Biodiversity Position

Our Commitment: We recognize the importance of managing biodiversity risks associated with our global operations and demonstrating leadership in habitat stewardship practices on company owned property. We will not operate exploration, development, drilling or production activities in habitats of significant importance to critically endangered species, or other critical habitat,¹ unless we can adequately mitigate impacts through mitigation hierarchy measures in accordance with our sustainable development management system, regulatory requirements and through local engagement.

Biodiversity Science: Scientists and international conservation organizations have demonstrated that biodiversity across much of the globe has been altered by human pressure, including land- and sea-use change, direct exploitation of organisms, climate change, pollution and invasive species. The Convention on Biological Diversity has appealed for global, regional and national policy action to transform economic, social and financial models so that the trends that have exacerbated biodiversity loss will stabilize.

Biodiversity Strategy: Our direct and indirect operational footprint and accidental releases or spills to the environment could impact biodiversity. Potential impacts to biodiversity represent business risks that can lead to restricted access, project delays or cancellation, business interruption, restrictions for product transport and access to markets, and increased policy or regulatory costs. We assess biodiversity risks for our onshore and offshore operated assets over the asset lifetime using an integrated management system approach based on our Sustainable Development Risk Management Standard. We mitigate potential impacts using the mitigation hierarchy.

Our Actions: Our biodiversity management approach is designed to manage risks and mitigate impacts to biodiversity company-wide, from strategic planning through to field operations. We focus on:

• Applying a science-based approach and considering cumulative effects to develop leading best practices.
• Collecting data and information on local biological diversity through site assessments and baseline studies.
• Developing indicators and metrics to track biodiversity impacts and risk management performance.
• Applying technological innovation and practical, sustainable solutions for biodiversity conservation.
• Implementing stewardship and habitat conservation practices on company owned lands.²
• Leveraging our SPIRIT of Conservation Program, migratory bird joint ventures and other partnership programs to support the conservation and restoration of habitats.
• Collaborating with conservation organizations, governments, and policy bodies.
• Engaging with local communities on biodiversity-related impacts associated with our operations, mitigation actions and proactive initiatives to support biodiversity conservation.

Oversight: Our governance structure provides board and management oversight of risk assessment processes. Biodiversity risks rated significant or high, and their associated mitigation actions, are reviewed by the Sustainability and Public Policy Executive Council. Risks identified by application of the SD Risk Management Standard are mapped to key categories in the enterprise risk management process and shared with category risk owners to inform their assessments of risk ranking and mitigation actions. The Public Policy Committee of the board has oversight of all sustainable development issues and reviews the Biodiversity Position.