ENERGEAN OIL & GAS SA

ORGANIZATION NAME:	ENERGEAN OIL & GAS SA
SECTOR:	Petroleum & Gas
ORGANIZATION TYPE:	500+
ANNUAL TURNOVER:	Πάνω από 50 εκ. ευρώ
COMPANY INTRO:
CONTACT DETAILS:	Ευάγγελος Λεώβαρις [email protected]

STRATEGY

1. Strategic, Analysis & Action

ADMINISTRATIVE PRACTICES

ESG (Environmental, Social, Governance) and Sustainable Development are at the heart of Energean’s ETHOS belief system and our business model. Our commitment is not just because it is good business but because we believe this is the right way to run a company. This was the motivation behind our landmark Climate Change Policy & Strategy. Our commitment is undoubted. We were the first E&P to announce a Net Zero target and we have made immediate, major verifiable moves towards that target during the period. In 2021, we delivered a 8% year-on-year reduction in carbon emissions intensity to 18.3 kgCO2e/boe.

See more: sustainability-report-2021.pdf (energean.com), p. 28-29

Strategy

Sustainability is engrained within Energean’s philosophy. Our primary objective is to create fairly distributed and long-lasting value that provides tangible benefits for our company and its stakeholders, the wider society and the environment. To do so, we have identified five key pillars that permeate our stance towards sustainability:

ENVIRONMENT,

OUR EMPLOYEES,

HEALTH & SAFETY,

COMMUNITY RELATIONS, AND

CORPORATE GOVERNANCE.

These are underpinned by our corporate principles and values and guided by international standards and best practices.

Our Business Model and Sustainability

Our existence is not solely grounded on our ability to thrive in financial terms, but also on our focus and ability to generate non-financial value and advance the efforts towards sustainable development. Our model is based upon six capitals of value creation, and when combined with our activities and business support services, it can contribute to the SDGs and provide quantifiable benefits linked to our material topics.

See more: sustainability-report-2021.pdf (energean.com), p. 27

Our Climate Change Strategy

The power of natural gas as a driver of energy transition. The catalyst for & foundation of a more sustainable energy system. Significantly less pollutive in terms of carbon than traditional fuels but also air quality.
All operations must be optimised for energy efficiency and where possible run on green energy.
We invest in cutting edge technology to not only reduce our carbon emissions but also remove carbon from the atmosphere.
We will develop new energy products including CC(U)S and Eco-H2 to continue our pathway towards NZ.
We will use prudent nature-based solutions / offsets to enhance our carbon position.

Our alignment with global frameworks

We are signatory to the United Nations Global Compact (UNGC) and abide by its principles with respect to human rights, labour, environment and anti-corruption.
We are dedicated to effectively promoting the United Nations Sustainable Development Goals (UN SDGs) through our daily operations and CSR initiatives (for detailed information about our actions, see section "Building and maintaining community relations").
In 2021, we became a Proud Signatory of the Terra Carta – the new sustainability initiative of His Royal Highness The Prince of Wales, that puts sustainability at the heart of the private sector.
We aim to maintain our alignment with the Task Force on Climate Related Financial Disclosures (TCFD).
We are participating in the Carbon Disclosure Project (CDP) and have been receiving Climate Change and Supplier Engagement ratings.

We are also collaborating with global, national and regional organisations in our countries of operation. The full list of our partnerships can be found in SDG 17 of our Corporate Social Responsibility (CSR) factsheet, linked to SDG 17 “Partnerships for the Goals” (see section "Building and maintaining community relations")

ESG Framework

Environmental

Reliable and secure supplies of natural gas are the perfect driver for sustainable development. Gas is the catalyst for and foundation of a more sustainable energy system. Proven domestic reserves support both domestic and regional energy needs, and are a source of cleaner, affordable and secure energy. Natural gas replaces more pollutive fuels such as heavy fuel oil and / or coal and provides the necessary foundation for enhanced renewable energy installation. The environmental upside is not restricted to carbon saving. Replacing coal and fuel oil removes pollutants such as NOx / SOx and particulate matter. Developing secure domestic supplies of natural gas saves on the inherent emissions cost of transporting gas either by pipe or LNG tanker. Domestic production will always be more sustainable. Away from our natural gas developments we continue our commitment to sustainably produced energy through our development in the CCS and eco-hydrogen sector. We are proud to be the only Eastern Mediterranean E&P company that has an active CCS project – where we can leverage our upstream technical expertise to create a significant carbon saving to the Greek economy as well as simultaneously evaluating the potential for eco-hydrogen production.

Social

As is the case with all ESG categories, we are committed to running our business in a way that creates value for all our stakeholders, including both our employees and the wider society that host our operations. Energean’s core activities create social value in multiple ways: 1. The development of domestic reserves creates a level of energy security that ensures no one should have to choose between heat and food. 2. Energy security, especially in a broad and diverse and / or rapidly growing industrial economy is vital to protect economic activity, tax revenues and employment security. A lack of secure gas supply can mean the closure of major employers, such as fertiliser or pharmaceuticals plant. 3. The replacement of fuels such as coal and heavy fuel oil from an energy system removes NOx / SOx and particulate matter (PM) from the atmosphere. This creates direct health benefits through lower levels of respiratory diseases.

Governance

Energean implements sound governance, aligned with industry best practices, and is committed to fair competition, respect and improvement of the sites and the living standards of the communities where it is hosted.

See more: sustainability-report-2021.pdf (energean.com), p. 6-7

Challenges

In the wake of the terrible war in Ukraine, the world needs to understand the massive new energy challenges we face. The Eastern Mediterranean is no different to other regions. There must be consideration over long-term demand and supply of energy needs, for affordability and security, and there must also be emergency contingency planning. It is vital to ensure sufficient responsive supply is in place to meet demand of growing populations and developing industrial economies. We need to keep the lights and heating on and food must be cooked. We need to protect jobs and tax revenues. Our priorities for 2022 are based upon three interconnected considerations:

Underwriting energy availability and security through the successful delivery of our projects
Continue on the pathway to our Net Zero commitment by 2050
Deliver a policy to provide sustainable returns to shareholders whilst maintaining re-investment in the company

Maintaining a focus on risk management

The Board operates a risk management framework for the Company and its subsidiaries (together the “Group”) in order to identify, assess, control and monitor all current and emerging risks to the business arising from the achievement of its strategic objectives. KPIs are set annually; and determining the level of risk Energean is willing to accept in the pursuit of these objectives is a fundamental component of its risk management framework. The risk management framework establishes Energean’s internal control and risk management processes.

Risk management - climate change-related

Climate change is a major global concern and a top priority for our business. This is reflected in our strategy, and we apply all our governance processes to climate change-related issues. Responsibility for the governance of climate change issues within Energean rests with the Board. In 2021, our Nomination & ESG Committee, initially formed in 2020, was split in two; thereby creating the Environment, Safety and Social Responsibility (ESSR) Committee. The newly formed Committee has taken over responsibility for climate change and Environment, Safety & Social Responsibility matters.

Energean incorporates climate change-related risks into its investment decision-making. The findings of the scenario analysis exercise, as well as stringent stress-tests for new investments, inform our corporate strategy and investment decision-making, ensuring that climate change-related risks are adequately considered in managing our portfolio.

The Board is responsible for overseeing the risk identification, assessment and mitigation process and undertakes regular assessments of the risks facing the Group, including current and emerging risks that could potentially threaten our business integrity, strategy, operating model, future performance, solvency and liquidity. Moreover, the Board has overall responsibility for determining the nature and extent of the risks it is willing to take in achieving the company’s strategic objectives and for ensuring all types of risks (including all short, medium and long-term climate-related risks) are managed effectively.
Energean has a strong and rigorous risk management processes in place, with climate change-related risks fully integrated into Energean’s multi-disciplinary, company-wide risk management process as per the recommendations of the TCFD. Through the framework, Energean adheres to the latest sustainability and sector-related standards and guidelines (such as TCFD, SASB, and IPIECA) and is able to identify multi-disciplinary risks and opportunities, including climate change-related ones that could affect our company, strategy and operations.
The risk management framework ensures we effectively identify, assess, control and monitor risks to our business, in addition to capitalising on potential opportunities. Climate change-related risks are assessed against their potential financial, legal, physical, market and reputational impact to our company, and key strategic and commercial decisions are assessed based on their financial importance.
Risks and opportunities have been identified in the short, medium, and long-term covering transition risks (policy/legal, technology, market, reputation) and physical risks (acute, chronic) and opportunities in resource efficiency, energy source, products/services, markets and resilience.

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2. Materiality

ADMINISTRATIVE PRACTICES

Oil is the more valuable short term profit commodity. However, just as the European IOCs took the decision fifteen years ago to rebalance towards natural gas, so have we. It is the right thing to do for the world and the communities in which we operate, in line with our core vision: “to create lasting value for all our stakeholders and drive sustainable economic growth in the areas where we operate through a dynamic and innovative approach.” We create sustainable socio-economic value through the provision of secure energy supply across the Eastern Mediterranean. Our production of natural gas is the catalyst for and foundation of a more sustainable energy system. We replace more pollutive fuels and drive sustainable development. Less coal and fuel oil not only creates a carbon saving but a societal value-add. Natural gas saves lives through cleaning the air – reducing SOx / NOx and particulate matter – cutting respiratory diseases. The energy that we produce keeps people warm, it cooks their food and it keeps their jobs safe across a range of industries. Energean is a catalyst for socioeconomic stability during unprecedently volatile times. A secure supply of domestically sourced energy should be seen as a vital policy directive for all sovereign states. One only need look at the historic cooperation between Israel, Jordan, Egypt and the broader Eastern Mediterranean gas community to see how energy can be a force for (geo)political and socioeconomic good.

Materiality

GRI defines material topics to be included in sustainability reporting as those that are expected to be important for representing an organisation’s impacts or those that may influence the decisions of stakeholders. In 2021, we ran a materiality exercise to obtain our stakeholders’ input and reaffirm our focus to those areas that matter the most. Our approach to the materiality analysis involved three phases: identification of topics, consultation with stakeholders for their prioritisation, and validation of results. These are further explored below:

Identification of topics

We referred to well-established sustainability standards and frameworks and examined the wider industry landscape to extract the range of topics that we touch upon through our operations. We consulted the following sources: • The GRI Standards. • The SASB Standards for the oil and gas E&P sector. • The topics indicated as material for the oil and gas E&P sector by the Morgan Stanley Capital Investments (MSCI) sustainability index. • Topics highlighted as material within sustainability and ESG reports of peers and operators in the wider oil and gas industry.

Stakeholder consultation and prioritisation of topics

We distributed questionnaires to internal and external stakeholders, where we requested that they evaluate the significance of the topics on a scale from 1 to 5. This allowed for the elicitation of our stakeholders’ perspectives and the comparative importance of the selected sustainability topics for our company.

Validation of results

We examined the answers provided by our stakeholders to create the materiality matrix and we classified the sustainability topics into three different materiality layers to ensure that we address their interests and priorities throughout this report. We finally categorised the topics into the three ESG pillars.

The resulting list of material topics was amended, in comparison to our last report, as follows:

The topic of Investing in research, development & innovation of green technologies was added.
The topic of Diversity and Inclusion was separated from the previous topic of Safeguarding human rights at work and added as a topic in its own right.
The topics of Creation of employment and Provision of employee training, certifications and employee development were combined into a broader topic named Employment Practices.
The topic Improving supplier social and environmental performance that was given the lowest score in last year’s materiality assessment was removed – a separate section on supply chain practices is included within the latest report.

