Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social

Environmental Achievements

• Reduced diesel consumption by more than 20,000 tons since 2017 by replacing diesel engine equipment with electrical equipment.
• Saved approximately 45,000 m3 of freshwater in 2019 through new water-saving technologies.
• Recycled approximately 20,000 m3 of oil-based mud since 2012 in Xinjiang, China.
• Cleaned approximately 42,000 m3 of solid and liquid waste since 2014 in the Ordos Basin.
• Recycled approximately 200,000 m3 of complex waste mixtures over the past three years in Iraq.

Social Achievements

• Finalized Employee Stock Ownership Plan (ESOP) in 2019.
• Conducted campus recruitment in 55 universities globally in 2019, recruiting 1,182 staff.
• Provided training hours totaling 2,810 hours in 2019.
• Maintained a high rate of internal promotion (85% of middle-level and senior management promoted from within).

Governance Achievements

• Upgraded QHSE Committee to ESG Committee on May 21, 2020.
• Implemented a robust anti-corruption program with training and legal support for employees.
• Established a whistleblower program with public contact channels.

Climate Goals & Targets

Environmental Challenges

• Gaps between current GHG management practices and best-in-class requirements.
• Potential risks related to climate change and energy transition.

Mitigation Strategies

• Commitment to closing the gap in GHG management practices.
• Managing reputational and market risks associated with climate change.
• Disclosure of risks in annual ESG report.
• Assisting customers in developing cleaner energy (natural gas).
• Providing decarbonization services.

Supply Chain Management

Supplier Audits: Comprehensive supplier review every six months; 14 suppliers dismissed in 2019 for not meeting standards.

Responsible Procurement

• Suppliers must establish their own HSE management system; comply with human rights standards; avoid child and forced labor; meet QHSE commitments.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, HKEX ESG Reporting Guidelines

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Sustainable Products & Innovation

• Biosynthetic environmental drilling fluid
• Full-scale fracturing technology
• Anton Bailin water control completion technology
• Green burner atomization technology
• Gas leak inspection technology

Awards & Recognition

• State Intellectual Property Office’s designation of an intellectual property demonstration organization
• Beijing Enterprise Technology Center designation
• Beijing Cutting-edge Industrial Design Center designation
• Ernst & Young Entrepreneur of the Year Award 2009
• Board of the Year and Director of the Year awards from the Hong Kong Institute of Directors in 2011
• Most Honored Companies in Oil and Gas Sector 2019 by Institutional Investor
• Top 100 Private Companies in Corporate Social Responsibility in Beijing designation
• Class A Corporate Taxpayer in Beijing
• 29th List of Top 10 Most Influential Companies in Beijing

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social

Environmental Achievements

• Reduced Greenhouse Gas emission per revenue by approximately 36.5% compared to 2019
• Replaced diesel engine equipment with electrical equipment, cutting diesel consumption by more than 20 thousand tons since 2017
• Achieved a cut of carbon emissions of 703.01 tons and sulfur emissions of 17.79 tons from drilling rigs in FY2020 through the use of JLD-10 special equipment

Social Achievements

• Invested a large amount of money to contribute to the community’s fight against the epidemic
• Implemented flexible working arrangements and strengthened training for employees during the COVID-19 pandemic
• Solved employment issues for graduates by means of information technology and network recruitment during the pandemic
• Awarded the title of “Advanced Enterprise in Poverty Alleviation”

Governance Achievements

• Established an ESG committee in early 2020 to oversee ESG works of the Group
• Implemented an employee shareholding plan in 2020 and completed the issuance of the first tranche of restricted shares
• Comprehensively improved systems for maintaining business ethics, anti-corruption and other compliance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Acceleration of low-carbon development
• Gaps in current business structure for adapting to the industry norm of transition to cleaner energy
• Reputation, market, and business risks due to the gap between current management and higher requirements for reducing greenhouse gas emissions

Mitigation Strategies

• Conceptualized the construct of a “Brand-new Anton” to deal with the development of digital technology and new energy solutions
• Launched special low-carbon energy and renewable solutions and smart oil and gas field solutions in FY2020
• Actively adopted information technology to promote management improvements (e.g., shared office plan, asynchronous communication)
• Incorporated climate change risks into risk management and discussed them at quarterly Board meetings
• Developed a business transformation strategy to address the gap in adapting to the industry norm of transition to cleaner energy

Supply Chain Management

Supplier Audits: 588 suppliers were subject to the 2020 annual supplier review

Responsible Procurement

• Anti-corruption agreement
• Certification program
• Avoidance of controversial minerals
• Anton Suppliers/Contractors Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts related to low-carbon development

Opportunities

• Development of energy-efficient products and services, low-carbon energy and renewable solutions, smart oil and gas field solutions

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, HKEX ESG Reporting Guidelines

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, SY/T6276-2014, API14A, API11B, API5CT, API7-1, APIQ1, and APIQ2

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Anton's initiatives contribute to these goals through emissions reduction, renewable energy solutions, and support for cleaner energy development in customers' operations.

