Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, safety and environment
• Supply chain and contractors
• Preventing major accidents
• Preventing major spills
• Operational environmental footprint
• Transparency
• Non-operated joint ventures and overseas investments
• Sustainable project funding
• Human rights
• Stakeholder engagement
• Climate change
• Community engagement
• Social investment
• Business ethics
• Corporate governance

Environmental Achievements

• Zero oil spills to the environment from 2010-2014; one minor oil spill incident (less than one litre) in 2015.
• Minimized environmental footprint in Senegal operations by confining onshore activities to existing industrial sites and managing waste effectively.

Social Achievements

• 89% of CR objectives completed in 2015.
• Significant progress on Social Investment Programme in Senegal.
• Continued support for capacity-building initiatives in Senegal.
• Engaged local Senegalese companies for various services.

Governance Achievements

• Revised and updated Corporate Responsibility Management System (CRMS) to better integrate it within the overall business management system.
• Aligned CRMS with Cairn Operating Standards.
• Completed a significant revision of crisis and emergency arrangements, including training and exercises.
• Improved external engagement on issues material to the business.

Climate Goals & Targets

Environmental Challenges

• Tough market conditions faced by the oil and gas industry in 2015.
• Potential impacts of operations on local communities in Senegal (fishing communities).
• Managing human rights issues in Western Sahara.
• Political uncertainty affecting business activities.

Mitigation Strategies

• Maintained rigorous approach to CR despite tough market conditions.
• Built relationships and fostered communications with key stakeholders in Senegal (fishing communities).
• Close communications with fishing representatives, government, and maritime agencies.
• Closely monitored the situation in Western Sahara and engaged with operating partner.
• Continued to track political uncertainty in all areas of operation.

Supply Chain Management

Responsible Procurement

• Assessment of CR risks for new suppliers.
• Incorporation of Cairn Group Business Principles, CR obligations, and HSE standards into procurement activities.
• Compliance with anti-bribery and corruption requirements.
• Promotion of local suppliers where feasible.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: AccountAbility AA1000APS, GRI G4 Core

Third-party Assurance: Company’s independent auditors reviewed KPIs included in the Annual Report.

Awards & Recognition

• 2014 Annual Report nominated for Best Annual Report among FTSE 250 companies.
• Shortlisted for Best Audit and Risk Disclosure in the FTSE 250 at the ICSA Excellence in Governance Awards.

Environmental Metrics

ESG Focus Areas

• Business Relationships
• Society and Communities
• People
• Environment

Environmental Achievements

• OSPAR audit conducted in 2016 and re-verification was recommended with no corrective actions.
• Opened a new supply base in Dakar port to meet operational needs, reducing safety and environmental risks associated with previous arrangements.
• Generated 245 tonnes hazardous and 381 tonnes non-hazardous waste; 40% of total waste was recycled or reused.

Social Achievements

• In Senegal, 233 individuals benefited from programmes to build local capacity.
• In Senegal, 22% of the workforce was national.
• US$137,839 invested in social investment programmes in Senegal, supporting enterprise development, education and training, environment, health and well-being, and charitable giving.

Governance Achievements

• Board reviewed policy position and potential impact of COP21 agreement, UK Modern Slavery Act and the UN SDGs.
• 91% of personnel completed anti-bribery and corruption e-learning module.
• 100% of Investment Proposals submitted to the Board included appropriate assessment of CR considerations.

Climate Goals & Targets

Environmental Challenges

• Sustained low oil and gas price.
• Securing new venture opportunities.
• Negative stakeholder reaction to operations.
• Fraud, bribery and corruption.
• Delay in Catcher and Kraken production start-up schedule.
• Helping communities understand how the oil and gas industry works and the timescales and stages involved.

Mitigation Strategies

• Robust risk management process to identify, monitor and mitigate risk and identify opportunities.
• Rigorous contractor selection process.
• Due diligence process to ensure confidence in the integrity and CR track record of partners.
• Development of Impact Benefit Plan in Senegal.
• Implementation of a six-stage process for managing social risks.
• Updated travel health, safety and security procedure, strengthening travel risk assessments.

