Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions Reduction
• Safety and Health
• Diversity and Inclusion
• Environmental Stewardship
• Talent Management
• Corruption and Ethics
• Climate Change
• Philanthropy and Community Management
• Public Policy and Lobbying
• Spill Prevention

Environmental Achievements

• Developed a more strategic and purposeful approach to company communications by creating opportunities for voluntary disclosure.
• Integrated sustainability into the mandate of the CGNRC.
• Verified and updated Chemical Inventories, Spill Prevention and Countermeasures plans, and Storm Water Pollution Prevention Plans.
• Completed an environmental assessment of our Houston Technical Support Centre.
• Updated Crisis and Emergency Response Plans, conducted global drills, and media training to enhance emergency preparedness.
• Integrated voluntary disclosure data into mandatory financial disclosure forms.
• Increased transparent communication with key investors.
• Completed a fulsome assessment of our Health, Safety and Environment Management System.
• Partnered with the University of Calgary to develop new research to increase efficiencies in the drilling process and reduce environmental footprint.
• Joined Shell International Exploration and Production and Evor Technologies to drill geothermal wells for a unique process that connects two wells and pumps water between them, forming a closed loop to harness heat from the planet’s core.
• Formed a consortium with Tourmaline Oil Corporation and Caterpillar Inc. to develop a clean burning natural gas generator to power existing electricity-powered drilling rigs (projected to save 3,800 tonnes of CO2 emissions per rig per year).

Social Achievements

• Enhanced the Precision Drilling University Resource Centre (PD University), a central online hub where employees can access competencies, training resources, and development programs.
• Onboarded over 1,191 new employees.
• Trained 5,488 employees and performed approximately 3,560 rig-based competency assessments.
• Hosted 59 interns from 30 universities.
• Corporate giving program contributed to several exceptional health and human services organizations and youth programs.
• Continued multi-year partnership with the STARS Foundation, Heritage Park Society of Calgary, and the Heart and Stroke Foundation of Canada.
• Partnered with the University of Calgary in sponsoring their 2019 Drillbotics team and the 2019 University of Calgary Chancellor’s Ride.

Governance Achievements

• Completed a materiality assessment using data-driven analytics, benchmarking against peers, reviewing regulations and standards, and examining news and social media.
• Expanded ESG in the short-term incentive plan (STIP) scorecard by including a new Strategic Environmental Initiatives metric.
• Implemented a comprehensive process for assessing board, committee, and director effectiveness annually.
• Updated Code of Business Conduct and Ethics.
• Provided annual in-person and online training to all permanent employees on business conduct and ethics.
• Maintained an independent hotline for reporting suspected illegal or unethical conduct.

Climate Goals & Targets

Environmental Challenges

• Fluctuation in oil prices pressuring customers to reduce drilling budgets.
• Impact of the COVID-19 global pandemic on operations.
• Shortages, delays, and interruptions in the delivery of equipment supplies.
• Effects of seasonal and weather conditions on operations.
• Changes in environmental laws and regulations.
• Terrorism, social, civil, and political unrest in foreign jurisdictions.

Mitigation Strategies

• Implementation of alternative work options for office-based personnel and installation of industry-leading preventive and mitigative controls at worksites (in response to COVID-19).
• Continuous investment in rig technology to improve safety, reliability, and efficiency.
• Utilizing AlphaAutomation and AlphaApps to improve operational efficiency and reduce fuel usage.
• Utilizing bi-fuel and natural gas engines to reduce diesel consumption and greenhouse gas emissions.
• Working with customers to utilize products and services to help them reduce their greenhouse gas emissions.
• Including climate strategy in internal research and development.

Supply Chain Management

Responsible Procurement

• Centralized procurement, inventory, and distribution of consumable supplies for global operations.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions.

Opportunities

• Development of energy-efficient products and services (e.g., geothermal technology, clean-burning natural gas generators).

