Risk Management
• Our People
• Our Environment
• Our Communities

Environmental Achievements

• Delivered net negative Scope 1 and Scope 2 CO2e emissions for 2020 and 2021
• Received third-party verification of the negative carbon intensity of Blue Oil production at West Hastings and Bell Creek EOR assets
• Transported, injected, and stored over 3.7 million metric tons of industrial-sourced CO2 in 2021

Social Achievements

• Reduced employee and contractor combined total recordable incident rate by 52% in 2021
• Provided comprehensive training and development programs on safety, leadership, and diversity to field and office employees
• Launched the Denbury App in March 2022, providing employees with quick access to HR data and wellness resources.

Governance Achievements

• Established a Sustainability and Governance Committee of the Board in 2021
• Linked executive compensation to ESG performance, emissions reductions targets, and CCUS strategy
• Implemented a robust performance review process for all employees.

Climate Goals & Targets

Environmental Challenges

• Climate-related impacts such as increased hurricane frequency and severity, severe drought, floods, winter storms, and other weather-related impacts.
• Hydrocarbon market fluctuations due to regulatory and social influences on supply and demand.

Mitigation Strategies

• Set a goal of reaching net zero for Scopes 1, 2, and 3 emissions by 2030 by leveraging existing and expanding CCUS infrastructure.
• Implemented GHG emissions reduction targets.
• Incorporated climate-related risks into enterprise risk assessment.

Supply Chain Management

Responsible Procurement

• Ethical, diverse, and highly distributed supply chain to reduce costs, procure high-quality products and services, and manage risk.

Climate-Related Risks & Opportunities

Physical Risks

• Increased hurricane frequency and severity
• Severe drought
• Floods
• Winter storms

Transition Risks

• Hydrocarbon market fluctuations due to regulatory and social influences on supply and demand

Opportunities

• Expansion of CCUS business

Reporting Standards

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

Certifications: Working towards ISO 14001 and ANZI Z10/ISO 45001 certifications

Third-party Assurance: PricewaterhouseCoopers LLC (financial data); Aquionix Inc. (2021 Scope 1, 2, and 3 GHG emissions)

Sustainable Products & Innovation

• Blue Oil

Awards & Recognition

• America’s Most Responsible Companies 2021 by Newsweek