Material Topics

8. Safeguarding health, safety and security

1. Reducing greenhouse gases and other air emissions & actions against climate change

14. Generating economic value / economic performance of the company

9. Ensuring emergency preparedness

15. Safeguarding business ethics and establishment of transparent relationships with host governments 16. Ensuring regulatory compliance

10. Safeguarding human rights at work

17. Ensuring data security

5. Growing the share of natural gas in the product portfolio

Important Topics

6. Minimising waste and increasing the implementation of circular economy practices

11. Focusing on employment practices

3. Protecting and preserving biodiversity

2. Reducing (non-renewable) energy consumption

13. Building and maintaining community relations

Relevant Topics

12. Fostering diversity and inclusion

7. Investing in research, development & innovation of green technologies

4. Increasing the implementation of water efficiency innovations

Topic	Topic’s Boundaries	Stakeholders affected
Safeguarding health, safety and security	Energean Suppliers & Contractors Local communities	The occurrence of H&S and security incidents will negatively affect our people, those working for us and the communities in our areas of operation. This may lead to reputational damage, regulatory consequences, disruption of business continuity and loss of operating license.
Reducing greenhouse gases and other air emissions & actions against climate change	Energean Suppliers & Contractors Business partners Customers Industry associations	We are dedicated to reducing the greenhouse gas emissions and air pollutants that are the by-product of our operations. Besides wishing act responsibly, we also recognise that failure to manage our emissions effectively may result in future penalties due to stringent regulations, higher decommissioning costs, limited access to capital and reputational damage.
Generating economic value / economic performance of the company	Energean Rating agencies, Banks & Financial institutions Suppliers & Contractors Business partners Local communities	A strong economic performance extends beyond the boundaries of our company and those working with us, as it may positively affect local communities through the creation of shared value for both communities and for governments, through indirect tax payments.
Ensuring emergency preparedness	Energean Suppliers & Contractors Local communities	We are committed to being proactive and prepared to address emergencies. In this way, we will be able to safeguard the safety of our people, suppliers, contractors and the wider community as well as to minimise the negative effects of our operations on the environment and safeguard ecosystem health.
Safeguarding business ethics and establishment of transparent relationships with host governments	Energean Governments & Regulatory authorities NGOs	Ethos characterises all our business activities and we are consistently driven to operate with integrity and transparency, adhering to our Code of Conduct. Among others, this facilitates us to maintain honest and effective relationships with governments, avoid legal implications and preserve our license to operate.
Ensuring regulatory compliance	Energean Governments & Regulatory authorities	We have created a risk management framework to evaluate the risks associated with regulatory compliance and we take a proactive approach to ensure that we comply with all applicable environmental, financial and socioeconomic legislations. This allows us to minimise any legal and regulatory ramifications as well as to maintain our license to operate.
Safeguarding human rights at work	Energean Suppliers & Contractors	Safeguarding human rights is a topic of major importance for us. We have procedures in place that extend to our supply chain to ensure that there are no threats to the rights of our employees and contractors. As an example, we make an annual commitment to anti-slavery in our business through our Modern Slavery Act & Human Trafficking Statement.
Ensuring data security	Energean Suppliers & Contractors Business partners	We have an obligation towards our people, suppliers and business partners to protect sensitive information and minimise risks related to incidents of data breach. This will enable us to maintain relationships bult on trust and further validate our reliability.
Growing the share of natural gas in the product portfolio	Energean Business partners Industry associations	We set an ambitious climate plan and we wish to be at the forefront of the energy transition. We have established a gas-oriented strategy to contribute to sustainable development and create long-lasting value for our shareholders.

See more: sustainability-report-2021.pdf (energean.com), p. 38-41

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3. Objectives

ADMINISTRATIVE PRACTICES

Looking ahead to 2022

Our priorities for 2022 are based upon three interconnected considerations:

Underwriting energy availability and security through the successful delivery of our projects

Beyond the terrible humanitarian effects in Ukraine, there has already been significant volatility in the international energy markets, putting security of supply at risk and giving rise to soaring energy prices. This can have detrimental socio-economic effects as regards job security and taxation revenues across multiple industrial sectors that rely on a secure and affordable source of energy – not to mention the fearful shadow of individual energy poverty. Energean will play a positive role in supporting security of supply in a volatile market through the development of Israeli, Italian and Greek domestic hydrocarbons production. We urge all policy makers to understand the vital socioeconomic contribution that domestically produced energy makes, as it is both more secure and more sustainable than imported volumes. Our first step is to bring the Karish project onstream, which is on track for first gas in Q3 2022. The next steps involve the delivery of all our sanctioned projects to achieve our medium-term targets and successfully execute the Israel growth drilling campaign. Collectively, these steps will enable us to significantly increase the scale of our production and achieve the targets we have set through our gas-focused strategy. The benefits from our operations in Israel extend beyond the boundaries of our company and have the potential to make a positive and long-lasting impact on local communities. Through the Karish project, we are in a position to enhance the socioeconomic conditions of the broader Israeli society in two ways: 1. Continued removal of coal from the energy system which will clean the air and improve respiratory health. 2. Contributing to the creation of healthy competition in the energy market, making the cost of energy more accessible to all.

Continue on the pathway to our Net Zero commitment by 2050

The overarching need to grow sustainably is at the heart of our strategy, and we plan to achieve this by reducing our carbon emission’s intensity, investing in low carbon solutions and developing zero or negative carbon projects. Central to this aim is the establishment of our Climate Change Policy and the development of our Climate Change Strategy, which will effectively guide our efforts towards becoming a Net Zero emitter by 2050. An integral part of our plan is the deployment of Carbon Capture and Storage (CCS) at our Prinos asset, for which we have entered pre-FEED stage (expected to be complete by Q2 2022). Prinos is the first of its kind in Greece and an invaluable project that will help reduce both our own emissions and those of other industries. We are also evaluating other low-carbon opportunities across the rest of our portfolio. The establishment of “Energean Egypt Energy Services”, responsible for evaluating low-carbon technology innovation including potential new business lines in technical solutions, will help us identify, realise and exploit such opportunities.

Deliver a policy to provide sustainable returns to shareholders whilst maintaining re-investment in the company

Energean’s purpose is to become the leading gas focused E&P in the Mediterranean, with the highest of ESG standards at the heart of our operations. Our aim is to grow the company to become a 200 kboed producer and a $1.4 billion per year EBITDAX generator. In 2021, we placed our focus on refinancing to create a more sustainable capital structure. In 2022, our efforts will be concentrated on the definition of our Dividend Policy and on how we can deliver sustainable value to our shareholders. The Policy was announced in March 2022 in Energean’s Full Year 2021 Results, which was published ahead of our Annual Report.

Our targets for 2022 sustainability-report-2021.pdf (energean.com) p. 26

See our progress upon our 2021 targets sustainability-report-2021.pdf (energean.com) p. 24-25

Our Material Topics are linked to the Sustainable Development Goals

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4. Management of Value Chain

ADMINISTRATIVE PRACTICES

Energean Plc. is headquartered in London as a premium listed FTSE 250 and Tel Aviv 35 listed Exploration & Production (E&P) company. It operates in eight countries* across the Mediterranean and the UK North Sea and is active in four main business areas: exploration, development, production and acquisition. Following its initial public offering (IPO) in 2018 and the agreement for the acquisition of Edison E&P in 2019, Energean has positioned itself as the leading independent gas-focused E&P in the Eastern Mediterranean.

Fully Integrated Edison E&P: Energean now operates 29 offshore and 9 terrestrial sites.

Our company collaborates directly with more than 4,000 suppliers and contractors across all its countries of operation. In 2021, our employees in Greece were 295, whereas 596 employees were the total in Energean Group.

We operate within an industry that is inherently hazardous, and this means that effective preparation and prompt response are essential for managing and mitigating the impacts of emergency situations. We take a proactive stance that aims at the avoidance of occurrence of such incidents to the extent possible as well as the early identification of developing crises. Our efforts are focused on maintaining safety and stability, extending beyond the workplace and covering our business associates, the local communities in which we operate and the ecosystems which we affect. Our goals can be articulated as follows:

1 PROTECTING HUMAN LIVES

2 PROTECTING THE ENVIRONMENT

3 PROTECTING TANGIBLE AND INTANGIBLE ASSETS

4 ENSURING BUSINESS CONTINUITY AND SUSTAINABLE DEVELOPMENT

5 PROTECTING THE COMPANY’S REPUTATION

We have systems in place to ensure that we are adequately equipped to handle HSE emergencies, irrespectively of their scale or nature. We have designed comprehensive protocols that enable us to respond and recover from any emergency, crisis and associated business disruption. Additionally, we have established an operational structure including monitoring systems and guidelines, which we continuously control, review and improve.

Commitment from the top

Our approach towards H&S starts at the top, with our CEO and Board of Directors taking all necessary steps to ensure that we always prioritise the health and safety of our people. We have also established an Environment, Safety & Social Responsibility Committee to further strengthen our safeguarding of health and safety across our business operations. The Committee is responsible for evaluating the effectiveness of Energean’s H&S policies and systems, identifying and managing risks, and ensuring compliance with regulatory requirements and applicable standards and guidelines. The Committee meets on a regular basis and it also works closely with the HSE Director and the Head of CSR to design our overall H&S strategy and report on the actions we implement to the Board. In this way, we ensure that all hierarchical levels within our company are engaged with health and safety issues, and that our employees’ responsibility to perform their business activities in a responsible and safe manner is supported through effective policies, procedures and controls.

Business ethics

Communication with stakeholders

Acting to address our stakeholders’ needs and priorities

We aim to operate responsibly across all facets of our activities and endeavours.

Economic aspects, by creating employment opportunities through our presence in multiple countries, promoting economic growth in local communities via our procurement practices, and combatting poverty through our donations.
Environmental aspects, by acting to achieve our long-term commitment to become a Net Zero emitter by 2050, implementing actions to minimise our overall environmental footprint in terms of emissions, energy, waste, water and biodiversity, and designing initiatives to raise awareness with our stakeholders and local communities on environmental issues.
Social aspects, by providing access to food and proper nutrition as a means of reducing hunger, promoting the health and safety of local populations, offering educational opportunities, and implementing initiatives to reduce inequalities and safeguard the human rights of all, and especially of vulnerable people.
People aspects, by promoting the health, safety and wellbeing of our people through a series of systems, practices and actions as well as providing them with training and career progression opportunities.
Compliance aspects, by adopting the latest EU directions and legislation relevant to E&P activities and striving to be in line with all laws and regulations applicable to our business activities.
Cultural aspects, by supporting cultural festivals, protecting areas of cultural heritage, and designing culture-related events.
Community health, safety and security aspects, by evaluating and mitigating any potential risks and impacts to the health, safety or security of local communities during the lifecycle of our projects and by taking all necessary measures (such as emergency response drills) to prevent exposure to hazards or pollution. To this extent, Energean is aligned with the principles of the International Finance Corporation’s (IFC) Performance Standard 4 on Community Health, Safety and Security.
Land acquisition and involuntary resettlement aspects, by acting to avoid or minimise any physical and/or economic displacements that derive from our operations. We have established various communication platforms such as stakeholder and community engagement processes, access to personal contact and our website for specific concerns. To this extent, Energean is aligned with the principles of IFC’s Performance Standard 5 on Land Acquisition and Involuntary Resettlement.
Cultural heritage aspects, by complying with applicable laws on the protection of cultural heritage. To this extent, Energean is aligned with the IFC’s Performance Standard 8 on Cultural Heritage.
Stakeholder engagement aspects, by working closely with our stakeholders and local communities to improve our overall performance in relevance to our interactions with people and the environment, and facilitating public discussions on the opportunities we provide as well as on the impacts of our operations.

We aim to be an active corporate citizen and a contributing member to the communities where we operate. We operate with respect and maintain good neighbour relationships, also demonstrated through zero significant disputes with local communities during the last year. We invest in strong relationships founded in trust, transparency, and cooperation, to thrive and create shared value from our operations. Thus, we engage with different stakeholders in an ongoing open dialogue and organise ad hoc meetings and consultations to maintain effective communication channels. We see our support for local communities not only as a moral duty but also as a way to further support the realisation of the UN SDGs. We firmly believe that as an enterprise we have duties not only towards our shareholders and clients, but to the communities of which we form a part. We are signatories to the UN Global Compact and we align our performance with its ten principles for the protection of the environment, of human and labour rights and the fight against corruption. We do not see ourselves as isolated from societal challenges, but as catalysts for progress wherever we operate.

See more: sustainability-report-2021.pdf (energean.com), p. 65-69, 72

Procurement practices

Energean’s supply chain has expanded significantly following the Edison E&P business acquisition. We have maintained existing successful relationships in the new locations we operate which offer the opportunity to the enlarged Energean organisation to leverage on new supply chain resources, structures and capabilities. We endeavour to maintain responsible procurement practices, characterised by our Ethos and our corporate values, by focusing not only on increasing efficiency and on achieving operational excellence, but also on taking action to promote sustainability principles throughout our supply chain. Meanwhile, we wish to create prosperity in the communities in which we operate by sourcing non-specialist goods and services from local businesses, thereby stimulating growth in the local economies and instigating a positive multiplier effect. To further strengthen our procurement practices, we are in the process of developing a new Group Procurement Policy. Among other functions, it will enable us to better integrate ESG considerations in the supply chain by introducing two initiatives, Green and Local Procurement:

Green Procurement: Encouragement of procurement of environmentally friendly goods and services and selection of vendors who are actively working towards improving their performance in the following areas:
Greenhouse gas (GHG) emissions
Consumption of natural resources
Waste production • Compliance with local and international labour standards
Health impacts.
Local Procurement: Encouragement of contracting and procurement of goods and services from local vendors, where such goods and services are in all significant aspects comparable to those available on the global market and meet our requirements

The importance we place on sustainability extends to all our business associates, and selecting with whom we engage, allows us to foster continuous improvement and share best practices. While we cannot control or directly affect their management and performance on sustainability-related issues, we seek to engage with suppliers and contractors who share the same principles and values. At the same time, our business partners are expected to operate in full alignment with all relevant laws and regulations as well as our HSE, ethical and corporate social responsibility standards. Collectively, these requirements are thoroughly described in our established HSE Policy for Contractors.

Focusing locally

Wishing to be an active member in the communities where we operate, our efforts are targeted towards collaborating with local suppliers and contractors whenever possible. In turn, we believe that this will create shared value and enhance the overall socioeconomic conditions within the local communities. Being a key energy player in the Eastern Mediterranean, we have placed our focus on local content. 65% to 90% of our suppliers in Greece, Egypt, Israel and Italy are local. Furthermore, our emerging role and positive footprint on the broader Israeli society is not only restricted to our Karish project but further enhanced via our increased spending on local suppliers, which shows a significant rise for the fourth consecutive year. Our expenditure on local vendors in Israel was increased by approximately 49% since 2020.

See more: sustainability-report-2021.pdf (energean.com), p. 73

Generating economic value

2021 was a financial year that returned record financial results with solid performance from existing assets resulting in an approximately 50% increase in revenue year-on-year.

Key figures:

50% year-on-year increase in revenues to $497 million (from $336 million pro-forma in 2020).
Financing of the Karish project in Israel surpassing expectations in 2021 securing $1billion liquidity.
Issuance of $2.5 billion Israel project bond and $450 million corporate bond, extending average life of debt to approx. 6 years. €100 million state backed loan for Epsilon development signed. Achieved blended cost of debt of c.5.5%.
Record low Egypt net receivables position on 31 December 2021 of $95 million (from $157 million in 2020 and $222 million in 2019).
We doubled the amount paid to our providers of capital to $189 million in 2021 (from $86 million in 2020).
Full integration of Edison E&P:
Timely and efficient system integration of Edison E&P with Energean’s own system. Development of financial processes manuals for all financial, procurement, legal aspects so that all users can have access to clear instructions regarding Energean’s internal controls and systems' use.
Incorporation of all of Edison E&P terrestrial and offshore operational sites reaching a total of 29 offshore operational sites and 9 terrestrial sites for Energean.

Our existence is not solely grounded on our ability to thrive in financial terms, but also on our focus and ability to generate non-financial value and advance the efforts towards sustainable development. Our model is based upon the six capitals of value creation, and when combined with our activities and business support services, it can contribute to the SDGs and provide quantifiable benefits linked to our material topics.

See more: sustainability-report-2021.pdf (energean.com), p. 27

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PROCEDURES

5. Responsibility

ADMINISTRATIVE PRACTICES

Integrating sustainability considerations within our governance structure We strive for responsible operations across all financial, environmental and social aspects that pertain to our business activities and we aim to fully embed sustainability considerations into our strategic planning and decision-making procedures, guided by our core values and corporate principles. To sustain the relationships that we have built with host governments, our stakeholders and the local communities, we focus on improving our management and performance on ESG issues, and this starts with integrating sustainability into our governance structure and practices.

Board of Directors

The Board plays a vital role in developing and maintaining the Group’s culture and values by setting the “tone from the top”, determining the behaviours of the Group expected by the Board and ensuring that ethical standards are maintained.

Environment, Safety & Social Responsibility Committee

Evaluates Energean’s policies and systems for identifying and managing ESG risks, including identification of emerging risks such as climate change risks and proposes mitigation measures.

Executive Committee

Operates under the leadership of the CEO and is accountable to the Board of Directors, responsible to execute the Company strategy as defined by the Board of Directors also in relation to climate change and manage the business in the best way to achieve strategy’s objectives.

Our BoD and Board Committees actively engage with ESG-related risks and opportunities and set the tone for the targets we set in relation to climate change, health and safety, human rights, value creation, social responsibility, and business ethics. Our Board is responsible for charting our overall approach to sustainability. In 2021, we established an Environment, Safety and Social Responsibility Committee (ESSR), responsible for:

The evaluation of the effectiveness of the group’s policies and systems for the identification and management of relevant risks.
The assessment of the group’s policies and systems to ensure compliance with applicable regulatory requirements and international guidelines.
The assessment of the company’s performance regarding the impact of decisions relating to health, safety and corporate social responsibility.
The evaluation and oversight on behalf of the Board of the quality and integrity of reporting to external stakeholders concerning ESSR matters.
The review of results of independent audits of the group’s performance relating to ESSR matters, review of any strategies and action plans in response to issues raised and recommendations to the Board. Our Audit & Risk Committee is responsible for a holistic overview of any multi-disciplinary risks facing the company, including but not limited to sustainability and ESG risks. As such, it complements the functions of our Environment, Safety & Social Responsibility Committee and strengthens our overall practices by adding an additional layer of Board-level engagement with sustainability matters.

Climate-related governance

Board oversight

Climate change is a major global concern and a top priority for our business. This is reflected in our strategy, and we apply all our governance processes to climate change-related issues. Responsibility for the governance of climate change issues within Energean rests with the Board. In 2021, our Nomination & ESG Committee, initially formed in 2020, was split in two; thereby creating the Environment, Safety and Social Responsibility (ESSR) Committee. The newly formed Committee has taken over responsibility for climate change and Environment, Safety & Social Responsibility matters.
The ESSR Committee evaluates Energean’s policies and systems for identifying and managing ESG risks, which includes identification of emerging risks such as climate-related risks, and proposes mitigation measures. The committee further ensures Energean’s compliance with relevant regulatory requirements and/or applicable international standards and guidelines. The committee follows political and regulatory discussions and developments on an international, EU-wide and national level on a variety of ESG issues, including energy, climate and environment, industrial and geopolitical trends.
The ESSR Committee convenes every quarter (when the Board also meets) and presents Energean’s carbon emissions performance and KPIs to the Board. The Committee also has regular meetings outside scheduled Board meetings to monitor company performance and to ensure the company stays on track to meet its climate-related targets and ambitions.
In addition, the Audit and Risk Committee also looks at climate change-related issues. This Committee aims to ensure the identification of multi-disciplinary risks (including climate change-related risks), which may impact more than one part of the company, and also assesses the opportunities that emerge from rapid and unforeseen changes. More specifically, the Audit and Risk Committee is charged with reviewing investments for climate-related risks (among other risks). Furthermore, the Committee is responsible for ensuring that measures to mitigate and adapt to the risks identified are efficient and implemented as necessary. Management oversight
The CEO is ultimately responsible for identifying and assessing business and climate-related risks, defining the strategy and approving action plans suitable to control and mitigate the identified risks. Furthermore, the CEO oversees the company’s overall environmental performance and sets climate performance expectations and targets, including the annual remuneration policy, which links executive pay to the achievement of emissions reduction targets. The CEO discusses all relevant actions and activities related to climate change and the energy transition with the Board. The CEO and the Board regularly discuss climate change-related issues such as the climate change policy, investment decisions where climate change considerations are a major driver, and the carbon price’s impacts on Energean’s financial future.
The operational management of climate change issues is conducted by the HSE Director. The HSE Director reports directly to the CEO and provides updates to the Board on a regular basis. The HSE Director maintains and oversees the development of Energean’s Corporate HSE and Climate Change Policies, defines appropriate training programmes and drills for the entire company to increase safety, environmental and climate change awareness, and monitors technological developments and opportunities to help achieve defined climate change targets. The HSE Director is tasked with ensuring the company stays on track o meet its Net Zero 2050 target. The HSE Director oversees the monitoring of Energean’s carbon emissions throughout all assets and reserves and defines the carbon emission factors that Energean’s financial team uses to understand the financial impact of climate change on Energean’s portfolio. Furthermore, the HSE Director assesses the climate risks and opportunities in cooperation with Energean’s financial, economic, and technical departments.

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6. Rules & Processes

ADMINISTRATIVE PRACTICES

At Energean, we believe that strong governance practices are an essential driver for the success and operational excellence of our company. Our Board of Directors (BoD) oversees Energean’s strategic planning and execution, including but not limited to the Net Zero transition, the protection of our employees’ and communities’ health and safety, and the creation of long-lasting value.

Board Committees

In line with the UK Corporate Governance Code requirements, the Board has established four committees comprising predominantly Independent Non-Executive Directors, including an Environment, Safety & Social Responsibility Committee.

Audit & Risk Committee

Environment, Safety & Social Responsibility Committee

Remuneration & Talent Committee

Executive Committee

Risk management

Audit & Risk Committee Looks at climate change-related issues, aiming to ensure the identification of multi-disciplinary risks including climate-related risks, charged with reviewing investments for climate-related risks (among others), responsible for ensuring that measures to mitigate and adapt to the risks identified are efficient and implemented as necessary.

Outline the strategy: Set a sustainable strategy to achieve Energean's near and long-term goals.

Define strategic objectives: Set clear strategic objectives supported by relevant KPIs.

Define risk appetite: Determine the level of risk that the Group is willing to accept in the pursuit of its strategic objectives.

Identify key risks: Identify key risks to the achievement of strategic objectives, through discussions at a Board, Senior Management Team, regional and functional level.

Apply risk assessment process: Apply the Group risk assessment process to ensure the ongoing management of key risks to our objectives.

Deliver strategic objectives: Delivery of strategic objectives through informed risk-based decision making.

Risk oversight and governance

Overall responsibility for risk oversight and the effectiveness of the Company’s risk management and internal control systems rests with the Board. Principal risks, including emerging risks, as well as progress against KPIs, are reviewed at each quarterly scheduled Board meeting, and deep dives on identified risks are undertaken by the Audit and Risk Committee, when deemed appropriate. The Group’s framework for risk management promotes a bottomup approach to risk management with top-down support and challenge. The risks associated with the delivery of the strategy and work programmes and the associated mitigation measures and action plans are maintained in a series of risk registers at Group, audit and project level. Reporting of these risks within the organisation is structured so that risks are escalated through the various business units and functions to Board committees and to the Board itself. Energean’s Executive Management Team is responsible and accountable for overseeing and monitoring risks that fall under its identified remit, while the Audit and Risk Committee is additionally responsible for continuously evaluating the effectiveness of the Group’s system of internal control and risk management methodology. They key objectives of Energean’s audit function are to provide independent and objective assurance on risks and controls to the Board, the Audit & Risk Committee and senior management, and to assist the Board in meeting its corporate governance responsibilities. During the year the company appointed an internal resource to co-ordinate internal audit projects, align the internal audit risk assessment process with the wider board risk register reporting and facilitate communication between internal audit, Audit & Risk Committee, Senior Management and process owners. On an initial to-date base (2018-2021), ten audits have been completed, triggering 146 management actions. During 2021, we undertook three internal audits. The Committee did not identify any matters that required disclosure as a significant failing or weakness in internal controls.

Financial Disclosure and Transparency

We support financial transparency in our industry because we believe it will lead to long-term sustainable growth. We are committed to transparent compliance in the jurisdictions where we work and comply with a number of voluntary standards. We report payments to governments in our Annual Report - in compliance with EU legislation. As in previous years, our 2021 disclosures included the payments to governments, such as corporate income tax, royalties, licence fees and bonuses. As a result of our policies and systems, we recorded zero incidents of corruption or bribery within 2021.

Internal Governance and Controls

We have made it one of our first priorities to build and sustain a strong internal governance structure and mechanism to be able to effectively monitor our financial data and be capable of meeting our obligations and delivering growth. In this respect, our finance and internal audit department can compare favourably to companies of a much larger scale. In order to sustain this performance, we aim to conduct at least three internal audits annually in order to effectively and consistently monitor our financial data so that we can be able to capitalise our revenues and retain our credibility towards our creditors and the public. We have also separated the monitoring of costs and investments that are associated with emissions reduction separately, in order to be able to maintain a keen eye on this company priority.

Business ethics

Ethical behaviour and integrity underscore how we operate at Energean. We foster sound business practices and we are committed to acting professionally, fairly and with integrity in all our business dealings and relationships wherever we operate. Our Code of Conduct assists us in reaching our goals to (i) operate with the highest professional, moral and ethical standards, and (ii) fulfil our responsibilities towards our shareholders, government authorities, business associates and the wider society. The Code has been designed to establish a clear framework for how everyone at Energean is expected to work. It is underpinned by our corporate values and business principles and applies to all our employees and members of the Board. Energean’s legal department is responsible for evaluating the effectiveness of the Code as well as reviewing and proposing amendments in light of changes in applicable laws and regulations. Finally, any violations of the Code of Conduct will be met with disciplinary consequences and prosecution under criminal law. In 2021, there were zero violations of our Code.

Regulatory compliance

Full compliance with all laws and regulations that are pertinent to our operations is a top priority for Energean, constituting a central pillar of our Corporate Culture and Business Ethics Policy. We are dedicated to adhering to all regulations and laws established in the countries where we operate, and we further abide by the decisions set by the United Nations and the European Union. While we expect from our all employees and business associates to act lawfully, the overall responsibility for regulatory compliance lies within our legal department, which acts in a proactive and timely manner and continuously monitors the legal and regulatory environment in order to minimise any risks of non-compliance.

Identifying, managing and minimising compliance risks

At Energean, our commitment to operate with the highest standards of business ethics and integrity is supported by our robust risk management framework, which guides our efforts and helps us in managing regulatory compliance risks. We apply a number of measures to do so with our internal control system holding the most prominent position, as it allows for the identification, assessment, prioritisation and mitigation of compliance risks associated with all relevant environmental, socioeconomic, financial and governance aspects of our operations. Our recent expansion through the acquisition of Edison E&P, together with the continuously rising regulatory complexity, called for a more holistic understanding of the compliance risks that we face. Once again, Energean worked proactively by conducting a regional (in Italy) as well as a Group-level ethics and compliance risk assessment to identify compliance risks embodied in laws and regulations impacting the company.

Health & Safety compliance: Our HSE Policy enforces our commitment to operate in full compliance with health and safety related laws and regulations and guides our daily actions throughout all our operations. Moreover, our robust Health & Safety Management System is certified with ISO 45001 across all but one of our assets* and is in accordance with international standards and best practices. Finally, the establishment of the Corporate Major Accident Prevention Policy (CMAPP) guarantees the proactive approach that we have taken to identify all hazards arising from our business activities and reduce the health and safety risks that could have an effect on our people.

Environmental compliance: Our Environmental Management System is certified with ISO 14001 across all our operating sites and is guided by national and international laws as well as European directives. We strive to incorporate environmental aspects in our risk management processes and we continuously monitor key performance indicators on emissions, energy, water, waste and biodiversity to safeguard our adherence with all applicable laws and regulations.

Financial compliance: Financial compliance is a responsibility of our Directors. Our financial statements are externally audited to establish their adherence to applicable laws and legislations, and during this process, compliance reviews are carried out based on the International Financial Reporting Standards (IFRS).

Socio-economic compliance: Energean operates in full compliance with laws and regulations in the social and economic area. No litigation concerning respect to labour laws, human rights laws, anti-discrimination and related laws and regulations has been recorded throughout our operations and the relevant jurisdictions

Our HSE Management System

We implement a well-structured and robust Health, Safety and Environment (HSE) Management System and associated procedures across the group companies, to prevent and mitigate significant negative occupational health and safety impacts. The recent shift of our approach - previously guided by rule-dominated demands - to a human-focused perspective has highly contributed to the effectiveness of our HSE Management System. Following the acquisition of Edison E&P, we introduced a common system that is aligned with the requirements and principles of international standards and European safety directives, thus facilitating our H&S efforts across the entirety of our assets. Furthermore, our HSE Management System requires that an annual H&S plan should be prepared for each operational site, setting out our objectives, key performance indicators to be monitored, resources, responsibilities and proposed activities to help us improve our performance. We have further established a Safety Committee, whose function is of critical importance for the attainment of our goals. Among its key responsibilities is to ensure that competent personnel and adequate resources are allocated for the effective management of H&S aspects at all levels within our company as well as to ensure that each site is not exposed to unacceptable risks.

Emergency preparedness

Our Corporate Major Accident Prevention Policy (“CMAPP”) defines our obligations and commitments to be in full compliance with safety regulations, and more specifically with the Offshore Safety Directive 2013/30/EU and the Seveso Directive 2012/18/EU. Energean’s Board has approved the CMAPP and is responsible for ensuring that it complies with the relevant regulations, our corporate principles and Energean’s Code of Conduct. The CMAPP is closely linked to our Group Crisis Management Plan, which helps us deal with sudden and unexpected events that could cause business disruption. We continuously update and expand the Plan to include all our new assets and operations and meet requirements on the strategic, incident management and response level. To further strengthen our approach, we established emergency management plans in each country that specify the measures to be taken and the resources needed to effectively tackle emergencies. In 2021, we performed numerous oil spill response drills and exercises in our offshore sites in Italy and Greece as well as 8 emergency response drills in our operated assets and 272 drills in our contractors’ sites. Meanwhile, we organised internal and external trainings on emergency response issues to raise awareness among employees and stakeholders and provide them with the tools to act safely and effectively in any arising situations.

Our Stop Work Policy

Our desire to be proactive and effective in addressing emergency situations does not solely rely on the practices we implement and the systems we have in place. It is rather a responsibility of everyone working for Energean. In 2021, we established a Stop Work Policy to ensure that we offer a safe and secure environment against risk or exposure to personal harm, property damage or adverse effects to the environment. The Policy empowers our employees and contractors by allowing them to act on the termination of any activity (a “Stop Work Order”) whenever they feel that any person, property or the local environment is at risk. In this way, we place an additional safety layer to strengthen Energean’s highest standards of safety.

Data security

Energean strives to safeguard the fundamental right of its employees, suppliers, contractors and customers to privacy. Unavoidably, our activities involve the acquisition, storing and processing of various types of information, which in many cases is considered confidential. As such, we have the responsibility to ensure that such data should be protected at all times to ensure its availability, integrity and confidentiality. In compliance with EU GDPR legislation, in force since May 2018, we have published our privacy policies and notices and made those accessible to all workforce on Intranet. In 2021, our privacy policies and statement has been reviewed to ensure compliance with Italian rules and an official translation of those in Italian language was communicated to all new workforce across the Group. In addition, mandatory training is planned to be relaunched within 2022 through the Energean learning platform. We reported no GDPR incidents in 2021. We are constantly improving our cybersecurity measures to protect sensitive information and safeguard our assets against loss, damage, misuse and theft, and we also enforce responsible and appropriate use of information systems through our Code of Conduct. To create a culture of prevention and increase awareness, we have also designed a training module for our employees as a way of familiarising them with the requirements of robust data protection. In 2021, we recorded zero complaints, incidents or breaches of cybersecurity and data privacy.

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PERFORMANCE INDICATORS

Board Committees

Audit & Risk Committee

Environment, Safety & Social Responsibility Committee

Remuneration & Talent Committee

Executive Committee

Risk management

Outline the strategy: Set a sustainable strategy to achieve Energean's near and long-term goals.

Define strategic objectives: Set clear strategic objectives supported by relevant KPIs.

Define risk appetite: Determine the level of risk that the Group is willing to accept in the pursuit of its strategic objectives.

Identify key risks: Identify key risks to the achievement of strategic objectives, through discussions at a Board, Senior Management Team, regional and functional level.

Apply risk assessment process: Apply the Group risk assessment process to ensure the ongoing management of key risks to our objectives.

Deliver strategic objectives: Delivery of strategic objectives through informed risk-based decision making.

Risk oversight and governance

Financial Disclosure and Transparency

Internal Governance and Controls

Business ethics

Regulatory compliance

Identifying, managing and minimising compliance risks

Our HSE Management System

Emergency preparedness

Our Stop Work Policy

Data security

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7. Monitoring

ADMINISTRATIVE PRACTICES

Energean has issued four annual Sustainability Reports. The latest one presents our approach, actions, and performance on a broad range of non-financial aspects during 2021 and complements our Annual Report that is publicly available on our official website: www.energean.com. The report reflects the importance of ESG & CSR to Energean, how they are at the heart of our operations.

We are committed to continuously enhance our ESG (Environmental, Social, Governance) performance and output for the benefit of all our stakeholders. Through the Sustainability report we aim to increase transparency and raise awareness on the responsible way that we conduct our business activities, ultimately wishing to inform readers on our journey towards sustainable operations.

The report covers the most material topics pertaining to our company, as derived from the materiality assessment that we lately performed. This report is designed to transparently demonstrate our commitment to the highest ESG standards. We were the first E&P company to commit to a Net-Zero target and have made substantial progress on our road map; taking a similar decision to IOCs that chose to focus on natural gas. Gas has inherent benefits to the environment in terms of lowering carbon emissions and providing the catalyst for and foundation of enhanced renewable energy.

We are very proud of the clear linkage between our material topics and the 17 United Nations Sustainable Development Goals (UN SDGs). We are committed to contributing to and promoting the Sustainable Development Agenda.

The Sustainability report has been prepared in accordance with the “Core” option of the Global Reporting Initiative (GRI) standards, the Sustainability Accounting Standards Board (SASB) Oil and Gas E&P standard, and in line with the Principles of the United Nations Global Compact (UNGC).

Any restatements of information included in our previous reports have been indicated within the body of this report and have also been included in the "Energean in Numbers" section.

The Sustainability Report has been externally assured by Ernst & Young Greece for the second consecutive year. Please see the independent assurance statement on p. 105

You can see our performance indicators in the GRI Content Index sustainability-report-2021.pdf (energean.com), p. 96-100, as well as the SASB Content Index sustainability-report-2021.pdf (energean.com) p. 102-103 and the UNGC on p. 104

TCFD Pillar: Metrics & Targets

Enhanced TCFD-aligned disclosures are provided within our 2021 Annual Report

GHG emissions disclosure

Energean used internationally recognised standards and guidance to calculate its GHG emissions. We followed the recommendations of the Greenhouse Gas Protocol, as well as guidance from IPIECA, the UK’s Department for Environment, Food and Rural Affairs (DEFRA), the International Energy Agency (IEA), the UN Intergovernmental Panel on Climate Change (IPCC) and the EU Emission Trading System (ETS). Our Scope 1 emissions linked to the Prinos site in Greece, which falls under the EU ETS, have been verified by TUV Austria Hellas and our Scope 1&2 emissions will be verified to ISO 14064-1 in Q2 2022. GHG emissions management and targets
Energean is fully committed to taking action on climate change. In a strong show of leadership and foresight, Energean was the first E&P company in the world to announce a Net Zero 2050 target. This will be achieved initially by reducing the company’s absolute Scope 1 and 2 emissions through increased efficiency of production installations by optimising performance and the transition to low or zero carbon electricity use. Remaining emissions will be balanced with an equivalent amount sequestered or offset, or through buying enough carbon credits to make up the difference.
The company is currently developing a Carbon Capture and Storage (CCS) project, evaluating a Blue-Hydrogen production unit and assessing opportunities to invest in natural-based solution projects that will create carbon removals from the atmosphere. At Energean, we believe there is considerable opportunity to employ efficient CCS technologies in the regions we operate. We have already entered the pre-FEED for the CCS site in Prinos asset, switched to ‘green’ electricity across all our operated sites, and introduced a zero routine-flaring policy. Energean strives to become a leader in CCS in the Eastern Mediterranean and is confident that we will be part of the solution.
In the medium term, we are further increasing the use of low carbon energy sources, focusing on zero carbon electricity, and hydrogen. Energean assigned the management of climate change projects to Egypt Energy Services, engaged with energy efficiency projects also related to low carbon energy generation and carbon sequestration and Energean’s Engineering, Technology, Decommissioning & Energy Transition Department.

Our performance highlights on p. 12-13

Energean in numbers, on p. 82-93

The Environment, Safety & Social Responsibility Committee Evaluates Energean’s policies and systems for identifying and managing ESG risks, including identification of emerging risks such as climate change risks and proposes mitigation measures. The Committee convenes every quarter and reviews the Board papers on Energean’s carbon emissions performance and KPIs where possible when the Committee meets before a Board meeting.

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8. Incentive and reward systems for Sustainable Development

ADMINISTRATIVE PRACTICES

Remuneration & Talent Committee determines and reviews appropriateness of the remuneration policy considering all required factors including climate change. This includes the link drawn between executive pay and ESG performance as of 2020, an action that validates our determination to align with best practice.

The Committee has delegated responsibility for determining policy for Executive Director remuneration and setting remuneration for the Chairman, Executive Directors and senior management. The Company has in place a long-term incentive plan (“LTIP”) for the Executive Directors and senior management, which is designed to promote the long-term success of the Company by assessing performance over three years and is linked to absolute and relative share price performance against a peer group of other related companies, as well as emission reductions.

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PERFORMANCE INDICATORS

The Company has in place an annual bonus scheme which incentivises management to progress with key projects such as first gas at Karish, entering into key gas contracts, as well as measures related to financial liquidity and ESG. It requires Executive Directors to defer one third of the bonus into shares to be held in trust for 2 years, these shares are then subject to a further holding period. This further aligns the Executive Directors with the long-term interests of the shareholders.

The Board will be seeking the approval of its new remuneration policy at the 2021 AGM. After discussions with key stakeholders, the Remuneration Committee agreed that the policy should be renewed a year earlier than scheduled in order to reflect the changes to the size of the group and to ensure that the policy remains relevant and appropriate.

The members of the Remuneration Committee are required to exercise independent judgement and discretion when authorising remuneration outcomes, with regard to Company and individual performance and wider circumstances. No Director is involved in deciding their own outcome; and when discussing fees for the Chairman, Karen Simon will excuse herself from these discussions.

Further details of the role and activities of the Remuneration Committee and the Remuneration Policy are found on Energean’s Annual Report.

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9. Stakeholder Engagement

ADMINISTRATIVE PRACTICES

We have always regarded interacting with our stakeholders a vital part of the progress and overall success of our company. We have created communication channels with a wide range of stakeholder groups to allow for the continuous flow of information, thoughts, and concerns. We base our communications with our stakeholders on transparency and mutual respect, and addressing our stakeholders’ needs and interests is high on our agenda. Our stakeholders are defined as entities or individuals that are reasonably expected to be substantively influenced by the organisation’s activities, or those reasonably expected to influence Energean’s ability to implement its strategy or achieve its objectives. Our stakeholders are grouped as shown in the following table, along with the type and frequency of communication. The last column indicates priority areas for each stakeholder group, expressed through their answers in the materiality survey carried out in the context of this report.

Also, via our materiality analysis we record our stakeholders’ interests and priorities and we ensure that we address these throughout our Sustainability report.

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PERFORMANCE INDICATORS

SRS-102-44:

Stakeholder Group	Topics of Concern
Employees	Safeguarding human rights at work Safeguarding health, safety and security Ensuring emergency preparedness Generating economic value / economic performance of the company Safeguarding business ethics and establishment of transparent relationships with host governments
Customers	Increasing the implementation of water efficiency innovations Safeguarding human rights at work Fostering diversity and inclusion Safeguarding business ethics and establishment of transparent relationships with host governments Ensuring data security
Suppliers & Contractors	Investing in research, development & innovation of green technologies Safeguarding health, safety and security Ensuring regulatory compliance Safeguarding business ethics and establishment of transparent relationships with host governments Ensuring emergency preparedness
Business Partners	Reducing greenhouse gases and other air emissions & actions against climate change Safeguarding health, safety and security Ensuring emergency preparedness Ensuring regulatory compliance Safeguarding business ethics and establishment of transparent relationships with host governments
Local Communities	Safeguarding health, safety and security Ensuring emergency preparedness Safeguarding human rights at work Safeguarding business ethics and establishment of transparent relationships with host governments Protecting and preserving biodiversity
Industry Associations	Investing in research, development & innovation of green technologies Ensuring regulatory compliance Safeguarding health, safety and security Safeguarding human rights at work Ensuring emergency preparedness Generating economic value / economic performance of the company
NGOs	Building and maintaining community relations Safeguarding health, safety and security Safeguarding human rights at work Fostering diversity and inclusion Reducing greenhouse gases and other air emissions & actions against climate change Ensuring emergency preparedness
Media	Safeguarding health, safety and security Ensuring emergency preparedness Safeguarding human rights at work Safeguarding business ethics and establishment of transparent relationships with host governments Building and maintaining community relations
Shareholders & Investors	Generating economic value / economic performance of the company Reducing greenhouse gases and other air emissions & actions against climate change Safeguarding health, safety and security Safeguarding human rights at work Ensuring emergency preparedness
Rating agencies, Banks & Financial institutions	Reducing greenhouse gases and other air emissions & actions against climate change Generating economic value / economic performance of the company Safeguarding business ethics and establishment of transparent relationships with host governments Safeguarding health, safety and security Ensuring regulatory compliance
Governments & Regulatory Authorities	Ensuring emergency preparedness Safeguarding health, safety and security Reducing greenhouse gases and other air emissions & actions against climate change Safeguarding business ethics and establishment of transparent relationships with host governments Safeguarding human rights at work
Thought Leaders & Academia	Ensuring emergency preparedness Investing in research, development & innovation of green technologies Generating economic value / economic performance of the company Safeguarding business ethics and establishment of transparent relationships with host governments Reducing greenhouse gases and other air emissions & actions against climate change

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10. Product Responsibility and Innovation

ADMINISTRATIVE PRACTICES

The acquisition of Edison E&P was instrumental in enabling us to become the leading independent gas producer in the Mediterranean and one of the largest independent E&P companies listed on the LSE by market capitalisation. The acquisition enabled us to diversify our operational base to eight countries, added a gas-weighted reserve base to our asset portfolio and provided a solid basis for organic growth opportunities. Our position in Israel was further strengthened through the acquisition of Kerogen’s 30% stake in Energean Israel, which added 219 MMboe of 2P reserves (completed in February 2021)* . The Karish project, approximately 92.5% complete at year-end 2021, holds a prominent position among our assets, and is expected to deliver substantial material free cash flows and sustainable returns for our shareholders. Meanwhile, gas sales agreements were signed with Israeli offtakers for the supply of gas, with provisions that protect against downside commodity price risk. Other projects are on track to delivering additional growth, with notable projects among these being:

Karish North (Israel) – FID in January 2021, EPCIC contract awarded, first gas H2 2023.
Second Oil Train (Israel) – FID in 2021, enables liquids production to approximately 32 kbopd.
Second Gas Sales Export Riser (Israel) – FID in 2021, enables gas production to 8 Bcm/year.
Growth drilling programme – 3 firm and 2 optional wells (March 2022).
NEA/NI (Egypt) – first gas expected in H2 2022.
Epsilon (Greece) – €100m funding package secured, due online in H1 2023.
$2.5 billion Israel project bond and $450 million corporate bond issued, extending average life of debt to approx. 6 years achieving blended cost of debt of c.5.5%.
Cassiopea (Italy) – on track to deliver first gas in 1H 2024.
Recent agreement signed between Energean and the Israel Electric Company (IEC) (March 2022), optimising our gas sales portfolio and ensuring full utilisation of our FPSO capacity. We are on track to achieve over 200 kboepd in the medium term, which will bring us closer to our aspiration of leading the energy transition in the Eastern Mediterranean in the coming years.

Environmental

Energean is the first oil and gas E&P company to set a target for Net Zero emissions by 2050. 2021 was the year that Energean became a natural gas focused company, with 81% weighting to gas. This decision was made in line with our landmark sustainability plan and is based on the belief that natural gas is – as evidenced by its inclusion in the EU Taxonomy - a sustainable transitional energy source.

Energean is focused on reducing its carbon emissions and is working towards its 2050 Net Zero target. In 2021, we delivered a 8% year-on-year reduction in carbon emissions intensity to 18.3 kgCO2 e/boe, when considering 2021 consolidated data versus 2020 pro forma performance data on an equity share basis. Actions taken in 2021 to achieve this reduction includes implementing a zero flaring policy across its operated sites and switching to renewable-sourced electricity in Italy — green electricity contracts were put in place for Israel and Greece in 2020. Part of our short-term target is to advance our carbon capture storage (“CCS”) projects — we achieved this in 2021 by entering pre-FEED at our Prinos CCS project in Greece. Finally, the Carbon Disclosure Project (CDP) upgraded its Climate Change and Supplier Engagement rating for Energean to B and A- respectively (up from B- and B from the previous year. This compares to a sector average of C for Climate Change and C for Supplier Engagement. Reliable and secure supplies of natural gas are the perfect driver for sustainable development. Gas is the catalyst for and foundation of a more sustainable energy system. Proven domestic reserves support both domestic and regional energy needs, and are a source of cleaner, affordable and secure energy. Natural gas replaces more pollutive fuels such as heavy fuel oil and / or coal and provides the necessary foundation for enhanced renewable energy installation. The environmental upside is not restricted to carbon saving. Replacing coal and fuel oil removes pollutants such as NOx / SOx and particulate matter. Developing secure domestic supplies of natural gas saves on the inherent emissions cost of transporting gas either by pipe or LNG tanker. Domestic production will always be more sustainable.

Away from our natural gas developments we continue our commitment to sustainably produced energy through our development in the CCS and eco-hydrogen sector. We are proud to be the only Eastern Mediterranean E&P company that has an active CCS project – where we can leverage our upstream technical expertise to create a significant carbon saving to the Greek economy as well as simultaneously evaluating the potential for eco-hydrogen production. We are investigating our portfolio for further prospectivity in multiple countries and look forward to building a broader sustainable energy business in the years ahead.

Our path to Net Zero

Our proactive stance towards the challenges brought by climate change is at the heart of our operating model. In 2021, we launched our Climate Change Policy to better articulate our ambitions, explicitly stating our goals and committing to becoming Net Zero by 2050. We were the first E&P company committed to become Net Zero emitters by 2050, thereby putting us in a leading position for the decarbonisation of the sector. To better contextualise our Climate Change Policy, we have developed a Climate Change Strategy that provides a framework for our actions in the short, medium and long term, and describes how we will achieve our climate-related ambitions.

Climate change and its impacts are a priority in the global sustainability agenda. Energean does its part to reduce their GHG emissions by providing low-carbon energy solutions through the form of natural gas production while also establishing a climate change strategy that aims to transform the company into a Net Zero emitter by 2050. Carbon Capture and Storage (CCS) sites and Eco-Hydrogen units are major factors to our path to Net Zero. Our plan for the first CCS site at Prinos, Greece is on-going and has been approved by the Recovery and Resilience Fund (RRF) for Greece. We have scheduled an ecohydrogen production unit to generate blue-hydrogen with carbon capture performance of more than 99% and work in parallel with the CCS site so to capture carbon emissions when natural gas is used as feedstock and create negative emissions by using biomass.

See more on p. 29

Growing the share of natural gas in our product portfolio

Shifting to a natural gas majority portfolio has been a strategic choice of Energean’s leadership, in light of the major role that gas increasingly occupies in the transition to a greener and more sustainable world economy. In Europe and particularly in the Eastern Mediterranean region where we operate, both the EU and individual states, primarily Israel, have taken up commitments for Net Zero by 2050. Gas will play a fundamental role in this period to support the smooth energy transition for economies, providing the necessary security of supply that complete reliance on RES cannot yet afford. This was deliberately depicted in the inclusion of natural gas production in the EU Taxonomy aligned activities as a transitional fuel for energy production.

As a result of drastically changing our product portfolio and operational capacity in the two years following 2019, the scale of our operations has increased through the acquisition of Edison E&P and our engagements in Israeli gas reserves. Through this, our company has managed to not only reduce its carbon footprint due to its less intensive operational needs compared to oil E&P, but also to indirectly instigate a spill-over effect of greener energy by providing ample quantities of natural gas to our mid- and downstream clients for greener energy production.

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PERFORMANCE INDICATORS

Carbon Intensity

In order to deliver on our commitment to address our environmental responsibilities throughout our value chain and be compliant with the applicable national and European legislation, we have established an ISO 14001 accredited Environmental Management System (“EMS”) which enables us to manage our responsibilities, enhance our energy efficiency and minimise our energy consumption. Within the scope of this EMS, we analyse and review energy use and energy consumption data from various sources. The Energy Management Team, as a part of the verified ISO 140012 EMS, monitors energy demands at the Prinos asset in Greece. This involves developing performance optimisation initiatives, as well as energy efficiency projects.

SRS GRI 302-1 Energy consumption within the organisation

SRS GRI 302-3 Energy intensity

In 2021, the total energy consumption intensity (MJ/boe) was 383.2

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ENVIRONMENT

11. Usage of Natural Resources

ADMINISTRATIVE PRACTICES

Energean uses a variety of natural resources, such as crude oil, natural gas, water, energy from fuels, as well as electricity, etc., a significant part of which is recycled or reused. Please see Energean in numbers section on p. 82-93, sustainability-report-2021.pdf (energean.com)

Our efforts towards environmental sustainability go beyond actions against climate change. Unavoidably, any business activity will give rise to certain effects. Recognising this, we are dedicated to reducing our impact on the environment to the extent possible by increasing efficiency and adopting best practices relating to the full spectrum of interactions between our activities and the environment, including in terms of energy, waste, water and biodiversity. We have always maintained that strong environmental performance is crucial for minimising the negative effects of our operations, meeting societal expectations and establishing Energean as a responsible corporate citizen.

Full compliance with all applicable laws and regulations is an imperative and considered a minimum as we continuously strive to surpass the ambitious targets we set. Our overall approach is based on being proactive and implementing the precautionary principle, and we periodically carry out environmental impact assessments. In this way, we ensure that our decisions take into consideration the scale and nature of the activities, the regulatory context, the interests of our stakeholders and the potential effects on environmental goods and services.

One of our top priorities is to protect the environment and minimize our impact on the planet. At Energean we care and commit to protect the natural environment by identifying the potential impact of our operations and applying best practice to prevent harm.

Our environmental policy meets national and international standards including:

Monitoring emissions
Preventing and responding against oil spills and chemical leaks
Responsible usage of fresh water and seawater
Conserving biodiversity
Managing wastes at all facilities we operate

Implementing the precautionary principle

The precautionary principle is an integral part of our environmental strategy and decision-making process that aims to anticipate harm to the environment before it occurs. Under this principle, it is the responsibility of the Company to ensure that its activities and operations will not result in significant harm to the environment. With regard to implementation of the precautionary principle the Company:

Uses the best available technology and environmental practices, where technically and economically feasible.

Proceeds with risk assessments on environmental issues, in combination with the cost and feasibility of a proposed action, where feasible.
Monitors the results of its decisions.
Obtains and receives feedback from its stakeholders to overcome environmental challenges, sharing its experience and knowledge, and providing feedback to regulatory bodies that carve sectoral strategies and regulatory frameworks.

We have established a comprehensive set of plans that include management, monitoring and reporting processes related to greenhouse gas emissions and form the basis of our environmental management system, which is certified to ISO 140011 across the operational sites that are fully controlled by Energean. These plans also include Environmental Management Plans, approved by the relevant national authorities as part of our relevant Environmental Impact Assessment, which outlines processes to manage environmental impacts resulting from our operations.

Energean performs quantitative risk assessment (“QRA”) studies to specify the level of risk associated with identified and defined incidents within its premises. The QRA enables comparison of identified, company-specific risk levels with industry-accepted criteria and provides a baseline against which potential risk reduction measures can be assessed. The Company can therefore demonstrate that individual and total facility risk levels have been managed to be ALARP ("As Low As Reasonably Practicable") and it can define a number of oil spill scenarios, model them deterministically, and assess potential environmental impacts by performing the QRA.

Protecting and preserving biodiversity

Anthropogenic impacts on biodiversity are coming under the spotlight as the root of a twin crisis, interconnected with climate change. In its 2021 Global Risks Report, the World Economic Forum identified biodiversity loss as one of the greatest existential threats to humanity. From the Dasgupta review in the UK to the launch of the Taskforce on Nature-related Financial Disclosures (TNFD) and COP15, 2021 saw the mobilisation of the global community towards systematising efforts for the identification, measurement, disclosure and management of nature-related risks. We are constantly looking for ways to enhance the protection of the local ecosystems where we operate by taking all necessary measures prescribed by national laws and EU directives, and monitoring key legislative frameworks for biodiversity, while also looking out for best practice application.

