Climate Change Data

Environmental Metrics

ESG Focus Areas

• Low carbon agenda
• Resilient oil and gas offering
• Green Energy
• Health, Safety and Environment
• Diversity
• Good governance

Environmental Achievements

• Implementation of wastewater treatment units in Argentina
• Adoption of a lower emission truck fleet in Argentina
• Securing the Equinor mechanical wireline contract through an alliance model to create efficiencies, reduce persons offshore, and consequently reduce emissions
• Implementation of One Archer plug and abandonment strategy to reduce rig time, persons offshore, emissions, and close wells safely with the minimum of environmental impact
• Archer carried out ~300 offshore well operations remotely via an onshore base, saving those Archer personnel from travelling offshore
• Office and workshop consolidation of locations saved 2891 Gigajoules of energy consumption
• Installation of energy efficient lighting
• Installation of supplemental oil filters on large stationary engines to extend oil life and reduce oil and filter change frequency
• Saved 1817 long distance transportation trips due to better planning enabling consolidated planning
• Approximately 60% of the short distance transportation in Norway was consolidated. In Argentina, we reduced our light vehicle fleet by 10%, with 11 of the 41 vehicles converted to “pool” use, reducing overall vehicle usage by 24%
• Installation of a waste water treatment plant in Neuquén base to recycle wash-down water, resulting in up to 30% savings in fresh water usage
• Installation of another waste water treatment plant in Comodoro Rivadavia base

Social Achievements

• Our employee’s ability and effort to adapt to the COVID-19 situation
• Strengthening our safety culture through the implementation of the Big 5 initiative
• Adoption of Archer’s Human Rights Policy
• Strengthening of Archer’s compliance with International Trade Sanctions
• Support of Clean Shores, with employees volunteering hundreds of hours to remove waste from coastlines
• Various other community support activities including donations and volunteering

Governance Achievements

• Archer continues to maintain strong organizational governance through an emphasis on zero tolerance for corruption and focus on conducting our business with high ethical standards
• Implementation of tailored ESG targets relative to each business unit and management responsibility

Climate Goals & Targets

Environmental Challenges

• Extreme weather, floods, and drought
• Changes in natural resources (water scarcity)
• Pandemics
• Change in consumer and investor behaviour
• Less investment and lower margins
• Changes in resource/input prices
• Disruption of supply chain
• Uncertainty related to technological development and deployment
• The industry faces reputational challenges
• Recruitment
• Share price
• Increased liability risk with high financial impact
• Carbon tax, energy regulations, product efficiency regulations

Mitigation Strategies

• Company climate risks are monitored on a continuous basis and responded to appropriately.
• Our ESG and operational planning is tailored to proactively assess and mitigate the effect of these risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Energy efficiency evaluation criteria included when procuring new equipment
• ESG related criteria including emissions, energy consumption, supply chain management, governance, social responsibility, and human rights used to evaluate suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, floods, and drought
• Changes in natural resources (water scarcity)

Transition Risks

• Carbon tax, energy regulations, product efficiency regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 9001:2015, ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 16

These goals are closely tied to the industry and represent material topics for which we monitor.

Sustainable Products & Innovation

• LOCK® well suspension plugs
• VIVID® acoustic system
• ComTrac® system
• THOR® system

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health, Safety, and Environment (HSE)
• Diversity & Inclusion
• Governance
• Human Rights
• Sustainable Development

Environmental Achievements

• Global CO2 emission reduced by 25% from 2019 to 2021.
• Evaluation of fuel additive on land drilling units, with a potential fuel reduction of 6-9%.
• Implementation of Solar PV array at Archer’s HQ in Stavanger.
• Guaranteed renewable electricity used in all locations in Norway.
• Developed a new rig concept for P&A operations with considerably less energy consumption.
• Conversion of standard lighting fixtures to LED (approximately 70% complete).
• Expanded remote operations, reducing offshore personnel and carbon footprint.
• Established a condition-based maintenance system, optimizing maintenance and reducing chemical/spare part use.
• Energy Management KPIs included in Archer's Key Performance Indicator system.
• Cross-training of personnel, reducing offshore personnel and emissions.
• Introduction of Zegeba software, reducing paper usage.
• Design and implementation of Safe Frame for safer wireline operations.

