Climate Change Data

Environmental Metrics

ESG Focus Areas

• Operating safely
• Supporting and developing our people
• Delivering innovative, high-quality and reliable products
• Fostering mutually beneficial partnerships
• Supporting communities around us
• Managing our environmental performance and mitigating our impacts

Environmental Achievements

• Reduced electricity consumption in Singapore by 45%
• Achieved Green Mark Platinum certification for Singapore facility
• New carbon reduction target of 50% from 2019 baseline by 2030
• Improved water capture and recycling
• Increased waste recycling
• Introduction of energy efficiency solutions

Social Achievements

• Zero fatalities in 2022
• Improved gender diversity across the board, senior management, and overall workforce
• Implemented new HSE management system (OnBase)
• Increased employee engagement activities through surveys and town hall meetings

Governance Achievements

• Established Ethics and Sustainability Committee in 2021
• Enhanced carbon reporting policies aligned with GHG Protocol
• Appointed S&P Trucost to assure 2022 carbon data

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Attracting and retaining skilled talent in a volatile oil and gas sector
• Increased operating costs, including insurance and tax costs
• Potential for increased weather events damaging assets
• Increased scrutiny from financial markets regarding climate change
• Increased regulatory and compliance costs related to climate change
• Potential negative impact on reputation due to association with oil and gas industry
• Lack of available renewable electricity capacity in Texas

Mitigation Strategies

• Maintaining safe stock/buffer stock for critical materials
• Diversifying supplier base
• Implementing Group-wide pay increases
• Developing a 2030 strategy to increase non-oil and gas revenue
• Completing long-range financial impact analysis on major cash generating units
• Diversifying revenue streams to minimize earnings volatility
• Developing a high-level model exploring financial impact of climate change scenarios
• Implementing a strong carbon reduction target by 2030
• Securing renewable energy electricity contracts
• Developing a Net Zero plan in 2023
• Strengthening relationships with customers and suppliers
• Building facilities to withstand extreme weather events
• Maintaining access to equity capital markets

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (introduced in Q4 2022)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (tornadoes, wind storms)
• Heat stress
• Precipitation
• Coastal/river flooding
• Drought stress
• Fire stress
• Tropical cyclones

Transition Risks

• Market transition risk (reduced oil and gas demand)
• Technology transition risk (obsolescence of certain products)
• Labour transition risk (difficulty attracting and retaining talent)
• Insurance and tax transition risk (increased costs)
• Financial markets transition risk (increased scrutiny from investors)
• Regulatory, legal and compliance transition risk (increased costs)
• Reputation transition risk (negative perception of oil and gas industry)

Opportunities

• Participation in non-oil and gas primary energy development (geothermal)
• Participation in carbon capture and storage projects
• Diversification into other non-oil and gas sectors (medical, space, aviation, naval)

Reporting Standards

Frameworks Used: TCFD, SASB, CDP, GRI, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 9001:2015, ISO 50001, Green Mark Platinum

Third-party Assurance: Standard & Poor’s Trucost

UN Sustainable Development Goals

• 3, 5, 6, 7, 8, 9, 12, 13, 17

The six focus areas align with the material issues that we have identified and support our contribution to the United Nations’ Sustainable Development Goals (“SDGs”).

Sustainable Products & Innovation

• Ezi-Shear Seal valve
• Products for geothermal energy development
• Products for carbon capture and storage projects

Awards & Recognition

• Green Mark Platinum certification for Singapore facility

Environmental Metrics

ESG Focus Areas

• Health, safety, and environment
• Human rights
• Data protection
• Ethical business practices
• Compliance

Environmental Achievements

• Not disclosed

Social Achievements

• Commitment to upholding human rights, providing a safe working environment, respecting individual rights, providing training and development, promoting good community relations, and operating environmentally aware.

Governance Achievements

• Established a Code of Conduct with a Chief Compliance Officer to monitor compliance, implemented bribery and corruption policies, and established procedures for handling conflicts of interest.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Due diligence procedures for selecting reputable Business Partners with appropriate skills and qualifications.

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