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Environment, Social and Governance Report 2020

LNG: A BRIDGE TO A CLEANER FUTURE

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GAS IS IDEALLY SUITED FOR THIS – IS IDEALLY GAS Through our pioneering low-cost innovations and investments, we have built a company that can commoditizing ship, and regasify LNG, liquefy, and democratizing access to cleaner LNG based In our unique and proven FLNG offering energy. we can now produce the world’s lowest cost LNG from gas that would otherwise be flared or re-injectedprofitably in a $30 oil and can do this environment. NOW. NOT IN 20 YEARS. intend to maximize the value of this strategic We position over the next 20 years. Our focus will be on acquiring stranded gas assets and using our world beating low cost solutions, operational experience and strong industry partnerships to deliver that gas to emerging markets whilst also looking to a future where marine infrastructure supports the growth of hydrogen and ammonia as a viable alternative. This, we believe, is sustainable value creation that will see Golar through to its centenary. TODAY, APPROXIMATELY 800 MILLION PEOPLE 800 MILLION APPROXIMATELY TODAY, TO ACCESS DO NOT YET HAVE REMAINS ENERGY AND 61% OF THE WORLD’S AND OIL BASED whilst decarbonise to The world urgently needs energy is availableensuring that clean, modern and affordable for all. CANNOT ACHIEVE THIS RENEWABLES TRANSITION ALONE. the Energy Agency, International Renewable transition to renewable sources requires balance to overcome challenges related to variable output. CLEANER THAN OTHER FOSSIL AND AND FLEXIBLE CHEAP, ABUNDANT, That is why LNG is now the second fastest after renewables. growing source of energy, Switching from coal to gas for electricity production saves on average 50% of carbon and methane emissions cost reductions in air pollution. It is increasingly understand that competitive with coal too. We the same as eliminating lowering emissions isn’t them which is why Golar is also actively working blue on even cleaner solutions including floating ammonia and carbon capture for FLNG.

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LNG had the (https://www.iea.org/reports/the-role-of-gas-in-todays-energy-transitions) POOR COUNTRIES WITH POOR COUNTRIES WITH

(https://sdgs.un.org/goals/goal7) IN 2018 WE SUCCESSFULLY IN 2018 WE SUCCESSFULLY

UN estimate International Energy Agency (2019). BP Energy Outlook (2019) International Energy Agency Founded 75 years ago as a general-purpose shipping ago as a general-purpose 75 years Founded focused last 20 years has for the Golar company, assets. on its LNG exclusively initiating the conversion of an LNG carrier initiating the conversion of an LNG carrier Two into a floating liquefaction vessel (FLNG). years later we set up a joint venture to build largest thermal station America’s Latin and establish a downstream LNG distribution business. FIRST FLNG DELIVERED THE WORLD’S CONVERSION, WITH A THAT PROJECTS” MATCHES SHORE-BASED “MEGA DESPITE OPERATING AT SMALLER SCALE. In 2020 the , Brazil’s most efficient thermal plant, commenced operations. In early 2021 we crystalized the value of that downstream business, more than tripling the value of our invested equity over a five-year period. Over the last 20 years the need to reduce CO emissions and air pollution has developed into global priorities, renewables have become the fastest growing source of energy and China’s has tripled. 20 years ago carbon and air pollution were carbon and air pollution 20 years ago that they are today not the mainstream issues was very small. and the renewables business a large of The opportunity to transport of the world to another to energy from one part and gas prices is what close big gaps in energy to the initially inspired our dedication LNG business. TOO WERE PAYING GROWING POPULATIONS MOST FROM THE MUCH FOR POWER, TYPICALLY SOURCES. CARBON-INTENSIVE gas potential to create a bridge between cheap reserves and these high-priced power markets. by At that time the LNG industry was dominated in a handful of players who showed little interest making this happen. Golar’s initial efforts at building that bridge commenced with the ordering of LNG carrier new builds to service what was then a fledgling LNG spot market. Golar then moved along the value chain in 2007 with the pioneering conversion of one of its older LNG carriers into a Floating Storage and Regasification Unit (FSRU). FSRUs are now mainstream and have facilitated the opening of most new LNG to really close the markets since. However, energy price gap Golar also needed to move upstream, as well as further downstream. In 2014 Golar took its next pioneering step 1  2 3 insight and

the Board Chairman of transparency transparency Tor Olav Trøim 20 YEARS 20 YEARS INDUSTRY INDUSTRY AS THE LNG LNG AS THE INNOVATOR

fossil cleanest future energy energy cleaner cleaner VERSATILE transition fuel transition we walk the talk transition fuel

FOR

gas PLUS gas

AIMING

PRO ACTIVE

ZERO

WORKFORCE DIVERSE DIVERSE

UPLANNED delivering carbon goals delivering

renewables EMISSIONS O1 CONTENTS We aim to use our marine expertise ABOUT and innovative floating LNG assets to provide the most competitive 5 About Golar GOLAR LNG solution to monetise natural 7 Operating in a Pandemic gas reserves and deliver LNG. 8 Our strategy

10 Governance and Materiality 14 Our focus areas Golar is one of Golar is a fully integrated LNG A TRACK RECORD OF INNOVATION services provider covering We embrace fresh thinking and our lean 16 2030 Ambitions the world’s most floating LNG liquefaction (FLNG), LNG organisational structure enables us to innovative and shipping (LNGC) and floating storage develop new ideas quickly. Our two most and regasification (FSRUs). 18 climate and lng experienced significant innovations have been: 22 Our key indicators independent In January 2021 we announced the sale owners and of our downstream focussed business World’s 1st operators interests to New Fortress Energy. Golar now 24 our key focus areas owns a fleet of 9 LNGCs, 1 FSRU and 3 of marine- FLNGs (1 operating, 1 under conversion 24 Health, safety and security based LNG and 1 candidate for conversion), and FSRU conversion 27 Innovation and transition infrastructure. focus our attention on the development of THE GOLAR SPIRIT our upstream capabilities. We continue to commenced operations in 2008 30 Environmental impact manage and operate the fleet of 6 LNGCs and 8 FSRUs acquired by New Fortress. 35 People and Communities FLNG conversion 37 Governance and business ethics VISION THE HILLI EPISEYO We believe that gas has a critical role to commenced operations in 2018 play to provide cleaner and cheaper energy globally for many years to come. Appendices In both cases, we offered rapid schedule and Our pioneering infrastructure assets provide cost effective solutions to industry problems, 40 Appendix 1: Key facts and Figures safe, competitive and sustainable ways of and redefined industry cost per MMbtu at 44 Appendix 2: TCFD index and risk assessment liquefying, transporting and turning gas into both ends of the LNG value chain. energy across the world. We continue to be pioneers in our industry. MISSION We have now developed a larger newbuild FLNG solution and are collaborating • Be recognised as a learning organisation with another industry leader to investigate with an outstanding reputation for safe, solutions for the floating production of blue reliable and cost-effective operations. and green ammonia as well as carbon • Employ and develop talented people who capture in LNG production. can see the impact of what they do. • Develop a pipeline of new LNG infrastructure opportunities and convert the best into world class projects. • Be a great business partner, where combining skills and resources make a big difference. 4 ★ ESG Report 2020 ESG Report 2020 ★ 5 GOLAR AT A GLANCE OPERATING IN Responding to the COVID-19 pandemic, Golar’s focus was to keep our people and their families safe whilst continuing A PANDEMIC to operate as a vital part of the global energy supply chain. Experience Whilst the COVID-19 pandemic pandemic. They provided a vital role 50 years of experience in the LNG spread across the globe, as part in maintaining the flow of vital goods midstream sector. of the global energy supply chain that people everywhere needed, in our operations had to continue. We our case LNG for energy, whilst not are proud of the response of our being recognised as key workers and employees – despite the extraordinary experiencing prolonged periods at sea circumstances they have taken extra as a result of government regulations care of each other in challenging restricting crew changes. Market Penetration times and have gone to great efforts to continue our operations. In In response to the pandemic, Golar Regasified 1,200+ LNG cargoes in LNG particular, we believe seafarers are identified three key priorities which importing countries using Golar operated FSRUs. one of the “unsung heroes” of the guided us throughout the year:

