ENERGEAN OIL & GAS SA

1. Στρατηγική, Ανάλυση & Δράση

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Our sustainable business model

Our business model is at the centre of our operations. It supports our growth, describes the categories of resources we utilise, presents the picture of our activities and performance, the value we create for our stakeholders and our contribution to Sustainable Development.

Below, we present Energean’s Sustainable Development Areas (our Output) and the Value for our Stakeholders (our Impact Reaction):

• Safeguarding business ethics and establishment of transparent relationships with host governments = 0 incidents of corruption.
• Ensuring regulatory compliance = 0 incidents of non-compliance.
• Safeguarding occupational health & safety and wellbeing = 0 serious injuries.
• Ensuring emergency preparedness = 0 oil spills or incidents of environmental damage.
• Growing the share of natural gas in the product portfolio = Increased gas production from 0% to 74% of the total production in 2020.
• Reducing greenhouse gases and other air emissions = Reduced GHG emissions intensity by 67% on pro forma numbers from 2019 Energean standalone.
• Building and maintaining community relations = 0 significant disputes with local communities.
• Generating economic value / economic performance of the company = $339 million direct economic value generated
• Safeguarding human rights at work = 0 incidents of discrimination.
• Creation of employment = 620 employees and contractor personnel (includes Edison E&P employees).

Supporting climate change initiatives

By participating in the CDP for the first time in 2020 we promoted disclosure transparency and further developed our climate change initiatives which were recognised through the award of a “B-“ for climate change and a “B” for supplier engagement, based on set targets. During 2020, we collected climate change and carbon emissions information from our major suppliers to enhance climate change awareness and communicate the importance of this topic. The majority of suppliers that we engaged with were related to the Karish project in Israel, where most of our scope 3 emissions were generated. We actively engaged with suppliers with high anticipated emissions to discuss climate change performance and our climate change policy. Energean has strong disclosure with regards to its energy transition intentions and on long-term carbon neutrality and has implemented the recommendations of the TCFD within its 2020 reporting structure.

Our climate change journey

Energean’s aim is to lead the energy transition in the eastern Mediterranean through a strategic focus on gas and achieve its zero emissions ambition in advance of 2050. Our strategic plan, and progress to date, is presented in more detail below.

Short-term plan (by 2025)

• Engaged with the CDP, achieving a B- score in climate change (among the top third of E&P companies), and a B score in supplier engagement.
• Aligned with the TCFD recommendations across all of the TCFD pillars and ran scenario analysis across our assets.
• Introduced carbon shadow prices to assist with decision making, set at 34 €/t in 2021 gradually increasing to 200 €/t in 2050.
• Engaged with organisations working on the transition to a low carbon future e.g. we are collaborating with the Science Based Targets initiative1 (“SBTi”) and participated in the Assessing low-Carbon Transition2 (“ACT”) initiative. In 2021, we will continue to engage with these organisations and participate in new climate change initiatives.
• Actively engaged with our major customers and contractors on climate change, encouraging actions to support a low-carbon future.
• Initiated a technical study at Prinos in Greece to evaluate reinjection of produced CO2 and acid gas with the aim of unlocking additional upstream value and turning the asset into a zero-emission facility.
• Successfully rolled out the use of ‘green electricity’ at Prinos in Greece, our premises in Israel and the EDINA operative site in Croatia.
• Targeting strengthening of our low carbon portfolio and maintaining our Board-set target of 70% of our annual hydrocarbon production being gas. In 2020, our pro forma sales gas production was substantially increased year-on-year from 0% to 74%.
• Targeting a reduction in carbon emissions intensity4 by more than 85% between 2019 and 2023. 7A 67% pro forma reduction in carbon emissions intensity was achieved in 2020, versus our 2019 Energean base.
• Targeting application of three initiatives across operated sites; switching to purchasing “green” electricity, introduction of zero-routine-flaring and methane emissions reduction.

Medium-term plan (by 2035)

Our medium-term plan includes the following:

• Application of eco-hydrogen technologies, such as the small-scale eco-hydrogen plant currently under evaluation within the Sigma onshore plant in Prinos, Greece.
• Further application of CCUS across the wider portfolio with the aim of transitioning mature assets into zero emissions facilities. Development and utilisation of low-carbon and energy efficiency technology. Energean Egypt Energy Services, our new climate change entity, is evaluating various projects, including a pilot combined cooling heat and power plant to increase energy efficiency usage for end-users

Long-term plan (by 2050)

Our long-term plan has been updated to include the following:

• Further expand CCUS application.
• Further expand eco-hydrogen technologies coupled CCUS.
• Carbon emissions reduction through planting of trees, in addition to soil productivity initiatives.

ESG stewardship is central to Energean’s ambition to lead the energy transition in the Mediterranean, and its goal of achieving net-zero emissions across all its operations in advance of 2050.

Meanwhile, the company has fully integrated the following international standards and initiatives:

• GRI
• SASB
• UN Global Compact
• UN SDGs

Awarded “Best ESG Energy Growth Strategy in Europe 2020” by CFI.co and “Transition Economist Strategy of the Year – Independent” for 2020 by Petroleum Economist.

A snapshot our ESG strategy is described below.

Environmental

We take transition and physical risks, including the implications of the transition to a low-carbon economy, very seriously, and as the first E&P company globally to formally target net zero emissions by 2050, are committed to reducing the carbon footprint of our own

business and our broader climate impacts. During 2020, we incorporated scenario analysis and carbon pricing into our investment-decision making process, ensuring that management and the Board are well-informed on potential climate-related impacts and that all decisions are accompanied by both quantitative and qualitative assessments of climate-related

risks. In performing scenario analysis, our portfolio is tested against a range of robust Paris Agreement-aligned scenarios, driven by supply-demand pricing fundamentals, plus additional identified variables that could impact on future market dynamics.

Our gas-focused portfolio is well-positioned under this analysis to create value in an increasingly carbon constrained world, and its strategic fundamentals will continue to allow us to adapt to prevailing markets. In 2020, we also participated in our first ever Carbon Disclosure Project (“CDP”) submission, achieving a B- in climate change and B in suppliers’ engagement. This positions us amongst the best performing third of companies within the E&P sector. At the same time, we have implemented the recommendations of the Task Force on Climate Related Financial Disclosure (“TCFD”) in the core management areas.

Social

Social responsibility is fundamental to our corporate culture and engagement with the local communities in which we operate. During the COVID-19 pandemic, we focused additional effort and resource into supporting our stakeholders, including protecting the health and safety of our workforce and creating a long-lasting positive impact on local communities.

