Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions reduction
• Renewable power
• Safety
• Sustainability

Environmental Achievements

• Reduced field emissions by 30 percent in the Tyra Redevelopment project (target)
• Successfully completed offshore decommissioning campaign with over 95% of Tyra installations recycled
• Initiated a study on introducing renewable power to replace gas-driven turbines

Social Achievements

• No reported COVID-19 infections among offshore personnel
• Offshore manning successfully returned to pre-COVID-19 levels in October 2020
• 39% of employees were women

Governance Achievements

• Established an ESG Committee in 2020
• Complied with the Norwegian Code of Practice for Corporate Governance (with some deviations noted)

Climate Goals & Targets

Environmental Challenges

• Market volatility and operational impacts due to the COVID-19 pandemic
• Schedule of the new Tyra topsides impacted by COVID-19 restrictions at fabrication yards and global supply chain disruptions
• Fugitive emissions likely underestimated

Mitigation Strategies

• Robust performance safeguarded by hedging arrangements
• Proactive COVID-19 measures to protect people and ensure business continuity
• Improvements to emission monitoring by initiating annual leak detection and repair campaigns (LDAR)

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes (2050 North Sea Agreement)

Opportunities

• Subsurface CCS and Energy Storage
• Offshore Hydrogen & PtX Production
• Renewable Power

Reporting Standards

Frameworks Used: GRI, TCFD

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Energy Transition
• Energy Security
• Health and Safety
• Corporate Governance

Environmental Achievements

• Reduced recordable incidents by 50%
• Tyra Redevelopment project expected to decrease emissions by 30%
• Participation in CCS Project Bifrost with an expected start-up storage capacity of 3 million tons of CO2 per year
• More than 95% of old Tyra facilities expected to be recycled

Social Achievements

• 38% of employees were women
• No records of work-related accidents or injuries
• DUC supported marine mammal research program

Climate Goals & Targets

Environmental Challenges

• Compressor issues at Gorm Hub
• Delayed start of workover program due to COVID-related issues
• Fluctuating commodity prices
• Risks related to Tyra Redevelopment project fabrication and installation
• Risks related to decommissioning costs and schedule
• Third-party risks from operators and partners
• Risks related to future capital requirements
• Risks related to environmental regulations
• Reputational risks
• COVID-19 impact on operations

Mitigation Strategies

• Planned maintenance program at Gorm Hub
• Successful workover program
• Commodity and interest hedging programs
• Successful refinancing of RBL facility
• Renegotiation of financial covenants with NOR14 bondholders
• Strong financial base and hedging positions
• Active investor relations strategy
• Full compliance with temporarily revised RBL hedging requirements
• Extensive measures to protect personnel and secure business continuity (COVID-19)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• CCS projects
• Renewable energy integration

Reporting Standards

Frameworks Used: GRI, 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

• Climate change
• Energy security
• Emissions intensity reduction
• Renewable energy
• Carbon Capture Storage (CCS)
• Diversity and Inclusion (D&I)
• Health and Safety
• Human rights
• Corporate governance

Environmental Achievements

• Reduced routine flaring, corresponding to a reduction in CO2 emissions of 4.3 thousand tonnes CO2e/year (first step) and a further 5.9 thousand tonnes CO2e/year (second step planned for 2023).
• Implemented 12 CFR initiatives resulting in an estimated emission reduction of more than 11.8 thousand tonnes CO2e/year (approximately 4.8 thousand tonnes CO2e/year in 2022).
• Improved emissions monitoring through annual leak detection and repair campaigns (LDAR).

Social Achievements

• No recorded work-related accidents or injuries in 2022.
• Implemented a new HR system with data gathering and specific KPI dashboards for diversity, equity, and inclusion.
• Introduced an internal DE&I index with a 94 percent response rate.
• Introduced a culture programme with key topics related to DE&I.

Governance Achievements

• Established a separate report from each committee (ESG, remuneration, audit, and nomination).
• Conducted a materiality assessment.
• Established reporting against the Taskforce for Climate-related Disclosures (TCFD).
• Established a risk register.
• Requested monthly emissions data from the operator.

Climate Goals & Targets

Environmental Challenges

• Global supply chain challenges impacting the Tyra redevelopment project, resulting in a delay of first gas.
• Uncertainty related to the EU Taxonomy and its impact on BlueNord.
• Increased carbon pricing and taxes.
• Transition to lower emission technology and changes in gas demand.
• Reputational risk in the era of ESG.

