Climate Change Data

Environmental Metrics

ESG Focus Areas

• A Cleaner Energy Future
• A Transparent and Ethical Business
• A Safe and Committed Team
• A Society Guided by Sustainable Development

Environmental Achievements

• Reduced carbon emission intensity by 25% against 2019 baseline
• Reduced direct carbon emissions by 11% against 2019 baseline
• 88% of energy generated for operations comes from self-produced natural gas
• Increased use of solar energy by 140% compared to 2019
• Treated 7.1 mega liters of water (19.3% of total usage) for recycling and reuse

Social Achievements

• 88% satisfaction score in 2020 work-climate survey (compared to regional and Colombian averages of 72% and 74%, respectively)
• 34% of workforce are women (including 13% in technical areas, 30% in leadership roles, and 31% in top management)
• Workforce Lost Time Injury Frequency Rate 53% better than target (3.33)
• 59% of skilled labor and 100% of unskilled labor hired locally
• Purchased 93.3% of goods and services locally, representing an economic stimulus of $173 million
• Provided humanitarian aid benefiting approximately 13,000 families

Governance Achievements

• Created a Board of Directors’ Committee to oversee ESG work (composed of four independent members)
• Received zero human rights violations and zero corruption reports for the fifth consecutive year

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting gas demand and drilling program
• Reduced drilling program (six of twelve planned wells due to COVID-19)
• Potential impacts from climate change (gas leaks, venting)
• Potential impacts on water resources (contamination, scarcity)
• Potential impacts on waste management (high quantities of drill cuttings, spills)

Mitigation Strategies

• Adjusted gas sales guidance and operations to meet challenges
• Implemented measures to improve safety and reliability, optimize costs
• Installed gas leak detectors, conducted thermal imaging reviews
• Switched main power plant to gas-fired system, increased renewable energy use
• Developed guidelines for spills, implemented disaster risk management plan
• Used drying agent to reduce drill cuttings volume, built containment dikes
• Recycled used oil, used contaminated waste for energy recovery

Supply Chain Management

Supplier Audits: 29 critical suppliers audited (48.72% of total spend)

Responsible Procurement

• HSEQ Annex and Social Annex included in procurement process
• ESG criteria considered in supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, GRI’s Oil & Gas G4 Sector Disclosures, SASB, CDP, TCFD, Corporate Sustainability Assessment-S&P Global, Bloomberg, UN Sustainable Development Goals (SDG), World Economic Forum Guide: Measuring Stakeholder Capitalism

Certifications: ISO 9001, ISO 14001, OHSAS 18001 (transitioning to ISO 45001)

Third-party Assurance: Deloitte Asesores y Consultores Ltda

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 15
• SDG 16
• SDG 17

Initiatives contributing to various SDGs are detailed throughout the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Award from Ministry of Mines and Energy and National Hydrocarbons Agency for gas massification project

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance
• Biodiversity
• Circular Economy

Environmental Achievements

• Reported scope 1 and 2 GHG emission intensities that are more than 50% lower on average than gas focused peers (and more than 80% lower on average than oil focused peers) in North and South America.
• Increased solar energy usage by 32% with the installation of photovoltaic systems in 100% of new well sites and at the offices of three gathering facilities.
• Developed a long-term strategy to implement circular economy practices with the ambition to divert more than 34% of total direct waste from landfill and achieve a Zero Waste Certification.
• Strengthened the protection of biodiversity in the Córdoba and Sucre regions by establishing ten conservation agreements and seven community environmental projects with local stakeholders.

Social Achievements

• Lost Time Injury Frequency Rate (LTIFR: 0.9) for employees and contractors was 72% better than the target (3.16).
• Increased diversity and inclusiveness in the work environment including: The establishment of a Diversity and Inclusion Corporate Policy and Committee. The implementation of a Gender Equality Management System to identify and eliminate gender gaps. Women make up 35% of the total workforce, 8% above the average of Colombia’s female workforce in the petroleum industry. Women represent 27% of top management positions.
• Created opportunities through local employment and development substantially exceeding regulatory requirements. 60% of Canacol’s skilled labor and 100% of Canacol’s unskilled labor were hired locally. Canacol purchased 95.1% of all goods and services locally, regionally, and nationally, representing an economic stimulus of $151 million.
• Implemented more than 60 social projects that have benefited over 25,000 community members across 13 municipalities.
• Executed the second phase of its gas massification project, which aims to reduce energy poverty and serve societal needs by constructing a local utility gas distribution network to replace firewood with a cleaner and more efficient fuel, benefitting hundreds of additional households.

Governance Achievements

• Formalized a Share Ownership Policy and specific ESG related KPIs linked to short-term and long-term compensation of the executive team.
• Updated the company-wide ethics and compliance system including a focus on anti-competitive practices.

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Canacol purchased 95.1% of all goods and services locally, regionally, and nationally

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Oil & Gas G4 Sector Disclosures, SASB, CDP, TCFD, UN Sustainable Development Goals (SDGs)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Methane Emissions
• Scope 1 and 2 Emissions

Environmental Achievements

• Scope 1 and 2 GHG emission intensities 80% lower than oil producing peers and 50% lower than gas producing peers in North and South America. Emissions intensity lower than average for many broad equity indices.
• Achieved top 10th percentile of upstream oil and gas companies in the CSA S&P assessment.
• Received an A rating from MSCI.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

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: Null

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

• Climate Change
• Social Impact
• Governance

Environmental Achievements

• GHG emissions 75% lower than Oil focused peers and 45% lower than Gas focused peers in North and South America.
• First third-party verified Scope 3 emissions report.
• No reported hydrocarbon spills.
• Recirculation of 100% of industrial water.
• Engaged in an agreement with the Wildlife Conservation Society for reforestation efforts.
• No operations in UICN I-IV areas or UNESCO world heritage areas.

Social Achievements

• 37% women in the total workforce (surpassing global and national averages).
• 30% women in all management positions.
• Executed 57 social projects impacting 39 communities, benefiting 14,916 people.
• No fatalities reported among employees or contractors.
• Purchased 98% of all goods and services locally within Colombia.
• Implemented the Best Buddies program for workforce integration of individuals with disabilities.

Governance Achievements

• Appointed the first woman to the Board of Directors.
• No reported violations of the Code of Ethics and Business Conduct.
• No human rights violations since inception.
• Launched a comprehensive Ethics, Compliance, and Anti-corruption System.
• Introduced the Diversity, Equity and Inclusion “DEI” Policy.
• Incorporated stress-testing and sensibility analysis in risk and opportunity management processes.

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Purchased 98% of all goods and services locally within Colombia

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021 Sector Guide 11 for Oil and Gas), SASB standards for the Oil and Gas sector, IPIECA reporting guide, TCFD recommendations, UN Agenda 2030 Global Framework, S&P Sustainable1 Corporate Sustainability Assessment (CSA)

UN Sustainable Development Goals

• SDG 5

Canacol: a culture focused on diversity, equity, and inclusion

Awards & Recognition

• S&P Global Sustainability Yearbook 2023
• “Hechos de Sostenibilidad” (Sustainability Acts) award from the Colombian Petroleum Association (ACP)
• Aequales PAR ranking for the DEI strategy
• Global Compact recognition for SDG 5
• Great Place to Work Survey: high satisfactory results