Keep our people, Even more so in these challenging and • We restricted access to our vessels to both at sea and uncertain times, safety was our top priority. reduce the risk of transmission to crew. 1 We implemented new measures to ensure This included working with Port Authorities Innovation onshore, safe that we keep our seafarers, staff, their to ensure that the minimum number of The first company to convert ships into FSRUs from the virus families and our wider communities safe. officials came on board the ship, and that they did so in a safe manner. and FLNGVs and harness waste energy to • We screened all our seafarers to identify improve the efficiency of both. higher risk conditions for COVID. • We provided all our shore-based staff with the equipment required to successfully Our unique industry from home. leading FLNG offering Simplicity provides a commercially Look after our Crew changes were severely restricted shared responsibility to resolve the crew seafarers and throughout the year. This led to extended change crisis and calling for seafarers to be New combinations of existing viable route for the 2 stays at sea for many of our seafarers, who recognised as key workers with priority access technologies that offer simple, low-cost their families stayed onboard far beyond their contracts. to vaccines. solutions to a complex business. development of smaller during extended We worked tirelessly to provide crew changes, gas resources - matching but faced challenges from changing local This crisis also impacted crew members who periods at sea requirements, quarantine restrictions and the were unable to start their contracts. Whilst and competing with significant reduction in flights. typically under maritime standards and the land-based “mega Maritime Labour convention, seafarers are Integration We were able to deliver crew changes not paid whilst on leave, we offered financial projects” on emissions for all our vessels, but we are aware that support to all Golar crew members on shore Working with upstream resource holders to others were not so fortunate. In February leave to ensure they were paid some of their incorporate our FLNG solutions to monetise and cost per tonne. To 2021, we joined over 400 maritime salaries whilst unable to board a vessel to stranded gas and with downstream partners businesses and organisations in signing support them and their families. date, Golar has produced the Neptune Declaration, recognising a to deliver that gas to emerging markets. more LNG from a floating facility than Continue our In addition to protecting our people, we ensured by the pandemic, including implementing Growth any other operator. operations that we continued to deliver on our commitments remote solutions for maintenance and 3 to customers and kept the fleet operating. The mandatory ship audits, supporting our Able to invest and grow our business with LNG and serve our pandemic caused widespread disruption to suppliers and flexible planning to minimise prices as low as $4/mmbtu. customers supply chains, but our FLNG and FSRU vessels disruption to major projects. In particular, continued to operate to nomination and our we were able to convert the Golar Viking LNG carriers continued to sail. into the FSRU LNG Croatia in China and deliver her on time despite all the schedule There are many examples of our teams finding challenges arising from the pandemic. creative solutions to the challenges presented

6 ★ ESG Report 2020 ESG Report 2020 ★ 7 O2

Our Sustainability OUR SUSTAINABILITY PRIORITIES Strategy Champion LNG 1 as a transition fuel

Working as a companion fuel to renewables, LNG will enable emerging Efficient and markets to move away 2 Sustainability is critical to Our approach to sustainability responsible is embedded in our vision and from burning dirtier oil Golar’s strategy – business strategy. We believe that and coal. This can deliver operations we champion LNG as a LNG will grow as a companion immediate emissions key transition fuel and fuel to renewables, and that reductions and support the Whilst championing LNG UN’s goal that reliable, as a transition fuel, we a bridge to a cleaner flexible marinized infrastructure will have a huge role to play in clean and affordable recognise that it is critical energy future. With the development of the smaller energy is available to all that the industry reduces its an industry reputation gas resources and in time the whilst paving the way for environmental footprint. As a cleaner energy future. for innovation, we are development of carbon-free fuels industry innovators, we aim such as hydrogen and ammonia. to take a leading role and committed to supporting make tangible change in the the growth of LNG to areas that really matter. We have identified five key focus ensure that modern areas where we feel we cleaner energy is can make a real difference affordable for all. in support of the UN Goals, which are set out in this report.

Support the development of low 3 VISION CO2 carbon and carbon free fuels Ultimately, for the to succeed, We believe that gas has a critical role to play in providing renewables cannot bear the load alone. Low carbon and carbon free alternative fuels must be identified cleaner energy for many years to come. and developed into scalable, cost effective solutions. Golar will work on developing floating solutions Our pioneering infrastructure assets provide safe, that work to support the development of the most promising candidates, starting with the hydrogen competitive and sustainable ways of liquefying, economy through ammonia and carbon capture. transporting and turning gas into energy across the world.

8 ★ ESG Report 2020 ESG Report 2020 ★ 9 O3 Governance of externally, to give management sustainability at Golar is and the board comfort that they SAFETY, ENVIRONMENT & ETHICS COMMITTEE ESG led by the Board through are followed and are operating as the Safety, Environment intended. In 2020 we also engaged Oversight of ESG projects, KPI performance and external reporting. Chaired and Ethics Committee and an independent third party to provide by an independent Board member, with the CEO, COO, CFO and DHSEQ Governance the leadership team. Their assurance over the completeness and as Committee members. This Committee meets at least twice a year. oversight ensures executive accuracy of our emissions data. We and ownership of ESG priorities will increase the scope of the audit each and leads to an integrated year, to ultimately include all our ESG approach, embedded within reporting figures. Materiality our strategic decision making, performance management, IDENTIFYING AND ADDRESSING planning and risk management. SUSTAINABILITY RISKS Sustainability and the opportunities arising OUR SAFETY ENVIRONMENT & from the energy transition are key parts ETHICS COMMITTEE of our strategy. Therefore, the key risks Our Board-level Safety, Environment and to these objectives, and climate and Ethics (“SEE”) Committee, oversees our sustainability related risks more broadly are ESG performance and the execution of our already embedded in our risk management PEOPLE AND GOVERNANCE sustainability strategy. processes. At Golar, we take our OPERATIONS COMMUNITIES & ETHICS responsibilities towards During 2020, the Committee spent most The Financial Stability Board’s Task Force Cross functional Committee Working group led by the Working group chaired of their time on development of our on Climate-related Financial Disclosures sustainability and key performance indicators and 2030 (TCFD) established recommendations chaired by the Chief Global Director of HR which by the Chief Accounting transparent ESG ambitions, ensuring that these reflected our for voluntarily reporting such risks and Operating Officer focusing brings together shore based Officer overseeing Golar’s reporting seriously. strategy and were underpinned by detailed opportunities in 2017. We believe these on health & safety, the and offshore programmes. ethics and compliance action plans. They continued to review and disclosures are important in allowing Our governance challenge our ESG performance, including stakeholders to understand our response environment and energy Focused on diversity, programmes. This includes framework applies safety and emissions, and manage our to key climate issues. efficiency of the LNGC and training and development conduct training, our equally to executing climate-related risks and opportunities. The FSRU fleet. Monitors priority and coordinating our anti-bribery and anti- Committee reported regularly to the Board In 2020, we are disclosing more aspects, improvement plans, community engagements corruption programme and our strategy in of Directors on its progress. information on our governance and risk support of the management practice to align to TCFD KPI delivery and regulatory across the globe. supply chain human rights energy transition, POLICIES AND COMPLIANCE expectations in those areas. Going forward, compliance. management. we will further align our reporting to the full We have various policies and procedures monitoring set of TCFD disclosure requirements. that govern our ESG practises, such as our ESG our Environmental, Security, Health and Our climate related risk and opportunities Safety, Risk Management, Speak-up and performance, can be seen in Appendix 2. and managing Anti-bribery and Corruption policies, just to mention a few. We update our policies climate- regularly and provide training on them to Onboard safety and The Board established the Safety, our staff. related risks. environmental Committees Environment and Ethics Committee in Compliance with our policies and are chaired by the Master 2019 to govern how the business executes procedures are a fundamental part to our / Offshore Installation our sustainability strategy. The Committee success, therefore we undergo regular Manager. They continually compliance audits, both internally and review the performance of is responsible for overseeing key ESG the vessel against set KPIs, improvement initiatives and our response to delivery of action plans and climate-related risks and opportunities. identifying improvements.

10 ★ ESG Report 2020 ESG Report 2020 ★ 11 As mandated by our Board, Golar is • Benchmarking against proxy peers and • For emissions data, whilst operational FOCUSING committed to taking an impact-based other public reports documenting key and financial control resides with our approach to setting sustainability issues for LNG charterers, we disclose emissions on goals, and making regular, ongoing all vessels owned by Golar's entities. ON WHAT • Review of applicable industry and ESG ESG disclosures in line with our Therefore, unless otherwise noted, this standards such as SASB, GRI and IPIECA MATTERS reporting guidelines. This means that report includes the operations and we do not apply a specific overall practices for the entire Golar fleet This led to the development of the five reporting standard but focus on (LNGC, FSRU and FLNG) in 2020, key areas of focus outlined on page 14, MOST the ESG issues that matter most to encompassing assets owned and and the linked KPIs to measure our Golar, are relevant to our business operated by Golar LNG, Golar LNG performance shown on page 22. model and are of most interest to our Partners and Hygo Energy Transition Our approach stakeholders. (although NFE acquired Golar LNG DETERMINING THE CONTENTS OF Partners and Hygo assets in 2021). to sustainability THIS REPORT To determine these topics, we conducted • The GHG Protocol is followed for is built upon a comprehensive “materiality” assessment The content and quality of this report is greenhouse gases, however we what matters in 2019. We applied the Global Reporting driven by a focus on the most material consider Scope 2 (indirect emissions Initiative (“GRI”) principle of materiality, issues identified and incorporates guidance most to us as from purchased electricity) to be defined as topics that reflect significant from major sustainability and industry immaterial compared to the a business economic, environmental and social impacts specific reporting guidelines, as well as emissions from our operational and/or substantively influence stakeholders’ leading ESG rating agencies, including and where we vessels and assets. can make a assessments of the organization’s ESG those listed above and Sustainalytics, performance. CDP and MSCI. meaningful The detail behind the Our assessment included: calculations can be seen in In determining the scope of our reporting, difference. appendix 1 of this report and • Internal workshops across our business we have considered the following our methodology statement principles: • External engagement with key on our website. sustainability stakeholders • Operational control is applied for safety, waste and spills data, following where • Assessment of our existing internal we have the governing authority and reporting responsibility.

