Climate Change Data

Helmerich & Payne, Inc.

Climate Impact & Sustainability Data (2021, 2022, 2023, 2024)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:735,000 tCO2e/year (Scope 1)
Scope 1 Emissions:735,000 tCO2e/year
Scope 2 Emissions:6,300 tCO2e/year
Renewable Energy Share:0.1%
Total Energy Consumption:10,395,207 GJ/year

ESG Focus Areas

  • Climate Change
  • Safety
  • Diversity, Equity & Inclusion
  • Community Investment
  • Corporate Governance
  • Ethics & Compliance

Environmental Achievements

  • Reduced Scope 1 emissions on a normalized basis by approximately 23% since 2018
  • Installed LED lights on rigs, providing approximately 30 to 70% reduced power draw compared to legacy lights
  • Only two reportable spills in fiscal 2021 (0.19 liters per kilometer drilled)
  • Reduced North America Solutions real estate footprint by over 30% since 2017

Social Achievements

  • SIF Actual Rates decreased since 2018 with zero SIF Actual Incidents in fiscal 2021
  • Achieved successes in all three 2021 Safety Actively C.A.R.E. goals
  • Supported over 50 philanthropic organizations during fiscal 2021
  • Four out of five recently added Board Members considered gender or ethnically diverse

Governance Achievements

  • Board conducted overall oversight of corporate sustainability and oversaw the identification of climate-related risks & opportunities
  • Maintained Whistleblower Policy
  • ISS Governance Quality Score: 2 of 10 (1 being best)

Climate Goals & Targets

Short-term Goals:
  • Reduce excess engine runtime per 1,000 feet drilled by 10%
  • Implement engine roadmaps and achieve 80% utilization on H&P rigs
  • Implement new technology to improve rig efficiency
  • Achieve 100% completion rate for quarterly environmental trainings
  • Reduce unmitigated SIF incidents on rigs within the first 90 days of recommissioning by 10%
  • Reduce the rate of unmitigated SIF incidents involving tubular handling by 10%
  • Reduce the rate of unmitigated SIF incidents involving dropped objects by 10%

Environmental Challenges

  • Transition to Low-Carbon Economy
  • Regulatory Risks
  • Operational and Incident-Based Risks
  • Physical Risks from changing climate and severe weather events
  • Cybersecurity threats
Mitigation Strategies
  • Investing in unconventional geothermal companies
  • Improving operational efficiency through technology advancements (engine power management, battery power)
  • Developing engine power management software
  • Investing in research and development of clean-tech technologies
  • Offering solutions employing different fuels to power rigs (dual fuel, natural gas, grid electricity)
  • Implementing robust cybersecurity programs and employee trainings
  • Hiring outside consultants for simulated cyberattacks

Supply Chain Management

Responsible Procurement
  • Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Inclement weather
Transition Risks
  • Transition to a low-carbon economy
  • Regulatory changes
  • Evolving public perception
Opportunities
  • Commercial-venture new energies businesses (geothermal)
  • Operational efficiency improvements
  • Research and development
  • Supporting business partners and customers in meeting environmental sustainability goals

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: ISO 9001

Third-party Assurance: Ernst & Young LLP (limited assurance for select metrics)

Sustainable Products & Innovation

  • FlexRig® fleet with automated software solutions
  • Solutions employing different fuels to power rigs

Awards & Recognition

  • Shell CEO HSSE and SP Areas Award

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1117000 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:1080000 tCO2e/year
Scope 2 Emissions:37000 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0.1%
Total Energy Consumption:15646001 GJ/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:0.54 tCO2e/$1K revenue (2022)

ESG Focus Areas

  • Climate Change
  • Safety
  • Diversity, Equity, and Inclusion
  • Community Investment
  • Corporate Governance
  • Ethics and Compliance
  • Risk Management

Environmental Achievements

  • Improved scope 1 and 2 emissions normalized by revenue by 11% since 2021
  • Reduced absolute emissions in Offshore Gulf of Mexico segment by 41% since 2018
  • North America Solutions rig engine emissions normalized against distance drilled have dropped by 22% since 2018
  • Reduced excess engine runtime by 10.8% in fiscal year 2022
  • Achieved 100% roadmap utilization for engine management plans
  • Implemented various new technologies on rigs, such as Engine Management
  • Achieved 89% completion rate for quarterly environmental trainings
  • Drilled the first horizontal geothermal well in the U.S.

