Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reducing Emissions
• Conserving Energy
• Guiding our Suppliers
• Enhancing Operational Efficiencies through Innovation and Technology
• Empowering People
• Promoting Diversity, Equality and Inclusion
• Safety
• Strong corporate governance

Environmental Achievements

• Significant decline in emissions per foot drilled due to higher rig performance over the last seven years.
• 5% reduction in GHG emissions target set for 2021 for Nabors Drilling USA.
• Installation of natural gas engines, upgrading to hybrid rigs, using transformers to connect rigs on highline power and bi-fuel engines reduced emissions.
• Saved more than 1,955 tons of GHG emissions in the U.S. in 2020 by installing LED lights.
• Reduced electricity consumption by at least 10% in Saudi Arabia through air conditioning maintenance.
• Successfully completed environmental training with 90% of teams by the end of 2020.
• 81% of global supply chain and strategic sourcing personnel completed annual review and training for supplier survey.

Social Achievements

• Launched Doctor on Demand behavioral health visits, resulting in more than 80 visits in the inaugural year.
• Set up virtual workout classes with more than 50 exercise options.
• Achieved 11 years without a Lost Time Incident (LTI) in Indonesia, representing more than five million working hours.
• Implemented a company-wide talent management system including career pathing and succession planning.
• Successfully launched virtual trainings due to the pandemic.
• 96% of employees completed Human Rights Training and Engagement.

Governance Achievements

• Renamed the Governance and Nominating committee as the Environmental, Social and Governance committee and initiated a series of monthly meetings.
• Appointed ESG champions in leadership and project teams.
• Achieved and disclosed more than 90% of pre-defined ESG key performance indicators (KPIs).

Climate Goals & Targets

Environmental Challenges

• Reliance on estimates and assumptions for GHG emissions data.
• Balancing different units of measurements and inconsistencies in global data.
• Frequent movement of assets in the field preventing the use of stationary measurement tools.
• Pandemic-related challenges in employee engagement and travel restrictions.
• Empowering employees to use their Stop Work Authority (SWA).

Mitigation Strategies

• Partnered with SMEs to deploy a new battery system and develop calculations to track GHG emissions.
• Normalized emissions calculations by the amount of footage drilled.
• Developed virtual training programs and engagement methods.
• Appointed a team of engineers to collaborate with equipment manufacturers and customer subject matter experts (SMEs).
• Rolled out SWA drills to test the knowledge and abilities of crews and third parties.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Guidelines
• Annual review and training centered on supplier survey

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, GRI, IPIECA

Certifications: ISO 9001 (Indonesia)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smart Suite drilling automation products
• RigCLOUD® platform
• RigLINE 24/7™

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Safety

Environmental Achievements

• Nabors Drilling USA achieved a 9.9% reduction in Scope 1 GHG emissions intensity (surpassing its 5% target)
• Reduced Scope 2 GHG emissions by 5% in the U.S. compared to 2020
• Reduced total water use to 74.83 ML from 102.54 ML in 2020

Social Achievements

• Improved Total Recordable Incident Rate (TRIR) from 0.49 in 2020 to 0.41 in 2021
• Significantly improved representation of diverse high potential performers through focused recruiting and internal development
• Women represented 34% of new hires in 2021 and 20% of SGA and FS workforce
• Launched three new Employee Resource Groups (ERGs)

Governance Achievements

• Well-developed governance structure with board-level oversight of ESG initiatives
• ESG committee sets targets to reduce GHG emissions and other environmental goals
• Compensation committee aligned performance goals with ESG targets and financial performance goals

Climate Goals & Targets

Environmental Challenges

• Legal and regulatory risks related to GHG emissions and climate change
• Financial risks related to divestment efforts and investor focus on sustainability
• Physical risks related to the physical effects of climate change

Mitigation Strategies

• Implementing operational controls, processes, procedures, and management plans within the EMS
• Investing in and deploying cutting-edge, highly efficient technologies and innovative processes
• Establishing benchmarks and targets for GHG emission reductions
• Continuously enhancing emissions accounting methodology

Supply Chain Management

Supplier Audits: 700+ U.S. suppliers and 709 Latin America suppliers assessed for social and environmental impacts in 2021

Responsible Procurement

• Supplier reevaluation procedure; social and environmental criteria for new suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Physical effects of climate change impacting operations and demand

Transition Risks

• Regulatory changes, market shifts towards lower-carbon energy sources

Opportunities

• Development of energy-efficient products and services; expansion into geothermal energy