Sustainable Products & Innovation

• Sweet spot solution
• Biosynthetic drilling fluid
• Oilfield environmental protection technology
• Carbon Capture Service (CCS)

Awards & Recognition

• Beijing Top 100 Private Technology (2020)
• Pioneer in the Fight against the Epidemic (Beijing headquarters)
• Advanced Enterprise in Poverty Alleviation
• Best Investor Relations Company (Corporate Governance Asia, 2020)

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Completed the upgrade of its QHSE Committee to ESG Committee on 21 May, further improved the Group’s top-down ESG management system with full staff participation.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 epidemic impact on economic growth and crude oil demand; personnel mobilization and commercial activities in Iraq and other overseas markets were impacted, and customers’ development plans were also postponed largely; overseas epidemic situation remained severe, project personnel were still unable to mobilize normally, and operational efficiency and new project commencement in some oilfields were still greatly affected.

Mitigation Strategies

• Strict epidemic prevention and control; actively seeking project opportunities, promoting the efficient and safe operation of ongoing projects, exercising stringent cost control measures, accelerating working capital turnover and actively responding to business challenges; further promoted the “digital” transformation and “decentralized” management model to improve management efficiency and reduce management costs; stepped up recovery of accounts receivable, heightened the negotiation and communication with suppliers, strengthened inventory management, to accelerate the turnover of working capital.

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

• Pandemic Prevention and Control
• Social Responsibility
• Technological Innovation

Social Achievements

• Released its first independent ESG report on 22 July.
• Implemented pandemic prevention and control measures to ensure zero infection among employees.
• Provided pandemic prevention assistance to communities and partners.

Governance Achievements

• Further repurchased USD300,000,000 9.75% senior notes in the secondary market.
• Anton Oilfield Services (Group) Ltd. was selected as “Beijing’s Top 100 Private Enterprises in Technological Innovation”.

Climate Goals & Targets

Environmental Challenges

• Global pandemic impacting economic growth and crude oil prices.
• Pandemic-related restrictions in Central Asia and Africa impacting business activities.
• Delays in heavy asset projects due to the pandemic.

Mitigation Strategies

• Implemented strict pandemic prevention and control measures.
• Actively sought high-quality orders and market opportunities.
• Arranged orderly rotation of employees and mobilization of project personnel.
• Focused on cash flow as a core business philosophy and accelerated working capital turnover.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Beijing’s Top 100 Private Enterprises in Technological Innovation

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions per revenue by 13.5 tons of CO2e/RMB million in 2021 from 13.8 tons of CO2e/RMB million in 2020.
• Implemented 19 initiatives under the Energy Efficiency Gain Program, resulting in a reduction of 10,708.1 tons of GHG emissions.
• Helped customers reduce their carbon footprint by 128,075.2 tons of emissions.

Social Achievements

• Developed a Human Resources Social Responsibility Policy.
• Launched a new “Employee Autonomous Management System”.
• Combined IT-enabled “virtual recruitment talks” to attract talent.
• Provided diverse training courses through the Anton College e-learning system.
• Implemented social responsibility programs in communities.

Governance Achievements

• Joined the China Enterprise Anti-Fraud Alliance.
• Received the Institutional Investor – “Most Honored Companies” award and the “Best Investor Relations Company” title from Corporate Governance Asia.

Climate Goals & Targets

Environmental Challenges

• Continued COVID-19 pandemic and significant changes in the global energy landscape.
• Climate change risks (physical risks like extreme weather, chronic risks like persistent heat, transition risks like stricter regulations, technology risks, market risks, and reputational risks).

Mitigation Strategies

• Developed a long-term plan to address climate change and set decarbonization targets.
• Implemented the “Energy Efficiency Boost” program.
• Closely monitor and regularly update climate-related data, develop emergency response plans, identify at-risk assets and purchase insurance, apply more energy-efficient cooling equipment, improve operational efficiency, closely monitor changes in laws and regulations, strictly abide by applicable laws and regulations, increase investment in technology innovation, strengthen low-carbon technology R&D and promotion, actively conduct stakeholder engagement, improve sustainability, and improve the quality and transparency of ESG disclosures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Anti-corruption agreement
• Onboarding program
• Anton Suppliers/Contractors Code of Conduct
• Prioritization of companies that provide novel, energy-saving, and environmentally-friendly products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Persistent heat
• Drought

Transition Risks

• Stricter government regulation
• Failure to identify and apply low-carbon technologies
• Rising raw material and energy costs
• Declining demand for fossil fuels

Opportunities

• Demand for more energy-efficient equipment and low-carbon technologies
• Adoption and promotion of green and low-carbon products
• Huge market demand for green energy development

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, HKEX ESG Reporting Guide

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Initiatives contribute to these goals through emissions reduction, renewable energy solutions, and sustainable development practices.