In 2020, we achieved the important milestones of 2 million manhours without Lost Time Injuries (“LTIs”) across Energean operated sites and 12 million man-hours free of LTIs at the Energean Power FPSO development and construction project. We recognise the importance of creating social value in ways that are compatible with the energy transition and reflect this aim through our business activities. In keeping with “Our Ethos” and corporate values, we support efforts to address societal inequalities and create opportunities in our local communities. Our approach emphasises proactive stakeholder engagement, social

risk and impact management, and strategic social investments. Our activities are designed to generate economic opportunities for our stakeholders, create valued partnerships and maximise value for our stakeholders and create valued partnerships, whilst maximising value for shareholders.

Governance

The Board is the steward of corporate governance and strong governance becomes even more important in challenging times and must underpin the culture of the whole business. As such, weare focused on further developing in this area with an aim to be best-in-class, particularly as we approach first gas from Karish and transition into the leading independent gas-producer in the Mediterranean. Responsibility for the governance of climate change issues within Energean rests with Energean’s Board, as demonstrated by our Board-set target of 70% of annual hydrocarbon production being gas. To reflect the increasing importance of climate change related risks and opportunities, we have reshaped the Board

committee structure and created a dedicated Environment, Safety and Social Responsibility Committee, chaired by Non-Executive Director Robert Peck. These changes are designed to ensure that environmental issues and specific corporate governance are dealt with by one committee, ensuring strong strategic focus and challenge in these areas. During 2020, we were delighted to welcome Kimberley Wood and Andreas Persianis to the Board. They bring a wealth of experience in both the financial and natural resource sectors. The appointments also meant that we now have female representation of more than 30 percent on our Board of Directors. The management of Energean is based on the principles of the highest standards of corporate governance, as prescribed by legislation and the relevant regulations, and we seek to adhere to best practice in all areas. Having the right leadership and

governance structure in place is crucial to our ability to deliver our strategy, purpose, energy transition ambitions and aims. Day to day responsibility for running the business is delegated

to the management team led by the CEO, with the Board being responsible for the wider strategy. The Board has a formal schedule of matters reserved, this including ensuring the Board Directors has appropriate experience and diversity, compliance with legal

and regulatory provisions and, identification and reporting of key risks. Despite a challenging year, we continue to focus on delivering profitable and sustainable growth that benefits all of our stakeholders, whilst meeting societies changing expectations. Our people are of primary importance and we are focused on continuous development of our corporate governance structure and culture to ensure ongoing continuity and progress across all areas of business and operation.

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2. Ουσιαστικότητα

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

As per the GRI Standards, the topics to be included in the sustainability report are those that can reasonably be considered important for reflecting the organization’s economic, environmental, and social impacts, or influencing the decisions of stakeholders. In order to define these topics, we conducted a materiality analysis, with the involvement of both the

upper management and the stakeholders of the company. The approach was based on the GRI Standards and is described below.

Phase A

Identification of relevant topics

The first step of the process was to prepare a list of identified relevant topics for the company, relevant to our industry and business model and of concern to our stakeholders. The following actions were performed to this end:

> An online media review for the reporting year on topics related to the company’s activities and the expectations of the company’s stakeholders, in order to identify significant changes, developments, issues that occurred during the reporting year.

> A review of the sustainable development topics that are sector specific, as well as international standards such as GRI, SASB, TCFD, UN SDGs, with the aim to identify topics that are material to our industry as well as to sustainable development in general.

> A review of the publicly available sustainability reports of peer companies, to identify topics that are commonly reported.

Phase B

Prioritization of topics

The next step was to prioritize the identified relevant sustainability topics. The prioritization was performed against the significance of the environmental, social and economic impacts and according to the significance of these topics to our stakeholders. For the prioritization against the significance of the environmental,

social and economic impacts, Energean prioritized the United Nations Sustainable Development Goals (UN SDGs) to which its business model has the greatest impact. Following this prioritization, the topics linked to the UN SDGs that were prioritized

were deemed as those having the most significant impacts. For the prioritization of the topics according to their significance to our stakeholders an e-survey was launched. The new topics that were identified are “Growing the share of

natural gas in the product portfolio”, “Reducing (non-renewable) energy consumption” and “Safeguarding human rights at work (e.g. equal opportunities, diversity, eliminating forced labor etc.

Phase C

Validation of results

The results were reviewed and validated by the upper management.

For the 2020 reporting period we undertook an internal review of the material topics identified in 2019, with ultimate responsibility assigned to senior management. The following material topics were selected:

1. Creation of employment
2. Safeguarding occupational health & safety and wellbeing
3. Provision of employee training, certifications and employee development
4. Safeguarding human rights at work
5. Generating economic value / economic performance of the company
6. Growing the share of natural gas in the product portfolio
7. Safeguarding business ethics and establishment of transparent relationships with host governments
8. Reducing (non-renewable) energy consumption
9. Reducing greenhouse gases and other air emissions
10. Increasing the implementation of water efficiency innovations
11. Protecting and preserving biodiversity
12. Minimising waste and increasing the implementation of circular economy practices
13. Building and maintaining community relations
14. Ensuring emergency preparedness
15. Ensuring regulatory compliance
16. Ensuring data security
17. Improving supplier social and environmental performance.

Energean’s senior management prioritised the above topics against the below criteria:

• Environmental, social and economic significance, which was measured against the most relevant UN SDGs.
• Energean stakeholder

Energean_GRI Reporting Principles

Material Topics and their Boundaries

Why are these topics material

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3. Στοχοθέτηση

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Looking ahead to 2021 and beyond

2021 will be a pivotal year in Energean’s journey to becoming the leading independent gas and transition-focused E&P company in the Mediterranean. Our key targets are as follows:

Key targets

Concerning our progress in 2020, the following table provides information.

2020 Targets

Each Material Topic is linked to Sustainable Development Goals:

• Creation of employment - The management of this material topic is strongly aligned with UN SDG 8: “Decent Work and Economic Growth”.
• Safeguarding human rights at work - The management of this material topic contributes more widely to the achievement of the UN SDGs 5: “Gender Equality”, 10: “Reduced Inequalities” & 12: “Responsible Production & Consumption”
• Safeguarding business ethics and establishment of transparent relationships with host governments - “Operating with integrity” is strongly aligned with UN SDG 16: “Peace, Justice & Strong Institutions”
• Ensuring regulatory compliance - This material topic is strongly aligned with UN SDG 16: “Peace, Justice & Strong Institutions”.
• Safeguarding occupational health & safety and wellbeing - “Living together – in touch with our people and new challenges” is strongly aligned with UN SDGs 3: “Good health & well-being” and 8: “Decent work & economic growth”
• Ensuring emergency preparedness - This material topic is strongly related to UN SDG 3: “Good Health & Wellbeing”, 11: “Sustainable Cities & Communities” & 14: “Life Below Water”.
• Growing the share of natural gas in the product portfolio - The adoption and successful execution of this strategy is strongly aligned with achievement of the UN SDGs, namely 7: “Affordable and Clean Energy”, 8: “Decent Work and Economic Growth”, 9: “Industry, Innovation and Infrastructure” & 13: “Climate Action”.
• Reducing greenhouse gases and other air emissions (e.g. NOx, SOx, VOCs) - The management of this material topic is strongly aligned with UN SDG 7: “Affordable and Clean Energy” & 13: “Climate Action”.