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• AlphaAutomation technology
• AlphaApps platform
• AlphaAnalytics suite
• Bi-fuel systems
• Natural gas engines
• Geothermal technology
• Clean-burning natural gas generators

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Asset Integrity
• Business Ethics
• Climate Risk
• Ecological Impacts
• Employee Training and Qualifications
• Enterprise Risk Management
• Environmental Stewardship
• Environmental and Regulatory Compliance
• Health and Safety
• Innovation and Technology
• Greenhouse Gas Emissions Reduction
• Safety and Health
• Diversity and Inclusion
• Talent Management
• Corruption and Ethics
• Climate Change
• Philanthropy and Community Management
• Public Policy and Lobbying
• Spill Prevention

Environmental Achievements

• Achieved best ever HSE performance across all key performance indicators.
• Commercialized a crown lighting system that decreases the number of light towers at rig sites, conserving fuel and reducing CO2 footprint.
• Expanded fleet to 39 AlphaAutomation™ rigs, reducing GHG emissions through drilling efficiency.
• Completed a GHG Emission baseline, reviewed and updated Materiality Study, reviewed disclosures compared to SASB and TCFD, adjusted Enterprise Risk Management to include climate-related risks, and tied ESG related Short-Term Incentive Plan (STIP) metrics to compensation.
• Reduced onsite fuel use by nearly 90% when using grid powered rigs compared to diesel or bi-fuel, resulting in a reduction of 10-18 metric tonnes of GHG per day, per rig.

Social Achievements

• Achieved best ever HSE performance across all key performance indicators, including an 11% year over year improvement in Triple Target Zero Days.
• Conducted an internal corporate culture survey.
• Continued a strategic alliance with Shock Trauma Air Rescue Services (STARS) in Canada.
• Delivered over 31,500 hours of employee training.
• Formalized the S-Team to coordinate cultural initiatives, create an inclusive environment, and positively impact local communities.

Governance Achievements

• Published Precision’s first Corporate Responsibility Report.
• Expanded ESG in STIP scorecard by including a new Strategic Environmental Initiatives metric.
• Enhanced corporate PD EthicsLine procedures and reporting structure.
• Established procedures for documenting emissions sources, organizational boundaries, scope 1 and 2 emissions baseline, and methodologies.
• Formalized rules and procedures governing directors’ memberships on external boards in a new External Directorship Policy.

Climate Goals & Targets

Environmental Challenges

• Balancing investment in lower carbon solutions with customer willingness to purchase.
• COVID-19 pandemic causing unprecedented health, social, and economic upheaval.
• Managing risks associated with climate change and the energy transition.

Mitigation Strategies

• Implemented COVID-19 Infectious Disease Plan, including remote work and comprehensive health and safety standards.
• Developed a climate change strategy accounting for short and long-term risks and opportunities.
• Seeking partnerships with customers, suppliers, and governments to develop cleaner technologies.
• Investing in technology advancement to drive lower impact solutions.

Supply Chain Management

Responsible Procurement

• Compliance with Precision's Code of Conduct
• Stringent vetting of international suppliers
• Due diligence for high-risk suppliers
• Anti-bribery training for high-risk suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Changes in environmental laws and regulations
• Restrictions on burning fossil fuels and GHG emissions

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SASB, TCFD

Sustainable Products & Innovation

• Alpha Suite of Technologies (AlphaAutomation™, AlphaApps™, AlphaAnalytics™)
• LED crown lighting systems
• Grid powered rigs
• Natural gas and bi-fuel systems

Awards & Recognition

• IADC Contractor of the Year (Kevin Neveu)

Environmental Metrics

ESG Focus Areas

• Environmental impact and climate change
• Social impact
• Ethical governance

Environmental Achievements

• 7% reduction in Scope 1 and 2 GHG emissions intensity year-over-year
• Implementation of 12 additional EverGreen™ lower emission rig power systems
• Installation of 10 additional EverGreen™ fuel and/or emissions monitoring systems
• Installation of LED lighting systems in key Precision facilities
• Recycled ~500,000 gallons of wastewater in Kuwait and Saudi Arabia
• Treated ~350,000 gallons of wastewater for irrigation in Wafra, Kuwait

