Topic

Code

Accounting metric

Category

Unit of measure

Canacol disclosure

Greenhouse Gas Emissions

SASB EM-EP-110a.1

Gross global Scope 1 emissions, percentage methane, percentage covered under emissions-limiting regulations

Quantitative

Metric tons CO2-e (t), Percentage (%)

Key indicators. GHG emissions from operational control. Direct GHG emissions (scope 1)
(tonnes CO2e), Page 13
Key indicators. GHG emissions from operational control. Flared gas (tonnes CO2e), Page 13
Key indicators. GHG emissions from operational control. Stationary sources: fuel combustion in gas fields (tonnes CO2e), Page 13
Key indicators. GHG emissions from operational control. Process emissions: fugitive emissions in gas fields (tonnes CO2e), Page 13
Key indicators. GHG emissions from operational control. GHG emissions intensity
(Kg CO2e/BBL-eq), Page 13
A cleaner energy future. Managing carbon emissions. Direct and indirect greenhouse gas emissions (GHG) (metric tonnes of CO2 equivalent), Page 27
A cleaner energy future. Managing carbon emissions. Emission intensity
(kg CO2 eq / BBL-eq), Page 28
A cleaner energy future. Managing carbon emissions. Gross global emissions of scope 1 greenhouse gases (GHG) into the atmosphere, Page 29
A cleaner energy future. Environmental management at the Rancho Hermoso oil field. Annual GHG emissions (tonnes) by source, Page 42

SASB EM-EP-110a.2

Amount of gross global Scope 1 emissions from: (1) flared hydrocarbons, (2) other combustion, (3) process emissions, (4) other vented emissions, and (5) fugitive emissions

Quantitative

Metric tons CO2-e

Key indicators. GHG emissions from operational control. Direct GHG emissions (scope 1) (tonnes CO2e), Page 13
A cleaner energy future. Managing carbon emissions. Scope 1 gross emissions amount (tonnes CO2e), Page 29
A cleaner energy future. Environmental management at the Rancho Hermoso oil field. Annual GHG emissions (tonnes) by source, Page 42

EM-EP-110a.3

Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

Discussion and Analysis

n/a

Management systems, Page 20
A cleaner energy future, Page 21
A cleaner energy future. Our approach, Page 22
A cleaner energy future. Climate change strategy, Pages 23-24
A cleaner energy future. Climate change strategy. Impacts, mitigation or remediation strategies, and challenges, Page 24

Air Quality

EM-EP-120a.1

Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) volatile organic compounds (VOCs), and (4) particulate matter (PM10)

Quantitative

Metric tons (t)

Key indicators. Air Quality / Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions, Page 13
A cleaner energy future. Managing carbon emissions. Significant air emissions, Page 28
A cleaner energy future. Managing carbon emissions. Gross global emissions of scope 1 greenhouse gases (GHG) into the atmosphere. CH4 emissions (tonnes), Page 29

Water Management

EM-EP-140a.1

(1) Total fresh water withdrawn, (2) total fresh water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress

Quantitative

Thousand cubic meters (m³), Percentage (%)

Key indicators. Water management / Water withdrawal (mega litres), Page 13
A cleaner energy future. Interactions with water as a shared resource. Water withdrawal by supply source (mega liters), Page 33
A cleaner energy future. Environmental management at the Rancho Hermoso oil field. Consumption of production water (m3), Page 42

Water Management

EM-EP-140a.2

Volume of produced water and flowback generated; percentage (1) discharged, (2) injected, (3) recycled; hydrocarbon content in discharged water

Quantitative

Thousand cubic meters (m³), Percentage (%), Metric tons (t)

Key indicators. Water management / Water withdrawal. Produced water (mega liters), Page 13
Key indicators. Waste water / Water discharge, Page 13
Key indicators. Third-party water. Leaching field (mega liters), Page 13
Key indicators. Hazardous waste by disposal method direct operations, Page 13
A cleaner energy future. Water discharge. Wastewater generated (mega litres / year), Page 34
A cleaner energy future. Water discharge. Wastewater management by type of disposal (m3), Page 35
A cleaner energy future. Water discharge. Breakdown of total water discharged in all areas by destination (mega litres), Page 35
A cleaner energy future. Water discharge. Water from drilling activities reused and recycled (mega litres), Page 35
A cleaner energy future. Water discharge. Liquid waste delivered to third parties or recycled (m3), Page 35
A cleaner energy future. Environmental management at the Rancho Hermoso oil field. Discharges (m3), Page 42

