Genel Energy : Sustainability Report

Sustainability Report 2022

A socially responsible contributor to the global energy mix

Somaliland drought relief

Throughout 2022 areas of Somaliland were subject to drought conditions and were subsequently identified as at risk of famine during the latter part of the year. In response to these conditions, Genel increased its efforts in social investments with specific focus on immediate drought relief projects, which in 2022 totalled $500,000.

The first such initiative was completed in March 2022 and involved distribution of drinking water to 99 villages, which ultimately benefitted over 118,000 people within our host communities. Following this, a food relief programme successfully delivered food aid to over 2,500 households, and a second - larger scale - food relief programme was launched at the end of the year which targeted over 6,800 households across 162 villages for provision of emergency food distribution to drought-affected communities.

As our activities increase in Somaliland Genel will continue to monitor these challenging conditions for host communities and will target the areas of most need with social investment.

Genel Energy 2022 Sustainability Report

Contents

INTRODUCTION	1
A message from the CEO	2
Sustainability highlights	3
Who we are	4
Our values	4
Where we operate	5
Sustainable development goals	5
Genel's sustainability strategy	6
Materiality: what matters most to
Genel's stakeholders?	7
ENVIRONMENTAL
RESPONSIBILITY	8
GHG emissions	10
Managing the natural environment	16
SOCIAL RESPONSIBILITY	20
Health and saftey	22
People and diversity	26
Human rights and modern slavery	30
Community engagement	31
Social investments	33
RESPONSIBLE GOVERNANCE	36
Business ethics	38
Crisis and emergency management	39
Regulatory compliance	40
Supply chain management	41
Managing sustainability risks	42
Measuring our progress	48
GRI INDEX	50
SASB INDEX	53
APPENDIX	56
GLOSSARY OF
TECHNICAL TERMS	59

ABOUT THIS REPORT

The intention of this report is to provide information on Genel's sustainability strategy and the activities that have delivered on this strategy during 2022. This was a year in which we were pleased to be an early adopter of the communication on progress under the United Nations Global Compact, and this report expands further on our progress towards addressing a broad range of sustainability challenges as a responsible business. Additionally, this report will also provide an insight to Genel's proposed activities and ambitions during 2023

and beyond.

To help navigate this report the Global Reporting Initiative ('GRI') and Sustainability Accounting Standard Board ('SASB') indices are provided in pages 50-54.

Welcome to Genel Energy's 2022 Sustainability Report

I am pleased to welcome you to Genel's

2022 Sustainability Report, which provides an opportunity for us to share the latest chapter of our sustainability journey. This year marked an important milestone for Genel, as we passed two decades of activity in the Kurdistan Region of Iraq. Investment into host communities has always formed a central pillar of Genel's business and as such, the Genel20 Scholars initiative provided a fitting way to commemorate this achievement.

Moreover, our activities in Somaliland increased throughout the year as we move towards drilling a well, and our social investment projects in this region were able to support local communities through challenging circumstances.

Conducting our operations in a responsible manner remains key to our business success and given the nature of our operations, we do not underestimate the complexities that this entails. Our industry continues to face a broad range of evolving sustainability challenges and as our operational footprint also develops, we consider that our strength lies in our ability to adapt to these challenges, through the steadfast commitment of placing sustainability at the core of our business.

DAVID MCMANUS CHAIR

Genel Energy 2022 Sustainability Report

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WELCOME

A message from the CEO

we strive to be a socially responsible contributor to the global energy mix

• Genel Energy 2022 Sustainability Report

Ingenuity is a key Genel value. Our solid base, with a robust balance sheet and low-cost production, sets us up to be ingenious and flexible, and take advantage of opportunities in a changing environment.

We are able to invest appropriately as we seek to increase cash generation, and we are agile in response to our external environment and operating conditions. It is the same agility that we apply in addressing the sustainability challenges that we face.

As you will read within this report, in 2022 we commemorated 20 years of activities in the Kurdistan Region of Iraq ('KRI') and, reflecting on this milestone, the significant social and economic contributions we have made throughout this period remains a great source of pride to us all at Genel. It is very apparent to me that this was only made possible thanks to the value we place on engagement with our host communities. Collaboration is another of our key values, and this remains a constant theme throughout all our operations, whether established production activities, emerging exploration activities, or new business ventures. I was delighted to attend the launch of the Genel20 Scholars programme in November, which will grant a university education for

20 students from disadvantaged backgrounds across the KRI, and which aims to provide an enduring legacy in the region.

2022 saw our continued attention on climate- related topics and we remain focussed on being a responsible operator during the energy transition. As part of the incremental progress we are making to address our own emissions footprint, we completed the installation of solar panels and a battery storage unit at the Sarta-1D wellsite. The project sets a new standard for Genel. It has already reduced our overall emissions and represents an initiative that we plan to replicate at other sites in the future. Moreover, this has enabled local capacity building and introduced solar power capabilities to a region which would otherwise not be exposed to such technology.

We also remain acutely aware of the breadth of sustainability challenges beyond those considered under climate-related risks. We recognise that full responsibility for addressing these challenges lies with Genel and in how we manage our own operations, and I am very pleased to report on meaningful progress made over the past year on this front. The bedrock of being a responsible business remains our uncompromising approach to health and safety, which in 2022 enabled zero lost time injuries ('LTIs') or tier one process safety events ('T-1 PSEs') at our operational sites. In pursuit of continuous improvement of HSE performance, our HSE Leadership programme was launched with the intention of empowering HSE leaders at all levels within our organisation. This training included direct interventions at various Genel facilities including our operated Sarta field. I was pleased to be able to participate personally and be joined in this programme by my executive management colleagues.

Minimising our impact on the natural environment also forms a vital component of being a responsible business and, in a key milestone last year, Genel was able to successfully recycle over 7,500 tons of drill cuttings from Qara Dagh. This initiative not only resulted in zero residual waste from this source, but again set a new standard for Genel and crucially, provided a successful test case for recycling practices in future operations. 2022 also saw the completion of our Biodiversity Management Standard, which reflects the considerable weight Genel places on preservation of the natural environment, as we continue to be determined to work to protect nature and to achieve no net loss of biodiversity wherever we operate.

While the progress we have made over the past year is pleasing to see, we do not underestimate the extent of the sustainability challenges represented within our industry. We believe that our strength lies in our ability to remain adaptable to these challenges. As we enter an exciting period for Genel, not least on account of

our ambitions in Somaliland, our activities will continue to be underpinned by robust sustainability practices and continued social investment, as we strive to be a socially responsible contributor to the global energy mix.

PAUL WEIR CHIEF EXECUTIVE OFFICER

2022	$850,000
Sustainability
highlights	invested in social projects in 2022
	Launch of		Carbon intensity of
Zero	Genel20	17.56
scholars
Tier 1 process safety events	programme	kgCO2e/bbl
Sarta waste management:		CDP climate
zero waste
		Improvement in both
to landfill 91% recycled	change and water
9% incinerated	security score
Zero LTI's	Solar panel	7,500tons
across all Genel operations	and battery
with 3 million hours	storage		of drill cuttings recycled with
worked incident free		Zero residual waste
	unit operational at Sarta

Genel Energy 2022 Sustainability Report

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