UN SUSTAINABLE DEVELOPMENT GOALS

Pursuant to our own goals, Golar is proud to support the principles of the 2016 United Nations and the wider UN sustainability agenda, including the associated Sustainable Development Goals (SDGs). While Golar supports all of the SDGs, we identified four goals that align most to our strategy and sustainability priorities:

• Our low cost and speed of • Safety is our number one priority, • Setting challenging carbon • LNG is the cleanest . delivery reduces the cost per both in our own operations and reduction targets for all of our As a proven and affordable MMbtu of LNG, increasing the within our supply chain. existing assets and continuing our technology, it can replace dirtier ability of emerging economies to innovative approach to the design fuels today and support the energy • Respecting human rights in all access LNG and adopt a “gas of new assets, ensuring they transition as a companion fuel aspects of our business, both for plus renewables” mix to replace are cleaner in line with industry to renewables. We support this our own staff and contractors but coal and oil. developments. transition through our low cost, also across our supply chain. quick delivery infrastructure, • Through Hygo Energy Transition, • Investing in research to provide • Creating local jobs and procuring providing opportunities for emissions we have actively worked to floating infrastructure solutions locally wherever it makes sense to reduction. develop infrastructure that can to carbon-free alternative fuels, support local development in our supply LNG to commercial, starting with blue and green • We take action to minimise our communities. industrial and retail customers. ammonia and carbon capture, environmental footprint, focused on sequestration and storage. fuel use and efficiency to drive down carbon and other air emissions.

12 ★ ESG Report 2020 ESG Report 2020 ★ 13 GOLAR’S FIVE KEY FOCUS AREAS We have been paying attention for the future. This year we produce our to the company's environmental first stand-alone ESG report, available impact, social contribution and in limited paper copies and web based, We conducted a series of internal and external workshops corporate governance for many and in it we lay out our 2030 targets to determine which Environment, Social and Governance years. As signatories of the UN against our five key focus areas. Global Compact, we commit to topics are most important and significant to Golar and Achieving these targets will require operating in line with the ten teamwork and a continuous focus our stakeholders. Based on the results we were able principles on responsible business throughout each year but, in Golar, we to identify five key focus areas. conduct and to contributing believe these focus areas are important positively to relevant UN and by delivering against them we will Sustainable Development Goals. become a better employer, reduce our Health, Safety Last year we published the first web- emission footprint and continue to Karl Fredrik Staubo based ESG report which outlined our contribute to a better world. and Security Chief Executive Officer general journey to date and direction Maintaining safety through learning and cooperation, fostering a sense of community, and minimising risk.

Environmental Impact Operating responsibly and working with charterers to make commercial decisions that limit our environmental footprint.

Innovation and Transition Recycling our vessels and the incorporation of pioneering FLNG technology into our operations. we believe these focus areas are People and important and by Community delivering against Encouraging development across our diverse them we will become workforce and support for our host communities. a better employer, reduce our emission footprint Governance and and continue to Business Ethics contribute to a Committing to principles of transparency, better world. human rights, anti-bribery and anti-corruption.

14 ★ ESG Report 2020 ESG Report 2020 ★ 15 O4 Health, Safety And Security Innovation Our People and Transition

Safety is our number one We are proud of our reputation for We aim to be a preferred • More than 90% of our staff 2030 priority. We want to protect our 0.80 implementing innovative ideas in our industry. employer through our demonstrate living by the people, their families and our We will continue to identify and develop culture as a learning Golar values. BELOW LTIF pioneering floating solutions to support the communities. We want to be the organisation and our focus AMBITIONS preferred employer and aspire energy transition. Our targets include: on the development of our Our targets are to: to a culture of zero harm. • Developing technically and commercially staff. Our targets are to: RETENTION • Achieve zero fatalities and sustain viable floating application of green and blue • Achieve a retention rate of a lost-time injury frequency below technologies, focusing on hydrogen, ammonia 95% for crewing and 90% 0.80 per million exposure hours. and carbon capture. for office staff. 95% CREWING ZERO • Identifying and marinizing carbon capture • Maintain a “best in class” safety 90% OFFICE STAFF framework compliant with the technologies which could fit into the footprint of FATALITIES highest standards in our industry. future FLNG units, providing charterers with the option to significantly reduce carbon emissions We have developed from liquefaction. a range of bold but Our Communities achievable goals designed to make a As our business develops positive impact on Environmental Impact NEW we are more involved in our communities than ever our ESG footprint by EXPLORE TECH before. We take our role LOCAL 2030. These reflect FLNG • Maintain highly competitive greenhouse seriously, and aim to have a lasting positive impact our belief that whilst Our FLNG approach offers an efficient, fully gas footprints. We have ready to implement in the development of our FLNG design cases which deliver in the HIRING & it is not possible to marinized solution with highly competitive LATEST communities through: CO2e emissions, but we are actively range of 25% reduction in intensity. predict exactly what CO DESIGN • Charitable work to support exploring how we can further reduce our PROCURING 2 community growth. form the energy footprint in future FLNG vessels. • Continue to explore technologies which CASES transition will could deliver even greater improvements in • Hiring and procuring locally, take, or how our Our targets are to: emission intensity, such as carbon capture 25% where we can. sector will react, • Consistently achieve our emissions technologies or integration of our power action is required intensity on Hilli of 0.30 TCO2e / TLNG. management system with renewable sources. REDUCTION now to meet Governance And Ethics decarbonisation WASTE AND SPILLS ambitions. We are committed to reducing our total We are committed to • Ensuring human rights are environmental footprint, not just emissions. maintaining the highest respected in our supply chain. LNGC Our targets are to: standards of governance and Our targets include: • A robust system to comply We are committed to ethical conduct wherever we are • Deliver a further 25% reduction with anti-bribery and corruption delivering improvements • Zero serious environmental events in the world. We acknowledge in emissions intensity by laws and regulations and in efficiency and emissions the challenges in our industry, 2030, based on the annual • Reducing total waste (oily and non-oily) by maintaining our culture of 25% reductions which meet the efficiency ratio against our 2019 20% compared to our 2019 benchmark. and take action to ensure they compliance. IMO’s reduction targets. performance. do not exist in our organisation Fleet Wide We have made significant or supply chain. Specifically, progress towards the 2030 • Work closely with our charterers we focus on: CARBON target (40% savings in to maximise the use of boil off 20% REDUCTION carbon efficiency compared gas, which reduces total lifecycle IN TOTAL WASTE to 2008), saving around emissions for the LNG we intensity 30% compared to our transport. estimate of 2008 emissions. ZERO SERIOUS REDUCTION • Take action to reduce methane ENVIRONMENTAL EVENTS emissions arising from “methane slip” through discussion with engine manufacturers. 16 ★ ESG Report 2020 17 LNG is the cleanest burning fossil fuel – it generates 40%-50% less CO2 than coal O5 and can dramatically lower air pollution. Climate CO2 savings from coal-to-gas switching in Global Energy Consumption selected regions compared with 2010, 2018 LNG has potential to displace coal and LNG and oil, which currently represent 61% of Global Energy Consumption -600 United States LNG 3% China -500 Hydro Europe Nuclear 7% India NatGas Renewables -400 Ex-LNG 4% Rest of world 21% 4%

LNG: THE -300 257MM We champion LNG Barrels of Oil BRIDGE TO Equivalents per Day as a key transition -200 (or 430 TWh/Day) fuel to our collective Coal Oil A CLEAN 28% 33% carbon neutral -100 future: a sustainable, ENERGY 0 economical 61% FUTURE 2011 2012 2013 2014 2015 2016 2017 2018 alternative to other fossil fuels that supports renewable Demand for energy is set to rise, the We believe that it is imperative that we act CAGR Based on Mtoe challenge of the energy transition is to now and displace dirtier fossil fuels and reduce (2015 – 2020) development. 12.3% deliver reliable, modern energy for all global emissions rather than waiting for new LNG is the fastest growing energy source whilst expediently reducing emissions developments or technologies. is an ideal companion fuel for renewables and after Renewables and pollution. Further, energy must be carbon-free alternative fuels. According to the 8.1% MEET available and affordable for all – the UN rising gloBal International Agency (IRENA), estimates that today, 798 million people lack the transition to variable renewable sources energy demAnd access to electricity. Finding a solution that requires balance to overcome challenges 2.9% supplies energy to more people, protects the related to limitations in output and reserve 2.4% 1.8% climate, maintains air quality and ensures requirements. 1.2% affordability is one of the biggest challenges 0.1% facing the world today. This transition is already underway - over Coal Oil NatGas ex-LNG Hydro Nuclear LNG Renewables the last five years LNG has been the fastest A COMPANION FUEL TO RENEWABLES growing energy source after renewables as THE countries adopt this model. The IEA estimates Fuel displacement is critical to achieving that replacing dirtier fossil fuels with LNG the Paris Agreement goal of less than 2°C has already helped limit the rise in global LNG warming. Currently 61% of the Global emissions since 2010 and has avoided over Energy consumption is made up of coal and 500 million metric tonnes of CO2 emissions between 2010 and 20182. solution oil1, and we must rapidly change this energy mix to reduce emissions. The urgency of Golar has played an active role. Through this transition is increasing, with more and Hygo Energy Transition we built Latin America’s more countries setting out net-zero targets most efficient thermal power plant in Porto de Sources 1  for 2050, including China, Japan, New Sergipe, Brazil, which backs up hydro power International Energy Agency 2 International Energy Agency. (2019). World affordable REDUCE Zealand, the US, the UK and Denmark. to ensure continuity of supply in the region. Energy Outlook 2019. FOR ALL carbon emissions now

18 ★ ESG Report 2020 ESG Report 2020 ★ 19 OIL & COAL LNG & renewables

THE ONGOING ROLE OF GAS All realistic energy models, including more immediate, compelling, and realistic those aligned to Paris Agreement goals, economic proposition lies first with replacing ABUNDANT show that gas will continue to play a dirtier fossil fuels as fast as possible. This major role in the energy mix for years to means that gas, and LNG in particular, will be come. Whilst achieving a carbon neutral a critical part of the energy mix for decades FLEXIBLE energy mix is the eventual endgame, it to come. will take time for alternative fuels and renewable technologies to develop and This view is supported by both the IEA’s SECURE achieve meaningful market share. It is not Sustainable Development Scenario and BP’s possible to predict the exact shape and Rapid Scenario in their 2020 Energy Outlook, form for the energy transition and so the with gas outperforming other fossil fuels.