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4. Διαχείριση της Αλυσίδας Αξίας (value chain)

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Energean’s commitment to operating at the highest standards of integrity and corporate governance, is showcased by the robust framework which has been established to ensure compliance and evaluate the effectiveness of its systems. Energean employs various methods in order to do so, such as maintaining an internal control system, and assessing risks related to climate change, governance, HSE and operational issues as well as data security. We ensure transparency through publicly reporting our performance

and continuously trying to expand our reporting.

Leadership and accountability for HSE, starts with the CEO and Board who take all necessary steps to ensure that the highest possible level of HSE performance is achieved in all workplaces and the communities in which we operate. The CEO and Board define the HSE strategy and approves action plans suitable to controlling and mitigating risks and taking advantage of new opportunities. The Environment, Safety & Social Responsibility Committee

(previously the Nomination and ESG Committee) meets regularly during the year. The Committee regularly collaborates with the HSE Director and the Head of CSR, and reports on its activities to the Board, who are responsible for implementing appropriate responses and actions. The establishment of the Environment, Safety & Social Responsibility Committee showcases Energean’s commitment towards safeguarding health, safety and environmental aspects across our business operations.

We have always valued the contribution of our stakeholders to our progress and success. Indeed, our stakeholders’ needs and expectations are very important for us and set new standards and milestones to achieve. Energean’s 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 target remains to increase engagement opportunities with stakeholders, as well as collaborate to make our value chain more sustainable.

We promote a zero-incident culture and strives to prevent every potential threat that may put our people in danger. Our commitment to safety begins at the top, and it is our expectation that this commitment be reinforced at every level. Through our safety programs and practices, we seek to maintain a culture in which employees and contractors put each other’s safety first, so that everyone across our business and value chain stays safe and healthy. The potential impacts of non-compliance include safety risks to our personnel, suppliers and contractors, severe impacts to the environment, and loss of our social license to operate, as well as potential legal and financial ramifications.

The oil, gas and wider energy industry both positively, and at times, negatively, impacts on local communities and ecosystems. As part of this industry, we actively manage relevant risks and take advantage of opportunities in order to create shared value for all. We aim to avoid potential negative disruptions to local communities, which could lead to a deterioration in the relationships that we have established with local stakeholders.

Our Supply Chain

We collaborate directly with more than 3,000 suppliers and contractors, plus thousands more through our wider supply chains and the sourcing of specialist oil and gas equipment, materials and services (Excluding ex-Edison E&P supply chain). We aim to promote a sustainable supply chain that meets the expectations of all our stakeholders. Responsible sourcing is a top priority, and we strongly believe that our suppliers and contractors play a key role in our success. In addition to ensuring maximum efficiency and operational excellence, we are focused on creating prosperity for all and encourage our suppliers to meet the highest standards of safety, social and environmental performance. Our supply chain is one of our most powerful tools for creating prosperity in local communities and we aim to source non-specialist goods and services from as many local businesses and communities as possible, in the countries in which we operate.

In 2020, $28.4 million was spent on local suppliers and contractors and we continue to work to support growth and expand the participation of local suppliers in our business and the local economy. Energean operates to the highest standards of corporate governance. These standards also apply to our suppliers and contractors, who we expect to act and operate in accordance with our HSE, ethical and corporate social responsibility standards.

Since 2019, we have implemented a systematic, risk-based approach to our supply chains, including a robust due diligence process. We have adopted a third-party risk management process that enables counterparty evaluation, focused on:

• Integrity: Examining beneficial ownership, outstanding legal proceedings and employment and close family relationships with government officials and politically exposed persons.
• Finances: Examining financial position and creditworthiness.
• Anti-corruption and bribery compliance: Full due diligence assessment I to cover integrity, professional reliability and reputation.
• HSE credentials, standards and records.

Our standard procurement contracts include key contractual provisions that seek to ensure that our suppliers and contractors comply with international laws on human rights, anti-slavery and compliance and preserve our auditing rights with respect to these issues.

As part of its risk-assessment process, Energean uses various indicators including geographic location, scope of work, compensation structure and contract value, to evaluate whether the third party and the business relationship under review present a high, medium, or low risk. In turn, this assessment triggers the necessary level of due diligence to be applied.

In 2020, the supply chain due diligence process was extended to include assessments for compliance health checks on selected contractors. Compliance audits are used to assess adherence to contractual provisions related to modern slavery statements. Furthermore, we engage with our major contractors to collect climate change and carbon emissions data, more details of which are presented in the “Supporting climate change initiatives” section of this report.

In the near future, we plan to implement a code of conduct for our suppliers, which , will, inter alia, underline the importance of respecting key sustainability principles of sustainability.

Supply chain

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5. Υπευθυνότητα

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Responsibility for the governance of climate change issues within Energean rests with the Board, as demonstrated by our Board-set target 70% of our annual production volumes being gas. To reflect the increasing importance of climate change-related risks and opportunities, we have reshaped the Board committee structure in 2020 and created a dedicated Environment, Safety and Social Responsibility Committee, chaired by Independent Non-Executive Director Robert Peck. These changes are designed to ensure that environmental issues and specific corporate governance are dealt with by one committee, ensuring strong strategic focus and challenge in these areas. The terms of reference of the committees have been drawn up in accordance with the provisions of the 2018 Corporate Governance Code. A copy of each committee’s terms of reference is available from the Company Secretary and can also be found at our website: www.energean.com.

Board Committees

The Board has established four committees made up principally of Independent Non-Executive Directors. These committees are:

• Audit and Risk Committee
• Nomination & Governance Committee
• Environment, Safety and Social Responsibility Committee
• Remuneration & Talent Committee

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6. Κανόνες & Διαδικασίες

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Our core operating principles are outlined in our code of conduct (the “Code”), which outlines our guidelines for ethical behaviour and daily business conduct, and instills personal responsibility to act in accordance with its requirements and ethical values. It applies to the Board of Directors, employees and contractors, suppliers, affiliated companies and controlled joint ventures, all of whom are encouraged to report any concerns and to seek guidance where necessary.

We take a zero-tolerance approach towards bribery, which is formally reflected in our Anti-Corruption and Anti-Bribery Policy. More details can be found on our corporate website: https://www. energean.com/about-us/our-vision-and-values/. We have a Board-approved robust anti-bribery and anti-corruption compliance programme, in line with one of the strictest legal frameworks in the global regulatory system, the UK Bribery Act 2010. The Board maintains active oversight of the programme through regular reports and meetings.

