Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Customers
• People
• Corporate Governance
• Environment

Environmental Achievements

• 29% improvement in the percentage of total operating horsepower generating 1.0g/hp-hr NOx or less between 2016 and 2018
• $278,000 investment in LED lighting anticipated to generate approximately $4.3 million in savings and reduce greenhouse gas emissions by approximately 495 metric tons of CO2 equivalent a year.
• 100% recycling of recovered lube oil

Social Achievements

• Reduced total recordable incidents by over 60% since 2014
• 92% employee participation in Gallup® “Q12” employee engagement survey, ranking in the 92nd percentile
• RockFIT Wellness Program and Archrock Cares Program fostering employee engagement and community involvement
• Over 40,000 hours of on-boarding and technical training for FSTs and shop employees in 2018
• Tuition reimbursement (up to $5,250 per year) and college tuition sponsorship for children of employees (up to $8,000 per child)

Governance Achievements

• Separate Chairman and CEO
• Majority independent board
• 100% independent board committees
• Annual review of Committee Charters and Corporate Governance Principles
• Annual self-evaluations by the Board and its committees
• Adoption of stock ownership guidelines for Directors and executive officers
• Policy prohibiting hedging or pledging of Company securities
• Compliance Hotline with 24/7/365 availability and independent third-party management

Climate Goals & Targets

Environmental Challenges

• Meeting stringent emission standards
• Maintaining safety performance across a large and geographically dispersed workforce
• Managing risks associated with capital management, strategic initiatives, litigation, regulatory matters, and cybersecurity

Mitigation Strategies

• Strategic replacement of older compression equipment with newer, larger, more efficient units
• Implementation of a TARGET ZERO™ program focused on incident prevention
• Development and implementation of over 90 safety and environmental procedures
• Regular HSE audits and use of Intelex® for tracking, reporting, and auditing
• Use of ISNetworld® to evaluate and audit contractors’ safety performance
• Comprehensive DOT and Non-DOT drug and alcohol testing program
• Extensive background checks on all employees

Supply Chain Management

Responsible Procurement

• Code of Business Conduct applies to key vendors
• Evaluation and audit of contractors’ safety performance

Climate-Related Risks & Opportunities

Awards & Recognition

• Finalist for the Houston Business Journal's Healthiest Employer Award in the large company category in 2019

Environmental Metrics

ESG Focus Areas

• Safety
• People
• Leadership and Governance
• Customers and the Environment
• Economic Impact

Environmental Achievements

• Developed a methodology for estimating CO2 and methane emissions from compression operations on a per horsepower basis.
• Reduced emissions per operating horsepower from 4.04 tonnes CO2 in 2017 to 3.99 tonnes CO2 in 2020.
• Retired 730 compression units (approximately 261,000 horsepower) and divested over 600 compressor units (over 150,000 horsepower), resulting in a newer, more efficient fleet.

Social Achievements

• Launched the “Blood, Sweat & Tears” Challenge, with employee participation in blood donation, volunteering, and palliative support.
• Implemented a paid time to volunteer program for employees (up to 16 hours annually).
• Maintained a 100% completion rate for Code of Business Conduct training.
• Achieved a 93rd percentile ranking in employee engagement (2019 Gallup® Q12 survey).

Governance Achievements

• Maintained a majority independent Board of Directors.
• 100% completion rate for Code of Business Conduct training.
• Established a cross-functional internal sustainability initiative.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on the energy sector.
• Economic downturn and reduced demand for energy.
• Attracting and retaining young talent in a transforming industry.
• Underrepresentation of women and minorities in the energy industry.

Mitigation Strategies

• Developed a pandemic response plan with safe work protocols.
• Implemented remote work capabilities for office employees.
• Enhanced safety measures for field employees.
• Reduced expenses, preserved capital, and protected revenue.
• Continued dividend program uninterrupted.
• Proactively conducted periodic gender pay reviews.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Key vendors provided with Code of Business Conduct.
• Evaluation and audit of contractors’ safety performance.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Climate legislation and regulatory initiatives

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

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

• Safety
• Emissions Intensity
• Energy Intensity
• Diversity and Inclusion
• Community Enrichment
• Ethics and Integrity
• Financial Performance and Capital Allocation
• Regulatory Compliance
• Business Continuity/Cybersecurity
• Corporate Governance and Board Quality

Environmental Achievements

• Reduced NOx intensity by 37% (2021 vs 2017)
• Reduced Scope 1 and 2 emissions intensity by 11% (2021 vs 2020)
• Retired 230 compression units (85,000 horsepower) and divested over 875 compressor units (140,000 horsepower)

Social Achievements

• Achieved a Total Recordable Incident Rate (TRIR) of 0.10 and a Preventable Vehicle Incident Rate (PVIR) of 0.13, winning a GPSA Safety Excellence Award
• 33% women in executive management
• 31% ethnically diverse employees
• 3/7 female and ethnically diverse independent board members
• Provided paid time off to volunteer
• Offered employee/dependent tuition assistance

Governance Achievements

• Increased quantifiable ESG metrics in the 2022 short-term incentive program to 20%
• Adopted a Suppliers Code of Conduct
• Engaged a third party to assist in developing a comprehensive business continuity plan