Wastewater (ARI) discharge is governed by Decree 1207 of 2014 ART. Wastewater falling under the 7th Quality Criteria, Number 2 Industrial, Industrial Wastewater (ARI) is treated through reverse osmosis and later used for road irrigation and the preparation of sludge and brines. Wastewater that does not meet these parameters is treated by a specialized provider before disposal. Wastewater (ARD) is governed by Decree 1076 of 2015, Article 2.2.3.3.9.14, and Article 2.2.3.3.9.15. It is processed in treatment plants and undergoes land disposal. Prior to land disposal a simulation of loads is calculated using an environmental impact study. This determines possible contaminant concentration levels and demonstrates that concentrations in soil and groundwater will be below regulatory limits.

EM-EP-140a.3

Percentage of hydraulically fractured wells for which there is public disclosure of all fracturing fluid chemicals used

Quantitative

Percentage (%)

n/a

EM-EP-140a.4

Percentage of hydraulic fracturing sites where ground or surface water quality deteriorated compared to a baseline

Quantitative

Percentage (%)

n/a

Biodiversity Impacts

EM-EP-160a.1

Description of environmental management policies and practices for active sites

Discussion and Analysis

n/a

A cleaner energy future, Page 21
A cleaner energy future. Our approach, Page 22
A cleaner energy future. Climate change strategy, Pages 23-24
A cleaner energy future. Climate change strategy. Impacts, mitigation or remediation strategies, and challenges, Page 24
A cleaner energy future. Climate change strategy. Our ESG goals 2021-2026, Page 29
A cleaner energy future. Biodiversity Page 30
A cleaner energy future. Biodiversity. Impacts, mitigation or remediation strategies,
and challenges, Page 31
A cleaner energy future. Biodiversity. Our ESG goals 2021-2026 Page 31
We carried out an impact study in 2019 and it was still valid in 2020. For further information consult https://canacolenergy.com/site/assets/files/3487/sustainability_report_2019.pdf, Identification of Protected Species, Page 70
A cleaner energy future. Integrated water resources management, Page 32
A cleaner energy future. Integrated water resources management. Impacts, mitigation or remediation strategies, and challenges, Page 32
A cleaner energy future. Waste management. Page 36
A cleaner energy future. Waste management. Impacts, mitigation or remediation strategies, and challenges, Page 37
A cleaner energy future. Waste management. Our ESG goals 2021-2026, Page 40
A cleaner energy future. Environmental management at the Rancho Hermoso oil field. Energy consumption by operational activity and by source, Page 42

Biodiversity Impacts

EM-EP-160a.2

Number and aggregate volume of hydrocarbon spills, volume in Arctic, volume impacting shorelines with ESI rankings 8-10, and volume recovered

Quantitative

Number, Barrels (bbls)

Key indicators. A cleaner energy future. Hydrocarbon spills (BOED): 0, Page 13
A cleaner energy future. Environmental management at the Rancho Hermoso oil field: Zero reportable spills during 2020, Page 42

EM-EP-160a.3

Percentage of (1) proved and (2) probable reserves in or near sites with protected conservation status or endangered species habitat

Quantitative

Percentage (%)

Canacol Energy. Operations map, Page 7
A cleaner energy future. Biodiversity Page 30
A cleaner energy future. Biodiversity. Impacts, mitigation or remediation strategies,
and challenges, Page 31
We carried out an impact study in 2019 and it was still valid in 2020. For further information consult https://canacolenergy.com/site/assets/files/3487/sustainability_report_2019.pdf, Identification of Protected Species, Page 70
The 2018 – 2022 Pact for Equity National Development Plan defined three strategies to enhance the conservation of biodiversity in Colombia. One of these strategies mandated that for projects requiring an environmental license, a minimum of 1% of total project capital be dedicated to conservation activities.