Recognising our responsibility to comply with safety regulations

Energean complies with all the guidelines set to not only deal with such emergencies but also to avoid them to the maximum extent possible. Our H&S and ESG strategy, includes emergency protocols designed to help the company respond to and recover from any HSE

emergencies and crises. These procedures are periodically checked for their effectiveness and are further developed when necessary. We have also established and enforced a Corporate Major Accident Prevention Policy (“CMAPP”) approved by the Board, which defines our obligations and commitments. Our CMAPP acknowledges our duty to comply with the Offshore Safety Directive 2013/30/EU and the Seveso Directive 2012/18/EU. This policy outlines the obligations for maintaining a healthy working environment. Energean’s Board is responsible for ensuring that the CMAPP complies with the relevant regulations, as well as the Company’s fundamental principles and Code of Conduct.

Energean makes an annual commitment to anti-slavery in its business. Specific clauses on compliance with the modern slavery legislation are included in its supply chain contracts. Suppliers are also requested to make a formal commitment in accordance with the following principles: compliance with laws, anti-corruption, health and safety and environmental protection. This statement is made pursuant to Section 54 of the Modern Slavery Act 2015 and has been approved by the Board of Energean plc (“Energean” or the “Company”).

Engaging our people to communicate

This year we launched our first Energean Voice Survey, with a response rate of over 90 %, which allows us to identify key areas for improvement.

In 2020, we also reviewed and modified our Open Door and Abuse and Intimidation Rules. Our Open-Door Policy, which applies to all individuals working at all levels of our company, aims to help our people resolve work-related concerns and disagreements in a timely manner by providing the option to contact ascending levels of management. Through this Policy we provide for a work environment in which:

• Open, honest communication between managers and employees is a daily business practice.
• Employees may seek counsel, provide or solicit feedback, or raise good faith concerns within the Company.
• Managers hold the responsibility for creating a work environment where employees’ input is welcome, advice is freely given, and issues are raised early and candidly without fear of retaliation when shared in good faith.

In 2020 we designed, create and launched our intranet, Energean Transmission Hub Online System (“ETHOS”) , to enable better communication, document sharing, knowledge exchange and to connect all Energean employees, but also to further enable our people who joined Energean through the acquisition of Edison to develop stronger relationships with their colleagues across locations and time zones.

Implementing measures for maintaining the safety of our people - CMAPP

Energean is committed to promoting, enhancing and sustaining a strong health and safety culture. The Board has approved a Corporate Major Accident Prevention Policy (“CMAPP”), that recognises:

• The potential for major accidents and the preventative benefits of prompt decisions.
• Its responsibility to control the risks of major accidents and continuously improve these controls.
• The necessity of advanced technology and the implementation of good energy industry practices.
• Its commitment to achieve the highest standards of HSE performance.
• The importance of the HSE Management System and its effectiveness.

During 2020, a number of principal risks were successfully identified and controlled, avoiding potential escalation to major accident events.

Our environment, our highest commitment

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.

We carry out environmental and social impact assessments according to local regulations and international standards. All our assets are certified for their operations according to the Environmental Management Standard ISO 14001.

Targets for 2021

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

102-16: Values, principles, standards, and norms of behavior

Our Corporate Principles are:

• Ethical and Responsible actions
• Transparency and Accountability
• Creating an attractive workplace and being an employer of choice
• Mitigating environmental impacts and minimizing our carbon footprint
• Supporting local communities.

Our Corporate Values are:

• Responsibility in all our actions and areas where we conduct our business.
• Excellence in everything we do; deploying best practices to achieve profitable and sustainable growth.
• Integrity; respecting our shareholders, employees and business; promoting transparency and accountability; cultivating a unique corporate sustainability culture.
• Commitment to a talented workforce; investing in our people’s development.
• Caring for the environment; reducing our environmental footprint.
• Engagement with local communities; meeting their expectations and needs.

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7. Καταγραφή και παρακολούθηση (monitoring)

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

In our 2020 Sustainability Report we explain how we will implement our Climate Change Strategy, which provides a blueprint for minimising our greenhouse gas ("GHG”) emissions and strengthening our low carbon portfolio, alongside how we are addressing sustainability issues and integrating sustainable business practices into our wider corporate strategy, with the according KPIs, which are revised annually.

Energean’s business model is to find and monetise hydrocarbons from its portfolio of assets across the Mediterranean. Our activities are focused on generating sustainable cashflow from production through selective development and appraisal of the highest return growth options with a focus on those opportunities with the lowest carbon intensities.

Performance indicator:

• Direct economic value generated and distributed

The Company continuously monitors key HSE performance indicators and has continued to deliver upon its exemplary HSE track record. Reporting accidents and incidents is carried out through a detailed process with ensures the thorough investigation and the timely

implementation of the relevant Corrective and Preventive Actions(“CAPAs”). Our high standards of HSE performance are demonstrated by the fact that for another consecutive year we achieved zero serious injuries in our operating sites, providing a safe working environment for all stakeholders.

Performance indicator:

• Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

Energean has never had to put its emergency response procedures into practice but remains ready to act in the event of any emergency. Thanks to the Company’s robust and strong oil spill prevention management system, it achieved a zero oil spills record at its operating sites in 2020.

Performance indicator:

• Significant spills

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.

Performance indicators:

• Energy consumption within the organization
• Water recycled and reused
• Direct (Scope 1) GHG emissions
• Energy indirect (Scope 2) GHG emissions
• GHG emissions intensity

We encourage real communication and feedback mechanisms between our local communities and our employees and us to ensure implementation of commonly accepted solutions regarding our activities. We aim to raise awareness for social contribution and to inspire other companies and our people to also apply these practices.

Performance indicators:

• Information on employees and other workers
• New employee hires and employee turnover
• Diversity of governance bodies and employees
• Incidents of discrimination and corrective actions taken

The Nomination & ESG Committee (and, going forward, the Environment, Safety & Social Responsibility Committee) evaluates Energean’s policies and systems for identifying and managing ESG risks, which includes identification of emerging risks, such as climate change 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, and industrial trends, etc.

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. Πολιτικές Αμοιβών και κίνητρα για τη Βιώσιμη Ανάπτυξη

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Formally link executive pay to ESG goals

Remuneration 

The Board established the Remuneration Committee as part of admission process in March 2018. During 2020 the Committee members were Kimberley Wood (Chair – appointed on 26 July 2020), Karen Simon, Andrew Bartlett, Ohad Marani (stepped down on 26 July 2020).Kimberley and Andrew are independent Non-Executive Directors and Karen was considered independent on her appointment as the Company’s Chair. Robert Peck, as the Board’s workforce representative, also attends meetings of the Remuneration Committee to ensure their views are taken into consideration. 

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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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

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 2020 Annual Report (pages 125-152).

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9. Διάλογος με τα Ενδιαφερόμενα Μέρη

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Despite a challenging year, we continue to focus on delivering profitable and sustainable growth that benefits all of our stakeholders, whilst meeting societies changing expectations. Our people are of primary importance and we are focused on continuous development of our corporate governance structure and culture to ensure ongoing continuity and progress across all areas of business and operation.