Primary Energy Demand – Sustainable Development Scenario

Other 8% LNG 18% 17% 11% renewables 10% Nuclear

Coal 4% 12% Hydro 2030 IEA SDS 2040 IEA SDS 23% 7% Oil 4% Getting LNG to market and ultimately replacing OUR 29% coal and oil represents our biggest immediate 9% Gas 26% ROLE opportunity to mitigate , we 24% recognise our obligation to reduce and manage our own environmental footprint, promote Source International Energy Agency (2019) sustainability in all our operations and investigate and address problems within our industry. LNG IS THE SOLUTION

LNG can meet rising energy demand with • LNG will support renewables to make To fulfil the role of natural gas in the the onshore footprint of liquefaction and a fuel that is more affordable, practical, and up the shortfall. energy transition the industry must regasification terminals. We are also cleaner than any of its fossil fuel competitors. • LNG has a wealth of practical applications reduce greenhouse gas emissions and taking action to investigate and estimate In particular: including combined heating, power other environmental impacts throughout the impact of these issues within our • LNG is the most cost-efficient alternative and transportation, thus allowing LNG the value chain whilst keeping costs operations, including reviewing methane to its fossil fuel competitors, making it an to comprehensively support the global down. This includes taking immediate slippage from our gas engines and affordable and accessible source of energy. transition to a clean energy future. action on key challenges such as fugitive investing in technology to identify emissions and methane slippage. Golar’s sources of fugitive emissions. • LNG is the cleanest burning fossil fuel – approach assists the industry by reducing it generates 40%-50% less CO2 than coal Whilst we believe bringing and can dramatically lower air pollution.

20 ★ ESG Report 2020 ESG Report 2020 ★ 2921 We have developed key performance indicators OUR KEY INDICATORS for each of our key focus areas to assess our performance and help us to achieve our goals and objectives. We constantly monitor our performance and progress is reported to the Safety, Environment FATALITIES and Ethics Committee to enable Board oversight. NUMBER OF HOURS SPENT ON SAFETY serious TRAINING FOR OFFSHORE STAFF marine incidents 74,725 AVERAGE HOURS SPENT ON SAFETY TRAINING 53 2020 AIR QUALITY IMPROVEMENT0 FLEETWIDE CARBON INTENSITY

NOX SOX PM 93% LNGC 64% 8.71

13% LNGC AER, per FSRUs tonnage 0.05 mile FSRU Per tonne send out SAFETY PERFORMANCE FLNG FLNG Per tonne 0.30 LNG LTIF 0.95 produced TRCF 1.59 CADET PROGRAM SCRAPPING ZERO OF VESSELS SPILLS 25 ZERO 22 ★ ESG Report 2020 ESG Report 2020 ★ 23 O6 ACT The Golar These standards Management System underline the 10. Assurance (“GMS”) is certified to robustness of our review and OUR KEY ISO9001, ISO14001, system and commitment improvement ISO45001, ISO27001 to continuous 9. Monitoring, 1. Commitment and ISM Code improvement reporting and and accountability FOCUS aREAS learning

IMPLEMENTATION 2. Policies, 8. Execution standards and of activities objectives LEADERSHIP Golar provides We implement comprehensive training GMS extensive audit CONTINUOUS to our employees to and assurance PLAN CHECK IMPROVEMENT 3. Organisation, ensure that we are able activities to verify to meet our objectives 7. Plans and resources, compliance with the procedures competency and targets requirements RISK MANAGEMENT and capability

6. Asset design and integrity 4. Stakeholders 5. Risk and customer assessment and control

We aspire to a culture of zero harm – SAFETY THROUGH EXPERIENCE, MAINTAINING HIGH SAFETY FOCUS AREA The Golar meaning a workplace which is injury COOPERATION AND LEARNING STANDARDS DO Management free. This ambition is integral to We believe that a transparent and in depth Our ambition is to maintain a best in class System HEALTH SAFETY Golar’s company culture. understanding of our culture is critical to safety framework. We have a robust safety keeping our staff safe. We have worked management system which is compliant with AND SECURITY We know that it is impossible to create a hard to foster a culture based on the ISO45001, the ISM Code, SOLAS and the system where failure never happens, but we concepts of experience transfer and being IGC Code as well as ISO9001, ISO14001 believe that serious issues can be prevented a learning organisation. and ISO27001. The safety and by focusing on understanding why minor issues occur and learning from them. security of our teams Put simply - we view mistakes and issues We conduct rigorous internal audits for all identified as pivotal learning opportunities. of our vessels against our safety framework DELIVERING ON AN AMBITION OF and everyone who We believe that discussing mistakes, and additionally we are regularly audited ZERO HARM works with us is learning from them and cooperating by flag states, port states, charterers and We pursue zero harm through four key areas: through sharing experiences with other other stakeholders to ensure that our vessels our number one Sadly, one of our crew members was kidnapped vessels ensures that our team is stronger meet or exceed all required standards. • Building a company culture which from one of our vessels in a piracy attack at priority. Experience, and safer as a result. This includes the requirements of the reinforces safety awareness among an oil major operated terminal, in the Gulf of cooperation and Tanker Management and Self-Assessment our employees. Guinea in 2020. We were able to successfully We regularly monitor our culture in detail programme (TMSA) and the Ship Inspection learning are critical to secure his release, but we realise there is more • Ensuring practical and well-considered through periodic surveys, most recently in Report Programme (SIRE). for us to do, to learn and to improve to ensure achieving this. risk management onboard and onshore. 2019, making assessments against eight that we keep our staff, vessels and cargo safe leadership behaviours: Trust; Openness; SECURITY • Learning through analysing accidents and at all times. We identified multiple factors that Feedback; Team; Care; Learn; Speak up; near accidents. Shipment of cargoes at sea involves an contributed to the piracy attack being successful and Dilemmas. element of inherent security risk, especially and are implementing improvements to • Continual improvement of procedures in high risk areas for piracy. minimise the risk of recurrence. and routines, including skills of personnel and emergency preparedness.

