ENERGY WITH IMPACT SUSTAINABILITY REPORT 2018 - 19 TABLE OF CONTENTS Empowering About this report 02 32 our teams Ensuring our CEO Foreword 04 38 teams’ safety About Crescent Our commitment to the 06 Petroleum 44 environment United Nations Our corporate Sustainable Development governance 08 50 Goals Our sustainability Acronyms and 12 journey 52 glossary Materiality GRI content 18 assessment 54 index Delivering on Assurance 26 our promise 58 statement Crescent Petroleum Sustainability Report 2018 - 19 | page 1 ABOUT THIS REPORT Sustainability is at the heart of our business Crescent Petroleum is pleased to This report has been externally assured The quantitative data highlighted in this present its 2018-19 Sustainability Report, by Ernst & Young Middle East as per report covers the period from 1 January covering the period from 1 January to 31 ISAE 3000 standard for assurance of 2018 to 31 December 2018, unless December 2018. This is our fourth annual non-financial information, ensuringotherwise stated. The report also includes sustainability report, which outlines the accuracy and consistency of the information on key strategic decisions and how our business strategy aligns with reporting. initiatives that commenced in 2018 and our sustainability considerations. This were formalised in 2019. Our performance is defined by four pillars report highlights the progress in our that underpin our sustainability approach. The reporting boundary includes the sustainability journey to yield lasting Based on our materiality assessment, entirety of our operations in the United social, economic, and environmental these priority areas reflect the topics Arab Emirates (UAE), where we are impact in the regions where we work most relevant to our operations and our based, and the Kurdistan Region of Iraq and live. business: (KRI). The sustainability impact of our This report is prepared in accordance affiliate companies is considered out of • Creating shared prosperity with the “Global Reporting Initiative the scope and boundary of this report, (GRI) Standards: Core option” and is • Building a resilient work culture unless otherwise stated. aligned with the GRI’s Oil and Gas Sector • Safeguarding our people The principles of stakeholder Supplement. It also describes how • Operating responsibly inclusiveness, materiality, sustainability we seek to support the 17 Sustainable context, and completeness have been Development Goals (SDGs) of the United The information presented in this report consistently followed to define the report Nations 2030 Agenda for Sustainable is based on historical performance content. We welcome feedback and Development. data as well as data for 2018. In some suggestions regarding our sustainability We identified the key material topics instances, data was calculated based on journey at [email protected]. that impact our sustainability through standard guidelines, assumptions, and stake holder consultations and a methodologies. For example, data for materiality assessment exercise, done in greenhouse gas emissions is based on consultation with the management team. standard formulas and calculations. Each material topic is mapped against the relevant indicators from the GRI Standards, 2016. The reporting boundary includes our operations in the United Arab Emirates and the Kurdistan Region of Iraq. Crescent Petroleum Sustainability Report 2018 - 19 | page 2 OUR MISSION OUR VALUES To creatively unlock Ethics We maintain integrity in all our business dealings, the benefits of the remaining honest, professional, and fair, even in the region's energy most difficult situations. resources and to have a Enterprise We pride ourselves on our creativity, agility, transformative impact initiative, and can-do attitude. We are guided by on the communities resourcefulness, not red tape. that we serve. Responsibility We are accountable for our actions and follow through on our commitments. We admit our mistakes and make sure we learn from them. Safety consciousness We adhere to strict safety standards. We anticipate and work to prevent risks before they materialise. We avoid actions that may endanger another person or adversely affect their health or well-being. Courage Our boundless ambition makes us passionate about undertaking new and daring projects. When put to the test, whether individually or as a team, we find solutions not excuses. Care We treat employees as family and are courteous and respectful towards one another. We embrace our social responsibility, committed to making the world a better place. Crescent Petroleum Sustainability Report 2018 - 19 | page 3 CEO FOREWORD Energy drives social and economic growth, and its impact is transformational We are enablers and we help solve some of the region's key energy