Social Achievements

  • Successes in Safety Actively C.A.R.E. Goals
  • Set a singular 2023 Safety Actively C.A.R.E. Goal focused on the H&P LifeBelts program
  • Added new Employee Resource Group (ERG) Women of H&P – Latin America
  • Improvements in diverse representation of workforce
  • Supported over 75 philanthropic organizations during fiscal 2022
  • Aligned Human Rights Policy with Universal Declaration of Human Rights
  • 52% decline in potentially serious injury incidents since 2019

Governance Achievements

  • Updated Corporate Governance Guidelines formalizing commitment to diverse backgrounds in Director candidate searches
  • Board of Directors has oversight of corporate sustainability and Quantitative Scenario Analysis aligned with TCFD
  • Enhanced internal controls over non-financial data

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Implement technology solutions to address Line of Fire, Dropped Object, and tubular handling incidents (2023)
  • Audit existing fall protection systems (2023)
  • Reduce GHG emissions per drilled distance by 1-2% (2023)
Short-term Goals:
  • Reduce rate of SIF incidents involving LifeBelt breakdown by 15% (2023)
  • Provide training on H&P’s LifeBelts (2023)
  • Provide rig crews with efficient and reliable Pre-Job Planning tools (2023)

Environmental Challenges

  • Achieving aggressive goal to continue multi-year realized reduction in normalized emissions by 5% (only reduced by approximately 0.6%)
  • Many variables impacting normalized emissions outside of H&P's control (customer well design, third-party tools, etc.)
  • Supply chain disruptions
  • Climate-related risks (transition to low-carbon economy, regulatory risks, operational and incident-based risks, physical risks)
Mitigation Strategies
  • Improved understanding of variables impacting normalized emissions
  • Helping customers improve their emission footprints
  • Environmental Actively C.A.R.E. Goals and key results
  • Corporate strategy and objectives incorporating sustainability program
  • Proactive corporate planning and strategy setting
  • Financial modeling to mitigate future risks
  • Climate quantitative scenario analysis
  • Commercial investments into low-carbon and energy transition companies
  • Efficiency-driven drilling outcomes
  • Inclement weather strategies and emergency preparedness
  • Robust employee training
  • Adequate insurance levels

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Vendor Code of Conduct
  • Supplier scorecards
  • Engagement with International Suppliers Network (ISN)

Climate-Related Risks & Opportunities

Physical Risks
  • Inclement weather
Transition Risks
  • Transition to a low-carbon economy
  • Regulatory risks
  • Reduced demand for products and services
Opportunities
  • Commercial ventures in new energies
  • Operational efficiency improvements
  • Research and development
  • Supporting business partners in meeting environmental sustainability goals

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: ISO 9001:2015

Third-party Assurance: Ernst & Young LLP (limited assurance on select data)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through investments in renewable energy, technological innovation, and emissions reduction efforts.

Sustainable Products & Innovation

  • Engine Management
  • AutoSlide automated drilling platform
  • Survey Management
  • DrillDown platform

Awards & Recognition

  • Power Management team finalist in 2022 World Oil Awards
  • Geosteering team finalist in 2022 World Oil Awards

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,186,000 tCO2e/year
Scope 1 Emissions:1,142,000 tCO2e/year
Scope 2 Emissions:89,000 tCO2e/year (location-based)
Renewable Energy Share:0.1%
Total Energy Consumption:16,646,444 GJ/year
Carbon Intensity:54.2 tCO2e/kilometer drilled (Scope 1)

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion
  • Safety
  • Environmental Stewardship
  • Governance
  • Community Engagement

Environmental Achievements

  • Reduced normalized GHG emissions by ~3.7% (surpassed base target of 1%)
  • Reduced normalized GHG emissions intensity per distance drilled by around 25% since 2018
  • Achieved zero reportable spills
  • Reduced total energy consumption by ~22% since 2018 (normalized by drilling activity)
  • Reduced total rig engine emissions by ~50% since 2018 (Offshore Gulf of Mexico)

Social Achievements

  • ~10% increase in minority representation of U.S.-based workforce and women representation among senior managers since 2020
  • Expanded support of H&P’s global workforce, including establishment of International DE&I Framework
  • Employees completed over 360,000 training sessions across the global workforce in 2023
  • Over 3,300 employees completed employee engagement survey
  • Employees increased submissions to Recognition and Rewards program by 50%
  • Observed a 40% decrease in Serious Injury and Fatality (SIF) rates related to breakdowns in LifeBelts
  • Achieved around a 10% reduction in SIF actual rate for the year

Governance Achievements

  • In the past six years, the Board appointed four new Directors, each of whom are considered diverse by gender and/or ethnicity
  • The Board provides oversight of our corporate sustainability programs, including the long-term GHG emissions target and annual ACGs
  • 36% diverse representation on the Board

Climate Goals & Targets

Long-term Goals:
  • 30% reduction in net CO2e per distance drilled by the end of fiscal year 2030 compared to a 2018 baseline
Short-term Goals:
  • Maintain normalized GHG emissions performance per drilled distance in 2024 as compared to 2023
  • Reduce the rate of SIF potential (non-mitigated) incidents involving a LifeBelt breakdown by 10% (stretch goal 15%)

