Harbour Energy : Gender Pay Gap Report

Harbour Energy plc

#WeAreHarbourEnergy

A global independent oil and gas company

We are the largest London-listed independent oil and gas company, with a diversified UK asset base and an attractive global footprint. Our purpose is to play a significant role in meeting the world's energy needs through the safe, efficient and responsible production of hydrocarbons while creating value for our stakeholders in accordance with key global standards and strong corporate governance.

Foreword

Welcome to Harbour Energy's first integrated pay gap report, which combines data from our legacy organisations to establish a new gender pay gap baseline for Harbour Energy as a whole.

This report shows that the median pay gap for 2022 was 34.5 per cent. While higher than we would like, we understand why the gap exists and have put in place a range of measures to narrow it.

The pay gap is largely the result of the fact that we operate in the upstream oil and gas sector, which has traditionally been a 'male-dominated' industry. This is reflected in the fact that across Harbour Energy, women currently make up just over a quarter of our employees. In addition, most of our senior colleagues are male, and we have more men than women working in offshore and specialist technical roles which tend to attract higher levels of pay.

We are committed to tackling the gender pay gap and creating a genuinely inclusive working environment where women can successfully progress their careers with Harbour. We want to increase the representation of women across the business and remove barriers to their progression.

We have established programmes to improve how we attract, retain and develop more women at all stages of their careers. These include STEM programmes to encourage young women into our sector and enable them to rejoin the workforce after a career break. We have policies that reflect the changing needs of women throughout their careers ranging from family-friendly flexible working policies, a commitment to non-linear career paths and support for the Menopause Pledge.

We have also formed partnerships with outside organisations, such as the Women Engineering Society and the Institute of Neurodiversity, to help us learn from best practices in other companies.

We believe these programmes will help us make progress going forward. By 2030, we are targeting 40 per cent of our leadership to be drawn from diverse backgrounds, that 30 per cent of senior management and our overall workforce are women, and that 40 per cent of our graduates are female.

Widening our talent pool will be good for women and good for Harbour. I am confident we will reduce our gender pay gap by continuing to nurture a diverse and inclusive culture.

34.5%

Median pay gap for 2022

27%

Of Harbour Energy employees are women

We are committed to tackling the gender pay gap and creating a genuinely inclusive working environment where women can successfully progress their careers with Harbour.

LINDA Z. COOK

CHIEF EXECUTIVE OFFICER

1

About this report

In line with UK Government legislation, companies with over 250 employees are required to publish their gender pay gap data annually. Our gender pay gap data allows us to measure the percentage difference in average hourly pay and bonuses of all men and women within our organisation.

Reporting on our gender pay gap helps us better understand the issues relevant to gender pay and to identify areas for improvement. Although our legacy companies have reported their gender pay gap figures for the last five years, our 2022 data represents the first year of collective reporting as Harbour Energy. Our 2022 Gender Pay Gap Report presents our pay and bonus gaps within our one UK entity, capturing both our onshore and offshore sites. The report also highlights our actions to monitor and address our pay gap.

We have taken a bold step to infuse the core principles of diversity, equity and inclusion into our identity. I am pleased with the progress made in 2022, laying the building blocks required to set a sustainable strategy for DE&I in Harbour Energy. Our priority over the next year is to embed the processes and procedures we have introduced to attract, promote, and retain the diverse talent our business needs.

MAVIS ANAGBOSO

GLOBAL HEAD OF DIVERSITY, EQUITY & INCLUSION

At Harbour Energy, we are proud of the work that was achieved by our legacy companies on diversity, equity and inclusion. We are determined to build on this foundation and move forward on our continuous improvement journey.

We confirm that the gender pay gap data reported here is accurate and has been produced in accordance with the Equality Pay Act 2010.

Linda Z. Cook

Chief Executive Officer

Gill Riggs

Chief Human Resources Officer

Mean gender pay gap

Our 2022 results statutory disclosure

This is the first time we are reporting as a single corporate entity. These figures, therefore, represent a benchmark against which to measure our progress. Whilst we are limited in our ability to draw meaningful conclusions from our legacy organisations' historical gender pay gap data, this pay gap report firmly informs our Diversity, Equality and Inclusion strategy.

As of 5 April 2022, our report captures 1,240 individuals that meet the relevant employee criteria as defined by the UK Government guidance for reporting. This comprises 929 men and 311

women. Our mean gender pay gap for 2022 is 23.8 per cent, and our mean gender bonus gap is 22.7 per cent Our median gender pay gap is 34.5 per cent, and the median bonus gap is 11.4 per cent.

