Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Safe Operations
• People & Society
• Governance & Ethics

Environmental Achievements

• Achieved a carbon intensity of 2.6 kg CO2/boe, 52% lower than in 2019 (measured on a net equity basis)
• Obtained CarbonClear™ certification for the Edvard Grieg field, the world’s first low-carbon cradle-to-gate certification for a barrel of oil
• 31% of net electricity usage was replaced by net renewable electricity generation at the Leikanger hydropower plant
• Non-hazardous waste sorting rate of 99% on Edvard Grieg
• 98.6% produced water reinjection rate

Social Achievements

• Launched our new HSE induction course for all employees and hired contractors
• Successful completion of the Company’s first manned diving operation
• Employee turnover and new hire rates have been fairly stable and at a low level around 4% and 8%, respectively (3-year average)
• Supported 23 young athletes in Switzerland
• Sponsored the men and women’s national ski-jumping teams in Norway

Governance Achievements

• Aligned reporting with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations
• Initiated a supply chain sustainability forum amongst key operators on the Norwegian Continental Shelf
• No cases of corruption, facilitation payments, significant fines or non-monetary sanctions for non-compliance in 2020
• Updated Diversity Policy implemented

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on people’s health and the economy
• Changing long-term oil demand and price
• Ability to access capital
• Increasing direct carbon costs
• Increasing costs of decarbonisation
• Physical climate impacts
• Negative external perception of the industry by investors and stakeholders, and increased activism
• Increasing stakeholder focus on diversity and gender equality
• Ethical misconduct in operations or supply chain, impacting license to operate and grow
• Non-compliance with Code of Conduct and Policies
• Non-compliance with current or emerging ESG related regulation

Mitigation Strategies

• Business continuity plan effectively managed COVID-19 related impacts
• Industry leading low operating costs and low long-term break-even price
• Carbon neutral operations from 2025 and CarbonClear™ certification
• Integration of carbon costs in business planning
• Significant investments in decarbonisation of operations (e.g., electrification, renewables), natural carbon capture projects and supply chain (e.g., vessel hybridisation)
• Continual monitoring of acute and chronic physical climate-related risks
• Transparent disclosure on all material sustainability topics
• Extensive stakeholder engagement
• Mandatory e-Learning for all employees and the Board covering compliance-related topics
• Continued roll out of sustainability policies and procedures across the business
• Contractor Code of Conduct Declaration and screening in place
• Ongoing monitoring of regulatory landscape

Supply Chain Management

Supplier Audits: 100% of new major suppliers and contractors screened against ESG criteria

Responsible Procurement

• Contractor Code of Conduct Declaration
• Screening against environmental and social criteria before contract signing
• Use of EPIM-JQS qualification system

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Longer-term climate impacts and sea level rise

Transition Risks

• Changing long-term oil demand and price
• Increasing direct carbon costs
• Increasing costs of decarbonisation
• Changing stakeholder and investor expectations

Opportunities

• Reduced exposure to electricity price volatility
• Additional gas sales
• Enhanced reputation
• Risk reduction
• Additional revenue
• Cost reduction

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Certifications: ISO 14001

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

UN Sustainable Development Goals

• Not disclosed

Promotes the Sustainable Development Goals throughout its value chain

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Impact
• Partnerships
• People
• Safe Operations
• Responsible Business

Environmental Achievements

• Reduced GHG emissions by 22,738 tonnes CO2e
• Reduced CO2 intensity to 4.8 kg CO2/boe
• Upstream operated methane intensity of 0.02 percent CH4 in saleable gas
• Implemented measures reducing annual emissions by 22,738 tonnes of CO2e (various initiatives detailed in report)
• 92 percent of produced water was reinjected on Alvheim, and 88 percent on Ivar Aasen.

Social Achievements

• Continued positive safety trend, with a reduction in serious injury frequency rate and zero process safety incidents.
• 100 percent retention rate of employees who took parental leave.
• 21.5 hours of training per employee.
• Launched an online Code of Conduct refresher course with 90% employee participation.
• Implemented unconscious bias training with approximately 80% employee completion.

Governance Achievements

• Strengthened Anti-Corruption Compliance Programme with training, risk mapping of suppliers, and improved monitoring.
• Implemented a new Transparency Act relating to enterprises’ transparency and work on basic human rights and decent working conditions.
• Updated third-party risk model to include human rights risk factors.
• Used Magnet JQS for conducting human rights assessments in the supplier pre-qualification process.