Sustainable Products & Innovation

• Precision engineering technology
• Green energy solutions
• Energy-saving technologies and devices

Awards & Recognition

• Institutional Investor – “Most Honored Companies” award
• “2021 Best Investor Relations Company” from Corporate Governance Asia

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emission by 49,225.39 tons of CO2e by implementing 27 initiatives under our energy efficiency gain program
• Helped customers reduce GHG emission by 54,421.4 tons of CO2e by technology upgrading, green energy application, and efficient project management and execution
• Energy consumption per unit of revenue dropped by 4.6% compared with 2021
• Reuse volume of the flowback fluid increased from 19,000 cubic meters in 2021 to 83.6 thousand cubic meters in 2022, accounting for 8.5% of water intake

Social Achievements

• Created more than 1,500 jobs for the society throughout the year
• Extended diversified online training, communication, sharing and co-creation to the whole industry and empowered all the practitioners through our OilMates Platform
• Carried out charitable donations, counterpart assistance, etc. actively, and won honors such as “Top 100 Private Enterprises in Beijing for Social Responsibility”
• Customer satisfaction rate of 99.2% throughout the year

Governance Achievements

• Formed a management system that is scientific, efficient, open and shared, and self-driven by all employees
• Adopted the OKR work method in 2022 to fully stimulate the self-motivation of employees, to ensure a shared target from top to bottom, and efficient management
• Actively carried out anti-corruption campaigns and sunny marketing activities to ensure a transparent and clean work style

Climate Goals & Targets

Environmental Challenges

• Rising global inflation, weak economic growth and intensified geopolitical conflicts
• Supply system of oil and gas had been broken and reshaped constantly

Mitigation Strategies

• Continued to make solid progress in various tasks surrounding sustainable development
• Implemented 27 measures in the “Energy Efficiency Improvement Plan”, saving a total of 24,782.40 tons of standard coal
• Established a new energy subsidiary, strengthened the research and application of CCUS technology, and carried out special development of the CCUS business

Supply Chain Management

Supplier Audits: 649

Responsible Procurement

• Anton Supplier/Contractor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, such as strong winds and heavy rain
• Persistent heat, drought

Transition Risks

• Stricter government regulation on environmental and safety concerns to mitigate climate change
• Failure to identify and apply low-carbon technologies in time
• Rising raw material and energy costs, concerns about climate change, and declining demand for fossil fuels
• Public may drive market towards low–carbon products and services

Opportunities

• Demand for more energy-efficient equipment and low-carbon technologies
• Policy incentives for green transition
• Adoption and promotion of green and low-carbon products
• Integrated climate change response solutions for the industry
• Huge market demand for green energy development
• Expansion to global markets
• Ability to aggregate resources
• Identification of alternative energy and energy diversification solutions
• Participation in renewable energy projects

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI Standards), HKEX ESG Reporting Guide

Certifications: API Q1, API Q2, API 14A, API 11B, API Spec11D1, API 5CT, API 7-1, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Awards & Recognition

• Top 100 Private Enterprises in Beijing for Social Responsibility

Environmental Metrics

ESG Focus Areas

• Carbon reduction
• Social responsibility
• Talent cultivation

Environmental Achievements

• Greenhouse gas emissions per unit revenue reduced by 2.7% compared to 2022
• Indirectly helped customers achieve greenhouse gas emissions reduction equivalent to 19,972.4 tons of carbon dioxide

Social Achievements

• Active participation in community donations, poverty alleviation, flood prevention and disaster relief, and school repairs in PRC and Iraq
• Increased recruitment and training of talents
• Subsidiaries won awards such as National Specialized, Refined, Differentiated, and Innovative Little Giant, Top 100 Private Enterprises in Internationalization, and Best Managed Companies in China

Governance Achievements

• Established six internal intelligent management platforms for digitalization of operations and management efficiency improvement
• Implemented OKR working method, standardized operation procedures, and labor efficiency management and control system

Climate Goals & Targets

Environmental Challenges

• Pressure of global economic stagnation and macroeconomic challenges
• Frequent geopolitical events increasing uncertainty in oil and gas supply

Mitigation Strategies

• Focus on emerging markets for global oil and gas development
• Asset-light transformation in domestic market, focusing on reservoir geological technology and asset-light technical services
• Accelerated business transformation and development of innovative businesses
• Strict cash flow management and cost reduction

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Asset leasing series solutions providing green development solutions

Awards & Recognition

• National Specialized, Refined, Differentiated, and Innovative Little Giant
• Top 100 Private Enterprises in Internationalization
• Best Managed Companies in China

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Carbon Reduction
• Green Business
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Released the Group’s “2023 Sustainability Report” summarizing achievements in sustainable development, including carbon reduction and promotion of green business.

Social Achievements

• Actively fulfilled social responsibilities and made progress together with its stakeholders.

Governance Achievements

• Refined corporate governance, aiming to be a benchmark of sustainable development in the industry.

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability
• Market uncertainties

Mitigation Strategies

• Launched eight overall solutions covering the whole process of oil and gas development to meet customer needs and help industry transformation.
• Deepened internationalization transformation, made strategic adjustments in organization, operation and management, and continued to explore the international market.

Supply Chain Management

Climate-Related Risks & Opportunities