During 2021, we performed a number of biodiversity surveys to identify sensitive habitats near our operations and our impact thereto. In this spirit we conducted:

An offshore sampling analysis at Prinos in Greece. The results of the independent laboratory showed that benthic communities have not been affected by our operations in the Gulf of Kavala.
A pre- and post-dredging activities biological survey nearshore Dor Israel. The results of the two surveys did not come up with any indication of anthropogenic negative influence in the study area, or any signs of ecological stress at the Kurkar (rock type of which lithified sea sand dunes consist) ridge habitat.
Post drilling ecological research at Karish Main Israel, where limited impact of drilling operations was found on the marine environment.
Environmental baseline sampling surveys at offshore Blocks 23, 31 and Karish Main 4 well area, Israel. No sensitive habitats were identified in the study area.
An invasive species survey and treatment at the onshore valve station area, Israel. Invasive species were found in the carob trees restored area. Treatment to remove invasive species commenced and is still in progress. We further collaborate with academic institutions in Greece and Italy on biodiversity-related research.

Our main research projects include:

On-going collaboration with the technicians of the Marine Protected Area "Isola dei Ciclopi" of Catania and with the University of Catania for the study of the biodiversity in the waters below platform. Structures called "Tecnoreef" have also been installed to promote the development of new fish species and increase the current population. Studies have shown that the platform has a high biodiversity and is also an attractive effect for many species that would not normally be present in this type of environment.
Collaboration with Zooprophylactic Institute of Teramo in Rospo Mare field, Italy to study the biodiversity in waters below platforms under the project “Acquisition and data analysis using marine bioreceptors”, with the aim to adopt a biological pre-alarm system in a critical area of the centralsouthern Adriatic basin. The use of this system on various platforms in the Adriatic could make possible the development of databanks useful for the integrated management of coastal areas.
Research into the ecosystems underlying platforms in the Rospo Mare field, Italy, with preliminary results showing the presence of rich biodiversity.
Continuing support to the management body of Nestos River Delta, Lakes Vistonida-Ismarida and Thassos, to maintain the biodiversity monitoring telemetric stations, in north-eastern Greece.
Continuing collaboration with the Democritus University of Thrace to host the Odyssea Platform, an innovative monitoring marine data system, at Prinos. The oceanographic data retrieved by the Odyssea platform enhances the accuracy of marine simulations and forecasts, providing relevant information about the open sea and coastal zone areas to local fishermen and other professionals.
Research by the International Hellenic University on the potential impacts of operational sites at Prinos, Kavala and Nea Karvali, on the wetland of River Nestos, in Eastern Macedonia, Greece. Results published in 2022 showed no hydrocarbon traces. The research was conducted in collaboration with the Dunarea de Jos din Galati University of Romania, under the framework of the European Union-funded project "MONITOX – Common Bankers, Common Solutions”.

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PERFORMANCE INDICATORS

SRS-302-1:

SRS GRI 302-3

SRS-303-1:

Attached Files: Download Energy consumption by source Download energy use intensity Download water management

12. Resource Management

ADMINISTRATIVE PRACTICES

Our targets for 2021 The following table presents our targets for 2021 and reports on the progress that we have made towards their achievement.

Reducing energy consumption

Our ISO 14001 certified Environment Management System provides the basis for our efforts towards using energy efficiently. Within its scope, we monitor energy use and consumption from various sources, while we also design performance optimisation initiatives and energy efficiency projects. Our efforts are geared towards three key activity strands:

(i) reducing our overall energy consumption,

(ii) increasing the percentage of energy consumption that derives from renewable sources, and

(iii) decreasing the overall energy intensity of our operations. We can demonstrate considerable progress in relation to all aspects within 2021.

Increasing the implementation of water efficiency innovations

Water scarcity and quality degradation are becoming emerging issues for the industry and the world in general, due to the changing climate conditions. Energean understands that the responsible utilisation of water is key for sustainable development. We are guided by the principle of responsible management of water resources and exercise all caution so that we do not affect its availability or quality in any way. As such, we monitor our onshore and offshore water usage and implement best practice for the appropriate treatment of our discharged wastewater according to all applicable laws and regulations. We pay close attention to and comply with all relevant regulatory frameworks, including:

The Water Framework Directive
The Marine Strategy Framework Directive
The Barcelona Convention
The International Convention for the Prevention of Pollution from Ships (MARPOL)

We have already introduced potential water scarcity and other water/climate-related risks into our business planning in order to act accordingly in such cases. We continuously monitor our discharges to water bodies by using oil-in-water analysers and by implementing frequent laboratory analyses in internal and external laboratories, while we set as a priority the substitution and utilisation of chemicals with less hazardous properties. We also invest in innovation to enhance efficiency, including the recycling and reuse of water withdrawal for production, cooling, firefighting and utilities. Moreover, and through the implementation of environmental and social impact assessments (ESIAs) prior to the initiation of each project, we develop plans for the effective management of water resources in each project cycle. The absolute levels of water withdrawal and consumption increased from 88,556m3 in 2020 to 103,784m3 in 2021 (approximately 18%), due to increased process cooling requirements, which may in turn be owing to higher ambient temperatures and the turnaround activities in Prinos, Greece. At the same time, we increased the percentage of our recycling and reusing levels, which currently stands at 95%. Furthermore, our goal towards reducing the percentage of water withdrawal from water-stressed regions was achieved, dropping from 100% during the previous years to 95% in 2021.

Minimising waste and implementing circular economy practices

Our operations involve handling large volumes of different types of waste, including hazardous waste. We adopt best practices as a way of improving resource efficiency and minimise the volume of waste generated across our facilities and operations. We implement a waste management hierarchy that applies to all phases of our business activities to eliminate, reduce, reuse and recycle waste in order to minimise our environmental footprint. Energean is part of the upstream oil & gas industry, which is energy and waste intensive by nature. We continuously strive to enhance our practices by following the engineering principles and best available techniques so as to use the best possible materials with the least harmful effects on the environment. Ιn our drilling operations we prefer using water-based mud where possible in order to reduce our waste footprint. We have formulated a recycle-before-disposal approach when it comes to waste management, assessing our management options and preferring the option of recycling against disposal every time. Regarding our largest amounts of hazardous waste, which by nature are drilling cuttings and oily sludges, we choose the alternative of valorising them into alternative construction raw materials and alternative fuels. Thus, we align our practices to the most approachable extent with the reduce, reuse, recycle principle in sustainable waste management. We also align our practices with circular economy principles, by utilising process by-products such as sulphur from the desulphurisation of the acid crude oil and gas and providing them to local fertiliser industries to be used as raw material for their products. This way we reduce the waste produced, fuel used for transportation and closing the loop around the by-products of our activities.

Growing the share of natural gas in our product portfolio

The proportion of our product portfolio - 73.5% - comprises natural gas for 2021, compared to just 4.8% in 2019.
From 0.07 thousand barrels per day -Mbbl/day of gas for 2019, 2021 closed with a production of almost 11,500 Mbbl/day.

Targets 2022

Reduce our carbon emissions intensity by over 80% by 2022 versus our 2019 standalone base.
Verify GHG emissions at all our operated assets to ISO 14064- 1 certification.
Progress CCS project in Prinos, Greece. Finalise pre-FEED and commence FEED and ESIA Submit file for the exploration permit and progress the preparation of the storage permit submission file.
Progress transition plan to Net Zero and purchase ‘green’ electricity in all operated sites. Progress the identified climate change projects and the roll-out of green electricity to achieve absolute carbon emissions reduction of about 8%. Conclude on the investment strategy on nature-based solution projects.
Implement Leak Detection and Repair (“LDAR”) programs to monitor and actively reduce methane emissions across all operated sites.
Maintain our Board-set target of 70% of our annual production volumes being gas
Zero oil spills and environmental damage.
Full compliance with all statutory environmental requirements.
Maintain existing ISO 14001 certificates in all our assets and receive certification in Energean Power FPSO in Israel.

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PERFORMANCE INDICATORS

SRS-302-4:

We have decreased our total energy consumption by 13.1% compared to 2020 while increasing the percentage of consumption from renewable sources (i.e. solar cells) from 13.8% in 2020 to 14.1% in 2021. On top of that, we managed to achieve significant reductions in our energy use intensity for the second year in a row, with the electrical intensity ratio decreasing from 110 to 68 MJ/boe and the thermal intensity ratio decreasing from 407 to 315 MJ/boe, compared to 2020.

SRS-306-2:

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13. Climate-relevant emissions

ADMINISTRATIVE PRACTICES

Our path to Net Zero

To better contextualise our Climate Change Policy, we have developed a Climate Change Strategy that provides a framework for our actions in the short, medium and long term, and describes how we will achieve our climate-related ambitions.

Climate change and its impacts are a priority in the global sustainability agenda. Businesses are faced with increasing pressure to reduce their GHG emissions as well as to design strategies for a smooth transition towards a Net Zero economy. Energean does its part by providing low-carbon energy solutions through the form of natural gas production while also establishing a climate change strategy that aims to transform the company into a Net Zero emitter by 2050. We have made it our core strategy to incrementally reduce carbon emissions through optimising energy efficiency throughout the lifetime of our projects as well as implementing carbon capture and carbon sequestering practices. We also utilise offsetting for the remaining emissions through nature-based solutions that we will invest or acquire. To this end, we invest in cutting-edge technology to not only reduce our carbon emissions but also remove carbon from the atmosphere. Carbon Capture and Storage (CCS) sites and Eco-Hydrogen units are major factors to our path to Net Zero. Our plan for the first CCS site at Prinos, Greece is on-going and has been approved by the Recovery and Resilience Fund (RRF) for Greece. We have scheduled an ecohydrogen production unit to generate blue-hydrogen with carbon capture performance of more than 99% and work in parallel with the CCS site so to capture carbon emissions when natural gas is used as feedstock and create negative emissions by using biomass. Our strategy has been rolled out and is being implemented in the short, medium and long term, built around the following key activities:

Short-term plan (2025)

Engaging with the CDP, achieving a B score in climate change in 2021 placing us among the best performing third of companies in the sector.
Providing climate-related financial disclosures and running regular scenario analysis exercises across our assets in line with TCFD recommendations.
Introducing carbon shadow prices to incorporate climate-related considerations within decision making.
Engaging with organisations working on the transition to a low carbon future e.g., we participated in the Assessing Low-Carbon Transition (ACT) initiative.
Actively engaging with our major customers and contractors on climate change, encouraging actions to support a low-carbon future.
Initiating a technical study at Prinos in Greece to evaluate reinjection of produced acid gas (which contains higher levels of H2 S and lower of CO2 ) with the aim of unlocking additional upstream value and turning the asset into a zero-emission facility.
Evaluating and implementing performance optimisation projects in all operated sites (with the active engagement of Energean Egypt Energy Services) and using low or zero carbon electricity.
Successfully rolling out the use of purchased ‘green electricity’ at Prinos in Greece, all sites in Italy, in Israel and the EDINA operative site in Croatia.
Evaluating the opportunities and start investing in natural-based solution projects.
Targeting strengthening of our low carbon portfolio and maintaining our Board-set target of 70% of our annual hydrocarbon production being gas, while aiming at increasing the percentage to 80%.
Targeting a reduction in carbon emissions intensity by more than 85% between 2019 and 2025.
Targeting the application of three initiatives across operated sites: switching to purchasing ‘green’ electricity, introduction of zero routine-flaring and methane emissions reduction.
Exploring the deployment of nature-based solutions and investing in projects for climate change mitigation and adaptation.

Medium-term plan (2035)

Application of eco-hydrogen technologies, such as the small-scale eco-hydrogen plant currently under evaluation within the Sigma onshore plant in Prinos, Greece. • Using zero carbon electricity in our sites. • Operating our first CCS site in Prinos field and further evaluating replication across the wider portfolio with the aim of transitioning mature assets into CCS sites. • Further evaluating and implementing performance optimisation projects in all our operated assets. • Investing in nature-based solution projects.

Long-term plan (by 2050)

Further expanding CCS application. • Further expanding eco-hydrogen technologies coupled with CCS. • Further reducing carbon emissions through nature-based solutions and through acquiring carbon removals from the atmosphere.

See more: sustainability-report-2021.pdf (energean.com) p. 26-33

Reducing greenhouse gases and other air emissions

Energean acts as a pioneer in its industry in aligning to the global target of addressing climate change through becoming carbon neutral, being the first upstream company to set a Net Zero target for 2050. This has aligned our company with both the EU Climate Law and the state of Israel goal for climate neutrality by the same year. Our Net Zero target for 2050 is enshrined in our new climate change policy, published on 22 April 2021. We fully support the Paris Agreement goal to limit the global average temperature rise well below 2o C, aiming at 1.5o C, compared to preindustrial levels; and the United Nations Sustainable Development Goals (SDGs) including SDG 13 concerning Climate Action. We have committed ourselves to operate all company assets on a Net Zero basis (with respect to Scope 1 & 2 GHG emissions) and to focus on reaching Net Zero across our value chain (Scope 3 emissions). Our path to Net Zero and the reduction of energy-related emissions entails, among others, three key activity strands:

Reduce absolute project carbon emissions through optimisation, throughout project lifecycle
Capture and sequester carbon emissions through green technologies: carbon capture and storage | eco-hydrogen
Offset remaining emissions through nature-based solutions

In 2021 we concluded on proposals for improvements on a number of on-site projects looking at increasing our energy efficiency and significantly reducing our GHG emissions, such as shifting towards purchasing RES generated electricity; replacing gas-fired with electrical compressors in our operational site at Larino Italy; replacing heavy-oil burner with gasoline burner at our operational site at Rospo Mare, Italy; optimising our pilot emergency flaring and upgrading our compressors seal system at AQP in Egypt. These projects have been studied and evaluated in 2021 and we have decided to move forward with their implementation in 2022. By shifting towards RES generated electricity, which we are using in all our operated assets in Italy, Greece, Israel and in Edina operative base in Croatia, our total Scope 1 and Scope 2 emissions inventory on an equity share bases was reduced by 6.8% in overall, 20,783 tCO2 e in 2021. This policy will continue in the forthcoming years.