Social Achievements

• Adopted Archer’s Human Rights Policy.
• Strengthened safety culture and improved HSE results through the Big 5 initiative (TRIF reduced by 50%, high potential incident trend from 0.07 to 0.02).
• Global training of employees and contractors in the Code of Conduct (over 3000 personnel trained).
• Cross-training of Archer personnel, reducing persons offshore and emissions.
• Increased support of Clean Shores initiative, with employee volunteer hours removing waste from coastlines.

Governance Achievements

• Global training of Archer’s employees and contractors in our Code of Conduct. Over 3000 personnel trained in compliance and governance.

Climate Goals & Targets

Environmental Challenges

• Emissions from land drilling operations in Latin America due to diesel generators.
• Reducing energy consumption and emissions in land drilling operations.

Mitigation Strategies

• Study with Pan American Energy on electrification of pulling rigs.
• Testing fuel additives to reduce fuel consumption.
• Recycling 100% of water used in workshops.
• Exploring battery solutions to reduce diesel generator use.
• Solar panels in certain bases to reduce diesel-generated energy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG evaluation criteria included in procurement of new equipment.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, floods, drought
• Changes in natural resources (water scarcity)
• Pandemics

Transition Risks

• Change in consumer and investor behavior
• Less investment and lower margins
• Changes in resource/input prices
• Disruption of supply chain
• Uncertainty related to technological development and deployment
• Cyber security
• Increased liability risk with high financial impact
• Carbon tax, energy regulations, product efficiency regulations

Opportunities

• Development of energy-efficient products and services
• Improved revenue through increased volume, higher rates, and more work through fewer competitors meeting new regulatory thresholds

Reporting Standards

Frameworks Used: Sustainability Accounting Standards Board (SASB) for Oil and Gas Services

Certifications: ISO 9001:2015, ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 16

These goals are closely tied to Archer's industry and represent material topics which are monitored.

Sustainable Products & Innovation

• LOCK® well suspension plugs
• VIVID™ acoustic system
• Next Generation LOCK plugs (Lock+)
• New P&A rig concept

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Low carbon agenda
• Resilient oil and gas offering
• Renewables and transition
• Health, Safety and Environment
• Diversity
• Good governance
• Business Ethics and anti-corruption

Environmental Achievements

• Archer outside of Argentina achieved its target of carbon-neutral operations in scope 1 and 2.
• CO2 emission reduction of 25% from baseline year 2018 to 2022 globally (Scope 1 & 2).
• Connected Argentinian Land Rig 4070 to high-line power, saving the equivalent of 400 kg of CO2 per day.
• Successful testing of fuel additives for land rigs, with a potential fuel reduction of approx. 5%.
• Produced approximately 500,000 kwh of electricity through solar PV system in Norway.
• Installation of a solar PV array at Aberdeen office, with estimated production of approximately 200,000 kwh annually.
• Installed solar PV solution in Argentina (to start production in early 2023).
• 50% of electricity consumption for US facility in Houston is from guaranteed green sources.

Social Achievements

• Strengthening safety culture through continued focus on the Big 5 & broken window campaign.
• Expanded cross-training programs for offshore personnel, reducing persons on board and consequently emissions.
• Employees volunteered 747 hours for Clean Shores initiative, removing 8080 kgs of waste.

Governance Achievements

• Continued driving ESG agenda through Energy Management KPI system.
• Strengthened focus on human rights.
• Maintained strong organizational governance through zero tolerance for corruption and high ethical standards.