Mitigation Strategies

• Regular dialogue with the operator and review of weekly and monthly progress reporting on Tyra.
• Close dialogue with investors and transparency on climate risk.
• Reducing emissions as much as possible on current and future operations; possible offset through storing CO2.
• Focus on gas as a transition fuel; investments in CCS projects.
• Presenting a balanced view of activities and demonstrating responsibility towards ESG.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (strong wind, storms, hurricanes)
• Rising sea levels

Transition Risks

• Uncertainty related to the EU Taxonomy
• Increased carbon pricing and taxes
• Transition to lower emission technology
• Changes in gas demand
• Reputational risk

Opportunities

• Resource efficiency
• Use of alternative energy in operations
• New products (CCS)
• Financial markets evolvement
• Strictly regulated sector
• Flexible future investments

Reporting Standards

Frameworks Used: TCFD, ESRS (from 2025)

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety
• Diversity, Equity & Inclusion (DE&I)
• Human Rights
• Community Engagement
• Carbon Capture and Storage (CCS)

Environmental Achievements

• Elimination of routine flaring from the DUC (estimated 20 ktonCO2e/year reduction)
• Tyra II restart with 30% lower emissions compared to the old facility
• 98.5% recycling and reuse of materials from the old Tyra facilities

Social Achievements

• Improved employee engagement index (64.8 in 2022 to 80.5 in 2024)
• Improved DE&I index (79.1 in 2022 to 80.5 in 2024)
• Increased number of internships from one to three in 2023
• Zero work-related illnesses reported in 2023
• Total sick leave of 0.41% in 2023

Governance Achievements

• Establishment of ESG Committee in 2020
• Alignment with the Norwegian Transparency Act and the Equality and Anti-Discrimination Act in 2023
• Implementation of TCFD reporting
• Preparation for CSRD reporting by 2025
• Development of separate committee reports (ESG, Remuneration, Audit, and Nomination)

Climate Goals & Targets

Environmental Challenges

• Geographical concentration of production assets increasing risk of incidents affecting a significant part of the business
• Uncertainty in actual reserves compared to reported estimates
• Execution risks in development projects (cost overruns and delays)
• Potential for delays in Tyra redevelopment project ramp-up
• Uncertainty in decommissioning cost and timing estimates
• Fluctuations in commodity prices
• Risk of key infrastructure compromise due to cyber security threats
• Potential inability to meet financial liabilities due to funding issues
• Uncertainty in future capital requirements
• Potential for liabilities exceeding insurance policy limits
• Limited control over assets due to non-operatorship
• Potential for other participants in licenses to default on obligations
• Changes in government policies and regulations
• High taxation in Denmark
• Risk of material errors or omissions in financial reporting
• Reputational risks
• Changes to and impacts of environmental regulations
• Climate change related risks and opportunities

Mitigation Strategies

• Ongoing inspection and maintenance plans to minimize risk of incidents
• Independent technical expert reports on reserves (at least annually)
• Subsurface team monitoring production and reserves
• Financing future investments with cash flow from operations and borrowings
• Regular monitoring of liquidity, borrowing base, and financial ratios
• Project screening for technical and non-technical risks
• Regular dialogue with Operator on Tyra project
• Annual review and updates of decommissioning estimates
• Active hedging arrangements to reduce commodity price risk
• IT controls and processes, disaster recovery and business continuity plans
• Continuous monitoring of liquidity and covenant coverage
• Strong relationship with banking syndicate and active investor relations strategy
• Annual review of insurance coverage
• Consultation rights and right to withhold consent on significant matters
• Regular dialogue with Danish Energy Agency and government ministries
• Compensation Agreement with Danish state for tax increases
• Internal controls over financial reporting
• Clear code of conduct, ethical guidelines and Whistleblower procedure
• Regular dialogue with Danish Energy Agency and government ministries
• Operator's framework and controls to manage within regulatory requirements

Supply Chain Management

Responsible Procurement

• Due diligence and monitoring of prospective and existing partners
• Confirmation of adherence to human rights and sound working conditions in tender processes and contracts

Climate-Related Risks & Opportunities

Transition Risks

• Changes to and impacts of environmental regulations

Opportunities

• Development of energy-efficient products
• Carbon Capture and Storage (CCS) projects

Reporting Standards

Frameworks Used: TCFD, CSRD (preparing for 2025)