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: ISO 14001 (Colombia, Mexico, Oman)

Third-party Assurance: LRQA (limited assurance for Scope 1 and 2 GHG emissions)

Sustainable Products & Innovation

• PowerTAP™ substation transformer, nanO2® fuel enhancer, PowerFLOW™ supercapacitor, SmartPOWER™ system, hydrogen injection catalyst system

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions per foot drilled by 3% for Nabors Drilling USA, relative from 2022.
• Reduced Scope 1 GHG emissions per foot drilled by 3% for Nabors Drilling International, relative from 2022.
• Completed business combination agreements with VAST, a next generation concentrated solar power platform that enhances the Energy Transition portfolio.
• Electrified one customer’s entire North Dakota rig fleet with grid utility power.
• Achieved a decline in Scope 1 GHG emissions per foot drilled compared to our 2020 baseline, surpassing our target of 5% established last year (Nabors International).
• Nabors Drilling USA has seen a reduction in Scope 1 GHG emissions per foot drilled, exceeding our target of 3% from 2020.

Social Achievements

• Continued gender diversity improvements with US SGA and FS women representing 19% of leadership roles; 8% relative change increase from 2022; 8% female (3% relative change increase from 2022). Greater than 20% reduction in female attrition among SGA and FS workforce.
• Increased minority group representation by 7% from 2022.
• Increased diversity in workforce hires by 1% from 2022.
• Worked with Indigenous community in PNG and Colombia.
• Continued support of North Dakota Tribal College Apprenticeship program.
• Achieved 98.62% completion with human rights training and engagement.
• Paid 951 hours of employee volunteer activities; Conducted a total of 2097 hours of charity/community work.
• Achieved Mission Zero safety goal across 130 rigs.
• Achieved a Company TRIR of 0.47.

Governance Achievements

• Achieved 98.62% Human Rights training compliance and 96.62% Cybersecurity compliance.
• Achieved 701 ISS Cyber Risk Score.
• Established Nabors guidelines on use of Generative AI.

Climate Goals & Targets

Environmental Challenges

• Heightened regulatory focus on greenhouse gas (GHG) emissions, potentially leading to operational changes, compliance costs, financial risks, and insurance/investment rate changes.
• Growing pressure from the financial community to divest from the fossil fuel industry, impacting production and demand for oil and natural gas.
• Increasing physical impacts of climate change, potentially affecting operations, demand, and workforce.
• Geopolitical tensions, shifts in energy demand, and the transition towards cleaner energy sources could lead to significant impacts on drilling operations.

Mitigation Strategies

• Strategic approach to navigate the challenges and opportunities presented by climate change, minimizing business impact on the environment and reducing exposure to climate-related risks.
• Investing in geothermal, concentrated solar power (CSP), energy storage, monitoring, and advanced materials to support the energy transition.
• Implementing strategies to reduce emissions from our global vehicle fleet (monitoring, upgrading, minimizing idle time).
• Implementing use of PowerTAP™, reducing CO2 emissions.
• Conducting scenario analysis to assess the Company’s strategic and operational resilience to plausible climate-related risks and opportunities.

Supply Chain Management

Supplier Audits: 544 global supplier evaluations in 2023; routine audits of existing suppliers.

Responsible Procurement

• Policies and programs to enable equal opportunities for vendors.
• Procurement decisions based on efficiency, price, quality, service, and suitability.
• Requirement for suppliers to adhere to Nabors' Code of Business Conduct and QHSE standards.
• Requirement for applicable supplier operations to be covered by a certified ISO 14001 or EMAS environmental management system.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Decreased demand for oil and natural gas

Opportunities

• Development of energy-efficient products
• Investments in renewable energy sources

Reporting Standards

Frameworks Used: TCFD, SASB, GRI, IPIECA

Certifications: ISO 14001:2015 (Colombia, Mexico, Oman, Russia), ISO 45001:2018 (Indonesia, Oman, Dubai, Mexico, Russia, Colombia)

Third-party Assurance: LRQA (limited assurance)

Sustainable Products & Innovation

• SmartPOWER™ Engine Management
• PowerTAP™ Highline
• ILLUMIC™ Lighting System

Awards & Recognition

• Mid/Small-Cap Energy Firm of the Year (Gulf Energy Excellence Awards)
• Service Provider of the Year (Oil & Gas Middle East Awards)