Climate Goals & Targets

Environmental Challenges

• Market volatility and uncertainty in the energy industry
• Addressing methane and CO2 emissions from natural gas production and transportation
• Attracting young talent to the energy industry
• Underrepresentation of women and certain racial/ethnic groups in the energy industry

Mitigation Strategies

• Selective capital spending and redeployment of existing assets
• Divestiture of non-core assets to pay down debt
• Investment in digital transformation ($50MM 2019-2021)
• Review of science and technology for emissions reduction
• Partnership with Ecotec International Holdings, LLC for methane emissions monitoring and management
• Development of a diversity and inclusion program
• Inclusion of ESG metrics in the 2022 short-term incentive program

Supply Chain Management

Responsible Procurement

• ISNetworld® for higher-risk contractors
• Supplier Code of Conduct (implemented in 2022)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Investment in electric drive compression

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

• Electric drive compression

Awards & Recognition

• GPSA Excellence in Safety Award

Environmental Metrics

ESG Focus Areas

• Emissions Mitigation and Reduction
• Energy Intensity
• New Ventures
• Health and Safety
• Customer Service and Satisfaction
• Employee Attraction, Retention and Development
• Diversity and Inclusion
• Economic Impact and Community Enrichment
• Ethics and Integrity
• Financial Performance and Capital Allocation
• Regulatory Compliance
• Emergency Preparedness/Cybersecurity
• Corporate Governance and Board Quality

Environmental Achievements

• Achieved a 12% year-over-year reduction in 2021 Scope 1 and Scope 2 CO2 emissions intensity.
• Invested $18 million in electric drive compression horsepower.
• Acquired a 25% equity stake in ECOTEC Solutions (methane emissions monitoring company).
• Developed a patent-pending methane capture technology.

Social Achievements

• Developed and adopted a comprehensive diversity and inclusion policy.
• Increased paid time off to volunteer hours by 11% compared to 2021.
• Doubled the weight of safety and sustainability within the 2022 short-term incentive plan to 20%.

Governance Achievements

• Maintained a 100% cybersecurity training completion rate.
• Developed and implemented a comprehensive business continuity plan.

Climate Goals & Targets

Environmental Challenges

• Challenges associated with reducing emissions intensity of the natural gas industry.
• Market volatility in the energy industry.
• Need to quickly and effectively adjust operations to match market conditions.

Mitigation Strategies

• Investing in electric drive compression, methane monitoring, and methane capture technologies.
• Improving operational efficiency through digital transformation.
• High-grading the compression fleet to newer, more fuel-efficient units.
• Developing a comprehensive business continuity plan.

Supply Chain Management

Responsible Procurement

• Suppliers Code of Conduct
• ISNetworld® screening for higher-risk contractors
• PEC Veriforce and Avetta profiles

Climate-Related Risks & Opportunities

Opportunities

• Commercial and revenue opportunities driven by New Ventures efforts.
• Improved operational efficiency leading to cost reduction and minimized environmental impact.

Reporting Standards

Frameworks Used: SASB midstream reporting framework, TCFD framework

Sustainable Products & Innovation

• Electric drive compression
• Methane capture technology

Awards & Recognition

• Bronze President’s Volunteer Service Award

Environmental Metrics

ESG Focus Areas

• Economic Impact
• Customers and the Environment
• Safety
• People
• Leadership and Governance

Environmental Achievements

• -19% Emissions Intensity Scope 1 and 2 Emissions 2023 v. 2022
• Acquired Equity Stake in IONADA (carbon capture)
• Commercializing Patent-Pending Compressor Device (methane capture)
• Helping ECOTEC Bring Solutions to Market (methane monitoring)
• ~20% Growth Capex on Electric Units in 2023
• Acquisition of TOPS (electric motor drive compression)

Social Achievements

• 28% Ethnically Diverse Employees
• 79% Participation Rate in Employee Engagement Survey
• +18% Paid Time Off to Volunteer Hours 2023 v. 2022
• 20% Sustainability Metrics in Incentive Program

Governance Achievements

• 33% gender and racial diversity on the Board; 50% of Board leadership roles are held by women
• 100% independent Board committees
• Annual Board and committee evaluations
• Implementation of stock ownership guidelines for directors and executive officers

Climate Goals & Targets

Environmental Challenges

• Market volatility in the energy industry
• Need to quickly and effectively adjust operations to match market conditions
• Need to innovate and control costs
• Challenges associated with estimating emissions from midstream applications

Mitigation Strategies

• Investments in decarbonizing technologies (methane capture, carbon capture, electric motor drive compression)
• Fleet transformation efforts (shift to larger horsepower units)
• Implementation of telematics and advanced data analysis
• Development and implementation of a comprehensive environmental management system (EMS)

Supply Chain Management

Supplier Audits: Over 1,500 vendors; use of ISNet World (ISN) for high/medium risk contractors

Responsible Procurement

• Suppliers Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory and governmental policy changes

Opportunities

• Commercial and revenue opportunities driven by emissions reduction solutions
• Improved operational efficiency and cost reduction

Reporting Standards

Frameworks Used: SASB, TCFD

Sustainable Products & Innovation

• Electric motor drive compressors
• Carbon Hawk methane capture device
• Partnerships with ECOTEC and Ionada

Awards & Recognition

• Gas Processors Suppliers Association (GPSA) Excellence in Safety Award (3 times)