Supply Chain Management

Responsible Procurement

• Maximising local participation in workforce and supply chain.
• Rigorous selection process for contractors, assessing competency levels in HSE and related management systems.
• Contractor workshops on Life Saving Rules and Modern Slavery Act.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Sea level rise
• Water scarcity

Transition Risks

• Restriction of funding
• Shareholder position
• Stranded assets
• Emissions control restrictions

Reporting Standards

Frameworks Used: AA1000APS, GRI Standards (Core option)

Third-party Assurance: RPS (Limited assurance for GHG data)

Awards & Recognition

• 2015 Annual Report highly commended in PwC Building Trust in Corporate Reporting Awards

Environmental Metrics

ESG Focus Areas

• Economics and funding
• Contractors and supply chain
• Ethics, ABC (anti-bribery and corruption) and transparency
• Social and economic benefits
• Human rights
• Major accident prevention and safety
• Security
• Climate change, emissions and discharges
• Biodiversity

Environmental Achievements

• Decrease in the number and volume of chemical and hydrocarbons reaching the environment (one spill totaling ~34 liters in 2017 vs four spills totaling ~167 liters in 2016)
• Minimization of waste to landfill (76% decrease in waste sent to landfill in Senegal in 2017 vs 2016)
• Substantial cost savings in Senegal drilling program without compromising standards

Social Achievements

• Launched a pilot community development program among fishing communities in Senegal with The Hunger Project (THP)
• Updated Impact Benefit Plan for Senegal, aligning it more clearly with the UN Sustainable Development Goals (SDGs)
• Developed training packs on human rights and modern slavery rolled out to staff and key contractors in Senegal

Governance Achievements

• Published a new Code of Ethics, integrating Business Principles and Code of Business Ethics
• Strengthened link between Corporate Responsibility Management System (CRMS) and business risk management
• Revised risk register process and improved quarterly CR risk updates

Climate Goals & Targets

Environmental Challenges

• Volatile oil and gas prices
• Inability to secure or repatriate value from Indian investments
• Reliance on joint venture operators for asset performance
• Increasing pressure on the industry to improve standards of operation within a challenging business environment
• Increased scrutiny of CR standards and performance from analysts, shareholders, and funding institutions
• Increased number of high-profile security events
• Potential for exposure to infectious diseases
• Potential for natural disasters (e.g., earthquakes, hurricanes)
• Absence of suitable waste management sites in Senegal
• Potential for modern slavery in the supply chain

Mitigation Strategies

• Reviewed CR policies and introduced a Corporate Major Accident Prevention Policy (CMAPP)
• Integrated Code of Business Ethics with Business Principles for a new Code of Ethics
• Increased scrutiny of modern slavery and climate change issues in Investment Proposals (IPs)
• Implemented a checklist of CR issues for use in IP preparation
• Improved risk management system, including quarterly department and asset risk reviews
• Introduced pandemic guidance and trained the Crisis and Emergency Response Team (CERT)
• Launched a health and traveler advice area on the intranet
• Revised Senegal asset health assessment
• Partnered with a specialist international waste management company in Senegal
• Developed training packs on human rights and modern slavery
• Revised Selection of Services Providers procedure to incorporate assessment for modern slavery
• Modified contract terms and conditions to specify zero tolerance of modern slavery
• Strengthened right to audit contractors
• Developed a Modern Slavery Statement

Supply Chain Management

Supplier Audits: One key local contractor in Senegal audited on modern slavery issues.

Responsible Procurement

• Contractors selected on the basis of service capability, application of suitable standards, and cost
• Preference given to local services wherever possible, provided high CR standards are met
• Rigorous selection process for contractors, including assessment of competency levels in HSE and related management systems
• Zero-tolerance approach to bribery and corruption and modern slavery
• Risk-based due diligence on contractors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Sea-level rise
• Water scarcity
• Impacts on biodiversity

Transition Risks

• Future restriction of funding
• Shareholder position
• Stranded assets
• Emissions control restrictions
• Potential for stranded assets
• Securing access to finance
• Licence to operate

Opportunities

• Development of energy-efficient products
• Low emissions technology
• Carbon capture

Reporting Standards

Frameworks Used: GRI Standards (Core option), AccountAbility’s AA1000 Accountability Principles Standard (AA1000 APS), UN Global Compact, Extractive Industries Transparency Initiative (EITI), International Finance Corporation (IFC) Performance Standards, International Association of Oil & Gas Producers (IOGP) standards

Third-party Assurance: RPS Planning and Environment (limited assurance for GHG emissions)

UN Sustainable Development Goals

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

Impact Benefit Plan in Senegal concentrates on seven SDGs where Cairn feels it can have the most impact.