Security, Human Rights & Rights of Indigenous Peoples

EM-EP-210a.1

Percentage of (1) proved and (2) probable reserves in or near areas of conflict

Quantitative

Percentage (%)

None of the municipalities located in our areas of operation is part of the Priority Municipalities for the Post-Conflict (PDET)

EM-EP-210a.2

Percentage of (1) proved and (2) probable reserves in or near indigenous land

Quantitative

Percentage (%)

Canacol Energy. Operations map, Page 7
80% proved and probable reserves in or neat indigenous land.

SASB EM-EP-210a.3

Discussion of engagement processes and due diligence practices with respect to human rights, indigenous rights, and operation in areas of conflict

Discussion and Analysis

n/a

A transparent and ethical business, Page 43
A transparent and ethical business. Risk management, Page 50
A transparent and ethical business. Human rights, Page 48
A transparent and ethical business. Human rights. We reinforced our human rights culture in a time of crisis, Page 48
A transparent and ethical business. Human rights. Physical security and human rights, Page 49
A transparent and ethical business. Human rights. Our ESG goals 2021-2026, Page 49
A society guided by sustainable development. Neighbouring communities, Page 69
A society guided by sustainable development. Our social guidelines, Page 69
A society guided by sustainable development. Canacol’s social investment, Page 70
A society guided by sustainable development. Our guiding principles, Page 70
A society guided by sustainable development. Contractors and suppliers risk matrix, Page 80
We did not have incidents of violations involving rights of indigenous peoples during 2020.

Community Relations

EM-EP-210b.1

Discussion of process to manage risks and opportunities associated with community rights and interests

Discussion and Analysis

n/a

A society guided by sustainable development. Neighbouring communities, Pages 69-72
A society guided by sustainable development. Effective community engagement, Page 72
A society guided by sustainable development. Entretejiendo Foundation, Pages 72-75
A society guided by sustainable development. Gas massification: residential gas distribution
network, Pages 76-77
A society guided by sustainable development. Humanitarian response to the COVID-19 health emergency, Page 78
A society guided by sustainable development. Neighbouring communities.
Our ESG goals 2021-2026, Page 78
A society guided by sustainable development. Local supplier development program, Page 81
A society guided by sustainable development. Local supplier and contractor census, Page 82
A society guided by sustainable development. Best labor practices (BPL) with contractors and subcontractors, Page 82
A society guided by sustainable development. Contractors and suppliers.
Our ESG goals 2021-2026, Page 78

The Company has identified three potential risks in the communities neighboring the operations: 1. Possible increase in the floating population in the geographical areas where the company operates, 2. Possible loss of the traditional productive vocation to migrate to the activities of Oil & Gas sector, 3. Possible increase in the cost of local goods and services.

Community Relations

EM-EP-210b.1

Discussion of process to manage risks and opportunities associated with community rights and interests

Discussion and Analysis

n/a

A society guided by sustainable development. Suppliers aligned with ESG factors, Page 80
A society guided by sustainable development. Contractors and suppliers risk matrix, Page 80
A society guided by sustainable development. Contractor performance management
program, Page 81

The potential social impacts identified in the supply chain are: Non-compliance with the Comprehensive Social Responsibility policy by Contrastists and Subcontractors, generating consequences for Canacol’s operational normality, reputation, and public order in the areas of operation. Undue pressure on the part of the JACs, for the contracting of a good or service, local and national. Migration of suppliers from areas with more experience in the Oil and Gas sector. Influence of political actors on communities to obtain particular benefits.

During the development of environmental impact studies, the company establishes 3 important moments of socialization with the community and local authorities. The first one in which the company reports the technical scope of the project and the EIA.
During the second moment, the company leads a workshop with the purpose to cooperatively identify possible environmental risk and management measures associated with the project. Finally, during the third moment, the company communicates to the community, local authorities, and regional environmental authorities the obtained results.
Once the environmental license is granted, the company is responsible to communicate it to the communities of the area of influence and municipal authorities. During the socialization of the environmental license, it is made clear that the document is available to any interested party. Also, since the granting of the administrative act, the document is available for public consultation, through the information systems of regional and national environmental authorities.
The company is also responsible for developing the Environmental Management Plans associated with the project and to communicate and review with the communities of the influenced area and local authorities the EIA process and licensing obligations.