24 ★ ESG Report 2020 ESG Report 2020 ★ 25 2020 PROGRESS AND RESULTS FOCUS AREA As set out in this report, we recognise CHEAPER, CLEANER FUEL IN COVID-19 presented a unique challenge to LTIF and TRCF the need for disruption and change EMERGING MARKETS our safety management system. As outlined in the world’s to 2 We developed Hygo Energy Transition to in this report, as a vital part of the energy INNOVATION decarbonise whilst meeting rising LTIF 1.72 bring LNG to markets which currently lack supply chain Golar continued to operate, energy demand and ensuring reliable TRCF AND gas access in order to facilitate the switch and we took a number of steps to keep our 1.5 modern energy is available and 1.49 from dirtier fuels, such as coal, diesel and crew, staff and their families safe, including affordable for all. oil. This can have a transformative effect working tirelessly to perform crew changes TRANSITION on local energy markets – not only is LNG as soon as we could, restricting access to our 1 0.91 We believe that marine infrastructure can 0.76 0.89 cheaper than alternatives but it is far less vessels and maintaining COVID-19 secure 0.86 play a critical role making the energy polluting. workplaces. We also had to adapt our safety 0.73 transition happen at pace. This relates 0.5 We are proud of management system due to the restrictions 0.57 both to delivering cheaper, cleaner energy 0.19 Hygo currently focusses on the Brazilian on travel, moving to remote auditing and our reputation today through LNG replacing oil and market, which is one of the most attractive training. 0 coal, whilst also looking to a future where for innovation markets for such a switch globally, but they 2016 2017 2018 2019 2020 marine infrastructure supports the growth are also pursuing similar opportunities across Performance highlights for 2020 include: having completed of hydrogen and ammonia as a viable the world, including in other Latin American the world’s first alternative to traditional energy sources. • We had another year with zero fatalities or counties, Southeast Asia, the Indian serious marine incidents (2019: zero). FSRU and FLNG Subcontinent, West Africa and Europe. Golar is a proven implementor of innovative • We achieved certification to ISO45001 for conversions. and disruptive solutions, and this experience In Brazil, this innovative business model all our locations. positions us well to develop novel marine We apply this is having a real impact. Hygo established contributions to the challenges of the energy • Our focus on improved reporting pioneering spirit an FSRU terminal in Sergipe, to supply the transition. of incidents and opportunities for to maximise Porto de Sergipe I power plant (which is 50% improvement continued to deliver results, We achieved owned by Hygo). This FSRU has become DELIVERING CLEANER LNG AT with over 2,300 high quality safety Golar’s a “hub” from which to import LNG and SMALLER SCALE observations being reported. certification contribution offer gas to a range of retail, industrial and Golar’s FLNG approach is able to match and commercial users through supply chains and • We were able to maintain our high level of to the energy compete with land based “mega projects” on associated infrastructure. safety training through moving to remote to ISO45001 transition. emissions and cost-per-tonne of LNG produced training, with crew and offshore workers despite operating at much smaller scales. A key initial focus has been on a diesel completing an average of 53 hours each for all our to LNG switch for trucks and commercial (2019: 56 hours). This provides a commercially viable route for vehicles, as Brazil has a fleet of over 16 • Lost time injury frequency increased to locations. the development of smaller or stranded gas million such vehicles. We have partnered 0.89 per million exposure hours (2019: resources, which will in turn deliver more gas with Brazil’s largest distributor of liquid 0.86), but we saw a decline in total to market to fuel the energy transition. hydrocarbons, BR Distribuidora, to supply reportable cases to 1.49 per million LNG through their distribution network. exposure hours (2019: 1.72). The drivers Our FLNG approach has a number of for this relate to our ongoing programme advantages to traditional shore-based In January we announced the sale of Hygo to increase the volume of reporting, and facilities, including: Energy Transition to New Fortress Energy also that our team aboard the Hilli Episeyo ("NFE"). We are proud of the achievements • Maintaining capital efficiencies at much are becoming more familiar with the vessel of Hygo and believe that the valuation lower scale whilst delivering a highly since it went into operations in 2018. placed on the business by the transaction competitive emissions footprint, in large part demonstrates the success of the business due to effective use of recovery. model. Its combination with NFE will allow • Quicker return on investment due to the the business to further strengthen its footprint shorter period from FID to commercial and accelerate its vision to deliver low operation. carbon energy solutions globally. • Ability to extend the life of infrastructure and WHAT COMES NEXT? develop smaller gas resources that cannot anchor a 25 year plus land-based project, Achieving the goals of the Paris Agreement as floating assets are not fixed to one and combatting the climate crisis requires location. a new generation of affordable, scalable energy alternatives to fossil fuels. We believe But we know we can do more - our engineers in LNG as a transition fuel, but this must go continue to improve our FLNG offering to hand in hand with the development of low deliver greater reliability and availability carbon alternatives if the energy transition is alongside reduced emissions. to succeed.

26 ★ ESG Report 2020 ESG Report 2020 ★ 27 We believe that marine infrastructure will have a Case study critical role to play, and in November 2020 we The replacement of coal, fuel entered into a collaboration agreement with our FSRU SALT-WATER DISCHARGE TURBINE long-term FLNG partners, Black and Veatch, to oil and diesel with cleaner explore floating ammonia production, carbon burning LNG represents capture, green LNG and hydrogen. Most FSRUs utilize sea water as the main • Reduced emissions with estimated annual one of the easiest and most source to heat Liquefied Natural Gas: sea savings of up to 5,000 tonnes of CO2 – the In February 2021, we launched our first thought cost-effective near-term water is lifted 25 meters up from sea level equivalent of taking 1,000 cars off leadership paper through this collaboration – by heavy duty pumps to the regasification the road. module located on the main deck. This “Floating blue ammonia production: Creating a steps to decarbonize the • Improved flow dynamics through the takes a lot of energy - 1.4MW is required zero-carbon emission fuel”. The paper explores: turbine controlling the rate of discharge, worlds energy mix. The to maintain the required volume of up to with more even flow leading to reduced • How blue ammonia can be the catalyst for 18,000 m3/h. For conventional FSRUs the pressure fluctuations, vibrations and the development of the hydrogen economy. next step is to plan for a water is drained back to sea level after heat visual “foam effect” created by FSRUs. • The benefits of ammonia compared to net zero carbon energy exchange, meaning this energy is wasted. transporting hydrogen and how this can In 2020 we successfully completed our mix. As a company with GOLAR’S SOLUTION accelerate the transition to carbon free proof-of-concept trial aboard the Golar energy in energy intensive industries through an established history of Our engineers came up with the idea of Igloo, demonstrating that we can harvest use of existing infrastructure. utilising a hydro electric turbine in the sea over 1.1MW at peak. Golar holds IP rights • The role that floating ammonia production championing and delivering water discharge to harness this energy. for this solution and is exploring commercial can play in making this a reality, and disruptive solutions to There was no readily available solution on approaches that will allow the entire FSRU potential carbon capture benefits. the market – so we designed this ourselves community to share in these improvements. problems in its industry, we and delivered it in partnership with a believe we can play a leading system supplier. The system delivers: • Reduced fuel consumption through a 7% role in developing floating improvement in total system efficiency – ammonia and hydrogen the equivalent of 5 tonnes per day in fuel. production, carbon capture, and other decarbonisation initiatives.

28 ★ ESG Report 2020 ESG Report 2020 ★ 29 FOCUS AREA At Golar, our ambition is to be DRIVING EFFICIENCY IMPROVEMENTS an industry leader in terms of We monitor the impact of our vessels on an understanding our environmental IN 2020 WE intensity basis to maintain focus on efficiency ENVIRONMENTAL impact and working towards and seek out initiatives which can help us reducing air emissions and energy IMPACT significantly improve. Our innovative culture means our consumption. We believe this is staff are encouraged to challenge the status critical in making LNG a successful quo and implement improvements. transition fuel and long-term component of global energy supply. We are committed to improved Currently we have ongoing efficiency initiatives in relation to speed optimisation, being a responsible The vast majority of our environmental engine loading, efficient data-based voyage operator. This means impact comes from emissions produced OUR FUEL MIX planning and vessel trim monitoring, and by fuel used onboard – so our priority is to transparently assessing monitor these through internal benchmarking increase energy efficiency to deliver more of fuel consumption at different speeds. We our environmental output for less fuel. 2020 have seen the impact of our efforts in the impact and taking performance of the fleet in 2020, saving A CLEANER FUEL MIX action to improve an average of 4.6 tonnes of fuel per day energy efficiency LNG is cleaner than other vessel fuels and LNG 93.03% per vessel against our speed/consumption therefore the more time we can utilise our LSFO 4.56% benchmark compared to 2019. and minimise our LNG cargo as fuel the lower our emissions MGO 0.28% environmental will be. However, from time to time we do LSMGO 2.13% MONITORING OUR IMPACT EE consume small amounts of LSMGO, LSFO, P D footprint. As required by our environmental policy, S MDO/LSMGO and MGO where such we regularly monitor, track and report ct usage is stipulated by customers. du io environmental performance, including re n GHG emissions. Our operations team is Further, most of our vessels also run on responsible for managing and monitoring UP TO recycled cargo boil-off gas that would our environmental impact against targets & LNG USED IN otherwise go to waste. Boil-off gas relates and baseline performance levels, reported CO2 to the natural and unavoidable evaporation Vs % through to the Safety, Environment and 23 of the LNG stored in our tanks which has Ethics Committee. to be removed to maintain the pressure optimisation OF of our cargo – on average this equates NOx We also hold ISO 14001 environmental BOIL-OFF GAS marine % to 0.1% per day of the LNG we transport. 2019 management system certification, alongside 95 By recycling this gas to fuel, our vessels WILL BE NECESSARY ISO 9001 quality management system ensure that gas is not wasted whilst also transportation certification. TO ACHIEVE IMO limiting our air emissions significantly when PM LNG 82% % compared with traditional marine fuel. 99 HFO 14% We believe that transparency is important to LSFO 1% drive change in the sector. Our processes ensure that we not only meet emissions carbon LSMGO 3% SOx ALMOST reporting requirements but are able to make % the voluntary disclosures within this report reduction can reduce 100 and provide our charterers with meaningful insight on how our environmental impact can Source be reduced. targets SEA-LNG, https://sea-lng.org/2021/04/independent-study- confirms-lng-reduces-shipping-ghg-emissions-by-up-to-23/