Equal pay vs gender pay gap

It is important to note that a gender pay gap is distinctively different from equal pay. Gender pay gap reporting calculates the difference in average pay for all roles in an organisation and does not differentiate between the work being carried out. Equal pay refers to men and women performing equal work for equal pay. As the two terms are not interchangeable, a gender pay gap does not indicate an issue with equal pay. Within Harbour Energy, we are committed to fostering an inclusive culture. We use industry benchmarking data and conduct internal pay audits to ensure we provide all employees with a transparent, fair and competitive pay and benefits structure which does not discriminate against sex, gender or ethnic origin.

GILL RIGGS

Our gender pay gap data is valuable in delivering greater transparency across our organisation. We must be proactive in improving outcomes for women and increasing their representation across our business.

We aspire to be an employer of choice for women, and this is evident in the sheer range of programmes that support our DE&I strategy.

CHIEF HUMAN RESOURCES OFFICER

Our commitment to closing the gender pay gap

The data presented within this reporting period indicates that there is some work to be done to close our gap. Harbour Energy is dedicated to placing diversity, equity and inclusion at the core of our employee experience, including ensuring we narrow the gender pay gap.

Actions taken to close the gap include:

• - Clear DE&I commitment

• - DE&I awareness and communication

• - Employee networks

• - Inclusive recruitment

• - External partnerships

• - Inclusive leadership training

• - Promoting alternative career paths

• - Supporting working familiesClear DE&I commitment

In this reporting period, we committed to promoting gender diversity. This included ambitions on gender diversity composition in our leadership team, senior management and workforce. For more information on this and our Board commitment to gender diversity, see page 41 of our 2022 ESG Report and page 74 of our 2022 Annual Report.

We will continue to challenge how we view our benefits to ensure we support employees and their families through the various stages of their life and provide an environment where everyone feels supported and valued. We want Harbour Energy to be an inclusive workplace where individuals can bring their whole selves to their job and feel recognised for the value they add.

SHARON BRUCE

SENIOR MANAGER - GLOBAL REWARDS

DE&I awareness and communication

As a new organisation, we are focused on creating an inclusive corporate culture. Our practices include the following:

• ƒ "DE&I moments" included in the CEO's live global townhall presentations;

• ƒ DE&I lunch and learn events to encourage discussion on inclusion topics;

• ƒ DE&I awareness workshops topics; and

• ƒ DE&I networks.

Opportunities to engage with our workforce provide valuable insight into individuals' experiences while reinforcing our commitment to diversity, equity and inclusion. Our teams are encouraged to build "DE&I moments" into team meetings.

Employee networks

Employee networks offer a safe space to raise awareness of identity-specific issues. In this reporting period we set up seven employee networks, each being employee-led and supported by an executive sponsor. Two of the seven networks explicitly highlight and address issues relating to female identity in the workplace. We also actively promote other networks, including Pride, Culture. Early Careers and Neurodiversity, to ensure everyone has a positive experience at work.

Our networks are relatively new, but they all make a difference in generating active conversations around diversity, equity and inclusion in Harbour Energy. Over the coming year, we look forward to seeing the networks develop with the business to deliver on 2023 actions.

VIEW MORE

MORE DETAILS ON OUR EMPLOYEE NETWORKS ARE SET OUT ON PAGE 37 OF OUR ESG REPORT

As a graduate, it's great to see an environment with open and transparent communication between employees and the leadership team. Within the organisation, there are countless forums for employees to get involved in, fostering cross disciplinary relationships and an opportunity to learn about international projects. Harbour Energy has a positive work environment, and I enjoy working for a company that values my opinion and embraces the diversity of thought and culture.

NOKUZOTHA BHEBE

GRADUATE GEOLOGIST

Inclusive recruitment

Inclusive recruitment is a vital part of our DE&I strategy as we recognise that attracting more women into our business requires innovative approaches to recruiting. We have recently introduced gender-balanced shortlists for graduate recruitment and plan to roll out this approach for our experienced hires.

In 2022, Harbour Energy successfully launched a STEM Returners programme to help women return to work after an extended career break. The fully paid 12-week placements specifically target applicants with employment gaps, and although the programme is open to any gender, we have seen a significant proportion of applications from women. The paid placement allows candidates to be reintegrated into work in an inclusive and supportive environment.

The next phase of our inclusive recruitment strategy is to develop more robust data collection systems to monitor our applicants' diversity through the recruitment lifecycle. We are also training more interview assessors to promote gender diversity in our interview panels.

After 18 months on maternity leave, I was anxious to return to the job market. However, I have been supported in my role in Harbour from day one.

I can comfortably ask questions or provide my opinion, which is respected and valued by the team. I am learning more and more each day and enjoying the experience of working in a collaborative environment.

JULIANA GUADAMA

TECHNICAL ASSISTANT - STEM RETURNER