Scope 1 emissions

We amended our emissions accounting approach in 2021 to implement two methods: (a) the operational accounting approach and (b) the equity share approach. We have decided to perform this shift to align ourselves with the industry practice and the guidelines provided by several organisations; among others the GHG Protocol, IPIECA and the UK Department for Environment, Food and Rural Affairs (Defra). Therefore, we performed a recalculation of our emissions for the year 2020 and share the updated numbers in this report. We utilise an independent third party for validity and credibility as an integral part of our Scope 1 emissions measurement process. We also rely on heat and fuel benchmarks. We include in our measurements the combustion of gas mixtures and fuels to produce thermal energy and to enable our mechanical purposes and utilities. During 2021, following the completion of scaling up our operations through the acquisition of Edison, we reduced our equity share direct Scope 1 emissions by 22% in comparison with 2020. We have achieved this primarily by shifting the focus of our portfolio from oil to gas exploration and extraction, which is less energy-intensive, while also implementing more energy-efficient processes.

Scope 2 emissions

To monitor our Scope 2 emissions, we primarily rely on the locationbased method to calculate emissions: the purchased and consumed electricity throughout all our premises is measured using country-level grid electricity factors provided by the respective power supply administrators. To arrive at our net energy emissions, we use the market-based method: we incorporate energy certificates (Guarantee of Origin (GO) and International Renewable Energy Certificates (I-RECs)). We have drastically reduced our equity share net Scope 2 GHG emissions in 2021 by 84% in comparison with 2020, by purchasing electricity certified via GOs and I-RECs.

On track to achieve our Net Zero target

Focus on emissions intensity

Being committed to a sustainable future for our company and our planet we are on track on our short-term target to reduce our 2019 emissions intensity by more than 85% by 2025. In 2021, our equity share direct emissions intensity in kgCO2 e/boe was more than halved compared to 2019 levels, while indirect emissions were minimised. Beyond consistently looking for opportunities to reduce the carbon intensity of our operations, we are working in parallel on maturing our green technology approach through Carbon Capture and Storage and Eco-Hydrogen Projects, so that our growth has a neutral, if not net positive, effect on the environment. Energean’s green technology approach is a combination of Eco-Hydrogen production - from mixtures of its own regionally sourced gas reserves, bio-gas and other non-recyclable wastes – and CO2 capture and sequestration into adjacent underground gas storage facilities (Prinos CCS). Through the combined application of those two we can achieve negative CO2 emissions and enhance the development of H2 -based industries and transportation infrastructure accelerating a move to local Green H2 production. Eco-H2 is a novel combination of technically proven chemical processes that converts natural gas and untreated biogas into pure H2 and CO2 . Production would be min. 40 tonnes/day of Eco-H2 , equivalent to approximately 0.55 TWh H2/y or 14,000-ton H2/y.

Prinos CCS plant in Northern Greece has been approved as part of the Greek RRF (Recovery and Resilience Fund). Estimations place its capture and storage capacity to be up to 1 mln tonnes CO2/y for Kavala in operations within 2025 and after its expansion to be up to 2 million tonnes CO2/y with CO2 shipped by liquid CO2 carriers from remote “Hard-to-Abate” industrial sites. Our efforts to reduce harmful air emissions at operated sites have been bearing fruit. This has been the result of our enhanced monitoring and assessment of sulphur oxide (SOx) and volatile organic compounds (VOCs) emissions at all our operated sites and development projects. We had no emissions relating to persistent organic pollutants (POP) nor hazardous air pollutants (HAP).

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PERFORMANCE INDICATORS

SRS-305-1:

SRS-305-2:

SRS-305-3:

SRS-305-5:

22% decrease in Scope 1 emissions in comparison with 2020, to 285 ktCO2 e.
8% decrease in carbon intensity in comparison with 2020: 18.3 kgCO2 e/boe in 2021.
84% decrease in Νet Scope 2 emissions in comparison to 2020, to 785 tCO2 e, through offsetting with Guarantee of Origin certificates (GOs) and International Renewable Energy Certificates (I-RECs).

See more: sustainability-report-2021.pdf (energean.com), p. 84

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SOCIETY

14. Employment Rights

ADMINISTRATIVE PRACTICES

The promotion of human & labour rights in the workplace is a priority for Energean. The Universal Declaration of Human Rights provides the basis for our approach to safeguard human rights along with the conventions of the International Labour Organisation. We seek to uphold human rights across all our areas of influence including our employees, contractors, suppliers, business partners and local communities. The commitments we have made are guided by our corporate principles and enforced by our Code of Conduct and other relevant policies. Moreover, Energean is signatory to the United Nations Global Compact (UNGC) and abides by its principles in relation to human rights and labour. Wishing to go above and beyond complying with laws and regulations, we are nurturing a culture that focuses on equality, non-discrimination and fairness across all our business practices, while aiming to incorporate human rights considerations in our decision-making processes. Furthermore, we constantly evaluate ways to enhance awareness among our people as a further step in ensuring that our company respects human rights. In 2021, we designed a modern slavery training that was completed by 215 users within the year.

Freedom of association and collective bargaining

Our commitment to follow international labour standards dictates that we support the right of all workers to organise in unions and bargain collectively over their wages and employment conditions. We have collective bargaining arrangements in effect in our Italian business unit as well as a designated non-executive director for Board engagement with our workforce since 2019.

Rights of indigenous people

Our company has no proven or probable reserves in or near areas considered to be indigenous peoples’ land. Discussion of engagement processes and due diligence practices with respect to human rights, indigenous rights, and operation in areas of conflict is therefore not applicable to Energean.

Child and forced labour

Energean has not identified any significant risks relating to incidents of child, forced or compulsory labour within its operations.

Employment practices

Our people are the foundation of our success and the most important element for delivering on our purpose. Therefore, we constantly strive to enhance our overall employment practices and build a motivated, competent and diverse workforce. The implementation of the SAP SuccessFactors suite was an important milestone towards this direction as it transformed multiple human resource management aspects such as talent acquisition, human capital development and performance management, positioning us in line with best practice. This development has simplified the employee experience and increased the efficiency of HR-related activities. Our people strategy is multi-faceted and relies upon the selection and attraction of top talent, the provision of opportunities for professional development, and the nurturing of diversity and inclusion. Collectively, these aspects will lead to the creation of a dynamic workforce that will help us shape, achieve and exceed our business goals.

Safeguarding health, safety and security

Our HSE Management System We implement a well-structured and robust Health, Safety and Environment (HSE) Management System and associated procedures across the group companies, to prevent and mitigate significant negative occupational health and safety impacts. The recent shift of our approach - previously guided by rule-dominated demands - to a human-focused perspective has highly contributed to the effectiveness of our HSE Management System.

Employees participation

Our Open Door Policy sets the basis for open and honest communication between our managers and employees, thereby creating a solid foundation for collaboration, growth, high performance and success across our company. Through this policy, we aim to help address concerns in the workplace. Employees can seek counsel, provide or solicit feedback and raise concerns in good faith, while managers are expected to play an important role in establishing a work environment where employees’ viewpoints and thoughts are recognised, advice is readily given and concerns are addressed in a timely and respectful manner.

Although the primary responsibility for healthy and safe working conditions at the workplace rests with the company, all our workforce members are expected to play their part in minimising or, preferably, eliminating risks. Following best practices, Energean has developed a Safety Representatives and Safety Committee Procedure to foster worker participation and consultation on occupational health and safety issues, wishing to actively involve the entirety of its workforce. At the centre of this procedure lies the Safety Committee, which equally comprises workforce and management representatives, allowing the exchange of viewpoints, thoughts and concerns among all hierarchical levels.

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PERFORMANCE INDICATORS

SRS 405-01:

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15. Equal Opportunities

ADMINISTRATIVE PRACTICES

In line with our Ethos and values, we seek to embrace all types of diversity and promote inclusion by treating all our people with respect, fairness and dignity. This is the cornerstone of a healthy workplace, where differences are respected, valued and seen as strengths, promoting creativity. At the same time, a workforce that brings along a vast array of backgrounds, experiences and perspectives allows for the optimisation of our problem-solving and decision-making daily activities. To reinforce our commitment for diversity and inclusion in the workplace, we have developed an Equal Opportunities Policy that effectively addresses all these aspects and aims to prevent any unfair and discriminatory incidents within our company.

Our Diversity & Inclusion (D&I) approach is consistently applied throughout the entirety of our employment practices, starting with the recruitment process and ending with the development of future leaders. We pride ourselves on being an employer who provides equal opportunities and fosters a culture that is built on common purpose and teamwork, free from stereotypes and discrimination. These principles will be further reinforced via our Diversity & Inclusion Policy, which is currently under development and expected to be in full effect within 2022.

During the year, we participated in D&I workshops hosted by the United Nations Global Compact (UNGC) on a quarterly basis. The workshops covered a variety of topics focusing on the workplace, including:

• Neurodiversity and mental health
Race and ethnicity
Diversity, inclusion and belonging
Global diversity, equity and inclusion benchmark

We believe that these workshops can trigger positive change in the workplace, as they help raise awareness around unconscious bias and alleviate barriers to diversity, inclusion and belonging, which is the first step in the process of tackling such issues. At the same time, they motivate and promote positive behaviour while enabling everyone to feel empowered in being their authentic selves. We continuously seek ways to enhance diversity in the workplace. In 2021, we managed to increase the female representation in two of our company’s hierarchical levels compared to 2020. In our Executive Committee, the percentage of women increased from 10% in 2020 to 38% in 2021 while at the non-management level, females comprised 16% of our workforce in 2021, compared to 13.6% in 2020. In terms of age diversity, the majority of our workforce falls under the groups 30-50 and over 50 years old. During 2021, we also started monitoring D&I-related KPIs, as a means of increasing transparency, equity and fairness. The most pertinent is the gender pay ratio, information on which is provided in the following table.

Our efforts for embracing diversity and inclusion were further intensified after the acquisition of Edison E&P and the inclusion of additional countries and cultures under the umbrella of Energean. In 2021, we implemented a variety of supporting initiatives in this respect:

"Evolve and get involved" series: This is a new initiative designed by our CSR department, which involved a series of educational webinars that aimed at raising awareness among our people on sensitive D&I-related matters.
"Did you know" series: Another initiative implemented by our CSR department, wishing to inform our colleagues across our operations of each country’s national and religious holidays as a means of raising cultural awareness and celebrating diversity.

Enabling our people’s development

We take a holistic approach to human capital development, wishing to equip our employees with the necessary tools to build their skillset and expand their capabilities. Our aim is to optimise workforce performance and cultivate a culture of continuous professional growth. To do so, we invest in our people through high-quality learning experiences and training opportunities and encourage our workforce to capitalise on these opportunities as a means of reaching their full potential. We have designed numerous training programmes for our employees that cover a wide range of aspects from HSE to compliance issues. Average hours of training in the year, by level of hierarchy, are shown in the figure below.

Promoting the wellbeing of our people

We hold ourselves responsible for the wellbeing of our people, recognising that we have a moral obligation to create a thriving work environment. On top of this, physical and mental wellness is the foundation of a focused and engaged workforce, which in turn drives productivity. A wide range of benefits, services and initiatives are available to our employees, designed to address all aspects of wellbeing. For instance, benefits such as life and medical insurance, parental leave entitlement and meal allowances apply to all our employees. 30 of our employees (21 male and 9 female), were eligible for, and took, parental leave in 2021. In addition, our entry level employees are compensated with salaries that are above the legal minimum wages across all our countries of operations.

Health, Safety & Security

The protection and promotion of health and safety is the cornerstone of any thriving workplace and the most important aspect in building relationships with employees that are rooted in trust and respect. Energean has always recognised this, thereby positioning health and safety at the heart of its operating principles and envisioning a workplace that is free of incidents, injuries and accidents. Our performance and our focus on constant improvement is a testament to this. Our Code of Conduct provides the basis for our actions and holds all employees accountable for contributing to a safe working environment. In addition, it works as a foundation for the establishment of any related policies, systems, programmes and procedures that will help us achieve our H&S targets.

