Leadership and Culture Diversity Karoon’s smooth transition from explorer to producer following theKaroon recognises the value that comes from diversity of thinking successful completion of the acquisition of Baúna is testament toand has taken steps over the past year to increase the opportunities the skill, experience and dedication of our staff. Karoon recognisesfor consultation and collaboration between offices, particularly that our people are our most valuable assets and understands thebetween Brazil and Australia. The sharing of ideas across disciplines importance of ensuring they are engaged and supported within and cultures has brought an appreciation of issues and improved the Company. understanding at all levels and has been instrumental in helping shape the Strategic Refresh.This is led by the Board and key An inauguralstaff engagement survey in Australia, Brazil andmanagement personnel, who undertook unconscious bias training Peru was conducted in March 2021 to help the Board and the during the reporting period. executive management team better understand the Karoon cultural environment and identify any areas for improvement. TheGender diversity is important to Karoon and we have set an most common words staff used to describe Karoon were Friendly,objective of achieving 30% female participation by 2025 at Board Collaboration, Respect and Commitment, highlighting the way inlevel, in the senior executive and across the Company as a whole. which teams are working together to achieve success as we grow.Karoon is planning to achieve these targets through a strong Importantly staff also provided valuable suggestions to furthercommitment to diversity and inclusion in our recruitment and improve on the way we can engage and motivate our people management practices including: to ensure they are able to achieve their best. Karoon’s executive •A Flexible Working Arrangement Policy; management team is continuing to foster the core elements of our culture identified in the survey through ongoing communication •Monitoring recruitment and remuneration processes to ensure with, and support for, our staff during the extended COVID-19 there is no unintended gender bias; lockdowns. This is particularly important for our teams in Peru and •Maintaining a zero-tolerance approach to gender pay gap; and Brazil who have been working remotely since March 2020. Ensuring at least one female candidate is considered when the • In our Melbourne office we have been encouraging engagement Board is appointing a new director or member of the KMP. between teams and between offices through sessions such as Progress against our diversity objectives is monitored by senior Lunch and Learn to develop cross-discipline knowledge within management and reviewed at least annually by the Board through the Company and improve awareness and understanding of the People, Culture and Governance Committee. Karoon remains operational issues at the corporate level. confident in achieving these objectives. Transparency Commitment to Brazil All Karoon staff are expected to undertake their responsibilitiesKaroon’s transformation from an explorer to a producer has had in accordance with the high standards set out in our Code of a significant impact on our management and people, not just Conduct. This is complemented with other corporate policies, suchour operations.During the reporting period, Karoon increased as the Anti – Bribery, Fraud and Corruption Policy, available onthe number of employees in Brazil by around 65% to support our website. All personnel are encouraged to speak up regardingour production operations and upcoming workover and drilling any potentialbreach of Karoon’s policies,including our Code campaign, further cementing our commitment to our business in of Conduct. An anonymous reporting service is available to all Brazil. personnel in accordance with our Whistleblower Protection Policy. No reports were made to the service during the reporting period.Karoon is pleased to be able to support the local economy in Brazil and in FY2021 paid wages of more than US$4 million to employees in Braziland approximately US$5 million in taxes and nearly US$16 million in royalties to the Brazilian government. Karoon’s sustainability strategy, to be released later in 2021, will provide further details of Karoon’s commitment to Brazil and its people,particularly through investment in environmental protection and social projects. Karoon Board Karoon Senior Management Karoon Group 17% 26% 50% Female Female Female Karoon Energy Ltd 35 Annual Report 2021