2020 - Equinor

1 Sustainability Report 2020 Equinor Sustainability Report 20202 Our year 2020 Achieved safe start-up of the Snorre Expansion Project, which extends the lifetime of the Snorre A platform in the North Sea. Officially opened the Johan Sverdrup field, which has record-low operational CO emissions ( kg CO per barrel produced). Daily production capacity increased to half a million barrels of oil per day in phase 1. Signed a MoU with Scatec and Hydro to jointly develop a 480 MW solar power plant in Brazil. Sanctioned four oil and gas projects, two in Norway and two the Northern Lights CCS project in Norway to an investment decision together with partners. The project was awarded governmental approval and funding through the Norwegian Government s Longship project.

2 Announced an investment decision and financial close on Dogger Bank A ( GW) and B ( GW) in the UK and divested 10% to capture an offshore wind partnership with BP and divested half of our shares in Empire Wind and Beacon Wind to capture value. Strengthened our climate ambitions by setting an ambition to reach net-zero emissions by 2050, including emissions from production and use of energy. This adds to the ambitions of achieving carbon neutral global operations by 2030 and cutting absolute emissions in Norway to near zero by 2050. Experienced a fire at the Hammerfest LNG plant at Melk ya. No personnel injuries were reported, but extensive repair is needed, which requires the plant to remain closed for up to 12 months.

3 A fire was also reported in the Tjeldbergodden compressor building. Started construction at Hywind Tampen, the world s largest floating offshore windfarm (88 MW), aiming at scaling up floating offshore wind and providing power to five platforms. Made an investment decision with partners to partly electrify the Sleipner field in the North Sea. Signed a MoU to form a strategic partnership with Panasonic and Hydro to explore possibilities for establishing a sustainable and cost-competitive European battery business. Completed an internal investigation report on the long-term oil seepage at the Mongstad refinery and started follow-up work. The Norwegian Environmental Agency reported Equinor to the police in three cases related to spills and emissions to the environment at the Mongstad Europe s biggest green hydrogen project, the NortH2 project, which aims to produce green hydrogen (4 GW by 2030 and 10+ GW by 2040) and submitted a proposal with partners to create a low carbon cluster in the Humber in the United Kingdom.

4 Equinor Sustainability Report 20203 Message from the CEODear has set clear ambitions for the future. We aim to be a leader in the energy transition by building the energy industry of tomorrow and becoming a net-zero company. We are developing as a broad energy company founded on a strong commitment to sustainability and by delivering on our strategy always safe, high value and low has to move faster towards net-zero emissions, and we aim to be a committed partner on that journey. Early last year, we outlined our climate roadmap and set new ambitions. We are on track to achieve carbon neutral global operations by 2030, and in line with the Paris Agreement we have worked our ambitions further.

5 By 2050, Equinor aims to be a net-zero company including emissions from the use of the energy we provide. We will reduce emissions from our own oil and gas production, accelerate growth within renewables and develop markets for hydrogen, carbon capture and storage. This is good for the climate and a solid business strategy that ensures competitiveness and drives change towards a future that will have to be net zero. It sets a clear strategic direction and demonstrates Equinor s continued commitment to long-term value creation in line with the Paris Agreement. Equinor wants to be a leading company in the energy transition, and these ambitions set us at the forefront. Ensuring safety and security of everyone working in and for Equinor , is a prerequisite for everything we do.

6 We have seen improvements in important areas, especially the reduced number of personnel injuries. However, we still have challenges. During the second half of 2020, we experienced serious oil and gas leakages and fires at some of our onshore plants. We take these incidents very seriously and are investigating them and implementing mitigating actions. They are stark reminders of the need to further improve safety, and the continuous and necessary work required to prevent major accidents. 2020 was an extraordinary year. It was a challenging and tough time for us all, for some more than others. The Covid-19 pandemic overshadowed everything in our societies and influenced much of our work.

7 This is why we took, and continue to take, measures to reduce the spread of the virus to keep our people safe. Moreover, the pandemic had, and still has, a significant impact on our markets. The demand for oil and gas decreased and we saw unprecedented market conditions and uncertainties in the first half of 2020. Despite the pandemic, we have managed to conduct our business at sea and on land. The organisation is adapting to new routines both on our installations and while working from home. I am impressed by the way our employees, leaders and suppliers continue to manage the current circumstances. Our actions will continue to be inspired and guided by the United Nations Sustainable Development Goals.

8 We have also integrated human rights more concretely into the way we work by strengthening our corporate policy, delivering more rigorous training for our employees, suppliers and partners and by further integrating human rights due diligence in our work are preparing for a future that will be different. Where the need for energy will be as high as ever, but with far lower emissions. Equinor aims to stand out as one of the companies that shaped that future. Guided by our purpose: To turn natural resources into energy for people and progress for society, we want to be a leader in the energy transition developing the energy industry of tomorrow. Anders OpedalPresident and Chief Executive Officer Equinor Sustainability Report 20204 Strategy & governanceBoth the content and structure of this report reflects our most material sustainability impacts across the value chain, and the sustainability topics that were most significant to us and our stakeholders in 2020.

9 When assessing materiality, we consider the global sustainability context, transparency and relevant reporting standards. We have evaluated our impacts across our own activities and business relationships. These include actual and potential, positive and negative impacts on people, including human rights, the environment and the economy. These are described on page 5 and illustrated on page 7. Relevant sustainability standards and reporting frameworks have informed our assessment, such as the GRI Standards (including the draft Oil and Gas Sector Standard), the Recommendations of the Task Force on Climate-related Financial Disclosures and the UN Global Compact. The Paris Agreement and the United Nations Sustainable Development Goals are key external frameworks which we respond engage stakeholders in continuous dialogue throughout the year to help inform our content selection process.

10 Stakeholders are consulted both directly and indirectly, and we strive to remove potential barriers (language, social and geographical) when interacting. The Chair of the Board of Directors, the CEO and other senior managers, amongst others, engage in stakeholder dialogue. Key stakeholder groups include employees, shareholders, governments, regulators, business partners and suppliers, customers, local communities, academia, non-governmental organisations and society at large. Regular dialogue, media analysis, investor meetings and other outreach to key stakeholders on sustainability topics, have helped capture the stakeholder views and concerns most relevant for this report. Throughout 2020, we have engaged in dialogue with the investor group Climate Action 100+ on Equinor s climate ambitions and strategy.