02 Value, materiality and stakeholders 7

How we create value	8
EU taxonomy for sustainable activities	9
Materiality analysis, stakeholder engagement and dialogue	10

03 Sustainability	13
Our sustainability approach	14


01 Introduction	3	05 Social	38
About this report	4	Ensuring safe and secure activities	39
Who we are	5	Empowering people	42
Letter from the CEO	6	Respecting human rights	49
		Deliver value to society	53

Our sustainability approach	14
OKEA and the Sustainable Development Goals	15
Sustainability governance and management	16

04 Environment ²⁰

Energy transition and climate change	21
Protecting environment and ecosystems	32

ce	Appendix

06 Governance	58
Responsible and ethical business practices	59
ESG Performance data	64

07 Appendix	76
TCFD Disclosures	77
GRI Disclosures	78
Restatements	90
Statement on GHG accounting and reporting	91
Auditor's report	95

and stakeholders

⁰¹ Introduction

and stakeholders

Sustainability Environment Social Governance Appendix

materiality

About this report

This report presents OKEA's material ESG topics including key performance metrics for the calendar year 2023. OKEA has reported in accordance with the GRI Oil and Gas Sector Standard 2021 for the period from 1 January to 31 December 2023, unless otherwise stated.

We use several reporting standards, recommendations, and guidelines to identify and report on material environmental, social and governance (ESG) topics, including:

▶ Task Force on Climate-Related Financial Disclosure (TCFD) recommendations
▶ ESG Reporting Guide (2022, Euronext)

References have, where adequate, also been made to the United Nations Sustainable Development Goals (SDGs).

The report discloses several reporting requirements required by Norwegian law, including:

▶ The Norwegian Accounting Act section 3-3a paragraphs 9 & 10
▶ The Norwegian Accounting Act section 3-3c
▶ The Norwegian Act relating to equality and a prohibition against discrimination (Equality and Anti-Discrimination Act) section 26a.
▶ The Norwegian Transparency Act section 4-7

The scope of our sustainability reporting is centred around assets over which OKEA exercises operational control. Unless specified the report does not include data from equity interest fields/projects, such as joint ventures, where we are not the operator.

This report has been reviewed by management at various levels, representing relevant assets and business units. It has also been reviewed by the Sustainability and technical risk committee (STR), Audit committee (AC), and the People and organisation committee (P &O), prior to approval by the board of directors. PwC has provided limited assurance on 2023 greenhouse gas emissions data marked with "✓" in this report.

For additional data supporting this ESG Report, see OKEA's annual report for 2023, which provides information about financial performance and our business in general. For more information about our disclosures reporting standards and reporting requirements, reference is made in the appendix.

2023 performance highlights

8.97 million barrels

Barrels produced

8,885 million NOK

Revenue

Taxes paid

Female recruitment

85 scale of 0 to 100

Employee engagement score

7,863 million NOK gross committed

Purchase of goods and services

Direct suppliers engaged

17,165 tonnes CO2 e reduced

GHG emissions reduction

frequency of total recordable injuries per million hours worked

Total recordable injury frequency

Who we are

OKEA is a pure-play independent exploration and production (E&P) company, and a leading mid- to late-life operator on the Norwegian continental shelf (NCS). OKEA finds value where others divest and has an ambitious strategy built on growth, value creation and capital discipline. OKEA is listed on the Oslo Stock Exchange.

The company's activity level in 2023 has been high. Completion of the Hasselmus project, several drilling campaigns to increase production at Brage, securing government approval of the power from shore project and completion of the acquisition of 28 percent working interest in the Statfjord area were important achievements during the year which supports the company's growth strategy.

Our assets and offices

OKEA is headquartered in Trondheim, Norway and has offices in Bergen, Kristiansund, Oslo and Stavanger. OKEA operates the Draugen and Brage assets and has ownership interests in partner-operated assets comprising Yme, Statfjord area, Nova, Gjøa and Ivar Aasen.

Read more about OKEA in the 2023 annual report available on www.okea.no/investor.

Our values

OPEN

We dare to share information openly. We meet each other with understanding and positivity. We are always being honest. We dare to be proud. We drive clarity in what we say and do. We actively encourage collaboration.

ENGAGED

We are always personally invested in our activities. We strive for development, improvement and innovation – both in OKEA and personally. We care about each other and how we work together.

RESPONSIBLE

We always act with integrity. We have ownership to own and joint results. We are reliable in our actions – do what we say we will do. We behave with respect when meeting others within and outside OKEA.

AMBITIOUS

We aim high – together. We dare to take chances and innovate to drive progress. We actively work to improve ourselves and our colleagues. We are always willing to try new ways of working and new technology.

Figure 1. OKEA's assets and offices

Letter from the CEO

OKEA supports Europe's demand for energy through our growth strategy. At the same time as we have an uncertain geopolitical situation in Europe, the pressure from the EU to produce more oil and gas is increasing. In parallel, the political focus on combatting climate change that we have seen in recent years continues. OKEA supports the Norwegian government's plan to reduce Norway's climate emissions by 55 percent by 2030. As Norway's largest industry, the oil and gas sector has a clear responsibility to contribute achieving these targets. OKEA is committed to contribute to this joint effort and to play a role in the ongoing energy transition.

In OKEA, we recognise our responsibility to contribute and collaborate. In 2023 we followed up our decarbonisation strategy for our operated assets in production, Draugen

If we are to become the leading operator of mid-to late life assets, we need the best people.

and Brage. The Ministry of Energy approved the revised plan for development and operation (PDO) for the power from shore and electrification of the Draugen and Njord A platforms. This is a collaboration between OKEA, Equinor and the respective licence partners. The project will reduce emissions by a total of 330,000 tonnes of CO2 e per year and increase value creation from the Norwegian continental shelf. In addition to reduce CO2 e emissions, the project will result in lower production expense and prolong the economic lifetime of the fields. The Draugen licence's application for a licence extension until 2040 was approved in 2024.

Expected completion of the power from shore project is the first quarter of 2027, and Draugen will be a «near zero-emission unit» from 2027. Electrification of oil and gas fields is crucial to reach Norway's ambitions to cut greenhouse gas emissions. Production from the Hasselmus gas discovery commenced on 1 October 2023. As a subsea Mid- to late-life assets, such as Draugen and Brage, will typically have higher GHG emissions per barrel than less mature fields. It is important for us to minimise these emissions and innovative technical solutions.

without a highly skilled and experienced operating organisation. The operational efficiency reduces production costs and emissions while increasing profitability.