Environmental Challenges

  • Transition to a Low-Carbon Economy
  • Regulatory Risks
  • Operational and Incident-Based Risks
  • Physical Risks
Mitigation Strategies
  • Environmental Actively C.A.R.E.™ Goals, 2030 Target, and associated attainment strategies
  • Corporate strategy and objectives incorporating sustainability program
  • Proactive corporate planning and strategy setting, and financial modeling
  • Annual climate QSA
  • Commercial investments into low-carbon and energy transition companies
  • Efficiency-driven drilling outcomes
  • Drilling solutions for low-carbon and alternative energy solutions
  • Captive insurance program
  • Environmental management strategy and Actively C.A.R.E.™ Goals and key results
  • Sustainability program included within corporate strategy
  • Proactive monitoring of current and potential regulatory requirements
  • Balance sheet strength and conservative capital structure
  • Climate QSA
  • Proactive and dedicated approach to governance and oversight
  • EMS to mitigate operational and incident-based risk
  • Inclement weather strategies and emergency preparedness processes and teams
  • EMS and employee training
  • Long-term GHG emissions reduction target and continued Environmental Actively C.A.R.E.™ Goals
  • Adequate levels of insurance and self-insurance capabilities

Supply Chain Management

Supplier Audits: Semi-annual supplier scorecards

Responsible Procurement
  • Vendor Code of Conduct
  • Focus on local suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Inclement weather
Transition Risks
  • Transition to a low-carbon economy
  • Regulatory changes
  • Reduced demand for products and services
Opportunities
  • Commercial-venture new energies businesses
  • Operational efficiency improvements
  • Research and development
  • Supporting business partners and customers in meeting environmental sustainability goals

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: ISO 9001:2015

Third-party Assurance: Ernst & Young, LLP (limited assurance)

Sustainable Products & Innovation

  • Rig Floor Automation
  • Automated Collision Avoidance
  • Digital Roadmaps
  • Engine Management

Awards & Recognition

  • Hart Energy Award for Middle East Flex3W
  • Inaugural Reat Medcalf Safety Award

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:1083.7 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:1036.5 tCO2e/year
Scope 2 Emissions:47.2 tCO2e/year (location-based), 57 tCO2e/year (market-based)
Renewable Energy Share:0.1%
Total Energy Consumption:14747406 GJ/year
Carbon Intensity:50.2 tCO2e/kilometer drilled (2024)

ESG Focus Areas

  • Climate Change
  • Safety
  • Diversity, Equity, and Inclusion
  • Governance
  • Community Engagement

Environmental Achievements

  • Surpassed the long-term 2030 GHG emissions reduction target by reducing normalized GHG emissions intensity per distance drilled by ~34% since 2018.
  • Achieved zero reportable spills.
  • Achieved a ~31% reduction in total energy consumption since 2018 when normalized by drilling activity.

Social Achievements

  • Actively C.A.R.E.™ HSE Campaign awarded the Petroleum Alliance of Oklahoma - Reat Medcalf Safety Award and the Energy Workforce & Technology Council Awards - People & Culture Award.
  • Achieved a 24% decrease in non-mitigated SIF events while drilling more footage compared to the prior year.
  • Observed a 34% reduction in the Total Vehicle Incident Rate (TVIR).
  • Supported more than 90 philanthropic organizations across its footprint.

Governance Achievements

  • In the past 6 years, the Board has appointed three new Directors, each of whom are considered diverse by gender and/or ethnicity.
  • The Board provides oversight of corporate sustainability programs, including the long-term GHG emissions target.
  • 36% diverse representation on the Board.

Climate Goals & Targets

Long-term Goals:
  • 30% reduction in net CO2e per distance drilled by 2030 (already achieved).
Medium-term Goals:
  • Achieve 5% reduction in non-mitigation SIF events involving LifeBelt breakdowns in 2025.
Short-term Goals:
  • Maintain the normalized GHG emissions performance per drilled distance in 2025 as compared to 2024.

Environmental Challenges

  • Cyclical nature of the oil and gas industry.
  • Evolving energy transition regulatory environment.
  • Expanding international footprint.
  • Exploration and production (E&P) consolidation activities.
  • Customer influence over rig emissions.
Mitigation Strategies
  • Integrating sustainability into business strategy and objectives.
  • Annual updates to Quantitative Scenario Analysis.
  • Investments in geothermal technologies and drilling solutions for geothermal and carbon capture wells.
  • Collaboration with customers to reduce emissions at rig sites.
  • Implementing robust governance practices.
  • Proactive monitoring of current and potential regulatory requirements.

Supply Chain Management

Supplier Audits: Semi-annual supplier scorecards.

Responsible Procurement
  • Vendor Code of Conduct
  • Focus on local suppliers where feasible.

Climate-Related Risks & Opportunities

Physical Risks
  • Inclement weather
  • Wildfires
  • Hurricanes
  • Floods
  • Droughts
  • Higher temperatures
Transition Risks
  • Regulatory changes
  • Market shifts towards alternative energy sources
Opportunities
  • Commercial ventures in new energies
  • Operational efficiency improvements
  • Research and development of alternative technologies
  • Supporting customers in meeting environmental sustainability goals

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: ISO 14001, ISO 9001:2015

Third-party Assurance: Ernst & Young, LLP (limited assurance)

Sustainable Products & Innovation

  • FlexRig® fleet
  • Rig floor automation
  • FlexFusion

Awards & Recognition

  • ISS Governance Score: 1 of 10
  • Sustainalytics ESG Risk Rating: 20.4
  • Reat Medcalf Safety Award
  • Energy Workforce & Technology Council Awards - People & Culture Award