EM-EP-210b.2

Number and duration of non-technical delays

Quantitative

Number, Days

51.16 days

Workforce Health & Safety

EM-EP-320a.1

(1) Total recordable incident rate (TRIR), (2) fatality rate, (3) near miss frequency rate (NMFR), and (4) average hours of health, safety, and emergency response training for (a) full-time employees, (b) contract employees, and (c) short-service employees

Quantitative

Rate, Hours (h)

Key indicators. A safe and committed team. Health and safety. Lost time injury frequency rate (LTIFR) for employees and contractors (# of lost-time injuries per million hours worked) / Work-related injuries, Page 14
Key indicators. A safe and committed team. Health and safety. Total recordable injuries rate (TRIFR) for employees and contractors (# of recordable injuries per million work hours) / Work-related injuries, Page 14
Key indicators. A safe and committed team. Health and safety. Severe vehicle incident frequency rate (SVIR) (accidents per million km driven) / Work-related injuries, Page 14
Key indicators. A safe and committed team. Health and safety.
Employee’s fatalities (number), Page 14
Key indicators. A safe and committed team. Health and safety.
Contractors’ fatalities (number), Page 14
A safe and committed team. Corporate indicators for industrial safety, Page 63
OIFR= 0

EM-EP-320a.2

Discussion of management systems used to integrate a culture of safety throughout the exploration and production lifecycle

Discussion and Analysis

n/a

A safe and committed team. We offer safe and healthy work environments, Page 62
A safe and committed team. Promoting safe behaviour, Page 63
A safe and committed team. FOCUS program, Page 64
A safe and committed team. Hazardous energy program, Page 64
A safe and committed team. Job hazards, Page 64
A safe and committed team. Road safety program, Page 64
A safe and committed team. We promote the health and safety of our contractors, Page 65
A safe and committed team. We offered online venues for health and biosafety training, Page 66
A safe and committed team. We monitored the mental and emotional health of our
employees, Page 66

Workforce Health & Safety

EM-EP-320a.2

Discussion of management systems used to integrate a culture of safety throughout the exploration and production lifecycle

Discussion and Analysis

n/a

Our Occupational Health and Safety Management System (OHS-MS) meets the legal requirements established in Colombia by the Ministry of Labor. In 2020, through a self-evaluation of the Minimum OHS Standards, we achieved 100% compliance. The Management System is also certified under the international OHSAS 18001 standard.
In 2020, we completed the plan for transitioning the OHS Management System to ISO 45001, in favor of safe and healthy worksites and improved implementation of the Integrated Management System’s requirements.
During 2020, we included assurance of the biosafety protocol for direct employees, contractors, and subcontractors in the Occupational Health Program. It ensures compliance with the protocol at associated companies and compliance with the entry protocol for our operations. Compliance with Resolution 666 and 797 of 2020, GIPS21 Ministry of Health.
PLHSEQ-01 COVID-19 Prevention Plan
PHSEQ-08 Biosafety protocol
FHSEQ-45 Detection of personnel at greater risk
FHSEQ-143 Field entry form
FHSEQ-143 Office entry form
The Occupational Health and Safety Management System applies to all direct employees, employees on assignment, contractors, and visitors located at our facilities.

We use the methodology in Colombian Technical Guideline 45 (GTC 45) to identify hazards and assess risks in the operation’s processes and activities. It allows us to identify and assess potential risks that could seriously threaten acheivement of the business objectives, and to determine and assess the efficacy of the controls for mitigating those risks. To identify hazards at worksites, we use:

- The work permit system providing authorization from supervisors.

- Job safety analysis which identifies the steps, hazards, and controls for doing work safely.

- Employee participation in reporting unsafe actions and conditions, to take action before starting the work.

- Safety inspections by multidisciplinary teams to identify findings or deviations in connection with tools, equipment, or worksite conditions, and to verify compliance with practices and procedures.
In 2020, we improved the hazard identification process for all activities, promoting participation by all employees and contractors. Taking their contributions into account to improve controls, do the work safely, and prevent incidents has increased motivation and produced a greater commitment to safety.