Safeguarding the well-being of all personnel will always be a key priority for OKEA and our objective is to ensure that all our activities are carried out with zero harm to people. The adverse trend noted on safety performance in 2023 is taken seriously, and we remain committed to our focus on improving HSE performance.

tie back to the Draugen platform, Hasselmus is expected to add more than 4,800 barrels of oil equivalents per day in production at plateau. Hasselmus restarted export of associated gas and NGL from Draugen. The Hasselmus project was the first development project for OKEA as operator. The project is important for the long-term development of Draugen and further demonstrates our ability to extend the life of mature fields to maximise value creation on the NCS. In 2023, OKEA, together with licence partners, increased the production on the Brage field significantly. This would not be possible through efficient field management processes Taking our ESG responsibility seriously is an important element for OKEA's «licence to operate». Our objective is to set ambitious decarbonisation goals for our assets while also considering the economic constraints associated with operating mid- to late-life assets. Our success in developing sustainable and smart solutions will also enhance our profitability in the long term. Through close collaboration with the government, our partners and colleagues in the industry, we will continue to focus on our people's safety and security, and the security of our systems, data, and assets.

and stakeholders

Value, materiality and stakeholders 02

and stakeholders

Sustainability Environment Social Governance Appendix

materiality

How we create value

OKEA is positioned in the upstream value chain of the petroleum industry. We produce crude oil, natural gas, and natural gas liquids (NGL) which is sold to the market.

Our business and how we create value

Downstream

Processing Marketing

Upstream

Exploration Development Production Decommissioning

	1
L	- 11 ■
	1

Midstream

Transport Storage

Committed people and our culture

Our talented and diverse team of 435 employees live our core values every day as they help to realise our strategy and ambitions. OKEA believes that engaged people, collaborating to reach our goals in an open and inclusive environment are key to the company's success.

Resol

Our people bring key skills and capabilities to our business and in turn, we must keep them safe and engaged while offering interesting career paths.

OKEA is committed to contribute to the communities where we operate and strengthen local business and work actively to recruit workforce from the regions where we are based.

Our partners

OKEA aims at achieving and maintaining long-term relationships with contractors and operators based on integrated teams with shared objectives and incentives.

OKEA is listed on the Oslo Stock Exchange with an ambition to create value for our shareholders.

Resources

Our business relies on natural resources. Our aim is to develop oil and gas resources efficiently and responsibly and convert discoveries into reserves and production in a sustainable manner.

Financial
capital

We have a strong financial position and an ambitious growth strategy built on value creation and capital discipline.

WHAT WE DEPEND ON

VALUE CREATED FOR

and stakeholders

EU taxonomy for sustainable activities

The EU Taxonomy classifies environmentally sustainable economic activities.

The EU Taxonomy Regulation was enacted in Norway in late 2021 and applicable from 1 January 2023 for non-financial undertakings which are public-interest entities (i.e. listed) with more than 500 employees. OKEA will be required to report under the EU Taxonomy from 1 January 2025. The EU Taxonomy requires reporting on the "Taxonomy-eligible" and "Taxonomy aligned" portions of revenue, capital expenditures (CAPEX), and certain operational expenditures (OPEX). Our interdisciplinary team has assessed eligible activities, including those related to both producing assets and projects under development.

Our main economic activity is related to production and sale of oil and gas which is not covered by the current EU Taxonomy Consequently, OKEA's Taxonomy-eligible revenue is and will be zero. We have not completed our analysis of CAPEX and OPEX related to economic activities eligible under the EU Taxonomy. We closely monitor the EU taxonomy's ongoing development and continually review OKEA's eligibility and alignement.

and stakeholders

Materiality analysis, stakeholder engagement and dialogue

Materiality analysis

Additionally, in preparation for the new EU Corporate Sustainability Reporting Directive (CSRD), the materiality analysis also considered the financial materiality perspective. This perspective identifies sustainability matters that pose risks and opportunities to OKEA and may have financial impacts on the company's future. The results of the materiality analysis are presented in the table on the next page.

In 2023, OKEA conducted a materiality analysis to identify the most relevant sustainability issues for the company and its stakeholders. This analysis followed the GRI 3 Standard, which considers material topics based on the organisation's significant impacts (both positive and negative) on the economy, environment, people, and human rights (referred to as the "Impact Materiality" perspective). The identification and prioritisation of material topics are informed by our understanding of relevant risk factors, consultation with internal and external subject matter experts, and ongoing stakeholder engagement (summarised in the stakeholder engagement table). Ultimately, the CEO and board of directors approve the content of the ESG report, including the selection and disclosure of material topics. More detailed information on these material topics can be found in the environment, social, and governance sections of the report.

and stakeholders

Material topic	Impact materiality Positive impact	Negative impact	Impact materiality	Financial materiality
Energy transition and climate change	• Reducing emissions through decarbonisation strategies, energy management and technology development • Addressing reduction in our scope 3 emissions in dialogue with our suppliers	• Climate-changing emissions from operating activities or within the value chain	High	High
Protecting biodiversity and ecosystems	• Re-use of materials and plants for the benefit of local communities and the circular economy	• Environmental damage, loss of aquatic habitats and biodiversity depletion	High	Medium
Ensure safe and secure activities	• Training and awareness-raising activities on health and safety; reduction of accidents and injuries with use of new technology, research, and development • Improving cybersecurity competence and awareness in dialogue with employees, partners, and supply chain	• Injuries, occupational disease and/or damage to health due to non-compliance with regulations; breakdown and/or malfunction of assets; exposure to hazardous substances • Unauthorised access and modification of systems and information, leading to breach of confidentiality, integrity, and availability	High	High
Empowering people	• Expanding employees' skills and improving career opportunities through continuous training • Increasing employee well-being through adequate welfare and equal opportunity	• Inadequate employee training, non-compliance with contractual rules	Medium	Medium
Respecting human rights	• Protection and respect of human rights through due diligence on corporate activities and those of suppliers and business partners	• Suppliers violation of workers' rights and negative environmental impact due to OKEA's failure to monitor them	Medium	Medium
Responsible and ethical business practice	• Sharing environmental and social sustainability principles through the involvement of suppliers and supply chain partners • Countinuing training in code of conduct (including anti corruption)	• Incidents with fraud, corruption, non-compliance with legal regulations and Code of Conduct with possible reputational damage	Medium	Medium
Value to society	• Development of communities and local entrepreneurship, including partnerships and business agreements with local suppliers • Creation of economic value in the communities of presence with wages, payment of taxes and royalties	• Temporarily use of land to carry out construction and decommissioning work, with possible risk of contamination soil and water recipients	Medium	Medium

occurs in our value chain Impact materiality Financial High High High Medium High High Medium Medium Medium Medium Medium Medium Medium Medium Development and

*The table shows the results of the materiality analysis; it also shows selected potential positive and negative impacts that could materialise in our value chain.

construction Operation Decommissioning

Stakeholder engagement and dialogue

OKEA's relationship with its key stakeholders is a critical aspect of our business model. That is why we continuously work to identify and understand their information needs, concerns, and feedback. We do this through active listening and strive to have a systematic approach to engage with a broad set of relevant stakeholders for our business and the communities where we operate. Our stakeholder map is regularly updated. The table to the right gives an overview of OKEA's key stakeholder relationships and how we have engaged in the past year.