30 ★ ESG Report 2020 ESG Report 2020 ★ 31 PROGRESS IN 2020 LNGC fleet intensity figures LNGC NOx, SOx and PM 2020 PERFORMANCE (in metric tons) We have maintained a strong focus on 10.5 7000 minimising our environmental footprint. Our performance at a vessel-by-vessel level was 10.3 AER We have: 6000 strong in 2020, coming off the back of a year when 10 • Rolled out our energy management 9.95 5000 many of our LNG carriers completed a dry dock. Total NOx rewards programme across the fleet, 4000 for LNGC with the highest performing vessels Our challenge now is to continue to make progress. 9.5 and those with the most improvement 3000 Total SOx for LNGC receiving awards on a quarterly basis. FLNG HILLI EPISEYO 2000 9 Total PM Performance is assessed using our data 8.71 Maintained consistent efficiency and 1000 (Particulate driven approach to energy efficiency and 9.11 9.10 emissions per tonne Matter) for emissions. 8.5 0 LNGC 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 • Developed ambitious long-term targets Our 2020 performance maintained what for emissions intensity from our fleet. we achieved in our 2019 benchmark year, These targets reflect the level of Golar’s with an emission intensity of 0.30 tonnes ambition in reducing emissions and CO2 equivalent per tonne LNG produced our commitment to meeting, and where (2019: 0.30). This headline emissions rate SHIPPING possible exceeding, increasing regulatory is competitive with larger scale shore-based Significant year on year improvement alone, Golar has delivered a 13% reduction demands from the IMO and others. liquefaction plants, all of which have a in emissions (2016: 10.03). Internally, Golar focuses on the Annual • Continued to improve our data and higher cost per tonne produced and have Efficiency Ratio (AER) to assess our overall reporting of environmental impact and the benefits of operating at a much greater We still have a long way to go to meet efficiency. This ratio removes the impact of a emissions, including publicly disclosing scale. Achieving that relative performance our target and will continue to focus on busier or quieter LNG market by focusing on more than ever before through this report. with floating infrastructure is a significant identifying and implementing operational deadweight tonnage, enabling more direct Our emissions data has also been subject achievement, and demonstrates the efficiency efficiencies and assessing new emissions assessment of the impact of our emissions to external assurance for the first time in we can deliver, particularly through effective reduction technologies for use on our reduction measures. 2020, providing increased confidence in use of heat recovery steam generators vessels. We are trialling some high priority its completeness and accuracy. integral to our design. technologies currently and will closely assess We delivered a significant improvement in the results to ensure we apply the best • We have performed extensive reviews Further, this performance has been achieved performance in 2020, with fleet AER of 8.71 solutions across the fleet. of many of the key emissions saving during a very challenging year, with the (2019: 9.95). This reduction was delivered technologies and operational solutions COVID-19 pandemic disrupting crew changes despite an average speed increase across the available today, with some of the most on Hilli and delaying the delivery of spare parts fleet of 1 knot, which typically would cause promising currently being piloted by to the vessel. In some instances, this has resulted increased emissions. selected Golar vessels. in temporary unavailability of equipment, impacting the delivery of emission reduction There are a number of drivers for this plans. improvement in 2020, including: • Improved fuel mix, with LNG delivering We regularly report our environmental impact 93% of the fuel use in 2020 (2019: 82%). to and the National Hydrocarbons Corporation of Cameroon (“SNH”) and are • High technical condition of the TFCD fleet, actively monitored on our performance, including hull condition, as a result of dry focused on energy efficiency through the docks performed in 2019. Studies by SEA-LNG show that, amount of feed gas used as fuel in the • Impact of our data analysis and Energy liquefaction process. depending on engine technology, Management Awards focusing attention on engine load, trim optimisation and voyage using LNG as a marine fuel planning, leading to stronger performance. offers greenhouse gas emissions HILLI LOOKING FORWARD reductions of up to 30% on a The IMO has set a target for shipping to save Tank-to-Wake basis and 23% on a TOTAL LNG 40% of CO2 emissions by 2030 compared to a 2008 benchmark year. To put this into Well-to-Wake basis compared to 0.30 CO2e 3.4m perspective, we estimate our performance in conventional marine fuels. PRODUcED 2008 equated to an AER of 13, meaning that we have reduced emissions by approximately tonnes Equivalent SINCE 2018 tonnes 30% over that timeframe. In the last 5 years

32 ★ ESG Report 2020 ESG Report 2020 ★ 33 FOCUS AREA 2020 was a uniquely challenging year. Our employees showed remarkable resilience in response FSRU PEOPLE AND to the COVID19 pandemic, and our Variable performance based on send main focus was to support them in out rates COMMUNITIES these uncertain times and keep them and their families safe. We saw a high level of variance in the use of our FSRU assets during 2020, largely as It is our ambition EMPLOYEE SATISFACTION AND a result of charters managing gas offtake in EXPERIENCE response to highly variable energy demands to continue arising from the COVID-19 pandemic. to build a The satisfaction of our employees begins Further, the Golar Nanook entered with ensuring adherence to internationally operations in 2020 at the Porto de Sergipe workplace that recognised human rights and labour power plant in Brazil but experienced very is both ethical standards in all our workplaces and by low send out rates. This lack of “steady and inclusive, following our internal principles set out in state” operations and ultimately the our Code of Business Ethics and Conduct. reduction in total gas send out (we observed ensuring that our an 8% reduction year on year, even with the organisation is Retention rate is a crucial and Nanook coming into commercial operations) a place where standardised indicator of employee made for challenging conditions for energy satisfaction. In 2020, we have maintained efficiency and management of emissions corporate our high retention rates for seafarers of responsibility 97% (2019: 97%) and 86% (2019: 86%) OTHER PERFORMANCE INDICATORS for our office-based staff. We are proud pervades to achieve consistently high retention rates all business and we believe it is a testament to our We are guided by operations and robust culture. our living values serious decisions. FLEETWIDE WE ARE A LEARNING ORGANISATION. and with a culture marine of strength and At Golar, we recognise that providing reductions incidents opportunities for learning and development support that environmental allows our team to reach its full, innovative resides in all NOX 13% potential ensuring Golar’s reputation as a SPILLS learning organisation. areas of Golar. SOX 93% For example, our cadet programme aims to promote career growth for young 0 seafarers by giving them an opportunity PM 64 % 39% 9% to develop the necessary skills to become top Golar officers. IN 2020 OILY WASTE GENERAL WASTE WE HAVE MAINTAINED OUR Since we started the program in 2013, 76% of all our cadets are still high retention FSRU emissions intensity employed with us, 11 of whom have CO2 emissions per gas send out (MMSCF) become senior officers on our vessels. rates

120,000 0.1 0.095 110,926 99,258 102,093 97% 100,000 0.08 for our 80,000 OF ALL OUR 0.054 0.06 seafarers 0.047 60,000 57,265 0.051 0.04 40,000 76%CADETS 86% 0.02 Gas Sendout 20,000 EMPLOYED MMSCF for our 0 0 CO2 intensity (tonnes) STILL WITH US OFFICE STAFF Q1 ‘20 Q2 ‘20 Q3 ‘20 Q4 ‘20

34 ★ ESG Report 2020 ESG Report 2020 ★ 35 THE COMMUNITIES WE OPERATE IN Brazil FOCUS AREA Our board is responsible for the We are always looking for ways to enhance Hygo Energy Transition and CELSE, the joint overall leadership of Golar and plays and improve our governance. In 2020, the In recent years, Golar has become more directly venture constructing the Porto de Sergipe an important part in ensuring that Board performed a self-assessment against involved in local communities through our FLNG power station, are committed to making GOVERNANCE we conduct business responsibly and recognised best practice. This enabled projects and Hygo Energy Transition’s activities positive impacts on the local community ethically, with a focus on sustainability us to target specific areas of potential in Brazil. We recognise our responsibilities in and leaving a legacy in the state in addition AND BUSINESS and strict adherence to all regulations. improvement to enhance the effectiveness aiding the development of the economic and to delivering affordable for of their governance and oversight. social conditions of local communities, and our the region. This has led to significant social ETHICS OUR BOARD approach to community engagement continues programmes being implemented over the last ANTI-BRIBERY AND CORRUPTION to evolve through our experience. Our Board operates through a governance three years, including: framework with clear procedures, lines of We have zero tolerance for bribery, We focus our support through: • Setting up a dedicated resume receiving We are responsibility and delegated authorities to corruption and other financial crimes and Hiring locally, where we can centre in Sergipe to promote local committed to ensure that our strategy is implemented, and we explicitly prohibit behaviours that are not Having local teams has proven invaluable applications – 87% of the workforce were key risks are assessed and managed effectively. consistent with fair, respectful and decent to our business and the development of our locals during the installation phase. the highest business practices. A copy of our Corporate operations. Throughout the last 2 years we standards of As of 31 December 2020, our board Code of Business Ethics and Conduct can • Leading development programs and training consisted of seven members, five of which be found on our website. maintain a local employment average rate for local suppliers and contractors to enable governance and of 88% for our office staff. were independent directors. The percentage a thriving support industry in Sergipe. ethical conduct of women on our Board is 29%. Our Anti-Bribery and Corruption Policy This also applies to our vessels. For example, • Committing over R$20m to cultural and in everything we aligns with the U.S. Foreign Corrupt on the Hilli Episeyo, despite only commencing heritage work in the local area, including MORE THAN OUR BOARD COMMITTEES Practices Act (FCPA) and the U.K. Bribery operations in 2018, Cameroonian employees do. We support Act of 2010, as well as best practices in renovating a theatre, investing in the Public The governance structure adequately already make up 35.4% (2019: 30.5%) of the actions on the anti-corruption compliance. Library and Public Archive and a range of differentiates governance and management crew. We aim to increase this every year and urban infrastructure improvements, such key issues in our functions from oversight, control, and share all vacancies on board with the villages SUPPLIERS as road improvements, nursery schools strategic definition functions. Our Board local to Kribi, providing equal opportunities m industry and and children’s play areas. $10 has delegated some of its responsibilities We require our suppliers to uphold to all who wish to join the Golar team. throughout our to three Committees, namely the Audit the Code of Ethical Conduct and our Procuring locally, where we can supply chain. Committee, the Nominations Committee, contractual agreements include ethics sPENT and the Compensation Committee. Our and compliance clauses covering these We work with local suppliers and endeavour to develop strong relationships with a wide range ON LOCAL executive team oversee the day-to-day requirements. Prior to engaging with of local businesses. Our aim is to procure PURCHASES IN operational matters and report to the Board suppliers, we conduct risk-based, third- local goods and services and to support the on these matters. Our board and our party due diligence on matters relating to economies of the areas in which we operate. Cameroon Committee’s Charters can be found on ethical conduct including, anti-bribery and In 2020 we spent more than $10 million on CAMEROONIAN our website. corruption, sanctions and trade restrictions, EMPLOYEES and human and labour rights. local purchases in Cameroon. We are working ALREADY closely with current and potential suppliers, as MAKE UP 35.4% we aim to increase our local procurement.