We have always valued the contribution of our stakeholders to our progress and success. Indeed, our stakeholders’ needs and expectations are very important for us and set new standards and milestones to achieve. Energean’s 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 target remains to increase engagement opportunities with stakeholders, as well as collaborate to make our value chain more sustainable.

The table below presents our main stakeholder groups, how we communicate and engage with them.

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

102-44: Key topics and concerns raised

The table below presents our main stakeholder groups and the key topics and concerns that have a significant impact for them.

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10. Προϊοντική Υπευθυνότητα και Καινοτομία

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

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, using gas as the transition medium to a low carbon future. This commitment will be delivered through the implementation of our Climate Change Strategy, which provides a blueprint for minimising our GHG emissions and strengthening our low carbon portfolio. Our Climate Change Strategy commits to ensuring that all our assets will be operated on a carbon neutral basis in respect of Scope 1 and Scope 2 GHG emissions. In 2020, we also established a new legal entity, “Energean Egypt Energy Services” that is responsible for evaluating low-carbon technology innovation, including potential new business lines in technical solutions such as the above-mentioned CCS and small-scale eco-hydrogen projects.

The acquisition of Edison E&P in December 2020 significantly enhanced the scale of Energean's operations to nine countries and added a portfolio of high-quality producing assets Moreover, we increased our 2P reserve and resource base to approximately 1 billion barrels of oil equivalent, the majority of which is gas, with a clear path towards a production target of 200 kboepd once Karish comes onstream.

We have demonstrated our ability to deliver growth and value in the Mediterranean and expect to continue to maintain our strategic focus and investment in this area. We know the governments and we know the rocks in this geographical area and will continue to leverage this understanding and knowledge to grow the business. We are committed to focusing our production mix in a way that promotes the Mediterranean’s energy transition and creates long-term value for all or our stakeholders. Natural gas emits only half as much Carbon Dioxide as coal, yet a large percentage of electricity generated in the region comes from coal-fired power plants. Replacing these facilities with gas-fired units is one of the fastest, most efficient and cost-effective ways to reduce global Carbon Dioxide emissions. Israel, our core market, has understood this, as the Israeli government’s decision to convert all coal powered stations to gas by 2025 attests. The Ministry of Energy is also targeting a fuel mix

of 70% gas and 30% renewable energy by 2030. However, the natural gas of the Mediterranean is not just an energy transition source, it is also an energy of the future. The region has sufficient large-scale natural gas resources to provide a sustainable supply to meet rising regional energy demand. Gas is also sustainable and efficient, and its flexibility as an energy source allows for agile production facilities. This makes gas a good partner for renewable energies, providing a useful backup source when there is no sunlight or wind.

In 2020, we completed the first phase of our transition to become the leading independent gas-producer in the Mediterranean with the completion of the acquisition of Edison E&P. The second phase of that transformation will be completed once our flagship gas project Karish commences production.

Energean has a balanced mix of producing, development and exploration assets and running

projects in nine countries in the Mediterranean and the North Sea delivering near- and long-term value creation. Further details on our portfolio and the countries where we operate can be found on our website https://www.energean.com/operations/. We establish a relationship of trust and integrity with all our suppliers, which is built upon mutually beneficial factors. Our supplier selection and on-boarding procedure includes due diligence of the supplier's integrity and reputation, respect for the law, compliance with health, safety and environmental standards, and references.

Share of natural gas

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

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.

Energy consumption

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11. Χρήση Φυσικών Πόρων

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

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. In detail, the data refer to the GRI and SASB indicators in the Annual Sustainability Reports.

We have a strong control and mitigation strategy to avoid potential environmental impacts across all our projects and operations. In 2020, as part of the Karish development project, a number of environmental surveys were conducted. These included:

• A post drilling survey (“PDS”) which involved sampling of sediments and a water column for biological and chemical analysis. The purpose of the PDS was to compare the sampling analysis results to the baseline data that was collected in 2017. A geophysical survey was also implemented.
• Three environmental baseline surveys were conducted on Blocks 23 and 31 offshore Israel, to prepare for potential drilling activities.
• A post pipelay sensitive habitats survey was conducted along the route of the Karish gas sales pipeline to ensure that no harm was caused during pipelay.
• A visual survey post High Density Polyethylene (“HDPE”) pipelay and post HDPE removal at Dor beach was completed to ensure that no harm was caused to the local environment.
• A preliminary survey prior to dredging was conducted at the Dor Kurkar ridge.

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.

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

302-1: Energy consumption within the organization

Total fuel consumption

Total fuel consumption from renewable sources and Energy consumption

Energy use intensity

303-1: Water consumption

Water management

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12. Διαχείριση Πόρων

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

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

We carry out environmental and social impact assessments according to local regulations and international standards. All our assets are certified for their operations according to the

Environmental Management Standard ISO 140011.

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.

Reducing energy consumption

Using energy more efficiently is essential to lowering the Company's overall environmental footprint. Our business model is based on contributing to meet the world’s growing energy

needs in ways that are economically, environmentally, and socially responsible.

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.

During 2020, we scaled back our water injection programme at Prinos and optimised its gas-lift operations. This resulted in reduced seawater usage and electricity consumption.

Furthermore, we agreed with the Public Power Corporation of Greece to provide to us Guaranties of Origin for the total amount of electricity consumed in 2020. As such, all electricity purchased for Prinos asset in 2020 came from renewable energy sources that

were incorporated into the national grid. Furthermore, we acquired International Renewable Energy Certificates (“I-REC”) for the total consumed electricity in our operations in Israel. In early 2021, roll out of green electricity was successfully initiated at the EDINA operative site in Croatia.

Increasing the implementation of water efficiency innovations

Fresh water management is a top priority for Energean. We recognise the importance of freshwater availability, increased global demand, the need for high-quality supply and stakeholders’ expectations. In order to meet these standards, we monitor the applicable regulatory framework for water management, which amongst others includes:

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

We recycle and reuse water withdrawals for production, cooling, firefighting activities and utilities. In 2020, we achieved a 10% reduction in fresh-water usage compared to 2019, as well as a 7% year-on-year reduction in seawater usage at Prinos in Greece. Approximately 92% of water was recycled, while water used for injection purposes was reduced by 76% versus 2019.

Energean has also set ambitious goals regarding carbon intensity reduction. According to our near-term carbon intensity reduction plan for Scope 1 and 2 emissions, we estimate a reduction of about 70% by 2022, following first gas from Karish and integration of the Edison E&P portfolio.

We are reducing our environmental footprint by setting sciencebased carbon intensity reduction targets. Not only were we the first E&P company in the world to commit to net zero by 2050, but we will also be setting near-term targets on a rolling threeyear basis. We are targeting an initial 70% reduction over 2019 – 2022. Energean views continuous improvement based on near term goals to be essential to delivering upon the net zero target as quickly as possible and we envisage being able to accelerate the 2050 target in the coming years. Energean also continues to participate proudly to the United Nations Global Compact and is committed to continuously supporting the initiative and its principles. Finally, Energean, will conclude its first CDP submission to the Climate Change questionnaire by 2020.

