Sustainability Report

2020 Sustainability Report Beach Energy Limited ABN 20 007 617 969 FY20 Highlights 25BY25 80 EMISSIONS COMMUNITY REDUCTION ORGANISATIONS TARGET SUPPORTED $ 1.61 84% MILLION COMMUNITY INVESTED IN OUR INVESTMENTS COMMUNITIES (CASH CONTRIBUTIONS) EMISSIONS TAX Contribution BENCHMARKING FY19 REPORT ACROSS ALL ASSETS PUBLISHED Contents Message from the Managing Director 5 About this report 6 Sustainably deliver energy for communities 9 COVID-19 12 Managing Sustainability 14 Ethical Conduct and Transparency 18 Human Rights & Modern Slavery 20 Cyber Security 21 FY20 Performance Overview 22 Our Environment 23 Climate Change 26 Our People 31 Our Communities 35 Economics 38 Performance Data 40 GRI Content Index 45 Glossary 48 Independent Assurance Statement 49 BY 2525 Beach Energy has announced a Strategies may include processes to reduce the use of flaring, augmenting certain new five-year target to reduce activities at Beach facilities with renewable energy, absolute emissions from its and supporting our JV partner Santos in its operations by 25% relative to proposed Carbon Capture and Storage project FY18 benchmarked levels. in the Cooper Basin. Ultimately, Beach remains an oil and gas company While natural gas will continue to be a key partner and we are proud of this – but our Purpose is to to renewable energy in a low carbon future, provide energy to communities in a way that is comparatively our industry remains emissions sustainable – and our new 25 by 25 target is an intensive. 25 by 25 is about ensuring we look important step in this direction. at all possible ways to reduce emissions from our operations, leaving no stone unturned. A corresponding emissions intensity1 reduction of 13% is expected over this period. FY21 Emissions Reduction Projects Flare and vent Bauer Hybrid Renewable Leak Detection and management Project Repair Program Beach will implement Beach will be performing Beach will implement initiatives to reduce the further study, design, a program across all need for flaring across construction and gas assets to detect operational sites. This preparatory work for the and eradicate potential includes flare minimisation Bauer Hybrid Renewable leakage points. This will be during shutdown Project which will deliver delivered though the usage and start-up situations as energy supply to the field of world-class equipment in well as the optimisation through a combination of this space. of purge and pilot gas Wind, Solar, Battery and scenarios. Diesel generation. 1 Volume of emissions per unit of production 4 Beach Energy Sustainability Report l October 2020 Beach has come with the realisation that changing times allow the opportunity for a fresh perspective. The long term viability of our business depends on sustainable environments and communities in which we operate. Recognising this, we reviewed and refreshed our Purpose from: ‘Delivering sustainable growth in shareholder value’ to ‘Sustainably deliver energy for communities.’ The refreshed Purpose will further help us embed practices and encourage innovation to help produce hydrocarbons with a sustainability lens. We undertook a review of greenhouse gas emissions across our assets to understand where and how Message from the we could make the biggest impact in emissions reduction. More importantly, we publicly committed Managing Director to an ambitious ‘25 by 25’ emissions reduction target of reducing our absolute emissions by 25 percent Dear Readers, by FY25. I am pleased to present the Beach Energy We continued to progress our work to ensure Sustainability Report for FY20. compliance with the Commonwealth’s Modern Slavery Act 2018 and improve transparency around The second half of FY20 was overshadowed by our tax contributions by publishing a tax policy and devastating bushfires across Australia and then the Tax Contribution Report on our website. COVID-19 pandemic which is unlike anything our globalised world has experienced recently. Whilst the We conducted an employee engagement survey Australian and New Zealand governments responded which saw substantial improvement over last promptly to curtail the spread of the coronavirus, our year’s survey results, and developed a Workplace Crisis Management and Business Continuity Teams Giving program, providing our employees with the swiftly sprang into action to ensure the safety of our opportunity to contribute to social change. employees as well as minimal disruption to business These are only some of the highlights from FY20. activities. Like other companies, we had to quickly As you read through this report further, I invite adapt to change and transition our office-based you to provide your thoughts and comments via employees to work from home for the foreseeable [email protected]. future, and we moved fast which is a reflection of the Beach culture and adaptability of our employees. Matt Kay Managing Director Beach has not been immune to the effects of the pandemic as reflected by volatility in the price of crude oil and natural gas. Needless to say, we had to make some very difficult decisions that have included the prudent deferral of a significant portion of our work program. 19 October 2020 Despite this, Beach has managed to remain resilient and maintain a focus on improving efficiencies during these challenging times. The biggest achievement for 5 Beach Energy Sustainability Report l October 2020 About this report Scope of this report The infrastructure and activities associated with This report outlines Beach’s sustainability Beach’s production operations typically comprise: performance and covers assets owned and operated · Wellheads; by Beach for the period 1 July 2019 to 30 June 2020. Beach’s assets include projects under exploration, · Offshore and onshore Gas and Liquid Processing development and production phases. facilities; · Subsea pipelines and umbilicals; People related data included in this report refers to all direct employees (including international · Flowlines/pipelines to transport product and employees), contractors, and visitors working within water separated from the hydrocarbons around Beach’s operations. Beach reports on Health, Safety sites; and Environment (HSE) information from operations · Liquids storage facilities; within its control. All monetary amounts reported are in Australian dollars, unless otherwise stated. Our · Gas and Liquids Export Systems; non-operated activities in Australia and New Zealand · Wastewater treatment and handling systems, are excluded from the scope of this report unless including water holding ponds and evaporation specifically stated. ponds; · Administration, utilities and accommodation Our operations facilities; and Operated production occurs from the Cooper and Eromanga Basins in South Australia, Otway and · Access tracks and roads. Bass Basins in Victoria, the Perth Basin in Western Reporting guidelines Australia and the Taranaki Basin in New Zealand. These operations are subject to the environmental This report has been prepared in accordance with approval processes of the the respective the Global Reporting Initiative (GRI) Standards’ governments in South Australia, Victoria and ‘Core’ option. It focuses on core and supplementary Western Australia and respective Commonwealth aspects where they present a material significance governments in Australia and New Zealand. to sustainability performance and have an impact on stakeholders. A table of GRI indicators relevant to For further information on the environmental Beach’s activities appears on page 44 of this report. approvals activities visit our website. Ernst & Young (EY) has provided limited assurance The infrastructure and activities associated with in respect to some of the key metrics in this Beach’s exploration operations typically comprise: Sustainability Report. A copy of EY’s assurance report is available on page 48. · Undertaking seismic surveys; · Development infrastructure; · Drilling, well completion and testing; and · Administration and accommodation facilities. 6 Beach Energy Sustainability Report l October 2020 Bonaparte Basin Darwin Cooper Basin Carnarvon Basin Western Flank & Cooper Basin Joint Venture (Various operated and non-operated interests) Perth Basin Waitsia Beach 50% (non-operated) Brisbane Beharra Springs Beach 50% (operated) Perth Adelaide Regional Office Head Office Taranaki Basin Gas processing facilities Sydney Kupe Penola Canberra Beach 50% (operated) Gas production Regional Office Melbourne Operations Office Oil production SA Otway Basin Katnook Exploration New Plymouth Beach 100% (operated) Regional Office Beach Office Wellington Victorian Otway Basin Hobart Otway Gas Project /HBWS Beach 60% (operated) Bass Basin BassGas Canterbury Basin Beach 53.75% (operated) Great South Basin Illustration not to scale . Ownership percentages provided are Beach’s ownership of the producing assets in the respective regions. GD20-0013a 7 Beach Energy Sustainability Report l October 2020 “There is no credible energy AEMO Forecasts transition plan for an economy like Australia, in particular, % that does not involve the 33 greater use of gas as an important transition fuel.” INCREASE Prime Minister Scott Morrison, in gas GWh National Press Club, 29 January 2020. FY22 to FY42 8 Beach Energy Sustainability Report l October 2020 Pursuing growth of natural gas ‘Sustainably – the ‘transition fuel’ While the accelerated removal of coal-fired power deliver energy for generation is occurring across many nations including Australia, natural gas is emerging as the widely

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