Awards & Recognition

• Shortlisted for the Best Use of Digital Communications award

Environmental Metrics

ESG Focus Areas

• Governance
• People
• Environment
• Society

Environmental Achievements

• Zero spills of oil or chemicals to the environment
• Continued to assess and improve the transparency of our reporting in line with the recommendations of the TCFD
• Minimised energy consumption and flaring

Social Achievements

• Rolled out employee well-being programme globally
• Worked with Invest in Africa to establish an online portal for sourcing pre-approved contractors in Senegal
• Updated Human Rights Guidelines
• Increased female board representation

Governance Achievements

• Revised and reissued Group Code of Ethics
• Renewed membership of the EITI
• Improved integrated audit plan to focus more on anti-bribery and corruption

Climate Goals & Targets

Environmental Challenges

• Volatile oil and gas prices
• Failure to secure new venture opportunities
• Delay in Senegal production start-up schedule
• Underperformance on Kraken and Catcher assets
• Political and fiscal uncertainties
• Diminished access to debt markets
• Climate change policy and its impacts on energy transition
• Increasing pressure to improve performance within a challenging business environment

Mitigation Strategies

• Efficient capital allocation across the portfolio
• Ongoing assessment of climate-related risks and opportunities
• Improved reporting against TCFD recommendations
• Portfolio resilience review using different climate scenarios
• Development of CR objectives and KPIs for energy transition and climate action
• Risk-based due diligence when selecting contractors
• Implementation of a revised integrated audit plan for contractors
• Application of the new guidance on managing social risk in new projects

Supply Chain Management

Supplier Audits: Risk-based due diligence and integrated audit plan for contractors; assessments of suppliers on modern slavery.

Responsible Procurement

• Code of Ethics
• HSE CR questionnaire
• Anti-bribery and modern slavery assessment
• Achilles’ platforms (FPAL and JQS)
• Invest in Africa’s African Partner Pool

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather
• Sea-level rise

Transition Risks

• Regulatory changes
• Market shifts
• Access to capital
• Risk to commercialisation of developments
• Negative perception of extractive companies

Opportunities

• Development of energy-efficient products
• Support for clean energy research

Reporting Standards

Frameworks Used: GRI, AA1000, TCFD, UNGC, EITI, IFC Performance Standards, ISO 45001, ISO 14001, ISO 26000, OSPAR, UN SDGs, Voluntary Principles on Security and Human Rights, UK Modern Slavery Act

Certifications: Cyber Essentials Plus

Third-party Assurance: ITPEnergised

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 13 (Climate Action)

Cairn's activities contribute to these goals through responsible resource management, community development initiatives, and support for local workforce development and clean energy research.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Two stars from Support the Goals

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Society
• Governance

Environmental Achievements

• Revised Climate and Energy Transition strategy
• Developed short, medium, and long-term sustainability objectives and targets
• Integrated carbon pricing mechanisms and re-evaluated portfolio resilience
• Improved reporting against TCFD and SASB requirements
• Began disclosing Scope 3 emissions from product use
• Zero spills of oil or chemicals to the environment from operated activities

Social Achievements

• Established diversity and inclusion (D&I) strategy and committee
• Developed tools and methods to embed D&I in the way we work
• Delivered next phase of talent management program
• Completed technical competencies project
• Employee engagement score of 8.3 out of 10 (0.7 above industry benchmark)
• Group social investment of US$0.6m

Governance Achievements

• Strengthened Climate and Energy Transition roadmap, committing to net zero by 2040 or earlier
• Updated company Environment policy to encompass climate change
• Maintained a B- rating for annual carbon disclosure submission to CDP
• Scored a B- on first full CDP Water Security questionnaire

Climate Goals & Targets

Environmental Challenges

• Future challenges and costs to achieving pathway to net zero by 2040
• Inability to achieve emissions targets through non-operated assets
• Lack of adherence to health, safety, environment and security policies
• Lack of adherence to policies: Health, Safety and Security, Environmental and Climate Change, Social Responsibility, Major Accident Prevention, and People
• Fraud, bribery and corruption
• Political and fiscal uncertainties
• Misalignments with joint venture (JV) operators
• Lack of exploration success
• Volatile oil and gas prices
• Failure to secure business development opportunities
• Reserves downgrade or impairment
• Diminished access to debt markets

