In order to minimize safety risks and impact of the Company, we have set a number of targets. The results of their implementation are presented further in the table.

Table 7 represents KPO LTIF versus contractors LTIF for the past four years. KPO and contractors’ data are presented separately. To obtain a consolidated indicator, a calculation formula should be applied, and not just a summarized data used.

KPO strives to make work places safe. Despite this, during 2024 there were 15 incidents, resulting in various injuries of KPO and contractors’ employees.

No severe Road Traffic Incidents (RTI) were registered in 2024.

The RTI frequency⁴ per 1 million km driven in KPO and contractors decreased from 0.02 in 2023 to zero in 2024. In 2024, the kilometers driven by KPO vehicles amounted to 56.7 million km, compared to 41.8 million km in 2023. / GRI 403-9 /

The increase was mostly due to the review of the KPO reporting boundaries to align them with the IOGP guidelines. Effective from May 2024, KPO road traffic statistics includes the overall kms driven within and outside the field by KPO and all contractors (primary and secondary logistics) if the journey is on Company business.

Fatality Frequency⁵ in KPO and our contractors in 2020 – 2024 remains zero. / GRI 403-9 /

In 2024, KPO and сontractors’ employees worked 38,129,473 man-hours: 18 % of them (6,827,029 man-hours) worked by KPO employees and 82 % (31,302,444 man-hours) by сontractors’ employees.

Peer comparison / GRI 3-3 /

Every year we review our key safety performance indicators against the other O&G producers’ indicators reported by International Organisation of Oil and Gas Producers (IOGP). IOGP annually publishes HSE performance indicators on the website www.iogp.org.

In 2024, the number of Lost Time Injuries in KPO increased – 7 LTIs in 2024 versus 2 LTIs in 2023. If compared with other peer companies in 2024, KPO LTIF is ahead of IOGP average, but behind the performance of IOGP Top 10 (see graph 4).

HSE improvement plan for 2024 / GRI 2-23, 3-3, 403-7, SDG 8.8 /

The overall objective of KPO HSE Improvement Plan is to improve Health, Safety and Environment management, to further control risks and to prevent harm to people and the environment. This is done by implementing Key Focus Elements that are over and above KPO’s day to day business activities to deliver tangible benefits and improvements.

In 2024, KPO applied a structured approach in preparation of the HSE Improvement Plan to ensure the Plan and the KPIs support each other and HSE objectives are achieved.

To achieve the common goal of zero incidents, KPO words together with its stakeholders to implement the Plan and strengthen safety barriers. The subordinate plans with more details are implemented to address the Improvement Plan’s objectives.

In the following paragraphs, we present the activities implemented in 2024 on HSE Leadership, HSE Culture and Road Safety. Environment protection, Asset Integrity, Risk Management and Health activities are covered in relevant chapters.

Safety leadership and culture / GRI 3-3, 2-23, 2-29, 403-5, SDG 8.8 /

In 2024, KPO continued conducting Safety Leadership & Culture (SLC) orientation sessions. 12,609 people were covered with safety orientation sessions in 2024 vs targeted 10,000.

In July 2024, Phase II of SLC program was launched and provided “Train the Trainer in Action” for certified coaches and also recruited new coaches. 102 coaches were trained in total.

“SLC in Action” sessions started for KPO and Contractors supervisory level staff and frontline workforce where they are given certain skills to be applied during day-to-day operations on site.

• SLC Phase II Supervisory level – 135 sessions held for KPO and Contractors’ supervisors and 1,479 employees were covered;
• SLC Phase III for Frontline Workforce – 75 sessions held for KPO and Contractors workers and 950 were employees covered.

Project Management Office meetings were held on a monthly basis to coordinate the implementation of the program.

SLC coaches’ regular meetings and 2 refreshment forums for coaches were held to review the progress, share insights, address challenges, align on safety goals, and ensure continuous improvement in fostering a proactive safety culture across the organization.

Lead SLC coaches were selected and trained. Lead SLC coaches provide strategic direction, mentorship, and oversight to ensure consistency and effectiveness in safety leadership practices.

In January and August 2024 Commitment workshops were held for Directors and Managers of KPO and Contractors who perform medium and high-risk activities for KPO.

HSE Promotion and Awareness-Raising Tools / GRI 2-29, 3-3 /

The Company’s key commitment is to ensure health, safety and environment. / GRI 2-23 /

Thanks to the concerted efforts of all HSE functions all the scheduled activities and campaigns related to the HSE communication enhancement were 100 % completed in 2024.

Continuous focus was made on prompt communication and raising awareness of employees through daily pop-up messages and regular Safety Moments on relevant topics and preventive recommendations. Throughout the year 18 Safety Moments were issued covering different topics such as use handrail, why near miss reporting is important, do not tolerate reckless driving, and other. On 30 April 2024, KPO held its annual HSE Awards Ceremony for the best HSE performance among KPO departments, individuals and Contractors.

The General Projects team and KPC team received the main award in the nominated category “Best KPO Department HSE Performance Operations & Projects of the year”, “Best KPO Department HSE Performance non-operations of the year” received – Asset Accounting. “Akbarys” company became the winner for the best performance Operations & Projects among the Contractors’ companies, for the best of non-operations departments – “Ligabue”. The winners of individual awards for intervention and reporting of potential hazards and unsafe behaviour received the monetary award. Besides, the incentive monetary awards were also given to those who made the particular contribution to the safety improvement and supporting various health and safety initiatives and campaigns additionally to their main job.

On 4^th September, Safety Day meetings commenced at KPO offices and facilities to discuss and prevent the recurrence of recent incidents, which resulted in serious injuries. Open dialogue sessions focused on the theme “Before I Start Work,” emphasizing the importance of taking a moment to check, cross-check and really ensure all safety measures are in place before commencement of any task. The discussions involved more than 9,000 KPO employees and Contractors.

The Annual HSE Forum has been an integral part of communication tool over the years. In 2024 the Forum was combined with the Safety Leadership and Culture program and the HSE Summit was held on the 3rd of December. The Summit involved the KPO and Contractors’ Senior Management, Unit Managers, Project Managers, Superintendents and SLC coaches. The subject of the Summit was ‘Safer Together’ to highlight that join efforts are key to make a step change in improving safety culture. During the event the following important topics were discussed:

• Areas of concern raised during SLC sessions and surveys;
• Sharing experience of SLC implementation from our Contractors;
• Health risk factors and health promotion in KPO and Contractors;
• Road safety – from Reactive to Proactive.

Lead SLC coaches from SLS OIL and KPO shared 5 areas of concern raised during SLC sessions and via anonymous surveys by KPO and Contractors’ employees, and openly voiced the problems coming from the ground.

In June 2024, the meeting between KPO and Contractors’ Senior Management (73 companies with high and medium HSE risk participated) was held to emphasise the HSE Leadership & Culture, reinforce the contractual obligations and HSE requirements, and share the concerns raised during work execution. The main messages were addressed:

• Senior Managers have the power and duty to change the Safety Culture, that is why Safety Leadership is the priority.
• Nowadays, we face challenges in the whole world (e.g., inflation) and it impacts the financial situation of many companies. However, any decision related to cost reductions shall not influence on safety issues (PPE, welfare, etc).
• Schedule D describes the minimum HSE requirements to the contract and it shall be strictly followed.

With the aim of Safety Culture improvement, the following leading safety indicators/targets were set as mandatory for employees to receive the 2024 Annual HSE Bonus:

• New indicator was introduced – Proactive Safety Behavioral Index (PSBI). PSBI shall not be less than the yearly target of 490 (PSBI criteria = Unsafe Acts + Unsafe Conditions + Stop Work Authority + Near Misses / million man-hours ≥490);
• By the end of the year, employees were to undergo LSR e–learning “Safe mechanical lifting” and “Line of Fire” and to attend “Safety Leadership & Culture Program” training.

KPO managed to reach the PSBI target (566 vs target 490) and HSE bonus was paid to those KPO and manpower employees who timely underwent the e-learning and attend the SLCP training.

Management presence on work sites

For tracking the overall HSE performance and management interaction with employees at work sites, KPO practices HSE site tours: HSE Leadership tours engaging KPO Directors/Controllers, Level 2-3 Managers and Contractors’ senior management. The main principle of this program is interaction with the workforce.

In 2024, the total number of HSE Leadership Level 0-1 tours amounted to 203 compared to the planned 84 having resulted in 242 % plan completion and HSE Management tours amounted to 1,758 compared to the planned 595 having resulted in 295 % plan completion.

Road safety / GRI 3-3, 403-2 /

To ensure more sustainable road safety performance, KPO continues implementing its annual Road Safety Improvement Plan. In 2024, KPO has completed 95 % activities of the Plan.

The key road safety achievements/implemented activities in 2024 are:

• ISO 39001: Road Traffic Safety Management System – successful pass of the 2nd surveillance audit (zero non-conformities);
• Road traffic safety assurance review of 12 low-performance Contractors;
• Seasonal road safety awareness campaigns for KPO and Contractors’ personnel;
• Mini-forums with drivers to share experience and receive proposals on road safety improvement;
• Road Safety Stand-Down for drivers on risks of driving in winter, including risk of hitting animals on the roads;
• Catastrophic RTI drill with involvement of KPO Emergency Response and Health teams;
• Implementation of stickers with QR code for passengers, with information on road safety on all vehicles of primary logistics;
• Implementation of stickers “Am I driving vehicle safely?” on all secondary logistics vehicles;
• Revision of IVMS points within Green, Amber, Red driver categories;
• KPO Defensive driving training improvement with involvement of external experts from ROSPA certified DDT centre;
• Operator Cold Eye Review of KPO Road Traffic Safety MS;
• Holding events with involvement of Contractors dedicated to the Transport Worker’s Day, where drivers demonstrated their skills in providing pre-medical care and extinguishing fires using fire extinguishers.

In 2024, a memorandum of cooperation on prevention of road traffic injuries in Aksai was signed between KPO & the local authorities.

Within the framework of cooperation on road safety improvement with the local authorities and the community the following activities implemented in 2024:

• Organization of events dedicated to International Children’s Day & World Day for remembrance for road traffic victims, with contests and memorable gifts for children;

Renewal of road safety billboards in Aksai.