Stakeholder group	Arena for dialogue	Issues raised	OKEA's response
Investors, shareholders, and owners	• Investor meetings • Company presentations • Shareholder general meetings • ESG report	• Profitability • Capital allocation • Transparency	• Good practices of corporate governance and compliance with laws and regulations • Transparent and available information • Clear and consistent reporting
Employees, including Unions and employee representatives	• Day to day interactions • Feedback and development conversations • Employee surveys and courses	• Safe and secure workplaces • Employee development • Competitive salaries • Health and well-being • Psychological safety • Diversity and inclusion • Learning culture based on employee engagement. • Engagement with trade unions and activation of employees	• Zero harm ambition • Internal and external communication measures • Competitive conditions • Competence programmes and on-the-job training activities
Authorities	• Dialogue meetings and conferences • Compliance with laws and regulations • Reporting on progress • Supervision, audits, and verifications public consultation • Submissions • Environmental and climate reporting	• Compliance with laws and regulations • Health, safety and environment, energy, and climate measures • Comprehensive risk management	• Reporting on progress/ sustainability reporting • Clear goals and ambitions for ESG • Proactive dialogue with authorities
Suppliers and contractors	• Supplier meetings • Enquiries • Negotiation meetings • Day-to-day operations • Audits and verifications	• ESG weighting in tenders • Sourcing • Predictability/ long-term perspective	• Act based on a long-term perspective and predictability in the market • Qualifying suppliers based on criteria regarding ESG, quality and code of conduct
Society and local communities	• Local media • Close contact with upper secondary school/ universities • Conferences and events	• Support local business • Apprentice schemes • Transparency on matters that impact local communities • Participation in local support and sponsorship measures	• Apprentice programme • Sponsorship and partnerships • Social media • Meetings and discussions • Quarterly and annual report
Licence partners1	• Licence meetings • Direct management meetings • Development projects	• Compliance with agreements • Responsible operator and partner	• Balanced and long-term agreements • Communication and transparency

Table 2. Stakeholder engagement and dialogue

1 Production licences on the Norwegian continental shelf (NCS) are granted to consortiums of companies. For more information on OKEA's licences and licence partners, reference is made to The Petroleum Act and the licensing system - Norwegianpetroleum.no (norskpetroleum.no).

Our sustainability approach 03

Sustainability Environment Social Governance Appendix

and stakeholders materiality

What we aim to deliver on Key performance indicators Short- term incentives

OKEA's ESG approach

Integrating ESG in business and operational activities

As part of our strategy, we maintain a clear, credible, and consistent approach to ESG (Environmental, Social, and Governance) management. The management of ESG matters is deeply ingrained in our business and operational activities, serving as a critical element of our licence to operate. We strive to maximise value by efficiently utilising available resources, actively reducing emissions, and remaining an attractive investment for our shareholders. In the years ahead, we aim to generate substantial cash flow from our oil and gas production. This cash flow will contribute to expand our portfolio and create value for both shareholders and society.

Integrating ESG in performance management process

Our vision is to be the leading mid- to late-life operator on the NCS, aimed at creating longterm value for our shareholders and society. The vision is founded on our strategic belief that the world needs affordable, sustainable, and reliable energy. Our strategic priorities and enablers are illustrated above.

Our goal is to ensure safe and responsible operations while creating long-term value for our shareholders. We are committed to minimising our impact on the natural environment and upholding the highest standards of corporate governance and business ethics.

Sustainability performance management is seamlessly integrated into our strategy, business planning, risk management, and decision-making processes. Our strategic priorities drive a range of initiatives, including specific ones related to ESG. These initiatives are accompanied by corresponding key performance indicators (KPIs) for the upcoming year. Notably, three of these KPIs focus on critical ESG aspects: safety, reducing GHG emissions through power from shore to Draugen, and employee engagement scores.

OKEA's performance management system is widely employed across the company to
track and report progress on initiatives and
corresponding KPIs. Successful delivery on
these initiatives and KPIs directly influences
OKEA's bonus program, where monetary
rewards are calculated based on performance.
These bonuses are distributed to senior
management, including the CEO and other
employees.

Production (from
operated and partner
operated assets)
Production expenses
(from operated and
partner operated assets)
Net profit
-

Net reserve additions (2C,2P)
Exploration value creation
Power from shore (Draugen)
Safety
People and organisation
Engagement score

and stakeholders

OKEA and the Sustainable Development Goals

OKEA actively supports the United Nations Sustainable Development Goals (SDGs), using them as a reference when defining our sustainability priorities. By focusing on SDGs where we can maximise our impact, we successfully implement our strategic plan and address material issues. The following SDGs are most relevant to OKEA:

▶ SDG 7: Affordable and clean energy and SDG 13: Climate action are particularly relevant for OKEA as a pure-play oil and gas company with significant greenhouse gas (GHG) emissions associated with our operations and products.
▶ All our operations on the Norwegian continental shelf impact SDG 14: Life below water. We emphasise the circular economy, responsible decommissioning, and recycling, aligning with SDG 12: Responsible consumption and production.
▶ Our activities affect people, the environment, and assets. We address potential injury, work-related illness, and major accidents, impacting SDG 3: Good health and well-being.
▶ As a significant employer, we focus on developing our people, contributing to SDG 5: Gender equality. Diversity, equality, and inclusion are integral to our high-performing organisation.
▶ OKEA adheres to ethical business practices and legal compliance, reflecting SDG 17: Partnership for the goals.
▶ We believe our activities should benefit local communities, contributing to SDG 8: Decent work and economic growth. Engaging with communities is essential for sustainable development.

Sustainability governance and management

The board of directors serves as the highest managing body, responsible for shaping and executing the company's strategy, including sustainability targets. Our experienced board members bring diverse backgrounds, enriched by their professional work and executive roles. They possess valuable expertise in evaluating and making decisions related to sustainability matters. Continuously, they enhance their knowledge of environmental, social, and governance issues relevant to the company. More detailed information about each board member's personal and professional characteristics can be found on OKEA's website and in the annual report for 2023. Our board comprises four women and six men, with three members elected by employees, ensuring the necessary independence as per Norwegian statutes and regulations.

The figure to the right gives an overview of the roles, and responsibilities of the board of directors and senior management in relation to ESG topics.

Board of Directors

Defines the strategic lines and the objectives for the company, including ESG strategy.

Reviews or approves corporate governance and compliance documents and related policies, guidelines of the internal control and risk management system (including ESG risks and opportunities), and financial and non-financial reporting.

Board committees

Sustainability and Technical Risk (STR) committee

follows up on the company's management of ESG related matters
reviews main risks for projects and investments
monitors overall risk management and internal control
contributes to the board's review of the company's most critical areas of exposure to risk and its internal control arrangements, including the company's exposure and management of key climate change related risks and opportunities, and to make recommendations where action or improvement is needed.

Audit committee

• prepares matters to be considered by the board and to support the board in the exercise of its management and supervisory responsibilities relating to financial reporting, statutory audit, internal control, and collaboration with the Financial Supervisory Authorities

People and Organisation (P&O) committee

evaluates and proposes the compensation of the company's CEO
administers the company's bonus and incentive program
provides advice on general compensation and organisation related matters to the board
proposes annual report and guidelines on the compensation of the senior management team and other leading persons, pursuant to applicable rules and regulations.

Chief executive officer

Overall responsibility for the organisation to deliver on the company's strategy, including sustainability efforts

Senior management team2

OKEA's management has established a reporting and meeting structure to ensure that risks and performance are reviewed weekly, monthly, and quarterly with engagement of relevant stakeholders in the business. The risk and performance reviews include evaluation of progress and results on climate, compliance, human rights, and other sustainability-related activities. The senior management team shall also ensure the effectiveness of the risk management processes and review mitigation efforts for identified impacts.

Figure 2. Roles and responsibilities in relation to ESG topics

2 100% of the senior management team are hired from the local community

Roles and responsibilities of the board of directors in relation to ESG topics

Management of ESG topics

The six core commitments in our ESG strategy and their supporting KPIs and targets, represent the sustainability issues where OKEA can create the most significant impact, and which are critical to the success of our business strategy. For each of the ESG topics, KPIs/ monitoring indicators have been identified, and clear ambitions have been set.

The effectiveness of our management approach for sustainability issues is evaluated through performance reviews at several management levels, and at board level, including in the relevant board committees.

The KPI table to the left summarises our ESG topics and provides a high-level overview of our progress towards targets in 2023.

Sustainability indicators	2023 ambition	2023 performance
Energy transition and climate change
Absolute GHG emissions scope 1 (tonnes CO2 e) reductions	Reduce absolute scope 1 emissions by 390,000 tonnes vs. 2019 (portfolio) by 20304	24,996 accumulated 2020-2023
Protecting biodiversity and ecosystems
Serious accidental spills5	Zero serious acute spills to the environment	0
Ensure safe and secure operations
Serious incidents	Zero actual serious incidents	1
Empowering people
Engagement score	Top quartile score on engagement	85 out of 100
Female recruitment	30 percent female recruitments	26 percent
Respecting human rights
Confirmed instances of discrimination and human right violations	Zero confirmed instances of discrimination and human rights violations	0
Responsible and ethical business practice
Confirmed instances of corruption and bribery	Zero confirmed instances of corruption and bribery	0
Employees who signed-off the Code of Conduct	All employees have signed off the code of conduct	95 percent

Table 3. Key performance indicators

3 Key performance indicators (KPIs) are selected based on the topics identified as most significant and collected on an annual basis.

4 Our ambition regarding reducing absolute emissions by 2030 has been updated. For more information reference is made to the chapter "Energy transition and climate change"

5 The ambition refers to all hydrocarbon and chemical spills in category A and B from our operated assets

OKEA ESG Report 2023	Introduction	Value, materiality and stakeholders	Sustainability	Environment	Social	Governance	Appendix

Response plans to prevent and manage environmental emergencies (for example in the event of spills).
Robust oil spill management system in place
Oil spill detection radar system installed on operated assets and drilling
Improve existing waste management plans
Train and inform staff/contractors and having regular audits to assess

• Robust HSEQ management system in place • Regular HSEQ training, drills, and audits

management) standard and is consistent company wide. For detailed information on OKEA's business and industry risks,

pages 14-16 of this report.

Mitigation measures

Inside-out: Spills from our operations could trigger a negative chain effect on ocean ecosystems, with potential degradation and loss of (for example in the event of spills). stand-by vessels
Inside-out: Soil and water contamination could give a negative effect on the healthy ecosystem, like environmental pollution, with a negative progress

Inside-out: Accidents during operational activities can lead to severe
Inside-out and outside-in: Integrity failure risks could lead to operational • Audits (internal and third party) disruptions, fires, explosions, and water contamination. These factors may cause environmental harm and significant financial impacts, including • Improvement projects business interruption, higher costs, regulatory consequences, legal • Planned turnarounds • Qualified and trained personnel • Insurance coverage
significant risks to OKEA. These include attacks by hackers, computer viruses, insider threats, and errors by employees. Such threats could lead to production losses, compromise sensitive information, and impact safety and the environment. OKEA may also face regulatory actions, • Detecting unwanted activity legal liability, reputational damage, and revenue loss if these threats • Incident response and recover

Audits (internal and third party)
Preventive maintenance inspections
-
-
Qualified and trained personnel
-
Security governance in alignment with the ISO 27001 information
security, cybersecurity and privacy protection standard
Identification of values, risks, and requirements
Protective barriers across processes, technologies, and people
Detecting unwanted activity
Incident response and recover

Within our Integrated Risk Management System, we identify and assess the most significant ESG risks and opportunities. These are summarised in the table below. Additionally, for risks related to energy transition and climate change, please see pages 14-16 of this report.

• Diversity targets as part of department scorecards • Focus on female talent in succession planning process across the

• Diversity awareness and unconscious bias training for all employees

• Building robust talent pipelines by cooperating with universities and offering internships and other programs

• Yearly summer job opportunities in various departments

• Undertaking ongoing human rights due diligence in the supply chain • Implementation of Supplier Code of Conduct

Sustainability issue	Related risks	Effect description (outside-in/inside-out)	Mitigation measures
	Main risks and opportunities related to "Empowering people"
Diversity, equal opportunity, and inclusion concerns	Threat: Risk of failing to reach OKEA's diversity target and failing to foster and maintain an inclusive and diverse workforce.	Outside-in: Missing OKEA's diversity target heightens the risk of reduced employee engagement, higher attrition rates, and the potential loss of female top talent. Additionally, this situation could result in reputational damage.	company.
Employee attraction, talent management & retention concerns	Threat: The oil and gas industry faces a significant challenge: a shortfall of experienced technical professionals due to attrition and retirement. This risk encompasses both the number of workers retiring and the availability of qualified replacements.	Outside-in: OKEA faces the risk of unfilled key roles, leading to short or negative handovers. This could result in departmental performance decline. Moreover, uncertainties surrounding the future of the oil and gas industry, the demand for new capabilities, and intensified competition for talent all pose risks to securing the right workforce competence and capacity.
	Main risks and opportunities related to "Respecting human rights"
Human rights concerns	Threat: Risk of human rights abuse within our operations, business, or joint ventures. This risk is equally about the risk of poor labour practices, as well as child labour, forced labour, insufficient grievance mechanism, or any other violation of human rights.	Inside-out and outside-in: Poor labour practices can significantly affect workers' mental and physical health. This, in turn, increases the risk to personal health and safety—and in extreme cases, even injury or even death—which poses a threat to OKEA's reputation.	monitoring
	Threat: The risk of human rights abuse within our operations, business, or joint ventures encompasses numerous factors. These include the risk of poor labour practices, as well as issues related to child labour, forced labour, insufficient grievance mechanisms, and other potential violations of human rights.	Outside in: Deterioration of OKEA's relationship with local stakeholders, due to lack of compensation or environmental negative impacts, resulting in reputational damage.
Sustainable and responsible supply chain	Opportunity: Ensure that sustainability risks and opportunities are addressed in the supply chain.	Inside-out: Addressing sustainability risks and opportunities in our supply chain strengthens stakeholders' trust and prepares us for regulation of due diligence in supply chains.	and low- carbon initiatives
	Main risks and opportunities related to "Responsible and ethical business practice"
Business integrity and ethical misconduct concerns	Threat: Fraud, corruption, non-compliance with legal regulations, Code of Conduct, and policies.	Inside-out and outside-in: The risk of unethical business conduct in our operations or supply chain could result in reputational damage, affecting our licence to operate and growth. Non-compliance with regulations may also lead to additional taxes	whistleblowing
Environmental non compliance concerns	Threat: Non-compliance with environmental laws or regulations caused by unexpected changes in our operations.	Outside- in: This could lead to additional OPEX or CAPEX needed to upgrade facilities or extra taxes having to be paid.	and upheld