Social Achievements

• Implemented Serious Injury and Fatality (SIF) as a key safety metric
• Over 31,500+ hours of employee training
• Over 250 employee volunteer hours
• $256,455 committed to not-for-profit organizations
• 1,121 new employees completed safety training

Governance Achievements

• 100% of issues reported through the PD EthicsLine were reviewed and resolved
• No ethics incidents in 2021 that required disclosure
• Commitment to appoint an additional female director to the board in 2022

Climate Goals & Targets

Environmental Challenges

• Transitional risks: Shift towards a lower carbon economy, regulatory risks associated with GHG emissions.
• Physical risks: Impacts from extreme weather, flooding, and other climate-related events.

Mitigation Strategies

• Minimizing and eliminating GHG emissions by utilizing and investing in technologies to improve drilling rig efficiency.
• Leveraging expertise for lower-emission energy opportunities (geothermal, CO2 storage).
• Exploring lower GHG energy sources for rigs, support facilities, and equipment.
• Implementing comprehensive waste segregation and recycling programs.
• Installing LED lighting to reduce electricity consumption.

Supply Chain Management

Responsible Procurement

• Stringent vetting of suppliers, due diligence, Anti-Bribery and Anti-Corruption training, and frequent audits for high-risk suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Shift towards a lower carbon economy, regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Sustainable Products & Innovation

• AlphaAutomation™, AlphaApps™, AlphaAnalytics™
• EverGreenMonitoring™, EverGreenEnergy™, EverGreenHydrogen™
• Battery Energy Storage System (BESS)
• LED Rig Lighting
• Grid power capable rigs

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1+2 GHG emissions intensity per contract day from 0.57 tCO2e/day in 2021 to 0.46 tCO2e/day in 2022
• Reduced Scope 1+2 GHG emissions intensity per employee from 4.6 tCO2e/employee in 2021 to 3.3 tCO2e/employee in 2022

Social Achievements

• Increased employee retention to 88% in 2022
• Increased training hours from 17,736 in 2021 to 82,855 in 2022
• Increased dollar amount committed to not-for-profit organizations from $256,455 in 2021 to $330,000 in 2022

Governance Achievements

• Increased Board of Director Gender Representation from 12% in 2021 to 25% in 2022
• Increased Board of Director - Other Diverse Person Representation to 44% in 2022
• Maintained 100% compliance with COBC Training, Anti-Bribery and Anti-Corruption Training

Climate Goals & Targets

Environmental Challenges

• Higher emissions intensity in 2022 due to expansion of service rig business and increased utilization of super single rigs

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1+2 GHG emissions intensity for drilling activities (tCO2e/km drilled) from 1.68 in 2021 to 1.09 in 2023
• Reduced Scope 1+2 GHG emissions intensity for well servicing (tCO2e/service rig day) from 0.58 in 2021 to 0.49 in 2023

Social Achievements

• Improved total employee retention from 62% in 2021 to 96% in 2023
• Increased community investment from $256,455 in 2021 to $352,155 in 2023

Governance Achievements

• Increased Board of Directors' female representation from 12% in 2021 to 25% in 2023
• Increased percentage of Diverse Persons on the Board of Directors from 44% in 2022 to 63% in 2023
• Maintained 100% compliance with ethics and compliance training

Climate Goals & Targets

Environmental Challenges

• Customer operational control over energy and fuel sources in drilling and well servicing operations limits Precision Drilling's direct influence on emissions reduction
• High energy and emissions intensity in well servicing in 2023 due to acquisitions

Mitigation Strategies

• Implementing and tracking various safety and environmental metrics
• Investing in training programs to improve employee retention and safety

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD