2024 ESG Annual Report

1. Executive Summary

This Environmental, Social, and Governance (ESG) report outlines Bonarch Engineering LTD's performance and strategic commitments for the fiscal year. We continue to prioritize sustainable development goals (SDGs) while maintaining operational excellence in the energy sector. Our commitment to transparency drives us to disclose not only our successes but also the challenges we face in a rapidly evolving global energy landscape. This report serves as a testament to our dedication to creating long-term value for our stakeholders, including investors, employees, communities, and the environment.

2. Environmental Stewardship

Our carbon intensity has decreased by 15% year-over-year through the implementation of hybrid power systems on our primary rigs. This achievement is a direct result of our 'Green Rig' initiative, which integrates battery energy storage systems (BESS) to optimize generator loads and reduce fuel consumption. Furthermore, our water recycling initiatives have achieved a 94% efficiency rate, significantly reducing our freshwater withdrawal impact. We have also launched a pilot program for carbon capture and storage (CCS) on our flagship deepwater platforms, aiming to sequester up to 50,000 tons of CO2 annually by 2025.

In addition to emissions and water management, we are rigorously addressing biodiversity conservation. Our operations in sensitive marine environments are governed by strict Biodiversity Action Plans (BAPs), which include real-time acoustic monitoring to protect marine mammals during drilling operations. We have partnered with leading marine biology institutes to conduct longitudinal studies on the health of coral reefs near our assets.

3. Social Responsibility

We have invested over $2.5M in local community development programs across our operational regions, focusing on education, healthcare, and infrastructure. Our 'Energy for Education' scholarship program has supported over 500 students in pursuing STEM degrees. Workforce diversity has improved, with a 20% increase in female engineers in offshore roles, surpassing our initial targets. We are committed to fostering an inclusive workplace where every employee feels valued and empowered to contribute to our shared success.

Safety remains our top priority. We achieved a Total Recordable Incident Rate (TRIR) of 0.12, well below the industry average. This milestone reflects our 'Zero Harm' culture, which empowers every employee with Stop Work Authority. We continue to invest in advanced safety training, including virtual reality (VR) simulations for high-risk scenarios.

4. Governance Framework

Our board maintains strict oversight of climate-related risks and opportunities, integrating them into our core business strategy. We have established a dedicated Sustainability Committee to monitor progress against our ESG targets. All suppliers are now audited against our Supplier Code of Conduct to ensure ethical practices throughout the value chain, with a zero-tolerance policy for forced labor and human rights violations. We believe that robust governance is the foundation of trust and long-term resilience.