Climate Goals & Targets

Environmental Challenges

• Emissions from Land Drilling operations in Latin America (due to diesel generators).

Mitigation Strategies

• Study with Pan American Energy on electrification of pulling rigs.
• Evaluating electrification projects to connect drilling rigs to highline power.
• Implementing fuel additives across rig fleet.
• Study to evaluate alternative energy for drilling rigs.
• Testing of a mobile solar panel array.
• Installation of a solar PV system for facilities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG evaluation criteria included in procurement; Supplier Code of Conduct; Project Cascade for ESG data management and visualization of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, floods, and drought
• Changes in natural resources (water scarcity)
• Pandemics

Transition Risks

• Change in consumer and investor behaviour
• Less investment and lower margins
• Changes in resource/input prices
• Disruption of supply chain
• Uncertainty related to technological development and deployment
• Increased liability risk with high financial impact
• Carbon tax, energy regulations, product efficiency regulations

Opportunities

• Development of energy-efficient products and services; Growth in CCUS and geothermal markets.

Reporting Standards

Frameworks Used: SASB (Sustainability Accounting Standards Board) for Oil and Gas Services

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 50001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16

Goals are closely tied to Archer's industry and represent material topics monitored.

Sustainable Products & Innovation

• LOCK® well suspension plugs; VIVID™ acoustic system; Condition-based maintenance systems.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Business Ethics
• Human Rights
• Diversity & Inclusion
• Energy Transition
• Supply Chain Sustainability

Environmental Achievements

• Achieved carbon-neutral operations (Scope 1 & 2) outside Argentina.
• Converted one large land drilling rig for multi-fuel use, potentially saving ~3,250 tons of CO2 emissions annually.
• Drilled three test wells for carbon storage in Iceland.
• Reduced CO2 emissions by 23% from the 2018 baseline (Scope 1 & 2) despite significant activity growth.
• Produced approximately 700,000 kWh of electricity through solar PV systems.
• 100% renewable electricity for US facility in Houston; 68% renewable electricity in the UK.
• Implemented condition-based maintenance systems, optimizing maintenance, increasing asset lifespan, and reducing chemical use.

Social Achievements

• Strengthened safety culture through focus on 'The Big 5' and 'broken window' campaign.
• Expanded cross-training programs for offshore personnel, reducing personnel onboard and emissions.
• Carried out global compliance training for over 3000 employees.
• Implemented Cascade, a new supplier qualification and approval platform.
• Published Norwegian Transparency Act and UK Modern Day Slavery Act statements.

Governance Achievements

• Implemented Cascade, a new supplier qualification and approval platform.
• Published Norwegian Transparency Act and UK Modern Day Slavery Act statements.
• Carried out global compliance training for over 3000 employees on Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Emissions from Land Drilling operations in Latin America due to diesel generators.
• Supply chain disruptions (implied).

Mitigation Strategies

• Evaluating electrification projects for drilling rigs.
• Considering using natural gas to replace diesel.
• Testing mobile solar panel arrays.
• Mapping upstream and downstream Scope 3 emissions in 2024.
• Working with major vendors to reduce Scope 3 emissions.
• Implementing Cascade platform for supplier due diligence.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG evaluation criteria included in procurement; Cascade platform for supplier due diligence; Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, floods, drought, changes in natural resources (water scarcity), pandemics

Transition Risks

• Changes in consumer and investor behavior, less investment and lower margins, changes in resource/input prices, disruption of supply chain, carbon tax, energy regulations, product efficiency regulations

Opportunities

• Development of energy-efficient products and services; growth in CCUS and geothermal markets.

Reporting Standards

Frameworks Used: SASB (Oil and Gas Services)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 50001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7, 8, 12, 13, 14, 15, 16

Closely tied to Archer's industry and material topics.

Sustainable Products & Innovation

• LOCK® well suspension plugs, VIVID™ acoustic system

Awards & Recognition

• Not disclosed