Our Strategy to Net-Zero emissions by 2050

Short-term plan - next 5 years:

• Get engaged in the Carbon Disclosure Project (CDP) in 2020
• Disclosure of climate related information following the Task Force on Climate-related Financial Disclosures (TCFD) recommendations in 2020
• Engage with organizations working on the transition to a low carbon future
• Support and motivate costumers and contractors to a low carbon utilization future
• Increase the efficiency of production installations by optimizing performance
• Increase the use of low or zero carbon electricity
• Strengthen our low carbon portfolio by increasing gas production to 80%, following
• close of the Edison E&P transaction
• Reduce our carbon emissions intensity by 70% by 2022, following close of the Edison E&P transaction

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

302-4: Energy consumption within the organization.

Energy consumption within the organization

303-3: Water recycled and reused

Water recycled and reused

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13. Εκπομπές αερίων και Κλιματική Αλλαγή

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

In Energean, we are committed to focusing our production mix in a way that promotes the Mediterranean’s energy transition and creates long-term value for all or our stakeholders. Natural gas emits only half as much Carbon Dioxide as coal, yet a large percentage of electricity generated in the region comes from coal-fired power plants. Replacing these facilities with gas-fired units is one of the fastest, most efficient and cost-effective ways to reduce global Carbon Dioxide emissions. Israel, our core market, has understood this, as the Israeli government’s decision to convert all coal powered stations to gas by 2025 attests. The Ministry of Energy is also targeting a fuel mix of 70% gas and 30% renewable energy by 2030. However, the natural gas of the Mediterranean is not just an energy transition source,

it is also an energy of the future. The region has sufficient large-scale natural gas resources to provide a sustainable supply to meet rising regional energy demand. Gas is also sustainable and efficient, and its flexibility as an energy source allows for agile production

facilities. This makes gas a good partner for renewable energies, providing a useful backup source when there is no sunlight or wind. In 2020, we completed the first phase of our transition to become the leading independent gas-producer in the Mediterranean with

the completion of the acquisition of Edison E&P. The second phase of that transformation will be completed once our flagship gas project Karish commences production.

To deliver our climate change strategy, related risk and opportunities have been identified, and future scenarios that will aid in developing an integrated strategy approach have been analysed. Energean is committed to reducing its GHG emissions and aims to minimise its impact on air quality across its operations. Our net-zero emissions strategy has been rolled out and is currently being implemented in three different phases: short-, medium- and long-term. We continue to work responsibly towards delivering on our goals and commitments to cut the intensity of our GHG emissions by shifting our production mix from oil to more than 70% gas. During 2020, we commenced evaluation of CCUS in the Prinos asset. Energean estimates that the Prinos subsurface volumes are sufficient to sequester up to 50 million tonnes of Carbon Dioxide. In addition to a Carbon Dioxide sequestration project, Energean is evaluating an opportunity to develop a small-scale eco-hydrogen plant within the existing onshore Sigma gas plant. Natural gas would be converted into hydrogen and carbon dioxide through an oxycombustion process with a carbon capture efficiency of over 99%.

We are continuing to decrease fuel gas usage at Prinos, as well as the implementing the effective desulfurization process of the acid gas produced, both contributing to improved air quality. A Leak Detection and Repair (“LDAR”) program is also expected to be implemented in 2021, in order to monitor and actively reduce methane emissions from our installations.

We calculate our Scope 1 emissions using heat and fuel benchmarks and undertake a verification process with an independent body. We account for combustion of gas mixtures for the production of thermal energy for our processes and combustion of gas mixtures

and fuels for mechanical purposes and utilities. For Scope 2 emissions, we apply the location-based method on calculating emissions from purchased and consumed electrical energy throughout all our premises by using country-level grid electricity factors provided

by the electrical power supply administrators and also the market-based method for incorporating energy attribute certificates (GOs and I-RECs) for the calculation of net energy emissions.

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

Energean discloses scope 1 and 2 GHG emissions on an annual basis.

305-1: Direct (Scope 1) GHG emissions

Scope 1

305-2: Energy indirect (Scope 2) GHG emissions

Scope 2

305-4: GHG emissions intensity

Emissions intensity

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14. Εργασιακά Δικαιώματα

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Our priority is to make Energean a great place to work, now and for the long term. In this context, for the past 40 years, one of our core commitments has been promoting human rights in the workplace. We protect human rights as they are defined in the Universal Declaration of Human Rights (“UNDHR”) and the core conventions of the International Labour Organization’s conventions on labour. Energean’s Corporate Principles, our

Code of Conduct and other relevant Group policies outline our commitments towards safeguarding human rights across our operations. We are a proud signatory of the UNGC showing our commitment to abiding by the UNGC’s principles in the areas

of human rights, labour, environment and anti-corruption. We deliberately shape our employee culture by creating engagement opportunities, focusing on non-discrimination

and equal treatment on the basis of gender, religion and ethnicity, fostering diversity and inclusion, embracing the freedom of association and collective bargaining. We rely

on the commitment, skills and knowledge of our people and we empower and engage our diverse workforce to deliver on our strategy. This is the reason we continue to invest in these areas, that are fundamental for Energean to build mutually satisfactory and lasting relationships with its human capital.

Engaging our people to communicate

We aspire to cultivate an optimistic, open and truthful community that encourages our people to fulfil their potential. To positively enhance employees’ experience at Energean, we use a range of engagement tools, including group discussions, meetings, interactive webcasts and organized surveys at a group level. Our employees attend regular team meetings, larger-scale town hall staff meetings in business unit and group level, frequent messages from our Chief Executive Officer, as well as remote well-being activities and cooking sessions to allow communication both in a working and personal level. This year we launched our first Energean Voice Survey, with a response rate of over 90 %, which allows us to identify key areas for improvement. In 2020, we also reviewed and modified our Open Door and Abuse and Intimidation Rules. Our Open-Door Policy, which applies to all individuals working at all levels of our company, aims to help our people resolve work-related concerns and disagreements in a timely manner by providing the option to contact ascending levels of management. Through this Policy we provide for a work environment in which:

• Open, honest communication between managers and employees is a daily business practice.
• Employees may seek counsel, provide or solicit feedback, or raise good faith concerns within the Company.
• Managers hold the responsibility for creating a work environment where employees’ input is welcome, advice is freely given, and issues are raised early and candidly

without fear of retaliation when shared in good faith.

In 2020 we designed, create and launched our intranet, Energean Transmission Hub Online System (“ETHOS”) , to enable better communication, document sharing, knowledge exchange and to connect all Energean employees, but also to further enable our people who joined Energean through the acquisition of Edison to develop stronger relationships with their colleagues across locations and time zones.