• Integration of human rights in business processes, e.g., HSSE contractor management, project management, supplier prequalification and

• Training for employees in specific functions to develop skills. • Professional human rights and social impact assessment • Professional community relations & project development management

• Engaging with strategic suppliers regarding sustainable procurement and low- carbon initiatives

• Undertaking due diligence in the supply chain

• Mandatory e-learning for all employees and the board covering compliance-related topics such as anti-corruption, bribery, and

• Supplier Code of Conduct Declaration

• Undertaking due diligence in supply chain

• Risk based audits on suppliers

• Engagement with regulators to ensure laws are correctly interpreted

Table 4. Specific ESG risks and opportunities structured by our material topics cont.

and stakeholders

Environment ⁰⁴

Sustainability Environment Social Governance Appendix

and stakeholders materiality

Topic descripition

Reducing emissions from own operations and supply chain.

IMPACTS ON CLIMATE

OKEA has significant Scope 1, 2 and 3 emissions from our operating activities and energy products.

IMPACTS/RISK TO OKEA

▶ Reduction in demand and prices for petroleum products
▶ Increased pricing of GHG emissions and taxes
▶ Governmental interventions

KPI

Absolute GHG emissions scope 1 (tonnes CO2 e)

AMBITION

Reduce absolute scope 1 GHG emissions by 230 000 tonnes CO2 e by 2030.

STATUS

Reduction of 24,996 tonnes CO2 e since 2019

POLICY ESG strategy

MOST RELEVANT SDGS

▶ 7: Affordable and clean energy
▶ 13: Climate action

Energy transition and climate change

Why is this important to OKEA

OKEA recognises climate change as a critical global challenge and and supports the goals of the Paris Agreement. We grapple with the "energy trilemma," balancing the need to decarbonise the energy mix while ensuring a reliable and affordable energy supply. Despite optimistic energy transition scenarios, the world will continue relying on oil and gas for energy and petrochemicals for decades. Hence, it will be crucial to continue producing hydrocarbon resources with the lowest possible carbon footprint.

OKEA has established short, medium, and long-term GHG emission ambitions to reduce its operational carbon footprint. Achieving these ambitions necessitates collaboration with partners and suppliers through strategic partnerships.

Management approach

Our ESG strategy focuses on reducing operational GHG emissions, energy consumption, and associated air emissions.

Internal management ensures our energy management systems are aligned with the ISO 50001 Energy management standard, including energy performance improvements across all our activities.

and stakeholders

In 2023, we established a Technology forum responsible for coordinating technological research and development. Additionally, we have implemented energy reduction plans as part of our asset management systems.

The STR committee oversees OKEA's sustainability reporting and assesses our ESG strategy, which includes our climate policy statement.

DIRECT (SCOPE 1) EMISSIONS

OKEA's primary goal is to reduce direct (scope 1) operational control emissions by 230,000 tonnes CO2 e by 2030, from a base level of 420,000 tonnes CO2 e. To achieve this, OKEA is following a decarbonisation pathway based on specific business targets outlined in our strategic plan. This strategy prioritises optimising the asset portfolio, focusing on

already productive assets and projects that develop profitable reserves at moderate crude oil prices. These projects have shorter life cycles and lower carbon intensity. During this decade, until 2030, we will offset the natural decline in field production by developing reserves and contingent resources already discovered. We pay particular attention to reduce direct emissions from our assets through energy efficiency measures, electrification, and minimising methane emissions and flaring.

CAPITAL ALLOCATION EVALUATION

OKEA is committed to align its plans and investment decisions with the decarbonisation pathway. The evolution towards a more decarbonised product portfolio will be supported by investments dedicated to low and zero carbon activities, as outlined in the table on the next page.

Scope 1: direct emissions from owned

or controlled sources.

Scope 2: indirect emissions from the generation of purchased electricity,

steam, heating, and cooling.

Scope 3: all other indirect emissions that occur in a company's value chain.

Area	Short term commitments 2024	Medium term commitments 2025-2026	Long term commitments 2030
Operational control
Absolute GHG emissions reduction scope 16	Achieve at least 25 000 tonnes (accumulated from 2019) of CO2 e reductions from operated assets.	Achieve at least 10 000 tonnes of yearly CO2 e reductions in 2025–2026 from operated assets.	Reduce absolute emissions by 230,000 tonnes CO2 e by 2030.
Scope 3 emission reduction	Identify the top five suppliers that contribute most to our scope 3 emissions and establish dialogue to reduce addressable emissions.	By 2026 100% of OKEA's strategic suppliers will be assessed according to their path of sustainable development and whether they have carbon reduction targets and plans in place.	Continue to promote decarbonisation measures in close collaboration with our suppliers and contractors.
Energy and emission reduction initiatives	Conduct four energy reducing initiatives per asset in accordance with asset specific plans.	Continue to carry out energy reducing initiatives in accordance with asset specific plans.

Our main commitments

6 Base year 2019

Figure 3. OKEA decarbonisation pathway 2019 – 2030

and stakeholders

OPERATED ASSETS

In 2023, our operated scope 1 GHG emissions totalled 394,163 tonnes CO2 e, marking 17,165 tonnes decrease from the previous year with full year Brage operations included. Notable emission reduction initiatives included:

1. Rebundling of Brage's oil export pump: Implemented in April 2023, this reduced the pump's energy demand by 1 MW, resulting in an expected annual emission reduction of 3,500 tonnes CO2 .
1. Anti-icing system on Brage's energy turbines: By April 2023, this system had the potential to cut CO2 emissions by approximately 3,000 tonnes annually under specific weather conditions.
1. Burner #5 modification on Draugen's power turbine A: Reduced cold venting gas rate from 1.87 to 0.49 kg/hour, summing up to approximately 47 tonnes CO2 e/year.

