Sustainability Continued The financial impacts ofclimate change related risks andfuture emission reduction targets. The tool was used to calculate opportunitieshave been integrated into Karoon’s StrategicKaroon’s Scope 1 and 2 emissions for the FY2021 reporting period. Refresh, using known operational cost data where appropriate and a range of climate-related scenarios and carbon price scenarios toAll Scope 2 emissions were generated from electricity usage in assess future transition risks and opportunities. Karoon is using thisoffices in Melbourne, Lima and Rio and the Baúna shorebase in modelling to ensure its corporate strategy will be resilient to futureItajaí, with the majority generated from our Melbourne office. climate change related impacts and to integrate potential climateDuring the 2022 financial year Karoon intends opting into green change impacts into specific project decision making. power to ensure all its electricity supplied in Australia is from renewable-linked sources. Metrics and Targets As a new producer Karoon has yet to complete a full year of Karoon’sScope 1emissions were almost entirely generated operations to establish a baseline of climate-related metrics.from our Baúna operations,at an intensity of approximately However, we have been working to establish an internal framework15.3 kgCOe/bbl.2 for reporting on our GHG emissions. Karoon has developed, withThe FY2021emissions do not represent Karoon’s baseline for its external advisors, a new emissions inventory tool to analysefuture emissions reduction targets because Karoon took ownership fuel use and flaring data direct from our operations team. Theof Baúna during the reporting period and has yet to record a full toolfacilitates monthly reporting on emissions and enablesyear of emissions data. management and the Board to monitor performance relative to Scope 1 Scope 2 Intensity 49,525 143 15.3 tCOe2 tCOe2 kgCOe/bbl2 Karoon Energy Ltd 32 Annual Report 2021