Genel Energy : Sustainability Report

Responsibility

Commitment

Progress

SUSTAINABILITY REPORT 2020

A socially responsible contributor to the global energy mix

ContentsPage

WELCOME	1
CEO introduction	2
2020 ESG performance highlights
and milestones	3

AT A GLANCE	4
Who we are	4
Our values	4
What we do	5
Where we operate	5

OUR APPROACH	6
Our sustainability strategy	6
THE ENERGY TRANSITION	10
Climate change	12
Governance	13
Strategy	14
Risk management	16
Targets and performance goals	18

Page

CONTRIBUTIONS TO SOCIETY	20
Community engagement	22
People and diversity	27
RESPONSIBLE BUSINESS	30
Health and safety	32
Business ethics	38
Environmental management	41
MEASURING OUR PROGRESS	47
Stakeholder engagement	48
Assessing and prioritising the materiality
of sustainability topics	49
ESG materiality, management processes
& performance	51
GRI index	56
GLOSSARY	61

13kg CO2e/bbl

equity based Scope 1 and 2 carbon intensity from producing assets

$762m	217
generated for KRG from	Kurdish nationals employed
Genel affiliated oil fields in	by Genel and TTOPCO
2020

Genel Energy 2020 Sustainability Report

Welcome to Genel Energy's 2020 Sustainability Report

On behalf of everyone at Genel, I would like to welcome readers to Genel's 2020 Sustainability Report. The challenges of the COVID-19 pandemic did not temper our ambitions and commitment to sustainability at Genel, and this report details the progress we have made over the course of the last year. We continue to build upon last year's momentum and as our operations expand, we see opportunities to showcase our responsible business and sustainability practices. These include minimising our environmental impacts and demonstrating the positive impact we have on our host countries. Proper ESG management continues to grow in importance for our stakeholders, and all those at Genel will continue to do their best to meet those sustainability demands that will play a key role in determining the future leaders of the energy industry. In the following pages you will see our corporate values in action, the milestones that have been met this past year, and our future ambitions.

DAVID MCMANUS CHAIRMAN

28	0
local companies supported	lost time injuries and tier
by Genel assets	1 loss of primary con-
	tainment process safety
	events

35%

of workforce are female

Genel Energy 2020 Sustainability Report

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It is my pleasure to welcome you to Genel's second sustainability report, prepared in accordance with the Global Reporting Initiative ('GRI') Standards core option.

The progress and achievements you will read about in the coming pages are more important than ever considering the challenges the COVID-19 pandemic brought to our global community.

The safety of our workforce and local communities has long been a priority for Genel, and we have an excellent health and safety record. As the pandemic unfolded, the ongoing safety of our staff remained at the forefront of our minds, and we took early action to provide the essential resources necessary for our staff in the field to remain healthy while continuing to deliver on our strategy. In addition to supporting our field operations, our dynamic human

WELCOME

CEO introduction

resource and IT teams across our offices helped facilitate a smooth transition to remote working, enabling us to maintain a sense of comradery and productivity no matter where we were located. How well we have responded to the pandemic is a testament to the integration of ESG factors into our governance and management systems, and the daily manifestation of our corporate values.

The headwinds of the pandemic and the subsequent crash in oil prices did not temper our sustainability ambitions. We continued to support the communities in which we operate by investment in social projects, providing direct local employment, and fostering wider economic opportunities for companies in the Kurdistan Region of Iraq. For example, while adhering to social distancing guidelines and COVID-19 safe controls we successfully completed 14 social investment projects centred on our key focus areas of health, education, and community development. Meanwhile the expansion of our field operations created jobs and generated wider employment opportunities through the 28 local companies providing services to our operations.

We continue to build upon our commitment to local communities and the wellbeing of our host countries, and we engage with stakeholders across all aspects of our business in order to foster mutual benefits. As our operations grow and, given positive drilling results, take root in Sarta and Qara Dagh, we will be provided with greater opportunities to demonstrate our responsible business practices and make further significant contributions to society.

The pandemic caused many people to reassess the fundamentals of the global economy, including the importance of adapting to the energy transition and integrating climate awareness into business strategies. We see our low-carbon and low-cost asset strategy as being the right one for the energy transition, and this has been a key focus area for our management team this past year. 2020 saw the elimination of routine flaring at Peshkabir, the development of a GHG emissions management standard, our first submission to CDP, and the issuing of our first GRI compliant Sustainability Report. Our 2020 equity-based carbon intensity figure of 13 kg CO2e/bbl is well below the industry average of c.20 kg CO2e/bbl, and our focus on an asset life-cycle approach helps us deliver a carbon footprint that aligns with the Paris Agreement

1.5 degree pathway and leads to net zero by 2050. You can read more about this in our Energy Transition section, which aligns with the TCFD recommendations.

We strongly believe that fulfilling our purpose requires that Genel not only be measured by what we achieve, but also by the way in which we achieve it. As part of our efforts to further strengthen our ESG performance, Genel continued its commitment to the UN Sustainable Development Goals and UN Global Compact's 10 Principles on human rights, labour standards, environment, and anti-corruption. Genel is also a member of both Transparency International UK and Trace. Furthermore, our corporate values embody the way in which we live and work on a daily basis, the Code of Conduct trainings that we conducted in 2020 stems from these values and illustrates our dedication to acting the right way towards all stakeholders.

The headwinds of the pandemic and the subsequent crash in oil prices did not temper our sustainability ambitions

In the following sections you will see the impact that we had this last year, the momentum that is behind our sustainability endeavours, and our future ambitions as we continue to fulfil our promise of being a socially responsible contributor to the global energy mix.

Bill Higgs

Chief Executive Officer

• Genel Energy 2020 Sustainability Report

WELCOME

2020 ESG performance highlights and milestones

ESG topic	Accomplishments
	• Development and Board approval of GHG Emissions Management Standard outlining commitment to alignment with
	Paris Agreement 1.5 degrees pathway and Net Zero by 2050
Climate	• Completion of first gas injection project in KRI to eliminate routine flaring at Peshkabir, with operator DNO
	• Enhanced GHG emissions accounting and reporting practices to switch to equity-based approach for the first time
	• Calculated Scope 3 emissions for first time
	• Code of Conduct - completed 13 group training sessions for 210 employees and contractors (100% coverage)
Responsible business	• Commitment to commission independent human rights specialist to assess Genel policies, standards and processes to
practices	meet the expectations in the UN Guiding Principles (UNGPs)
	• Verified security providers comply with Voluntary Principles of Security and Human Rights
	• Installed continuous air quality monitoring stations around Sarta production facility
Environmental	• Minimisation of tree removal in alignment with Biodiversity Action Plan at Qara Dagh
management
	• Progress made on achieving ISO14001 certification for environment management by 2022
Waste management	• Implemented 'Local Enterprises Initiative'
• Achieved 73% non-hazardous waste recycling rate at Sarta
	• 14 social investment and community projects funded and delivered near Qara Dagh and Taq Taq
Contributions to society	• 217 employees from the KRI working for Genel and TTOPCO
• 28 local companies established to provide services and implement projects at Genel assets
	• $100,000 of medical equipment procured for hospital in Somaliland
	• 67 HSE management site visits
	• 77 emergency response drills completed
Health & safety	• 101 crude oil tanker drivers trained and certified in defensive driving
	• 354 HSE trainings conducted
	• 626 safety observations submitted
	• Introduction of Talent Management Process
Employee relations	• Rolled out a global Employee Assistance Program
	• Continued regular Town Hall employee meetings

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