The Safety Target Program encourages workers and contractors to report both good work practices and unsafe actions and conditions they identify at the worksite. A speak up culture is embedded in the organization, which helps make people aware of risks and act accordingly. Monitoring worksites and making preventive observations helps correct unsafe behavior while giving positive reinforcement for safe behavior through constructive communication.

At Canacol, it is the responsibility and obligation of all workers to stop work to correct unsafe conditions or behavior. This policy encourages employee participation in stopping unsafe work, without negative repercussions, preventing incidents and promoting safety.

The Causal Chain Analysis determines actions we can take to avoid a repetition of events.
We investigate all work-related accidents, regardless of their severity, in order to learn about real or potential situations of risk and implement corrective and preventive measures, improving health and safety at work.

The Management Committee analyzes and reviews OHS indicators on a monthly basis in order to make timely decisions, establish preventive guidelines, and demonstrate commitment and leadership.

Workforce Health & Safety

EM-EP-320a.2

Discussion of management systems used to integrate a culture of safety throughout the exploration and production lifecycle

Discussion and Analysis

n/a

Workers’ contributions prevent occupational hazards with their active involvement in planning, executing, and evaluating activities.
Canacol facilitates timely access to information on the OHS Management System. It promotes worker identification and reporting of hazards, risks, and unsafe actions and conditions, encouraging them to make suggestions and observations regarding actions to eliminate hazards and to minimize occupational health and safety risks. In addition, COPASST members participate in incident investigation, and develop and review OHS policies and objectives.
The active participation of workers helps identify problems and their causes, find practical solutions, and develop safe work procedures.

Reserves Valuation & Capital Expenditures

EM-EP-420a.1

Sensitivity of hydrocarbon reserve levels to future price projection scenarios that account for a price on carbon emissions

Quantitative

Million barrels (MMbbls), Million standard cubic feet (MMscf)

We are currently working in the development of a Climate Change Strategy aligned witg TCFD.

EM-EP-420a.2

Estimated carbon dioxide emissions embedded in proved hydrocarbon reserves

Quantitative

Metric tons (t) CO2-e

We are currently working in the development of a Climate Change Strategy aligned witg TCFD.

EM-EP-420a.3

Amount invested in renewable energy, revenue generated by renewable energy sales

Quantitative

Reportingcurrency

Canacol’s investment rate into renewable energy as a percentage of total CAPEX for the past 4 years:
2017 - 0.2
2018- 0.2
2019 - 0.3
2020 - 0.32

EM-EP-420a.4

Discussion of how price and demand for hydrocarbons and/or climate regulation influence the capital expenditure strategy for exploration, acquisition, and development of assets

Discussion and Analysis

n/a

Canacol’s sales and transportation contracts give us a strong competitive advantage in meeting Colombia’s increasing gas demand making non-dependent the company on variability of oil prices.

Business Ethics & Transparency

EM-EP-510a.1

Percentage of (1) proved and (2) probable reserves in countries that have the 20 lowest rankings in Transparency International’s Corruption Perception Index

Quantitative

Percentage (%)

N/A

EM-EP-510a.2

Description of the management system for prevention of corruption and bribery throughout the value chain

Discussion and
Analysis

n/a

Canacol Energy. Canacol’s value proposition, Page 8
Canacol Energy. Environmental, social, and governance (ESG) strategy: sustainability is fundamental to our business, PageS 9-10
A transparent and ethical business. Ethics, compliance, and anti-corruption, Page 44
A transparent and ethical business. Ethics and compliance system, Page 44
A transparent and ethical business. Reporting mechanisms, Page 45
A transparent and ethical business. We honed our culture of ethics, Pages 46-47
A society guided by sustainable development. Concerns, requests, complaints and claims (CRCC) system, Page 73

relacioneslaborales@canacolenergy.com is the channel for attending to any questions from workers, community members, authorities, etc. concerning labor compliance by contractors and subcontractors.

We did not have confirmed cases of corruption & bribery during 2020.
Zero (0) legal actions for anti-competitive behavior, anti-trust, and monopoly practices during 2020.

