Navigating Energy Transition and Climate Change
Climate change is a material issue for Valeura due to its direct implications for business continuity, operational resilience, and stakeholder trust. As an upstream oil and gas company, Valeura recognises the need to balance secure and affordable energy supply with global climate action.
Failure to prepare for climate-related risks may affect operational stability, regulatory compliance, and stakeholder confidence. Proactive management supports long-term value creation and alignment with evolving climate expectations.
To address this, Valeura has established a climate change strategy and conducted a climate-related risks and opportunities assessment. Energy Transition and Climate is identified as a material topic guiding the Company’s sustainability approach.
The corporate scorecard includes climate-related KPIs for all employees.
Management Approach
Governance for our Climate Actions
The Board of Directors, through the Health, Safety, and Sustainability Committee (HSSC), oversees climate-related risks, opportunities, and decarbonisation initiatives.
The Chief Operating Officer is responsible for implementing business strategies that consider climate impacts. Operational teams, including production, engineering, HSSE, and logistics, execute GHG reduction initiatives and conduct climate risk assessments.
The HSSC meets at least twice annually to review performance against sustainability targets and record results in the corporate scorecard. It advises the Board and the Governance, Nominating and Compensation Committee on climate-related targets for inclusion in the following year’s scorecard.
GHG intensity KPIs for Scope 1 and 2 emissions are included in the corporate scorecard and linked to variable compensation for all employees, including executives. In this way, climate performance is directly connected to compensation.
For reference, Scope 1 emissions are those that are from sources Valeura owns or controls. This includes emissions from stationary combustion, mobile combustion, process emissions, and fugitive emissions. Scope 2 emissions are indirect, being those primarily associated with the purchase of energy, and emanating from facilities such as power plants or other facilities owned by others.
Climate Change Strategy
Valeura’s climate strategy centres on the control and reduction of greenhouse gas (GHG) emissions intensity. The Company ensures that emissions data is accurately measured, verified, and disclosed in accordance with applicable local and international requirements.
Scope 1 and Scope 2 emissions have been verified under ISO 14064-1, forming the baseline for performance management.
Several initiatives contribute to achieving this target. Sustaining reliable project performance and full-year operational execution remains a priority, but is also recognised as a key delivery risk.
Assessing Climate-Related Risks and Opportunities
Valeura has undertaken a climate-related risks and opportunities assessment as part of its Enterprise Risk Management (ERM) framework. The assessment references IFRS S2 requirements and considers both physical and transition risks across current and forward-looking horizons of up to 10 years. Risks and opportunities were qualitatively evaluated against corporate risk criteria to determine significance.
No climate-related risks were assessed as “Major” or “Massive” within the next decade, reflecting existing mitigation and adaptation measures. These include a Business Continuity Plan to support operational resilience, asset integrity, and workforce health and safety during extreme weather events.
The highest-rated physical risks were assessed as “moderate” and relate to cyclones and high winds (R1), and potential sea level rise affecting offshore infrastructure. The most significant transition risk identified was stakeholder perception (R9).
Mitigation measures for physical risks include a Typhoon Evacuation Plan. Transition risks are addressed through ongoing efforts to reduce GHG emissions intensity.
Climate-related opportunities were also identified, with the most significant assessed as “moderate,” including resource efficiency improvements (O3).
Further detail on Valeura’s climate-related risk and opportunity assessment, including the relevant criteria, scales, and business implications, is available in the Climate-related Risks and Opportunities section.
Evaluation of Performance
GHG Emission Reduction Projects
Valeura’s primary sources of greenhouse gas (GHG) emissions are associated gases released through venting and flaring – including methane, CO₂, and other waste gases – and emissions from stationary combustion sources.
In 2025, Valeura implemented fuel-switching initiatives to lower venting-related emissions. The Ban Yen Bi-Fuel Project and the Jasmine Low BTU Gas Generator Project (started up in July 2025) reduce reliance on diesel for power generation. The Jasmine generator also captures gas that would otherwise be flared or vented.
These upgrades reflect a modernisation of existing facilities by integrating newer generation technologies, which have been further matured since the facilities were first put in service.
Additional measures were introduced to manage combustion emissions, including optimisation of crude oil used for cargo tank heating and enhanced fuel efficiency in marine vessel operations.
GHG Emissions Performance
In 2025, both GHG emissions and GHG emissions intensity from Valeura’s operations decreased from the prior year.
2024 → 2025
Scope 1 emissions declined by 12.4% compared to 2024, driven by production and well adjustments, reduced venting, and implementation of targeted reduction projects. Scope 2 emissions decreased by 15.3% compared to 2024.
GHG emissions intensity was 70 tonnes CO₂e/mboe, a 13.4% reduction from 2024, reflecting lower total emissions and increased crude oil production.
Valeura continues to optimise production processes and invest in economically viable GHG reduction projects. The Jasmine Low BTU Generator Project was commissioned, delivering GHG reductions of 14,701 tonnes CO₂e.