Environmental, Social & Governance Report 2020

ESG REPORT

Our ESG Story

We are embedding ESG considerations across our business, including through our strategy of alignment with regulatory and industry efforts to decarbonise UK Continental Shelf (UKCS) upstream operations.

s

t

h

g

i

l

h

g

i

h

t

n

e

m

n

13% reduction

o

r

i

in GHG emissions

v

n

intensity

We are focussed on reducing operational GHG emissions wherever economically, commercially and logistically feasible. In 2020, an ESG Committee of the Board was established to provide oversight of our ESG strategy and activity programme.

We are also enhancing the breadth and transparency

of the information we provide, including reporting for the first time on the recommendations of the Task Force on Climate- related Financial Disclosures.

82%

local suppliers

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t

h

g

i

l

29%

h

g

female

i

h

representation

l

on the Board

a

i

c

o

S

Increased

health and safety

measures for

employees during

the COVID-19

pandemic

E

45%

of waste generated on

the FPSO reused, recycled

or recovered

GHG

41.2kg/bbl

GHG emissions

Significant reductions

in production

chemical usage

Alignment with

OGUK Net Zero

57% - 43%

workforce split

male - female

94%

of invoices paid within 30 days

Established an ESG

Committee of the Board

100%

Continued partnerships

of our people received

with regulators, industry

anti-bribery training

and government

G

o

v

e

r

n

First disclosure to the TCFD

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e

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g

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l

i

g

h

ts

REPORT ESG

Targeting UKCS Net Zero GHG Emissions by 2050

The revised Oil & Gas Authority (OGA) strategy, which came into force in February 2021, reflects the ongoing global energy transition and requires the industry to operate in a way that is consistent with the ambition of a net zero basin1.

We are committed to working closely with the government and the OGA to achieve decarbonisation and to align our operations with the UK Oil & Gas sector's 'Pathway to

net zero'. This includes working towards reducing our emissions and enhancing our reporting

on climate change.

2020: Industry consultation

Industry consultations with the OGA on a net zero basin by 2050

2021: North Sea Transition Deal

Collaboration with the government on how the industry can reduce GHG emissions, develop carbon capture, utilisation and storage solutions (CCUS), diversify into new energies, develop hydrogen production and safeguard existing jobs and create new opportunities for jobs and the economy2

2025: Cross-Industry Synergy

OGA vision to have two greenfield electrification projects sanctioned in West of Shetland by 2025

Deployment of carbon capture, utilisation and storage technologies (CCUS)2

2030: 50% absolute basin GHG reduction on UKCS operations3

World Bank's Zero Routine Flaring Target by 2030

2040: 90% absolute GHG reduction on UKCS operations3

2050: Achieve net zero basin3

UK Oil & Gas Sector at a glance2

145k

10-20 billion

jobs in oil

barrels of oil

and gas (O&G)

remaining in the

in the UK

Continental Shelf

19MtCO2e

4%

GHG emissions

of UK GHG

in 2020, to

emissions

be reduced

attributed to UKCS

to O.5MtCO2e

O&G production

by 2050

  1. The net zero basin target refers to the UKCS upstream operations within Scope 1 and Scope 2.
  2. https://www.gov.uk/government/publications/energy-white-paper-powering-our-net-zero-future
  3. Based on the 2018 baseline measurement; https://www.ogauthority.co.uk/media/6625/ukcs_energy_integration_phase-ii_report_website-version-final.pdf

ESG Report 2020

1

ESG REPORT

Introduction

About This Report

Welcome to Hurricane's 2020 Environmental, Social and Governance (ESG) Report. It covers our ESG strategy and performance across our operations relating to our key material topics. We have prepared the report in accordance with the Global Reporting Initiative (GRI) Standards, and it is approved by the Board of Directors before publication.

Reporting standards

Our reporting follows global standards to ensure robustness. We have chosen to follow the GRI reporting guidance as it is a broad and well-recognised framework. We also considered industry-specific guidance from IPIECA, the Sustainability Accounting Standards Board (SASB) and the best-practice reporting of peers.

Scope and boundaries

We report on assets and activities over which we had control in terms of ESG policies and practices in the period 1 January to 31 December 2020. This covers our offshore operations on the UK Continental Shelf (UKCS) and our UK offices in Surrey and Aberdeen. Read more about these boundaries on pages 13 to 15.

Data

Our ESG data is provided throughout this report and summarised in the Appendix on pages 58 to 64.

External initiatives

This report meets the Core option of the GRI Standards. It also demonstrates how we apply governance, risk management and strategy processes to manage climate-related financial risks in line with the Task Force on Climate-related Financial Disclosures (TCFD) approved guidance on 'limited disclosures' provided by Accounting for Sustainability (A4S). We support the ambitions of the United Nations Sustainable Development Goals (SDGs). Should we deem it appropriate for the business, the Company will seek to embed the goals into our operations in the future.

We are signatories to Oil & Gas UK (OGUK)'s voluntary Commercial Code of Practice (CCOP) and Infrastructure Code of Practice (ICOP), and we adhere to the Supply Chain Code of Practice (SCCOP).

2 Hurricane Energy plc

REPORT ESG

Contents

Introduction

2 About This Report

  1. Our Licences and Assets
  2. Letter from the CEO
  1. Managing Risk
  2. Reporting on Climate Change

12 Working with Our Stakeholders and

Materiality

15 Materiality Matrix

Governance

  1. Our Approach to Governance
  2. Business Ethics, Transparency and Regulatory Compliance
  1. Business Resilience
  2. Responsible Supply Chains

Environment

  1. Our Approach to the Environment
  2. Preventing and Preparing for Major
    Accidents
  3. Managing the Implications of Climate Change
  1. Responsible Resource Management
  2. Protecting Biodiversity

People and Society

  1. Our Approach to People and Society
  2. Occupational Health and Safety

34 Our People

36 Engaging with Our Communities

Appendices and Glossary

  1. GRI Content Index
  1. Data Tables
  1. Glossary

ESG Report 2020

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Disclaimer

Hurricane Energy plc published this content on 22 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 June 2021 08:44:08 UTC.