PARTNER-OPERATED ASSETS

In addition to emissions from OKEA-operated assets, a significant portion of GHG emissions related to our asset portfolio comes from the equity share of emissions from partneroperated assets. All our partner-operated fields align with the KonKraft ambition to reduce total emissions from oil and gas production on the Norwegian continental shelf. We actively contribute to achieve this ambition by supporting the implementation of costeffective measures to reduce GHG emissions from our partner-operated assets.

In 2023, OKEA's equity CO2 e emissions, excluding Statfjord, totalled 182,881 tonnes CO2 e, an increase from the 138,290 tonnes CO2 e reported in 2022. Largest change is full year Brage emissions is included in 2023 compared to only two months in 2022. This year for the first time, we provided field-based emissions disclosure for both our operated asset emissions and our partner-operated assets, as outlined in the table above. We will continue working with our partners to encourage emissions disclosure on a field basis.

ENERGY EFFICIENCY AND EMISSIONS REDUCTIONS

Energy management is a critical issue for OKEA, including both the company's focus on reducing its environmental footprint, as well as enabling it to run more cost-efficient operations. The company's aim of increasing energy efficiency affects how we conduct our operations and is dependent on collaborative efforts from multiple stakeholders in our supply chain, maintenance management programs and energy optimisation projects. We work continuously to reduce our energy consumption and related emissions by implementing measures identified through efforts are driven by established energy teams within each asset. The total energy consumption in OKEA's operated assets was 4,842 GWh in 2023. This is a reduction compared to the 4,979 GWh consumed in 2022 with full year Brage production included. REDUCING FLARING AND METHANE EMISSIONS Reducing flaring and methane emissions is crucial for resource efficiency and long-term economic success. Given natural gas's role in the energy transition, minimising methane

energy improvement opportunities. These emissions throughout the gas chain is vital.

Committed investment	OKEA share million NOK	Asset	OKEA equity share	Unit	2023	Operator
Power from shore Draugen	1,872	Brage	35.2%	t CO2 e	69,911	OKEA ASA
		Draugen	44.56%	t CO2 e	87,138	OKEA ASA
		Nova	6%	t CO2 e	1,082	Wintershall DEA
		Gjøa	12%	t CO2 e	5,246	Vår Energi Norge AS
Table 5. Committed carbon investments 2024-2030 (OKEA share million NOK)		Ivar Aasen	9.2385%	t CO2 e	1,040	Aker BP ASA
		Yme	15%	t CO2 e	18,464	Repsol Norge AS

KonKraft is a collaboration platform for Offshore Norway, the Confederation of Norwegian Enterprise, the Norwegian Shipowners' Association, the Confederation of Norwegian Enterprise (NHO), and the Norwegian Confederation of Trade Unions (LO), with the LO unions Fellesforbundet and Industri Energi. The Emission Reduction Goal for KonKraft is that the oil and gas industry in Norway are to reduce emissions by 50 percent by 2030 compared to 2005 levels, and towards zero emissions by 2050.

Table 6. Equity emissions disclosure

are the primary contributors. Our ongoing efforts focus on energy reduction measures, operational optimisation, and adopting new technologies. For more details, reference is made to our ESG performance data in the appendix. Draugen. Tie-back production of gas from Hasselmus to Draugen has also increased the methane content. SCOPE 2 EMISSIONS Scope 2 greenhouse gas (GHG) emissions are

Performance review In 2023, we revised our goals for reducing absolute scope 1 emissions. To achieve our ambition of reducing absolute scope 1 emissions by 230,000 tonnes of CO2 e by 2030 compared to our base year 2019 emissions of 420,000 tonnes, we are prioritising several key projects. These projects include electrification of our assets by power from shore and floating wind turbines, reducing safety flaring to a minimum and other energy efficiency initiatives. We have already reduced our emissions by 24,996 tonnes CO2 e since 2019. In the years to come we will continue to carry out operational improvements and energy reducing initiatives in accordance with asset specific plans. calculated based on the energy consumption within an organisation. Specifically, these emissions arise from the use of electricity, heating, and cooling in our office spaces. Accurately accounting for Scope 2 emissions is essential, and we calculate emissions based on the emissions intensity of the local grid area where electricity usage occur. Our Scope 2 (location based) emissions were 37.9 tonnes in 2023 compared to 39.3 in 2022. SCOPE 3 EMISSIONS In 2023, we evaluated our supplier base systematically to assess emission reduction potential and supplier decarbonisation plans. We will collaborate with the top suppliers contributing to OKEA's scope 3 emissions to reduce addressable emissions. We aim to increase transparency and reduce emissions

Category	Operation control/ equity basis	Tonnes CO2e
Category 1: Purchased goods and services	Operational control	369,022
Category 2: Capital goods	Operational control	163,031
Category 3: Fuel- and energy-related activities (not included in scope 1 or 2)	Operational control	46,695
Category 4: Upstream transportation and d istribution of products	Operational control	85,105
Category 5: Waste generated in operations	Operational control	138
Category 6: Business travel	Operational control	2509
Category 7: Employee commuting	Operational control	-
Category 8: Upstream leased assets	Operational control	49,589
Category 9: Downstream transportation and distribution of products Operational control		-
Category 10: Processing of sold products	Operational control	-
Category 11: Use of sold products7	Operational control	3,847,973
Category 12: End-of-life treatment of sold products7	Operational control	67,139
Category 13: Downstream leased assets	Operational control	-

For 2023 we set a target of reducing scope across our value chain by working with all suppliers. In the table to the left, Scope 3

Table 7. Scope 3 emissions distribution

3 emissions related to purchasing and transportation of goods by 5 percent. This target was not met, due to a change of fuel used on the PSV Siem Pride (from LNG to diesel) in the first half of 2023. For 2024 our ambition is to identify the top five suppliers that contribute the most to our scope 3 emissions and to establish a dialogue with suppliers to reduce addressable emissions. emissions for 2023 per category are presented. MARITIME VESSELS As part of the KonKraft climate strategy, we aim to contribute to the reduction of offshore maritime sector emissions by 50 percent by 2030. Within scope 3 category 1 emission sources, platform supply vessels (PSVs)

7 Operational control sold products refers to equity share of all fields as the oil and gas is lifted by OKEA and under OKEA's control

Leak detection using thermal infrared cameras helps reduce fugitive hydrocarbon emissions from process systems. In 2023, 267 GWh of energy was released from flaring gas from operated assets. This is a reduction compared to the 291 GWh released in 2022 with full year Brage production included.

OKEA's methane intensity accounted for 3,7 percent of total GHG emissions. The emission of methane increased by 728 tonnes CO2 e from 2022 to 2023, with full year Brage production included for 2022. This increase is due to factors like cold venting of gas from Brage (with higher methane content) and improved reporting routines for methane and NMVOC emissions from cold flaring on

and stakeholders

Power from shore – reducing GHG emissions by 200,000 tonnes per year from Draugen

— FEATURED CASE

and stakeholders

In December, the Ministry of Energy approved the revised plans for development and operation for the electrification of the Draugen and Njord A platforms. The project will reduce GHG emissions by a total of 330,000 tonnes of CO2 per year compared to estimated 2027 emissions and increase value creation from the Norwegian continental shelf.

The development plans were delivered to the Ministry of Oil and Energy in December 2022.

REDUCING GHG EMISSIONS ON DRAUGEN BY 200,000 TONNES CO2E PER YEAR AND EXTENDING ITS LIFESPAN

Norway has an ambition to cut GHG emissions by 55 per cent by 2030. Achieving this ambition will not be possible without the electrification of oil and gas fields.

The licence partners in the Draugen and Njord platforms have a common goal of long-term value creation and at the same time reducing their carbon footprint. The electrification project will provide an annual reduction of 200,000 tonnes CO2 e emissions from Draugen and 130,000 tonnes from Njord, says project director Terje Åshamar.

EXTENDING THE LIFESPAN OF DRAUGEN

In addition to reducing GHG emissions, the project will result in lower operating costs and an extension of the field's economic lifespan.

The Draugen licencee has applied for a licence extension until 2040. The electrification of Draugen will also increase the attractiveness of potential future resources in the area, says Asset manager for Draugen, Kirsti Flatval.

COLLABORATIVE PROJECT WITH EQUINOR

The electrification of the Draugen and Njord A platforms is a collaborative project, where OKEA will be responsible for developing the power infrastructure from shore to Draugen. Equinor will be responsible for the cable from Draugen to Njord and modifications and upgrades on Njord A.

STATNETT: THE CONNECTION IS OPERATIONALLY SOUND

Draugen and Njord will require up to 80 MW of capacity and will be connected to the power grid at Tensio's transformer station at Straum in Åfjord municipality, which has an annual

capacity of 200 MW. Statnett assesses the connection as operationally sound without the need for reinforcements of the existing power grid.

OKEA has entered into a long-term agreement of 10 years with TrønderEnergi Kraft for the purchase of hydropower for the electrification of Draugen. The long-term nature of the agreement reflects OKEA's desire for secure and stable access to clean power.

INCREASED ECONOMIC ACTIVITY AND JOBS

Electrification of Draugen will significantly contribute to economic activity and job creation in the surrounding areas and supplier industry. The total investment for the Draugen project alone will be in the order of NOK 5 billion. Of this, over a billion kroner is related to direct supplier goods and services in the region. In the period up until 2027, the construction phase will employ around 1,400 man-years.

Expected completion of the project is the second quarter of 2027.

Terje Åshamar Project director

The long-term nature of the agreement reflects OKEA's desire for secure and stable access to clean power

and stakeholders

Climate scenarios and risk

RESILIENCE TO THE FINANCIAL RISKS OF CLIMATE CHANGE

Climate change directly and indirectly impacts our business activities. We have analysed these effects across the short, medium, and the long term. OKEA considers various scenarios, including a 2°C reference scenario aligned with limiting global temperature increase. We're mindful of the risk of stranded assets if reserves can't be fully exploited due

to exceeding the global carbon budget. Our strategy development accounts for economic, technological, and social developments, shaping the energy market and our business.

ECONOMIC IMPACT OF IEA'S SCENARIOS

As a part of the TCFD (Task Force on Climaterelated Financial Disclosures) climate risk and opportunity assessment a sensitivity test of OKEA's portfolio against IEA's energy scenarios from the World Energy Outlook (WEO) report

CLIMATE RELATED POLICIES

OKEA has included the financial consequences of climate-related policies in our decision-making processes as follows:

▶ All potential projects are assessed for carbon intensity in each decision phase.
▶ Possible solutions for reducing carbon emissions are considered throughout the lifecycle of each project.
▶ When considering investment opportunities, we consider risks in other input parameters and undertake robustness assessments against future oil, gas and carbon price scenarios.
▶ At the portfolio level, the robustness against low oil and gas prices and higher carbon costs, is assessed as part of the business planning process.

▶ Stated policies scenario reflects current announced by governments around the world.

was performed. IEA's current three scenarios are: «Stated policies», «Announced pledges» and «Net zero by 2050»: policy settings based on a sector-by-sector assessment of the specific policies that are in place, as well as those that have been ▶ Announced pledges scenario assumes that all climate commitments made by governments around the world, including Nationally Determined Contributions (NDCs) and longer-term net zero targets, will be met in full and on time. ▶ Net zero scenario sets out a narrow but achievable pathway for the global energy sector to achieve net zero CO2 emissions by

2050.

and stakeholders

The aim of the scenario analysis is to aid our understanding of how the pace and nature of the energy transition may affect the global energy system and test whether our corporate strategy is robust and resilient to the range of uncertainty we face.

These scenarios represent different future pathways depending on varying climate policies and have different oil, gas, and carbon price assumptions used to test the resilience of our portfolio compared to our base assumptions. A gradual development from 2023 actuals towards the IEA milestones have been assumed. For the total carbon price (EUA quota + NCS tax) a linear escalation in line with the expectations of the Norwegian government (2,000 NOK/tonne by 2030 stated in real 2020 terms) was assumed for all scenarios.

The scenarios are compared in terms of the change in net present value after tax (NPV) discounted by 8 per cent (real terms), that corresponds to 10% nominal discount rate. The OKEA portfolio consists of producing assets, sanctioned and optional (non-sanctioned)

projects. Exploration activities are excluded for this purpose. The results show that the «Net zero» scenario will result in decreased NPV, while the remaining two IEA scenarios will result in increased NPV when compared to OKEA's base assumptions, both for the sanctioned and optional portfolio of projects.
Assets in the sanctioned portfolio have also
been analysed individually to assess the
risk of early cease of production (CoP) due
to restrictions under the IEA scenarios. This
analysis was performed by assessing pre
tax cashflows excluding any abandonment
obligations. CoP is then set to the time when
cashflow turns negative. IEA's «Net zero»
results in the largest impact, while the other
two scenarios have limited effect on the estimated CoP.
The table above illustrates the estimated CoP
per asset, comparing the base assumption to different scenarios:

These results are based on producing assets, including sanctioned projects and initiatives.

Figure 6. Percentage change in NPV relative to base

Asset	Base	Stated policies	Announced pledges	Net zero
DRAUGEN	2040	2040	2040	2038
BRAGE*	2030	2030	2030	2027
GJØA	2028	2036	2036	2032
IVAR AASEN	2035	2035	2035	2033
YME	2027	2027	2027	2027
NOVA**	2035	2035	2035	2032	*Dependent on infill drilling (drilling until 2026 included)
STATFJORD	2038	2038	2038	2030	**Dependent on OPEX-share level at host

Table 8. Estimated cease of production

For Draugen, additional resources and projects were sanctioned in 2023. The Power from Shore-project has a positive effect on Draugen's long term cash flow. Brage production depends on continuous infill drilling which is included until 2026 for the purpose of this analysis. Tail end production at Yme is sensitive to lower prices and increased taxes as in the "Net zero" scenario. Implications on other assets are limited.

The magnitude of carbon costs in each scenario is illustrated below and shows the percentage change in carbon costs before tax, relative to the portfolio value before tax, for the full lifetime of the portfolio.

CLIMATE RELATED RISKS AND OPPORTUNITIES

The energy transition and climate change are increasingly crucial for OKEA in the medium and long term. Our risk assessment relies on the IEA's three scenarios: Announced Pledges Scenario (APS), Sustainable Development Scenario (SDS), and Net Zero Emissions (NZE). Climate risks can impact us either positively or negatively, depending on our strategies for risk mitigation and adaptation to these scenarios. Importantly, the scenarios also signal the emergence of potential business opportunities.

We are committed to transparency regarding GHG emissions across all scopes, our transition pathways, and climate-related risks and opportunities. Our reporting framework aligns with the TCFD recommendations.

For a detailed overview of our disclosure in line with TCFD recommendations, please refer to the separate TCFD report on page 77.

Looking ahead to 2040 and 2050, exposure to climate risks will intensify. Uncertainty associated with risk factors and the scale at which these factors may materialise will increase. However, this also opens opportunities that can be harnessed. We have summarised the potential risks (categorised as threats and opportunities) on the subsequent pages.

MANAGEMENT OF CLIMATE RELATED RISKS AND OPPORTUNITIES

Management of climate related risks and opportunities, both physical and transition risks, are managed and mitigated in the same way as other business risks to which OKEA is exposed. However, the fact that they are emerging risks, means that they will require ongoing and more in-depth examination in the medium and long term.

Figure 7. Carbon cost relative to value of portfolio

and stakeholders

Type of risk	Risk	Risk description	Risk level	Level of influence	Time horizon	Financial impact	Mitigation measures
Market	Reduction in demand and prices for petroleum products	Price of renewable energy decreases and affects oil and gas demand and subsequently oil price.	Medium-high	Low	Medium/ Long term	Impacts in terms of lower financial results and shareholders returns.	• Application of internal carbon pricing, scenario analysis and sensitivity testing • Cost reduction initiatives • Implementation of energy and emission efficiency programmes and emission reduction projects • Exploring low-carbon technologies such as CCS and floating wind power to support decarbonisation efforts
Policy and regulatory	Increased pricing of GHG emissions and taxes	EU ETS prices increase to reach EU's 2030 climate goal. Uncertainty relating to the development in actual quota prices going forward, and timing of ramp-up of the total CO2 cost/ taxes towards 2030.	Low-Medium	Low	Short/ Medium term	Impacts in terms of increasing of costs related to higher CO2 costs and taxes.	• Implementation of energy and emission efficiency programmes and emission reduction projects • Inclusion of anticipated developments in carbon cost in all investment assessments and forecasting
	Governmental interventions	Regulation on production, development and/or emissions (e.g., operating restrictions (volumes), caps on emissions, reduction in exploration licensing or net zero development project requirements.	Low-medium	Low	Medium/Long term	Impacts in terms of reduced access to new exploration acreage, combined with restrictions on developing proven resources, would limit growth opportunities in the long term and lower financial results.	• Be a prudent operator with a clear and credible ESG position. • Continued engagement with external stakeholders, including the Norwegian authorities. • Electrification, using hydro power from shore, or, where feasible, from offshore floating wind power
Reputational	Increased scrutiny from financial sector on oil and gas industry globally	Negative assessment of sustainable business strategy and sustainability/ESG performance by financial stakeholders.	Medium-high	Medium	Short/medium term	Impacts in terms of increasing cost of capital for the company and/or limit our potential access to new capital.	• Engagement activities with financial stakeholders.
	Reduced attractiveness of the oil and gas sector	The industry's attractiveness can deteriorate making it difficult to attract and retain the right talent.	Low-medium	Medium	Medium/ Long term	Impacts in terms of reduced access to competent employees can limit growth opportunities and in a long term lower financial result.	• Maintaining OKEA as an attractive employer • External engagement and communication
Technology	Increase of costs in connection with implementation of ESG-related technologies (e.g., hydro power from shore	Increased costs in the supply chain due to increased competition, new regulations, increased energy prices and increased costs related to raw materials (e.g., steel).	Medium	High	Low-medium	Erosion of project margins or weakening of ESG related business cases due to higher prices for power, increased supplier, and raw material costs.	• As above • Energy efficiency initiatives
Physical risk	Acute extreme weather	Extreme weather events such as storms and heavy rain affecting own production and supply chain logistics.	Low	Low	Medium	Impacts in terms of increased operating costs, delays in operational activities and reduced project margins due to potential 5-10% increased downtime (waiting on weather).	• Regular updates of meteorology and oceanography data used in project and operational planning. • Insurance coverage • Inclusion of contract clauses related to weather events

Table 9. Climate related risks

OKEA ESG Report 2023	Introduction	Value, materiality
----------------------	--------------	--------------------

and stakeholders

Through the scenario development and assessment process, OKEA has identified three climate-related opportunities arising from a changing market and technological development. These opportunities also present ways of mitigating the identified risks and enabling continued growth. The opportunities have not been fully quantified at this time, as they vary significantly on a case-by-case basis.

OKEA ESG Report 2023		Introduction	Sustainability	Environment	Social
Opportunity	Risk description	Time horizon	Financial impact		Mitigation measures
Efficient use of resources Increased revenues in operation of aging oil and gas fields, versus building new ones	We expect that transaction activity on the NCS will increase over the next years as companies divest ageing assets. This could represent an opportunity for OKEA in realising the growth strategy and becoming the leading mid- to late-life operator on the NCS.	Short term/ medium Term	Impacts associated with our key capabilities as an operator to unlock upsides and implement cost-efficient solutions to extend life-of-field.	• Carrying out energy assessments to	identify appropriate solutions and maximise savings; designing and implementing measures and actions to reduce energy consumption and greenhouse gas emissions
Increased revenues in circular economy projects (e.g., Decommissioning, and green steel)	Utilise circular economy opportunities and increased profits through resale of steel and other metals from future decommissioning projects.	Short term/ medium term	Impacts associated with increased revenues / reduced costs.	• Collaboration with decommissioning stakeholders	• Waste management and sorting optimalisation
Energy and climate efficient operations
Reduction of costs through initiatives aimed at reducing climate related impacts (e.g., offshore wind)	Energy efficiency measurements and renewable energy implemented in own operations.	Medium term	Reduction of fuel and electricity consumption costs through the implementation of energy efficiency solutions to reduce greenhouse gas emissions.	• Innovation and R&D collaborations and partnerships.	activities also through

Table 10. Climate related opportunities

Topic descripition

Preventing the loss of biodiversity and minimising negative environmental impacts from our operations through operating within acceptable risk limits identified in environmental risk assessments (ERA) for our activities.

IMPACTS ON NATURE

Our activities have actual and potential impacts on nature. These include the potential for serious uncontrolled discharges, as well as operations near protected areas.