Climate Goals & Targets

Environmental Challenges

• Demand for oil and gas may decrease significantly faster than anticipated.
• EUA price and/or Norwegian CO2 tax may increase faster and higher than anticipated.
• Technological breakthroughs may drive faster displacement of oil and gas.
• Investors’ perception of oil and gas investments may deteriorate.
• Extreme weather may lead to operational limitations and shut-in of production.
• Changes in precipitation patterns may affect working environment.

Mitigation Strategies

• Climate risks integrated into all investment decisions.
• Strict financial framework for investment decisions.
• Internal carbon price exceeding IEA’s Net Zero scenario.
• Scenario analysis and sensitivity testing.
• Cost reduction initiatives.
• Emissions reduction initiatives (electrification, energy efficiency, etc.).
• Continuous monitoring of the external environment and engagements with relevant stakeholders.

Supply Chain Management

Supplier Audits: 100% of new major suppliers screened using environmental criteria

Responsible Procurement

• Supplier declaration form aligned with ILO principles and IPIECA standards.
• Integrity Due Diligence performed for procurement over USD 250,000.
• Supplier risk monitoring software and process.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Changes in precipitation patterns

Transition Risks

• Decreased demand for oil and gas
• Increased carbon taxes and regulations
• Technological breakthroughs

Opportunities

• Competitive advantage from low carbon efficiency and production costs.

Reporting Standards

Frameworks Used: GRI Oil and Gas Sector 2021, TCFD, CDP, SASB, ESMA, GHG Protocol, UN Global Compact, UN Sustainable Development Goals (SDGs)

Third-party Assurance: KPMG (limited assurance on selected data)

Environmental Metrics

ESG Focus Areas

• Climate change
• Environment
• Responsible business
• Creating value
• Responsible employer
• Human rights
• Diversity & Inclusion
• Safety
• Governance

Environmental Achievements

• Reduced CO2 intensity to 3.7 kg CO2/boe (approximately one-quarter of the global average for the industry)
• Connected Edvard Grieg and Ivar Aasen platforms to grid-supplied power from shore, reducing CO2 emissions equivalent to removing more than 100,000 fossil-fuelled cars
• Reduced total energy consumption by nearly 9 percent compared to 2021
• Reduced NOX emissions by 12 percent from 2021 to 2022
• 65% of produced water was injected in 2022

Social Achievements

• Successful integration of Lundin Energy employees with no downsizing
• Improved safety performance with five lost-time injuries and five high-potential incidents
• Donated surplus personal protective equipment, laptops to Ukrainian refugees, and funds to humanitarian organizations
• Became the largest privately held corporate taxpayer in Norway

Governance Achievements

• Established a procedure for handling information requests under the Transparency Act
• Updated human rights policy in line with internal business management system requirements
• 90% of employees completed annual code of conduct refresher training

Climate Goals & Targets

Environmental Challenges

• Demand for oil and gas may decrease significantly faster than anticipated, resulting in lower prices
• EUA price and/or Norwegian CO2 tax may increase faster than anticipated
• Competition from new technologies may drive faster displacement of oil and gas
• Reputational risks related to offsetting
• Potential higher frequency of extreme weather may lead to operational shutdown
• Change in precipitation patterns may affect working environment conditions

Mitigation Strategies

• Climate risks integrated into all investment decisions
• Strict financial framework for investment decisions
• Internal carbon price exceeding IEA’s Net Zero scenario
• Scenario analysis and sensitivity testing
• Cost reduction initiatives
• Emission reduction initiatives
• Electrification using hydropower
• Continuous monitoring of the external environment
• Energy efficiency initiatives
• Efforts to secure financial flexibility
• Adoption of best practices in climate-related disclosure
• Maintaining Aker BP brand as an attractive employer
• Responsible approach to offsetting
• Update of metocean data and evaluation of structural design limits
• Systematic risk assessments by the working environment team

Supply Chain Management

Supplier Audits: 10 human rights assessments in 2022

Responsible Procurement

• Supplier declaration with expectations for human rights, HSSEQ standards, living wages, and ILO core conventions
• Risk-based due diligence process considering spend, country risk, industry type, and other criteria

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels

Transition Risks

• Decreased demand for oil and gas
• Increased carbon taxes
• Competition from renewable energy
• Reputational risks

Opportunities

• Competitive advantage from low carbon efficiency and production costs
• Exploration of CCS

Reporting Standards

Frameworks Used: GRI 2021 Oil and Gas Sector, TCFD, CDP, SASB, ESMA, GHG Protocol, UN Global Compact, UN SDGs

Certifications: Null

Third-party Assurance: PwC (limited assurance on select data)

UN Sustainable Development Goals

• Not disclosed

Aker BP's strategy acknowledges the UN SDGs and aims to contribute to several goals through its sustainability framework.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed