Horizon Oil : 2021 Sustainability Report

SUSTAINABILITY

REPORT 2021

horizonoil.com.au

1. Chairman and CEO Message	1
2. About this Report	3
3. Sustainability Highlights	4
4. Our Approach to Sustainability	5
5. Our Stakeholders	7
A. Health, Safety and Environment	10
B. Governance	12
C. People - Employees and Communities	14
D. Climate Change	16
6. Glossary	24

Horizon | Sustainability Report 2021

1. A MESSAGE FROM OUR CHAIRMAN AND CEO

Horizon continues to build on its commitment to sustainability - essentially the management of risks and opportunities in a way that best balances the long- term needs of all our stakeholders - our investors, employees and suppliers

- as well as the wider community and the environment at large.

This year we are pleased to announce our progress on sustainability. True to our commitment last year, we prepared a 3 year Environmental Social and Governance (ESG) Action Plan to refine our goals, targets and activities in our ESG priority areas. Sustainability continues to be an important focus for Horizon with sustainability performance again forming part of executive KPIs. During the year, we implemented formal performance review procedures to engage with our employees and address any unconscious bias that may give rise to an imbalance in gender pay parity; we adopted revised HSE and Code of Conduct policies; we improved our cyber security following an independent IT security assessment and we published our first Modern Slavery Statement. In addition, we continue to be transparent with respect to our climate change resilience modelling and reporting obligations.

It is important to note that whilst we are not an operator of any of our oil producing assets, we have a high degree of influence and are successful in encouraging our joint ventures to minimise emissions and any loss of containment incidents, and to maintain the highest standards of safety and asset integrity.

We are acutely aware of the shifting sentiment away from fossil fuels - but conversely recognise that oil will be part of the energy mix for some time to come. In this challenging environment we work hard to ensure that our approach to sustainability is both right sized for Horizon and meaningful to our stakeholders and the wider community.

Mike Harding

Chairman

Chris Hodge

Chief Executive Officer

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Sustainability continues to be an important focus for Horizon with sustainability performance again forming part of executive KPIs.

Chris Hodge

Chief Executive Officer

2. ABOUT THIS REPORT

Horizon produces oil in the Beibu Gulf, China which is sold into the Chinese domestic market, and in the Taranaki Basin, New Zealand which is mainly sold into Australia. Our oil assets are owned in joint venture and we are non- operating parties. We focus on optimising our existing asset portfolio, which has an anticipated economic life until the end of the decade, 2030.

This report is Horizon's eighth Sustainability Report. Our report is structured in accordance with our Environmental Social Governance(ESG)priorityareas: Health,Safety&Environment (HSE), Governance, Our People and Communities and Climate Change. In each of these areas, we report as they relate to our corporate office. In the case of HSE and Climate Change, we also report on our activities in China and New Zealand, but on an equity basis and despite having no operational control. This is the second year Horizon is aligning its disclosures with the Taskforce on Climate-related Financial Disclosure (TCFD) recommendations; a table reconciling our disclosures against the TCFD recommendations is set out at the end of this report. This report applies for the period 1 July 2020 to 30 June 2021.

This report has not been externally assured.

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