Mitigation Strategies

• Implementing a two-year improvement program to improve the quality of equity Scope 1 and 2 greenhouse gas (GHG) emissions and energy use data
• Developing an Operating Management System (OMS) to manage risks across all phases of the asset life cycle
• Revised contractor assessment criteria in relation to emissions, energy efficiency objectives and net zero targets
• Set improved contractor HSE leadership expectations, including revised KPIs for forthcoming projects
• Aligned scoring mechanism for contractor HSE evaluations with IOGP methodologies
• Reviewing and revising Code of Ethics to reflect company strategy
• Refreshing company risk profile and risk acceptance statement
• Completing internal audit to examine and improve sustainability reporting
• Assessing bribery and corruption risk within existing assets and performing due diligence on several other opportunities
• Actively managing portfolio of assets and working with JV partners to allocate capital and financial resources efficiently

Supply Chain Management

Responsible Procurement

• Contractor assessment criteria include emissions, energy efficiency objectives, and net zero targets
• Improved scrutiny of key equipment providers in terms of environmental performance
• Energy efficiency and emissions are included in the tender evaluation process
• Added clauses on modern slavery into all vendor contracts

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Mean temperature rises

Transition Risks

• Reputational risk
• Policy risk (changing legislation or carbon pricing)

Opportunities

• Replacing diesel power generation with gas and solar
• Eliminating flaring from operations in Egypt
• Promoting efficient operations to contractors
• Carbon capture, utilisation and storage (CCUS)

Reporting Standards

Frameworks Used: GRI Standards (Core option), SASB Oil & Gas – Exploration & Production Standard, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

Activities contribute to SDGs through providing energy, supporting communities, minimizing negative impacts on society and environment, driving down emissions intensity, and conducting robust ESIAs.

Environmental Metrics

ESG Focus Areas

• Climate Change & Energy Transition
• Biodiversity
• Human Rights
• Workplace Safety & Security
• Community Engagement
• Responsible Supply Chain
• Governance

Environmental Achievements

• Improved CDP Climate and Water disclosures from B- to B.
• Reduced operated GHG emissions (Scopes 1, 2, and 3) to 14,176 tCO2e (2021: 1,469 tCO2e). Note: 2021 figures include Scope 3 figures for business travel only.
• Reduced equity Scope 1 and 2 emissions by 15% by 2025 and by 30% by 2030.
• Zero spills of oil, fuel, chemicals, or waste to the environment from operated activities.

Social Achievements

• Zero Lost Time Injuries (LTIs) per million hours worked.
• 97.84% of employees trained in anti-corruption policies (2021: 96.19%).
• 15.7% of employees from minority groups (2021: 5.88%).
• 49% female employees (2021: 47%).
• 98% of personnel completed refresher training in human rights and modern slavery (2021: 94%).
• £340,420 social investment (2021: £112,197).
• £370,106 charitable giving within the UK (2021: £328,307).

Governance Achievements

• Strengthened climate and energy transition roadmap, committing to net zero by 2040 or earlier.
• Established a Sustainability Committee.

Climate Goals & Targets

Environmental Challenges

• Global energy crisis and energy transition challenges.
• Climate change impacts on assets (drought, heat stress).
• Managing human rights challenges in Mauritania.
• Balancing energy security, affordability, and sustainability.
• Maintaining a responsible supply chain in high-risk areas.

Mitigation Strategies

• Developed a net-zero pathway with clear principles (Avoid, Reduce, Substitute, Sequester, Offset).
• Commissioned a study to assess climate change impacts on assets.
• Developed a five-step human rights guideline.
• Implemented decarbonisation projects in Egypt (electrification, flare reduction, fugitive gas identification).
• Developed a robust due diligence process for selecting suppliers and partners.
• Implemented a new Operating Management System (OMS) for asset life cycle management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainability compliance factors in procurement process.
• Due diligence on partners and contractors.
• Monitoring of key sustainability data.
• Inclusion of human rights and anti-slavery clauses in contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Heat stress
• Windstorms

Transition Risks

• Policy and legal changes
• Technological changes
• Market shifts
• Reputational risks

Opportunities

• Use of lower-emission energy sources
• Decentralized energy generation
• CCUS
• Participation in carbon markets
• Development of low-emission products and services

Reporting Standards

Frameworks Used: GRI Standards (Core option), SASB Oil & Gas – Exploration & Production Standard, TCFD, UNGC

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change and energy transition
• Reduction of GHG emissions
• Reduction of fossil fuel consumption
• Protection of biodiversity and ecosystems
• Discharges to air, sea, land and sound
• Protection of fresh water resources
• Circular approach – minimisation of waste
• Workplace safety and security
• Diversity, equality and inclusion
• Health and well-being
• Talent management
• Learning and development
• Safeguarding human rights
• Supporting and safeguarding local communities
• Investing in local skills, recruitment and procurement
• Managing a Just Transition
• Responsible supply chain
• Decommissioning closure and rehabilitation
• Ethics, transparency and regulatory compliance
• Anti-bribery and corruption practices
• Robust whistleblowing mechanisms
• Emergency preparedness and crisis management
• Data and cyber security
• Investment in clean technologies and business innovation
• Remuneration