COMMUNITY ENGAGEMENT Our engagement with community stakeholders is a critical step in our aim of having a lasting positive impact wherever we operate. BOARD OF DIRECTORS Cameroon We have worked with community leaders in Kribi to identify how we can help. Listening led 1 Audit 2 Nomination 3 Compensation 4 Safety, to the development of three main focus areas: Committee Committee Committee Environment Education, Training and Health. In 2020 the key highlights were: and Ethics Committee • We commenced a scholarship program that will allow students from Kribi to graduate from university or a higher education program. Responsible for financial Responsible for Responsible for reward and Responsible for oversight • We agreed to refurbish a primary school in reporting, auditing, Board composition, compensation for executive of ESG projects, KPI Kribi, however this was delayed due to the internal controls and risk appointment of directors directors, the Chair and performance and external pandemic. We are hopeful to commence management processes and succession planning Senior Management reporting the refurbishment in 2021.

36 ★ ESG Report 2020 ESG Report 2020 ★ 37 GOLAR’S TOP LEVEL COMMITMENT: Our Code of Conduct and ABC Policy 1 are clear, publicly available, and express our zero-tolerance for breaches APPROACH TO of our high standards. COMPLIANCE Golar is committed to the highest standards of RISK BASED FOCUS: Specifically, high risk countries, interactions with governance and ethical conduct in everything We understand 2 government officials, our joint ventures and affiliates, and facilitation payments at port calls. we do. We support action on the key issues in that our industry our industry and expect all our staff and anyone has historically REGULAR TRAINING: All staff receive conduct and ABC training on been subject to 3 induction. This is supplemented by advanced face-to-face training for those working with Golar to uphold our high standards. investigations and considered to be at higher exposure, and annual refresher training for all staff. ethical concerns, THIRD PARTY MANAGEMENT: We require all consultants and agents particularly 4 to sign up to these standards, and all suppliers to sign up to our bespoke regarding bribery Supplier Code of Conduct. and corruption. AUDIT AND COMPLIANCE: We regularly audit This drives 5 our key controls and procedures, and monitor our focus on compliance across the business. compliance.

SPEAK UP COMPLIANCE WITH LAWS AND REGULATIONS We want our employees, contractors, vendors, third parties and other Our industry is highly regulated under stakeholders to feel comfortable about the international laws of the IMO, ship speaking up whenever they have any classification rules and others. Our vessels concerns or issues of non-compliance. are audited regularly by our customers, Flag Therefore, we have a Speak up Hotline, States, Class and Port State Control to verify managed by an external service provider. compliance. The Speak up line acts as a vehicle for employees, third parties and others In 2020 we did not have any violation of any to report anonymously, without risk of laws or regulations. retaliation, potential violations of any our policy. Corruption and bribery are industry wide challenges, and we know we cannot address Concerns and enquiries can be raised them alone. We are active members of the through multiple channels: with line Maritime Anti-Corruption Network, which managers or other senior leaders, aims to eradicate these issues in our sector, supporting teams, including human and support collaborative action efforts resources, legal, ethics and compliance across the world. and through work councils.

38 ★ ESG Report 2020 ESG Report 2020 ★ 39 O7APPENDIX 1 APPENDICES Environment APPENDIX 1 KEY FACTS AND Description Unit 2016 2017 2018 2019 2020 Footnotes - LNGC Greenhouse Gas (CO2) Metric tons 719,776 855,396 1,059,217 1,071,380 1,136,382◊ 7,8 FIGURES – GOLAR FLEET emissions (scope 1) * - FSRU Greenhouse Gas (CO2) Metric tons 313,840 288,891 302,704 435,504* 420,901◊ 7,8 We have identified the data and figures below The figures relate to the entire Golar fleet, emissions (scope 1) in order to provide insight, transparency and encompassing assets owned and operated by - FLNG Greenhouse Gas (CO2e) Metric tons 332,422 385,016 387,726◊ 7,9 comparability on what we consider to be our ourselves, Golar LNG Partners and Hygo Energy emissions (scope 1) most important ESG topics. Where possible, we Transition. have aligned our reporting with industry standards Total NOx for all fleet Metric tons 5,662 6,206 7,954 8,143 7,087 to enable comparison, and where industry standards We engaged PricewaterhouseCoopers LLP ('PwC') - LNGC NOx emissions Total Metric tons 4,555 5,132 6,545 6,094 5,168◊ 8 are not available, we use ESG frameworks (for to assure our 2020 emissions data, including our * example SASB or GRI) to support our calculation/ emissions intensity measures, in accordance with the - FSRU NOx emissions Total Metric tons 1,107 1,074 1,081 1,694* 1,561◊ 8 methodology. In some instances, there is no agreed ISAE3000 and ISAE3410 standards. The numbers comparable definition, and therefore in the footnote subject to assurance are shown by ’◊‘ in the table - FLNG NOx emissions Total Metric tons 328 355 358◊ 9 section we disclose how we have calculated the below, and PwC’s assurance opinion can be figure, including the definitions used and, where found on our website here alongside our detailed Total SOx for all fleet Metric tons 4,328 3,905 4,052 3,788 260 applicable, which standard we have followed. methodology statements. - LNGC SOx emissions Total Metric tons 4,242 3,637 3,794 3,492* 240◊ 8 General Operation data - FSRU SOx emissions Total Metric tons 86 268 249 290* 18◊ 8

Description Unit 2016 2017 2018 2019 2020 Footnotes - FLNG SOx emissions Total Metric tons 9 6 2.1◊ 9

Total number of vessels in operation Number 21 21 23 24 22 Total PM (Particulate Matter) Metric tons 677 625 683 673 239 for all fleet - LNGC Number 15 16 17 17 15 1, 2 - LNGC PM emissions Total Metric tons 643 567 604 578* 173◊ 8 - FSRU Number 6 5 5 5 6 1, 2 - FSRU PM emissions Total Metric tons 34 58 56 70* 31◊ 8 - FLNG Number 0 0 1 1 1 - FLNG PM emissions Total Metric tons 23 26 35◊ 9 Total number of employees Number 966 1,156 1,404 1,661 1,643 Total general and oily waste Office employee Number 135 147 203 247 240 (hazardous and non hazardous waste) m3 3,545 3,599 3,838 4,307 3,223 for all fleet Seafarer & offshore staff Number 831 1009 1201 1414 1403 Total general waste for all fleet m3 1,713 1,846 2,010 1,983 1,809

- LNGC general Waste m3 1,163 1,154 1,187 1,232 1,068 10 Health, Safety and Security - FSRU general Waste m3 550 693 549 610 536 10 Description Unit 2016 2017 2018 2019 2020 Footnotes - FLNG general Waste m3 275 141 205 10 Number of serious marine incidents Number 0 0 0 0 0 3 Total oily waste for all fleet m3 1,832 1,753 1,828 2,324 1,414 Fatalities Number 0 0 0 0 0 - LNGC oily waste m3 1,612 1,534 1,354 1,778 1,135 11 Lost time injury frequency (LTIF) Number 0.57 0.19 0.73 0.86 0.89 4 - FSRU oily waste m3 220 219 314 478 247 11 Total recordable case frequency (TRCF) Number 0.76 0.19 0.91 1.72 1.49 5 - FLNG oily waste m3 160 68 32 11 Number of hours per seafarer/ offshore worker Avrg Hours 72 61 56 53 6 spent on safety training in the year Total oil spills for all fleet Metric tons 0 0 0 0 0

40 ★ ESG Report 2020 ESG Report 2020 ★ 41 Energy efficiency Footnotes 1. The figures indicate the total vessels operated as a 11. The sum of all waste generated throughout the Description Unit 2016 2017 2018 2019 2020 Footnotes LNGC or FSRU as at year end, including LNGCs/ reporting year which falls under the "Oily waste" type FSRUs that operated as FSUs. category within the MARPOL standards. LNGC % of energy consumed from heavy fuel 2. Some of our vessels that operated during the year 12. Calculation: Total HFO energy consumed/ Total energy Percentage 28% 20% 17% 14% 0% 12 oil but were in layup or in transit at the end of the year, consumed. is not included in our figures. 13. Calculations: FSRU % of energy consumed from heavy fuel oil Percentage 4% 6% 4% 3% 0% 12 In 2017 we had one FSRU that went into layup in August, in 2018 we had one FSRU that was in transit • Energy Efficiency Operational Indicator (EEOI)= from September onwards and in 2020 we had one Annual average CO2 emissions per transport work

