Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Impact
• People and Safety
• Ethics and Compliance

Environmental Achievements

• Successful reduction of approximately 80% in CO₂ emissions from the new electric forklift fleet in Tananger
• Successful installation of solar cell panels with sensor controlled LED lights at Vestbase (Norsea) which operates the Heidrun warehouse and using sluices to avoid heat loss when opening gates which has given 30% reduction in power consumption last year
• Upgraded the ASCO Tananger Warehouse (Johan Sverdrup, Ekofisk and Eldfisk) with LED lights in 2022
• Replaced all plastic shoe covers with compostable shoe covers made from plant sugar on Linus
• Replaced disposable plastic and paper cups with re-usable personal bottles and cups in most onshore facilities

Social Achievements

• Goal of 30% women in leadership level 1-3 surpassed in 2022
• New global salary review procedure ensuring equitable pay
• Pay gap analysis for all significant locations
• Benchmarking of Manila salary levels
• Odfjell Technology Women's Network established
• 30% reduction in total recordable injury frequency in 2022 compared to 2021
• 14 out of 16 platforms operated without work-related recordable injuries
• 3 out 4 Well Services geo-markets were injury free
• Received Petroleum Safety Authority's Acknowledgment of Compliance (AoC) for Linus
• ConocoPhillips awarded the Scandinavia HSE award to Ekofisk X and the SPIRIT Lifesaver award to Linus medic and rescue team
• 78% reduction in dropped objects in workshops in 2022 compared to 2021
• Enhanced Competence Assurance System achieved accreditation by International Association of Drilling Contractors (IADC)

Governance Achievements

• No confirmed incidents of corruption or incidents in which employees were dismissed or disciplined for corruption in 2022
• No confirmed corruption incidents that resulted in termination or non-renewal of contracts with business partners, or public legal cases regarding corruption brought against any Group company or its employees

Climate Goals & Targets

Environmental Challenges

• Regulatory Risk: Increased resources, skills and tools required for capturing and reporting data to meet regulatory requirements.
• Reputational Risk: Ability to attract and retain employees. Decreased availability of skilled resources.
• Market Risk: Changes in the behaviour of consumers. Reduced demand for oil and gas in the future.
• Market Risk: Cost of and access to capital. Obtaining finance may be more challenging as banks strategically transition to a low carbon portfolio.
• Acute Physical Risks: Impact of extreme weather on offshore operations, heat, floods and tropical storms, heat stress.
• Transition Risks related to regulatory changes, reputational impacts, market shifts, and access to capital

Mitigation Strategies

• Develop in-house expertise in meeting requirements
• Seek to adopt regulations early
• Gap analysis between current data available and future requirements
• Review systems and tools to support reporting requirements
• Implement training programmes to attract new talent
• Communicate Odfjell Technology’s strategy to support the energy transition
• Diversification of client portfolio and services
• Consider use of Green Bonds
• Review critical spare parts kept offshore
• Planning for accommodating waiting on weather impacts
• Address commercial robustness of contracts for weather events
• Explore remote working opportunities
• Monitor suitability of locations for operations
• Have business continuity plans in place

Supply Chain Management

Supplier Audits: 114 supplier reviews in 2022

Responsible Procurement

• Supplier Code of Conduct
• Local procurement is a priority whenever possible

Climate-Related Risks & Opportunities

Physical Risks

• Impact of extreme weather on offshore operations
• Heat, floods and tropical storms
• Heat stress

Transition Risks

• Regulatory Risk
• Reputational Risk
• Market Risk (consumer behavior and access to capital)

Opportunities

• Developing new technology and services to support the transition to renewables
• Streamlining supply chain through initiatives such as 3D printing

Reporting Standards

Frameworks Used: GRI 2021 Sustainability Reporting Standards, GRI 11 Oil and Gas Sector

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 12
• 13
• 14
• 16

Each ESG domain addresses and supports different Sustainable Development Goals (SDGs) put forward by the United Nations.

Sustainable Products & Innovation

• PowerBlade™ Hybrid system solution
• Combined Energy Management (CEM) Screening

Awards & Recognition

• ConocoPhillips Scandinavia HSE award to Ekofisk X
• ConocoPhillips SPIRIT Lifesaver award to Linus medic and rescue team

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy and waste
• Own workforce
• Human Rights
• Business conduct
• Cyber security risk

Environmental Achievements

• Installation of solar panels at Odfjell Business Centre in Bergen, producing 15% of total electricity consumed.
• No serious injuries or high potential incidents in 2023.

Social Achievements

• Improved HSE performance for all KPIs.
• Launched "I See You" initiative to promote mental well-being.
• Held workshops around the world through the Odfjell Technology Women’s Network.

Governance Achievements

• Zero major cyber security incidents in 2023.
• No cases of concerns reported through the whistleblowing portal in 2023.
• Odfjell Technology was not subject to any convictions or fines for violating anti-corruption or anti-bribery laws in 2023.

Climate Goals & Targets

Environmental Challenges

• Increased regulatory requirements for sustainability reporting.
• Challenges in consistent data reporting on waste due to differing requirements across regions.
• Suppliers' reluctance to engage in human rights discussions.
• Heightened cyber security threats.

Mitigation Strategies

• Preparing for EU CSRD and ESRS.
• Implementing a more systematic approach to reporting onshore waste through a SharePoint platform.
• Focusing on identifying issues and enhancing stakeholder engagement processes to put pressure on suppliers to address human rights concerns.
• Expanding the Cyber Security team and updating the corporate cyber security management manual.
• Implementing mandatory cyber security awareness training.

Supply Chain Management

Supplier Audits: 19 supplier audits completed

Responsible Procurement

• Supplier Code of Conduct
• Prioritising emission-efficient freight

Climate-Related Risks & Opportunities

Physical Risks

• Impact of extreme weather on offshore operations
• Heat, floods, and tropical storms
• Heat stress

Transition Risks

• Regulatory changes
• Reputational risks
• Market shifts
• Cost of and access to capital

Opportunities

• Broadening opportunities in renewables
• Focus on early-phase studies
• Offering innovative services
• Building strategic partnerships

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001

Third-party Assurance: No third-party assurance in 2023, limited assurance planned for 2024

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 16: Peace, justice and strong institutions

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Rigless intervention units
• Remotely operated technologies

Awards & Recognition

• Tern Alpha won the Chair Award for Best Safety Performance – Platform