Environmental Achievements

• Reduced equity Scope 1 and Scope 2 emissions by 15.6% against a 2022 baseline.
• Undertook an environmental baseline survey, furthering knowledge of biodiversity and ecosystem services risks.
• Maintained environmental and social impact assessments for operated exploration projects in Egypt.
• Improved reporting against TCFD, SASB, and GRI.
• Expanded Scope 3 emissions disclosures.
• Implemented flare reduction projects, including process optimisation, stripping gas reduction, and smart infrastructure upgrades.
• Switched from diesel to gas generation in the NEAG JG block, reducing diesel consumption by around 7%.
• Improved wastewater handling by upgrading evaporation ponds and installing five new ponds.
• Completed drilling programmes with no violations or waste disposal infractions.
• Successfully commissioned a new sewage treatment plant in Alam El Shawish (AESW).

Social Achievements

• Provided 150 hours of IOGP Life Saving Rules training and 40 hours of first-aid training.
• Implemented an enhanced incident reporting system and provided training to users.
• Revised project delivery process with improved integration of HSSE elements.
• Implemented an HSSE management system roadmap for the in-country team in Cairo.
• Established a system to track social investment.
• Supported the Al Amal Graduate Programme and hosted two graduate internships.
• Delivered a social investment project supporting local communities in Galala and Swani Samalos villages.
• Continued support for the Natin Institute in Suriname with building renovation and classroom equipment.
• Progressed the second phase of the mangrove rehabilitation programme in Suriname.
• Promoted 13 colleagues and recruited 10 new colleagues.

Governance Achievements

• Recommitted to the climate and energy transition strategy.
• Integrated carbon pricing mechanisms and re-evaluated portfolio resilience.
• Assessed physical risks of climate change on the portfolio.
• Improved reporting against TCFD, SASB, and GRI.
• Expanded Scope 3 emissions disclosures.
• Established the Sustainability Committee in March 2022.
• Delivered compliance training in Cairo for the Egyptian team.
• Launched a new Dealing Code for colleagues.
• Delivered comprehensive expert review of updates on listing rules and market abuse regulation.
• Delivered anti-bribery training at all levels in the UK and Egypt.
• Launched a communications campaign in Egypt to raise awareness of whistleblowing.

Climate Goals & Targets

Environmental Challenges

• Major reorganisation of the business.
• Redundancies.
• Supply chain disruptions (implied).
• High water stress in the operating area.
• Fugitive emissions.
• Biodiversity loss.
• Climate change transition risks (policy, technology, market, reputation).
• Climate change physical risks (drought, heat stress, windstorms, wave action, sea level rise).
• Cybersecurity threats.

Mitigation Strategies

• Provided support to employees affected by redundancies.
• Implemented decarbonisation initiatives (flare gas recovery, switching to gas, power consolidation).
• Undertook a review of freshwater usage.
• Procured a FLIR GFX320 fugitive emissions camera.
• Undertook a comprehensive internal study to understand freshwater resource consumption.
• Aligned reporting disclosures to TNFD recommendations.
• Integrated carbon pricing mechanisms and re-evaluated portfolio resilience.
• Assessed physical risks of climate change on the portfolio.
• Improved reporting against TCFD, SASB requirements and GRI.
• Expanded Scope 3 emissions disclosures.
• Implemented a robust cyber security strategy.

Supply Chain Management

Responsible Procurement

• Due diligence on suppliers to address bribery, corruption, tax evasion, modern slavery, and child labour.
• Incorporation of environmental assessment considerations into supplier evaluation (fuel consumption).

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Heat stress
• Windstorms
• Wave action
• Sea level rise

Transition Risks

• Policy and legal changes
• Technological changes
• Market shifts
• Reputational risks

Opportunities

• Use of lower-emission energy sources
• Carbon capture, utilisation, and storage (CCUS)
• Hydrogen production
• Energy efficiency improvements
• Development of low-emission products and services

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Third-party Assurance: Deloitte LLP (limited assurance on selected metrics)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

CSR projects in Egypt and Suriname contribute to these goals.

Sustainable Products & Innovation

• Hydrogen production using thermal plasma electrolysis