Intensity measure LNGC that went into layup in April. (volume) [g CO2 / (MT x miles)]. Standard used = IMO Calculation MEPC.1/Circ684 LNGC - EEOI 24.76 20.66 21.74 24.74 20.88◊ 13, 16 3. Standard used: SASB "TR-MT-540a.1. Number of marine casualties, percentage classified as • Average Efficiency Ratio (“AER”) = C02 emissions very serious" and also the IMO (RESOLUTION LNGC - AER 10.03 9.11 9.10 9.95 8.71◊ 13 divided by design deadweight of the vessels MSC.255(84)). multiplied by distance travelled. 4. Calculation: LTIs x (1,000,000/ Exposure hours). FSRU - Emission per tonne LNG send out 0.04 0.05◊ 13 Standard used = Fourth IMO GHG Study 2020 Standard used: OCIMF standards. • FSRU – Emission per tonne LNG send out = FLNG -Emissions per tonne produced 0.46 0.30 0.30◊ 14 5. Calculation: (LTIs + Restricted Work Cases (RWCs) Total C02 emissions divided by total LNG sent + Medical Treatment Cases (MTCs)) x (1,000,000/ out ("production"). We only included the vessels Exposure hours). that operated as FSRUs and excluded vessels that operated as FSUs during the reporting period. Standard used: OCIMF standards. People and community A detailed description of our calculation and 6. Calculation: (hours spent on safety training)/number methodology used can be seen in our Methodology of offshore workers. statement (“Golar LNG methodology statement”), Description Unit 2016 2017 2018 2019 2020 Footnotes located on our website. The number of hours spent on safety training are based on the recommended amount of hours to 14. Calculation: Total CO2e excluding CO2e emission Employee Retention Rate (%) for Office staff Percentage 87.29% 86.05% 86.20% 15 complete the training module and includes both from Amine treating system / Total tonnes LNG mandatory and non-mandatory training per year. produced. Employee Retention Rate (%) for Sea based staff Percentage 98.20% 97.00% 97.10% 96.70% 97.10% 15 An average will be calculated where training modules have to be repeated every few years. A detailed description of our calculation and methodology used can be seen in our Methodology Diversity - Number of nationalities on board Number 19 26 26 27 30 7. Scope 1 emissions are direct emissions and Scope 2 statement (“Golar LNG methodology statement”), are indirect emissions. located on our website. We report only on Scope 1 emissions as Scope 2 15. Calculated based on the INTERTANKO methodology * Restated figures. Due to improvements in our data collection and reporting processes, would only be emissions from our offices as we do which is set out by the TMSA. The calculation takes we have restated these figures to facilitate comparison between the reporting years. not purchase any electricity, steam, heat, or cooling into account all terminations excluding unavoidable for use by any of our fleet (LNGC, FSRUs or FLNGs). (retirements or long-term illness) and beneficial (staff Therefore, our Scope 2 figure is highly immaterial whose departure benefits the company, e.g. under- compared to our operations. performers) terminations divided by the average number of employees working for the company 8. Our emissions figures, including GHG emissions and during the same period. other air emissions, are based on fuel consumption. A detailed description of our calculation and 16. We have updated the standards that we use to methodology used can be seen in our Methodology calculate our EEOI during this reporting year. statement (“Golar LNG methodology statement”), Previously we followed EU MRV guidance but are now located on our website. applying IMO guidance. The difference between the calculation is the unit in which you measure transport Conversion factors used: Third IMO GHG Study 2014 work (M3 vs MT). We have restated our 2019 figure. – final. We have robust internal reporting procedures 9. Our emissions figures, including GHG emissions and other air emissions, are based on fuel combustion, in place to ensure the fleet is routinely scored flaring, amine treating and venting. A detailed description of our calculation and methodology used against key environmental indicators. This data can be seen in our Methodology statement (“Golar LNG methodology statement”), located on our is regularly shared with our Environmental website. 10. The sum of all waste generated throughout the Committee and shapes our overarching strategy. reporting year which falls under the "general waste" type category within the MARPOL standards.

42 ★ ESG Report 2020 ESG Report 2020 ★ 43 APPENDIX 2 CLIMATE RELATED RISKS Risks OUR ASSETS The TCFD divides climate risks into two • Increased air temperatures leading to reduced AND VESSELS AND OPPORTUNITIES categories, physical and transition risks, both of efficiency. ARE DESIGNED which are addressed below; TO WITHSTAND Our assets and vessels are designed according We support the aims of the Taskforce for • Risk management – ESG governance Physical risks The potential risks related to the to current regulations to withstand extreme EXTREME Climate-related Financial Disclosures (“TCFD”) and materiality section, and the risks and physical impacts of climate change. environmental conditions. For our permanently to improve the transparency and reporting of opportunities outlined in this Appendix ENVIRONMENTAL moored assets (FLNGs and FSRUs) detailed climate related risks and opportunities. We are We have identified 3 main physical climate • Metrics and targets – Our ambitions, focus assessments have been performed to identify working towards full disclosure in line with the TCFD risks with the potential to significantly effect the CONDITIONS areas and Appendix 1 Key Facts and Figures possible conditions over the course of the requirements, and relevant disclosures can be found performance of our assets, namely: contract life, ensuring that our vessels can throughout our report, specifically: As recommended by the TCFD, the following • Increased severe weather events, causing operate under those conditions. • Governance – ESG governance and materiality section outlines potential climate related risks and operational downtime or damage section opportunities that we identified for our business. Transition risks Potential risks related to the • Increased sea temperatures leading to reduced transition to a lower carbon economy. • Strategy – Our sustainability strategy and efficiency, and Climate and LNG

Opportunities Topic Brief risk description Impact on our business, strategy and/or financials Topic Brief opportunity description Impact on our business, strategy and/or financials • Increased environmental regulations which our • Increased project development costs and operating costs • The energy transition, in terms of reducing emissions • Increase in demand and LNG prices, resulting in existing infrastructure and new project would need to ensure compliance in obtaining and maintaining whilst meeting rising demand, results in greater increased shipping revenue and infrastructure returns. to comply with. permits.

demand for natural gas to replace other more polluting • Increase administration and compliance costs. fossil fuels in power, transportation and industrial use. • Government policy changes, such as carbon policies • Higher costs for LNG and reduced global demand • Integration of sustainability in our strategy, operations • Access to broader range of financing alternatives and and regulations and subsidies for low carbon or leading to lower shipping rates, infrastructure returns and ENERGY ENERGY renewable energy sources, effects the attractiveness opportunities for growth. TRANSITION and reporting supports the energy transition. lower cost of debt.

• Increased access to capital and other reputational POLICY & LEGAL and cost competitiveness of LNG. benefits through stronger stakeholder relationships. • Enhanced ESG and climate related reporting • Increase admin and compliance cost. • Growth in markets for LNG, with more countries • Increased shipping rates leading to increased revenue. obligations. importing gas to provide cheaper and cleaner energy. • Opportunities for growth in floating liquefaction (to • Changing consumer preferences leading to reduction • Reduced global LNG demand leading to lower shipping meet additional supply requirements) and gas to power in global LNG demand. rates and reduced opportunities for future infrastructure

MARKETS projects. projects. • Deliver maritime infrastructure to support the • Growth opportunities, increased access to capital and development of alternative fuels, such as hydrogen reputational benefits.

• Uncertainty in the balance of LNG supply and • Increased volatility in shipping rates leads to increased

and ammonia, by applying our skills, experiences and MARKET demand leads to increasing volatility in energy prices. seasonality in revenue and greater challenges in track record of innovation. obtaining market rates consistently. • Uncertainty in energy prices and LNG demand could lead • Development of carbon capture, utilisation and • Supporting increased growth in LNG through reduction to delays in investment decisions on new gas projects.

PRODUCTS storage services for gas maritime infrastructure of upstream emissions leading to increased demand and AND SERVICES reducing the carbon footprint for LNG even further therefore higher shipping rates and infrastructure returns. • Stigmatisation of the LNG industry as part of the fossil • Challenges in obtaining financing for new projects or resulting in an increase in demand. - fuel sector. re-financing existing debt. • Negative stakeholder feedback on Golar and it’s • Challenge to social right to operate and the ability to • Reduced energy usage / retainage through engaging • Reduced operating costs, increase in operational TIONAL

REPUTA contribution to the LNG supply chain. attract and retain talent. Increased cost of capital and with charterers and wider industry drive towards efficiencies and reduced gap between the efficiency of reduced revenue. greater efficiency. current assets and new technology ultimately leading to greater profitability. • Technological advancements leading to market • Reduced global LNG demand leading to lower shipping RESOURCE EFFICIENCY share of low carbon and renewable energy sources rates and reduced opportunities for future infrastructure exceeding current expectations and models. projects. • FLNG technology improvements lead to cheaper • Reduction in operational costs. • Reduced revenue through shipping rates and gas and an immediate pathway to global emissions infrastructure returns, and reduced opportunities reductions. for future projects. • Improvements in shipping efficiency.

TECHNOLOGY • Golar infrastructure and ships become technologically • Increase in cost through failed investments. obsolete through competitors improving performance TECHNOLOGY or through Golar investing in the “wrong” technology.

44 ★ ESG Report 2020 ESG Report 2020 ★ 45 We value your feedback. You can email our corporate reporting team at [email protected]

OTHER REPORTS Our 20F report Floating blue ammonia production: Creating a zero Details of our financial performance carbon emission fuel in our 20F. Our first thought leadership paper through our collaboration agreement with Black & Veatch. Sustainability information More ESG related information can be found on our website

Golar Management Limited 6th Floor, The Zig Zag, 70 Victoria Street, London, SW1E 6SQ United Kingdom