Fostering an open feedback culture

We regularly share information with and solicit feedback from employees about our business performance, programmes and processes. Especially during the COVID-19 pandemic, with the shift to remote working for a large number of our employees, frequent

and transparent contact and staff interaction was of the utmost importance to Energean. We conducted a group-wide survey to better understand how our staff felt about the steps that we took to tackle COVID-19, with 93 % of our staff believing that the measures taken were successful. One of the key measures taken was the transfer of most employees to remote working, which proved to be effective both in terms of safety and work-life balance without adverse effects on efficiency of the staff, and Energean will enable more flexible working conditions for our employees going forward.

Respecting the freedom of association and collective bargaining

We support the right of all workers to be part of a legitimate trade union and to bargain collectively. We have collective bargaining arrangements in effect in our Greek and Italian business units and we have had a designated non-executive director for Board engagement with the workforce since 2019.

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

405-1: Diversity of governance bodies and employees

Diversity of employees

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15. Ίσες Ευκαιρίες

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

During the year 2020, Energean completed training webinars to all employees (excluding ex-Edison employees) regarding Equal Opportunities, Diversity, and Inclusion. The webinars covered general knowledge for all employees and highlighted how managers can better support, manage, and contribute to their teams.

Energean’s structure is focused on maintaining HSE competence and assurance and ensures an appropriate standard of HSE preparation. People aspects, such as the continuous training of our employees and implementation of response drills to make sure that all our facilities and operations are working properly and in accordance with our principle that places safety as a first priority. All Energean employees undertake appropriate training to meet the criteria set by both statutory bodies and the Company’s requirements. All employees engaged in internal HSE training during 2020, with certain teams undertaking external accredited training. More than 2,900 training hours were dedicated to employees working at Energean-operated sites, while more than 8,800 training hours were provided to Energean Power FPSO-related staff.

Educating our people on emergency response During 2020, Energean organised training on business continuity and emergency response issues. Such risks are usual in the E&P sector, but due to the Company’s robust risk management procedures, facilities, and employee expertise, such risks were avoided. Oil spill emergency response drills and training take place on an annual basis to maintain a high level of preparedness. Furthermore Energean is an associate member of Oil Spill Response Limited, an industry consortium that is a world leader in oil spill response.

Being committed to diversity and providing equal opportunities for our people

Our current and future success depends on utilising the talents of diverse range of people. For this reason, we are committed to offering equal opportunities to our workforce and have

established a merit-based evaluation system for all employees and job candidates regardless of race, color, gender, age, sexual orientation, ethnicity, disability or any other protected status in recruitment, compensation, training, performance evaluation, promotion and all other aspects of employment. For this reason, we have created a highly diverse workforce, and we employ people from various countries. As part of our efforts to encourage a more diverse and inclusive work environment, we aim to provide an optimal working environment to suit the needs of all employees, including those with disabilities. At Energean each person is a valued team member who continually learns and grows, ensuring that inclusion is woven into our culture, policies and programs.

To further develop our inclusive culture and initiatives, in 2020 we started participating in the D&I workgroups organised by UN Compact Global Network UK. In 2020, we rolled out our Equal Opportunities policy and provided group-wide training on diversity and inclusion best practices. Furthermore, our employees participated in UN Compact Global Diversity and Inclusion Workshops. In addition, we are committed to providing our employees with fair

wages and benefits. The benefits option we offer during the 2020 to employees include the below, bearing in mind that different benefits are provided to employees based on location, seniority & job role:

• Transportation Allowance Medical Insurance
• Meals Allowance Life Insurance
• Representation Allowance Long term incentive plans
• Pension Performance bonus
• Professional qualifications fees Offshore Allowance
• Car Lease Employee Assistance Program
• Mobile Maternity and paternity leave
• Paid Accommodation Shared parental leave
• Living Allowance Sick leave
• Schooling
• Gym Membership

Cultivating a culture of non-discrimination

We treat people fairly, equally, and without prejudice or any discriminatory attributes. Energean will not tolerate any illegal discrimination based on race, color, religion, sex, national origin or any other protected class, and has zero tolerance to any form of workplace harassment, including sexual harassment. We reinforce these expectations through our Code of Conduct and our Group HR Policies for 2020 about our Grievance Process and Harassment & Bullying, that was reviewed and modified in 2020. In addition, during 2020 we

provided training to all employees on the above issues. Our people are supported to report grievances, including complaints, problems, concerns regarding their workplace, job or co-worker relationships, omission, situation, or decision that they think to be unfair, discriminatory, or unjustified respectfully. We are committed to deal with all grievances respectfully and confidentially and create a working environment where no employee fears retaliation for making or being involved in a complaint brought in good faith. Although our employees are encouraged to resolve issues informally, if they believe that their complaints rises to the level of grievance, they can initiate the formal process described in our Grievance Policy sending a written statement. We examine each notification via a thorough investigation of the facts relating to any allegations are taking place, which are handled with as high a degree of confidentiality as is practicable. This Policy applies to all individuals working at all levels of the organisation, including senior managers, officers, directors, trainees, full-time, part-time and fixed-term workers, and is incorporated in all employee employment contracts.

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

403-2: Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

Types of injury

406-1: Incidents of discrimination and corrective actions taken

There have been no incidents of discrimination during the reporting period.

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16. Απασχόληση

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

We closely monitor the training of our people and we have concluded that it truly advances our peoples’ capabilities. Training programs are provided either following appropriate initiatives from our managers’ or our employees’ suggestions. The topics covered by the company’s trainings programs are mainly HSE, emergency response, cyber security, compliance, equal opportunities and open door, grievance, and disciplinary training, as well as other topics addressed in an ad hoc manner. In 2020 we increased Group training hours by 14%. At the end of 2020 we also commenced upgrading of our e-learning systems

to implement the latest SAP Success Factors suite, which is expected to be completed in 2021 and will play a key role in the talent acquisition and development. The upgrade will also simplify the employee experience, allowing greater autonomy to the employees and making the HR-related activities more efficient overall. Developing our executive team skills is vital for leading their teams successfully, hence in 2020 we completed the first 360-degree feedback powered by Hogan. This resulted in the development of a targeted management action plan to address the outcomes of the feedback process.

Our employment creation results are shown in the tables below.

Total number of employees

New hires

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17. Ανθρώπινα Δικαιώματα στην Προμηθευτική Αλυσίδα

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

We collaborate directly with more than 3,000 suppliers and contractors, plus thousands more through our wider supply chains and the sourcing of specialist oil and gas equipment, materials and services1. We aim to promote a sustainable supply chain that meets the expectations of all our stakeholders. Responsible sourcing is a top priority, and we strongly believe that our suppliers and contractors play a key role in our success. In addition to ensuring maximum efficiency and operational excellence, we are focused on creating prosperity for all and encourage our suppliers to meet the highest standards of safety, social and environmental performance. Our supply chain is one of our most powerful tools for creating prosperity in local communities and we aim to source non-specialist goods and services from as many local businesses and communities as possible, in the countries in which we operate. In 2020, $28.4 million was spent on local suppliers and contractors and we continue to work to support growth and expand the participation of local suppliers in our business and the local economy.