challenges. Crescent Petroleum Sustainability Report 2018 - 19 | page 4 We are pleased to present the Crescent Through our partnerships with the Global We see a bright future for the Middle East Petroleum Sustainability Report for Energy Summit in Abu Dhabi and the region and its people despite all of today’s 2018-19, Energy with Impact, which Middle East Energy Summit with the challenges, we recognise that investing outlines our achievements across our Royal Institute of International Affairs, in Social Performance and the well-being core sustainability principles. Chatham House, in London, we have of our communities and stakeholders is added our voice to the important global central to our future success. Since our start in 1971, Crescent Petroleum energy debate on sustainability from our has leveraged its understanding of the We are therefore proud of the progress we region’s perspective while allowing us Middle East to promote cleaner energy have achieved so far, and are mindful that to present positive practical solutions to and social sustainability. We aim to there is more to be done as we continue some of the major energy challenges our be enablers who leverage our people, our sustainability journey. We hope you region currently faces. technology, and know-how to help solve find this report insightful and helpful to some of the Middle East’s key energy Another pillar is investing in our understanding Crescent Petroleum and challenges for the betterment of the communities and our people. In 2018 what drives us, and invite you to join us on region and its people. That vision informs we established Social Performance as a our sustainability journey. and focuses our sustainability efforts strategic driver for our business moving across our operations in the UAE, Iraq, forward, and on the ground, we have and beyond. supported causes and programmes that Majid Jafar empower communities through better A pillar of that effort is unlocking the Chief Executive Officer education and healthcare, as well as by potential of natural gas in the Middle providing direct support through delivery East, where more than 42 per cent of of water and electricity to surrounding the world’s proven gas reserves lie, and communities. Crescent Petroleum is proud to have played a pioneering role in the regional Crescent Petroleum has grown and gas sector for over thirty years. thrived through its people, who have always gone above and beyond what is expected of them. In turn, we continually invest in our staff through training programmes and wellness efforts to help them grow and lead. Crescent Petroleum Sustainability Report 2018 - 19 | page 5 2018 PERFORMANCE HIGHLIGHTS Delivering on Empowering our promise our teams Invested Spent Empowering the youth: Providing stable professionals aged 22 to employment: USD 1.6 61% 30 years represented billion of procurement 90% in the KRI from 2007 budget for production 18% of our 2018 employees to 2018. operations spent with of our 2018 workforce. were on a permanent local suppliers in the contract. KRI* in 2018. Empowering local Invested Empowering women: Training for excellence: talent: USD 2.4 86% 29,987 84% million of our women training hours of our KRI workforce in local communities employees received delivered in total. were local nationals. in 2018. self-empowerment training. *For the purpose of this report, significant location of operation is Kurdistan Region of Iraq (“KRI”) and all the procurement done in KRI is defined as local. Crescent Petroleum Sustainability Report 2018 - 19 | page 6 Ensuring our Our commitment teams’ safety to the environment Drove Recorded Recycled 2,227,321 km Zero 998 kg of e-waste in 2018. during 2018 without major oil spills for any major accident 2018 building on 2017. Maintained Reduced sick leave Prevented Avoided cases by Zero 39% 3.94 USD 2.99 LTI across production operations in 2018. at Khor Mor. million billion tonnes of CO2 in social cost emissions in 2018 in of carbon since the KRI by supporting 2008 till 2018. its transition from diesel to natural gas. Crescent Petroleum Sustainability Report 2018 - 19 | page 7 ABOUT CRESCENT PETROLEUM The first and largest private upstream oil and gas company in the Middle East Since our inception in Sharjah, In 2007, Crescent Petroleum, together In a record 15 months from the start of UAE, in 1971, we have leveraged our with Dana Gas, entered into agreement construction, gas began flowing through understanding of the Middle East to with the Kurdistan Regional Government newly built pipelines from Khor Mor to promote cleaner energy and social (KRG), which provided title and exclusive power plants in Chemchemal and Erbil. sustainability. Today, we have operations rights to appraise, develop, produce, In the