Management of the Legal & Regulatory Environment

EM-EP-530a.1

Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social factors affecting the industry

Discussion and
Analysis

n/a

The ESG Committee has been established by resolution of the Board of Directors of Canacol Energy Ltd for the purpose of assisting the Board in fulfilling its oversight responsibilities with respect to the Corporation’s social responsibility and sustainability management. Consistent with this function, the Committee will encourage continuous improvement of, and should foster adherence to, Canacol’s policies, procedures, and practices at all levels. The Committee’s primary roles and responsibilities are to:
• Serve as an independent and objective party to monitor the integrity and quality of
Canacol’s ESG strategy.
• Ensure that Canacol’s ESG strategy is integrated into its business plan, corporate values and objectives and serves to foster a culture of responsibility and transparency.
• Review and approve Canacol’s annual Sustainability Report.
• Review and approve the qualifications, independence, engagement, compensation and performance of the external party chosen to provide assurance on Canacol’s annual Sustainability Report.

Consult: http://canacolenergy.com/site/assets/files/2845/esg-1_committee_terms_of_reference.pdf

Management of the Legal & Regulatory Environment

EM-EP-530a.1

Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social factors affecting the industry

Discussion and
Analysis

n/a

The ESG Committee shall have the roles and responsibilities set out below as well as any other functions that are specifically delegated to the Committee by the Board and that the Board is authorized to delegate by applicable laws and regulations.
1. Assist the Board in establishing and monitoring the Corporation’s ESG policies and practices, 2. Propose changes as necessary from time to time to respond to ESG recommendations or guidelines from authorities or investors as well as changes in the Corporation’s business environment, 3. Assist the Board with an annual review of the Board and Committee structure, 4. Ensure that the Corporation has in effect adequate policies and procedures to identify and manage the principal ESG risks of the Corporation’s business, 5. Review the main challenges the Corporation faces in ESG, 6. Review and approve material ESG disclosure, 7. Review and approve the external party assurance process and report.

Consult: http://canacolenergy.com/site/assets/files/2845/esg-1_committee_terms_of_reference.pdf

Critical Incident Risk Management

EM-EP-540a.1

Process Safety Event (PSE) rates for Loss of Primary Containment (LOPC) of greater consequence (Tier 1)

Quantitative

Rate

Key indicators. Environmental fines (millions of dollars) / Non-compliance with environmental laws and regulations, Page 14
Environmental management at the Rancho Hermoso oil field. Zero reportable spills
during 2020, Page 42
Zero (0). We did not have non-compliance with environmental laws and regulations during 2020.

EM-EP-540a.2

Description of management systems used to identify and mitigate catastrophic and tail-end risks

Discussion and
Analysis

n/a

A cleaner energy future. Climate change strategy. Impacts, mitigation or remediation strategies,
and challenges, Page 24
A cleaner energy future. Biodiversity. Impacts, mitigation or remediation strategies,
and challenges, Page 31
A cleaner energy future. Integrated water resources management. Impacts, mitigation or remediation strategies, and challenges, Page 32
A cleaner energy future. Waste management. Impacts, mitigation or remediation strategies, and challenges, Page 37
A transparent and ethical business. Risk management, Page 50

The Board ultimately has the responsibility to oversee the development and approval of the mission of Canacol, its goals and objectives, and the strategy by which these objectives will be reached. In guiding the strategic choices of Canacol, the Board must understand the inherent prospects and risks of such strategic choices. While the leadership for the strategic planning process comes from the management of Canacol, the Board shall bring objectivity and a breadth of judgment to the strategic planning process and will ultimately approve the strategy developed by management as it evolves.

Consult: http://canacolenergy.com/site/assets/files/2845/canacol_-_2020_agm_circular.pdf

EM-EP-000.A

Production of: (1) oil, (2) natural gas, (3) synthetic oil, and (4) synthetic gas

Quantitative

Thousand barrels per day (Mbbl/day); Million standard cubic feet per day (MMscf/day)

Canacol Energy. Operations map, Page 7

EM-EP-000.B

Number of offshore sites

Quantitative

Number

n/a

EM-EP-000.C

Number of terrestrial sites

Quantitative

Number

Canacol Energy. Operations map, Page 7