Energean operates to the highest standards of corporate governance. These standards also apply to our suppliers and contractors, who we expect to act and operate in accordance with our HSE, ethical and corporate social responsibility standards. Since 2019, we have implemented a systematic, risk-based approach to our supply chains, including a robust due diligence process. We have adopted a third-party risk management process that enables counterparty evaluation, focused on:

• Integrity: Examining beneficial ownership, outstanding legal proceedings and employment and close family relationships with government officials and politically exposed persons.
• Finances: Examining financial position and creditworthiness.
• Anti-corruption and bribery compliance: Full due diligence assessment I to cover integrity, professional reliability and reputation.
• HSE credentials, standards and records.

Our standard procurement contracts include key contractual provisions that seek to ensure that our suppliers and contractors comply with international laws on human rights, anti-slavery and compliance and preserve our auditing rights with respect to these issues.

As part of its risk-assessment process, Energean uses various indicators including geographic location, scope of work, compensation structure and contract value, to evaluate whether the third party and the business relationship under review present a high, medium, or low risk. In turn, this assessment triggers the necessary level of due diligence to be applied.

In 2020, the supply chain due diligence process was extended to include assessments for compliance health checks on selected contractors. Compliance audits are used to assess adherence to contractual provisions related to modern slavery statements. Furthermore, we engage with our major contractors to collect climate change and carbon emissions data, more details of which are presented in the “Supporting climate change initiatives” section of this report. In the near future, we plan to implement a code of conduct for our suppliers, which, will, inter alia, underline the importance of respecting key sustainability principles of sustainability.

Assessing our suppliers and contractors

Energean evaluates and selects contractors and suppliers based on their ability to provide services according to the project, contract requirements, HSE & climate change policies and according to local requirements. Criteria for pre-qualification, selection, evaluation and re‐evaluation of contractors and suppliers are established to assure suitability and the efficient monitoring of supply chain performance. In terms of health and safety results, Energean implements a screening process of its contractors and suppliers to ensure the full adoption of its H&S culture. The Company tracks its contractors and suppliers HSE performance continuously, including through the use of tracking metrics such as LTIF and TRIR.

Assessing our contractors and suppliers using human rights criteria

Energean carries out pre-selection screening of contractors and suppliers on a risk basis. Starting from 2019 this pre-qualification due diligence procedure applies to prospective vendors and allows evaluation of the vendor integrity, financial information, HSE, disclosures of any relations to public officials and the existence of any compliance policies and procedures. Energean has designed a process to conduct post-award audits of contractors and suppliers on a risk basis.

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

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

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

Energean has not identified any significant risk of incidents of child labor and forced or compulsory labor within its operations.

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18. Ενίσχυση Τοπικών Κοινωνιών

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Local communities are one of our key stakeholders, and for this reason we aim to build strong bonds and working relationships to ensure that each activity that we undertake in the interests of and to the benefit of local people. Mutual cooperation, transparency, communication and trust are key to facilitating and maintaining these relationships. To achieve this, a number of activities are undertaken, including through open dialogue, conducting survey, public debates and ad hoc community visits and consultations.

The management of this material topic is strongly aligned with the UN Sustainable Development Goals. The management approach towards Community Relations is described below.

SDGs 1.2.3

SDGs 4.5

SDGs 10.11

SDGs 17

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

201-1: Direct economic value generated and distributed

Direct economic value

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19. Συμμετοχή σε Πρωτοβουλίες και Πολιτική Επιρροή

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Energean in the context of better operation and implementation of its strategy for sustainable development, participates in international organizations and national associations. Our participation via membership in the committees of the is part of our strategy for sustainable development.

ENERGEAN GROUP

• Signatory of the United Nations Global Compact
• Gas Industry Advisory Committee of the Eastern Mediterranean Gas Forum

GREECE

• Institute of Energy in Southeastern Europe ("IENE")
• Greek Energy Forum
• British-Hellenic Chamber of Commerce
• American-Hellenic Chamber of Commerce
• Greek-Israeli Chamber of Commerce

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

415-1: Total value of (financial and in-kind) political contributions made directly and indirectly by the organization by country and recipient/beneficiary

Political contributions are fully prohibited by our anti-bribery policy. Charitable contributions are allowed but are monitored to ensure they are not being used as subterfuge for bribery, which includes full due diligence in respect of recipient bodies, review, and approval of any contributions by compliance, and accurate recording procedures.

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20. Πρόληψη και Καταπολέμηση της Διαφθοράς

ΔΙΟΙΚΗΤΙΚΕΣ ΠΡΑΚΤΙΚΕΣ

Energean has successfully embedded business ethics within our corporate policies, demonstrated by an ongoing commitment to an ethical culture and business integrity.

Fighting against bribery and corruption

We take a zero-tolerance approach towards bribery, which is formally reflected in our Anti-Corruption and Anti-Bribery Policy. More details can be found on our corporate website: https://www.energean.com/about-us/our-vision-and-values/ . We have a Board-approved robust anti-bribery and anti-corruption compliance programme, in line with one of the strictest legal frameworks in the global regulatory system, the UK Bribery Act2010. The Board maintains active oversight of the programme through regular reports and meetings

We have an established risk assessment procedure that identifies, prioritises, and assigns accountability for managing risks from bribery, or ethical misconduct, that could lead to fines or penalties, reputational damage, or the termination of E&P licences in the countries in which we operate. It includes third-party procedures to assist with third-party due diligence to mitigate the risk of counterparty-associated bribery and corruption and includes criteria including location, activity, sector, and contract value. Our risk-assessment procedures have been used to develop detailed policies and procedures that form the basis of our anti-bribery and anti-corruption compliance programme. Clear procedures and controls exist to ensure that all employees and contractors adhere to our anti-bribery policy that relates to gifts, hospitality, and expenses. Clear guidelines exist to ensure employees understand how to handle gifts, hospitality and expenses, and all occurrences are recorded and reviewed by compliance.

Investing in anti-bribery training

• In addition to a tailored Anti-Bribery Policy, more than 90% of office-based employees received focused training during 2020, including: Live online training sessions between April and October 2020.
• Refresher modules took place in December 2020 following the acquisition of Edison E&P.

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.

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ΔΕΙΚΤΕΣ ΕΠΙΔΟΣΗΣ

205-3: Confirmed incidents of corruption and actions taken

Energean has not identified any confirmed incidents of corruption and thus no relevant actions needed to be taken during the reporting period.

419-1: Non-compliance with laws and regulations in the social and economic area

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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