Promoting health and safety

Energean’s employees benefit from a broad range of health services, programmes, initiatives and training. We follow the legal frameworks of our host countries to protect the health of our people and are constantly on the lookout to further enhance our practices. Key actions include:

An annual health monitoring programme is active for all employees, using external laboratories and occupational doctors to assure that the highest levels with respect to their health and wellbeing are maintained.
All employees and contractors hold medical fitness certificates based on the requirements of their position.
All employees are provided with external medical insurance programmes on top of national requirements.
All employees have access to a health assistance programme which provides mental health support via accredited counsellors.
Acting against COVID-19

During the last two years, the COVID-19 pandemic has been the most significant global threat, posing challenges to health systems, leading to national lockdowns and affecting business continuity worldwide. While the pandemic and the extent of its impacts could not have been predicted, we managed to execute an effective emergency response plan. The protection of our employees’ health is a top priority and as such, we have designed and continue to implement a series of measures in response to this unprecedented health crisis.

Ensuring emergency preparedness

See more: sustainability-report-2021.pdf (energean.com), p. 50-61

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PERFORMANCE INDICATORS

SRS 403-2:

SRS 404-1:

SRS 406-1:

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16. Qualifications

ADMINISTRATIVE PRACTICES

Energean employs people in eight different countries and wishes to maintain a workforce of diverse sociodemographic characteristics, such as age and gender, across all hierarchical levels. Our workforce comprises 596 employees, of which the large majority (589) have full-time contracts, while female representation increased by 2.5% in 2021 compared to 2020.

The following table provides descriptive statistics on our new hires and turnover rates, showing that the new hire rates are higher for the first two age groups (50), in comparison to the turnover rates. Meanwhile, 63% of our senior management are hired from the communities considered local to our operations.

Recruitment practices

We wish to attract and retain top talent, inspired to be part of a company that is rapidly growing and aspires to be at the front of the energy transition in the Mediterranean. As such, we have a carefully designed selection and recruitment process that enables us to find people that share our passion and enthusiasm. From a social perspective, our expansion and operation in multiple countries create employment opportunities in diverse markets, both directly through our operations, and indirectly through our business partners, thereby contributing to the socioeconomic development of local communities and stimulating overall growth. Our Selection and Recruiting Policy provides the guidelines that our HR department is expected to follow during the recruitment process and ensures that we select the most suitable candidates. Meanwhile, it aims to create a fair and transparent process that deliberately fails to notice the sociodemographic background of our potential employees. Recruitment is strictly merit-based and focuses on a range of aspects including professional experience and possession of skills that are relevant to our business activities. Moreover, our newly developed External and Internal Careers site – linked with SAP SuccessFactors – enhanced our overall approach to recruitment, as candidates can easily follow job openings and input their CVs. At the same time, it allows us to keep all advertisements in one place, facilitating communication with potential employees while supporting the use of “blind” resumes and the search for specific skills.

People development

We have developed a performance management process to closely monitor the professional development of our employees during their time in our company. The process is heavily based on the provision of constructive feedback, clearly defining progress on set expectations and enabling our people to further advance their careers within Energean. In 2021, 100% of the people who were eligible received performance evaluation reviews, including our Senior Management and Executive Committee, and we recorded 18 promotions during the year.

Health programmes

An annual health monitoring programme is active for all employees, using external laboratories and occupational doctors to assure that the highest levels with respect to their health and wellbeing are maintained.
All employees and contractors hold medical fitness certificates based on the requirements of their position.
All employees are provided with external medical insurance programmes on top of national requirements.
All employees have access to a health assistance programme which provides mental health support via accredited counsellors.

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17. Human Rights in the supply chain

ADMINISTRATIVE PRACTICES

We seek to uphold human rights across all our areas of influence including our employees, contractors, suppliers, business partners and local communities. The commitments we have made are guided by our corporate principles and enforced by our Code of Conduct and other relevant policies. Moreover, Energean is signatory to the United Nations Global Compact (UNGC) and abides by its principles in relation to human rights and labour.

Our procurement practices

We endeavour to maintain responsible procurement practices, characterised by our Ethos and our corporate values, by focusing not only on increasing efficiency and on achieving operational excellence, but also on taking action to promote sustainability principles throughout our supply chain. Meanwhile, we wish to create prosperity in the communities in which we operate by sourcing non-specialist goods and services from local businesses, thereby stimulating growth in the local economies and instigating a positive multiplier effect.

To further strengthen our procurement practices, we are in the process of developing a new Group Procurement Policy. Among other functions, it will enable us to better integrate ESG considerations in the supply chain by introducing two initiatives, Green and Local Procurement:

Green Procurement: Encouragement of procurement of environmentally friendly goods and services and selection of vendors who are actively working towards improving their performance in the following areas:
Greenhouse gas (GHG) emissions
Consumption of natural resources
Waste production
Compliance with local and international labour standards
Health impacts.
Local Procurement: Encouragement of contracting and procurement of goods and services from local vendors, where such goods and services are in all significant aspects comparable to those available on the global market and meet our requirements.

Enhancing our sustainability efforts

In terms of measures taken, we implement a systematic, risk-based approach that includes a due diligence process. An integral part of this process is the distribution of a HSE questionnaire, through which we seek to elicit key information relating to our suppliers’ performance in the areas of health and safety, climate change and environment, human rights, labour standards, business ethics and compliance. We strive to monitor our supplier’s performance in multiple engagement phases including pre-qualification, selection and evaluation, enabling us to effectively screen our vendors and mitigate any risks for unwanted behaviour throughout our supply chain. Our group-wide Enterprise Risk Management (ERM) System – to be in full effect during Q4 2022 – will further enhance our efforts towards identifying and managing such risks.

During 2021, we achieved our target related to incorporating a human rights assessment in the supply chain due diligence process, illustrating our tangible commitment in this respect.

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PERFORMANCE INDICATORS

SRS GRI 408-1 Operations and suppliers at significant risk for incidents of child labor

SRS GRI 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

Energean has not identified any significant risks relating to incidents of child, forced or compulsory labour within its operations.

SRS GRI 412-2 Employee training on human rights policies or procedures

We constantly evaluate ways to enhance awareness among our people as a further step in ensuring that our company respects human rights. In 2021, we designed a modern slavery training that was completed by 215 users within the year.

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18. Corporate Citizenship

ADMINISTRATIVE PRACTICES

We aim to be an active corporate citizen and a contributing member to the communities where we operate. We operate with respect and maintain good neighbour relationships, also demonstrated through zero significant disputes with local communities during the last year. We invest in strong relationships founded in trust, transparency, and cooperation, to thrive and create shared value from our operations. Thus, we engage with different stakeholders in an ongoing open dialogue and organise ad hoc meetings and consultations to maintain effective communication channels (see Chapter 3). We see our support for local communities not only as a moral duty but also as a way to further support the realisation of the UN SDGs. We firmly believe that as an enterprise we have duties not only towards our shareholders and clients, but to the communities of which we form a part. We are signatories to the UN Global Compact and we align our performance with its ten principles for the protection of the environment, of human and labour rights and the fight against corruption. We do not see ourselves as isolated from societal challenges, but as catalysts for progress wherever we operate. To this end, we align our actions and initiatives with the UN SDGs, so that we can play our part in their achievement. Our Corporate Social Responsibility (CSR) factsheet for 2021 presented our activities, assigned to the relevant SDGs.

See in detail: sustainability-report-2021.pdf (energean.com), p. 65-71

Acting to address our stakeholders’ needs and priorities

We aim to operate responsibly across all facets of our activities and endeavours. As such, we place great focus on the identification, selection and implementation of actions which we believe will greatly benefit our local communities, thereby contributing to the following aspects:

Economic aspects, by creating employment opportunities through our presence in multiple countries, promoting economic growth in local communities via our procurement practices, and combatting poverty through our donations.
Environmental aspects, by acting to achieve our long-term commitment to become a Net Zero emitter by 2050, implementing actions to minimise our overall environmental footprint in terms of emissions, energy, waste, water and biodiversity, and designing initiatives to raise awareness with our stakeholders and local communities on environmental issues.
Social aspects, by providing access to food and proper nutrition as a means of reducing hunger, promoting the health and safety of local populations, offering educational opportunities, and implementing initiatives to reduce inequalities and safeguard the human rights of all, and especially of vulnerable people.
People aspects, by promoting the health, safety and wellbeing of our people through a series of systems, practices and actions as well as providing them with training and career progression opportunities.
Compliance aspects, by adopting the latest EU directions and legislation relevant to E&P activities and striving to be in line with all laws and regulations applicable to our business activities.
Cultural aspects, by supporting cultural festivals, protecting areas of cultural heritage, and designing culture-related events.
Community health, safety and security aspects, by evaluating and mitigating any potential risks and impacts to the health, safety or security of local communities during the lifecycle of our projects and by taking all necessary measures (such as emergency response drills) to prevent exposure to hazards or pollution. To this extent, Energean is aligned with the principles of the International Finance Corporation’s (IFC) Performance Standard 4 on Community Health, Safety and Security.
Land acquisition and involuntary resettlement aspects, by acting to avoid or minimise any physical and/or economic displacements that derive from our operations. We have established various communication platforms such as stakeholder and community engagement processes, access to personal contact and our website for specific concerns. To this extent, Energean is aligned with the principles of IFC’s Performance Standard 5 on Land Acquisition and Involuntary Resettlement.
Cultural heritage aspects, by complying with applicable laws on the protection of cultural heritage. To this extent, Energean is aligned with the IFC’s Performance Standard 8 on Cultural Heritage.
Stakeholder engagement aspects, by working closely with our stakeholders and local communities to improve our overall performance in relevance to our interactions with people and the environment, and facilitating public discussions on the opportunities we provide as well as on the impacts of our operations.

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PERFORMANCE INDICATORS

SRS-201-1:

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20. Corruption prevention and alleviation

ADMINISTRATIVE PRACTICES

We are signatories to the UN Global Compact and we align our performance with its principle for the fight against corruption.

Our actions against bribery and corruption

Managing key risks relating to business ethics is a key priority for Energean. We take a zero-tolerance approach towards any kind of bribery or corruption, which is further reinforced through our Anti-Corruption and Bribery Policy. Our BoD has overall responsibility for ensuring that the Policy complies with our legal and ethical obligations, and the Compliance Officer has primary and day-to-day responsibility for implementing this policy and for monitoring its use and effectiveness. The Policy identifies all types of behaviour that are considered unacceptable, including political contributions and facilitation payments, and requires that employees should be frequently trained on how to operate in adherence to the policy. In addition, we have developed a Board-approved compliance programme against corruption and bribery, which is in line with the UK Bribery Act 2010.

We have an anti-bribery and corruption training module installed in our learning management platform which is mandatory for every learning platform user, the latter including not only Energean personnel but also at least 15 contractors and contract personnel. Every staff member that participates in governance bodies is also a platform user and thus required to complete this training. This module has also been translated in both Italian and Arabic in order to be inclusive and user-friendly for our international staff.

Furthermore, we have developed a risk assessment process that helps us identify, prioritise and manage risks with regard to ethical misconduct. The process works to enhance our proactiveness as we strive to avoid any incidents that could negatively affect our company through reputational damage, fines and non-monetary sanctions. Meanwhile, it extends beyond our direct operations and covers our suppliers and contractors to ensure an efficient third-party due diligence.

The Company provides a secure and accessible channel through which employees can seek guidance and advice, the “Protect Advice Help-Line”, or raise concerns and report violations (whistleblowing) in full confidence and without risk of reprisal.

Financial Disclosure and Transparency

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PERFORMANCE INDICATORS

SRS-205-1:

Compliance risk and risks related to corruption were assessed on a Group level as part of the annual risk assessment exercise.

SRS-205-3:

As a result of our policies and systems, we recorded zero incidents of corruption or bribery within 2021.

SRS-419-1:

Energean has not identified any incident regarding non-compliance with laws and/or regulations. in the social and economic area. during the reporting period.

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ENERGEAN OIL & GAS SA

GENERAL ENERGEAN OIL & GAS SA

Company Profile

Management Message

COMFORMITY STATEMENT ENERGEAN OIL & GAS SA

STRATEGY

1. Strategic, Analysis & Action

ADMINISTRATIVE PRACTICES

2. Materiality

ADMINISTRATIVE PRACTICES

3. Objectives

ADMINISTRATIVE PRACTICES

4. Management of Value Chain

ADMINISTRATIVE PRACTICES

PROCEDURES

5. Responsibility

ADMINISTRATIVE PRACTICES

6. Rules & Processes

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

7. Monitoring

ADMINISTRATIVE PRACTICES

8. Incentive and reward systems for Sustainable Development

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

9. Stakeholder Engagement

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

10. Product Responsibility and Innovation

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

ENVIRONMENT

11. Usage of Natural Resources

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

12. Resource Management

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

13. Climate-relevant emissions

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

SOCIETY

14. Employment Rights

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

15. Equal Opportunities

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

16. Qualifications

ADMINISTRATIVE PRACTICES

17. Human Rights in the supply chain

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

18. Corporate Citizenship

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

19. Initiatives and Political Influence

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

20. Corruption prevention and alleviation

ADMINISTRATIVE PRACTICES

PERFORMANCE INDICATORS

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GENERAL
ENERGEAN OIL & GAS SA

COMFORMITY STATEMENT
ENERGEAN OIL & GAS SA