Our Sustainability Policy (HSEQ) reflects our firm commitment to environmental protection, the mitigation of potential environmental impacts, the efficient optimization and conservation of natural resources, and the responsible management of waste. It also encompasses the management of risks associated with our operations. This policy covers all the business units within the company.

For further information, please refer to the following Sustainability Policy (HSEQ).

At Canacol, we have successfully implemented an Environmental Management System aligned with ISO 14001:2015 standards, achieving 100% coverage of our group-wide operations, revenues, production sites, and total employees. Through annual exercises such as internal audits, certification audits, and audits of our strategic allies, we aim to enhance and strengthen our environmental management culture and that of our contractors. The certification validates our ability to effectively identify, assess, and manage the environmental aspects of our operations. Embracing an approach based on continuous improvement, we reaffirm our commitment to minimize our environmental impact and positively contribute to the welfare of the region and the local communities.

To view our ISO 14001:2015 certificate, please refer to the following ISO certification

Throughout our journey, we have bolstered our environmental commitment through significant investments in projects and technologies that promote sustainability. We anticipate that these investments will facilitate the execution of actions outlined within each of the environmental dimensions. These actions primarily focus on the implementation of energy efficiency management systems, transitioning technology to reduce fugitive emissions, execution of reforestation and afforestation projects, offering training to communities in environmental issues and sustainable projects, reusing water in drilling processes, transitioning to renewable energies, establishing programs to ensure responsible use of water sources,  optimizing consumption in operating activities, reducing waste generation via a circular economy model, and launching projects aimed at reducing our GHG emissions.Top of Form

Some of our actions are presented below.

Throughout the execution of our activities, we are subject to meticulous processes of monitoring and verification, including periodic report submissions and field inspections conducted by the environmental authority. These procedures are conducted to ensure adherence to the obligations established in our environmental policies. It is noteworthy that, the company has not incurred any environmental sanction or incident.

For additional information please refer to the 2023 ESG Report.

Canacol is responsible for developing Environmental Management Plans (EMPs) associated with the exploration and development activities. The Company is also responsible for communicating and reviewing the results of the Environmental Impact Assessments (EIAs), along with fulfilling contractual and regulatory obligations with community groups and local authorities. In the past two years, we successfully completed two EIAs and initiated three additional assessments. Each of these assessments included the identification and analysis of environmental risks, coupled with the formulation of corresponding measures to prevent, mitigate, and/or compensate any ensuing impacts.

During the development of environmental impact studies, the company establishes 3 important moments of socialization with the community and local authorities.

The first one in which the company reports the technical scope of the project and the EIA. During the second moment, the company leads a workshop with the purpose to cooperatively identify possible environmental risk and management measures associated with the project.

Finally, during the third moment, the company communicates to the community, local authorities, and regional environmental authorities the obtained results. Once the environmental license is granted, the company is responsible to communicate it to the communities of the area of influence and municipal authorities. During the socialization of the environmental license, it is made clear that the document is available to any interested party. Also, since the granting of the administrative act, the document is available for public consultation, through the information systems of regional and national environmental authorities.

The company is also responsible for developing the Environmental Management Plans associated with the project and to communicate and review with the communities of the influenced area and local authorities the EIA process and licensing obligations.

A description of the environmental licenses held by the company is presented below.

The EU Taxonomy Regulation is a framework that converts the European Union's environmental goals into criteria for assessing whether an economic activity can be deemed environmentally sustainable for investment. As a Canadian-based company with its registered office and headquarters in Calgary, Canacol Energy LTD. is not presently required to comply with the Taxonomy Regulation. However, we choose to report on the taxonomy voluntarily because we understand the significance of enhancing transparency regarding companies' progress in the energy transition, despite the regulation still being in development and not fully established.

Canacol endorses the EU's and Colombia´s goal of reaching net zero emissions, which is in line with our objective to operate as a net-zero emissions energy company by 2050. We voluntarily report on the taxonomy because we acknowledge the need for greater transparency regarding companies' advancements in the energy transition, even though the regulation is still developing and not fully established.

The reporting scope of the taxonomy includes Canacol´s world-wide operations, determined by the financial consolidation boundary. Canacol´s eligible activities encompass aspects of our power and nature-based solutions (NBS) sectors. The rest of our businesses are not eligible.

In 2023, Canacol´s eligible turnover was 0%, capital expenditures (capex) were 1%, and operational expenditures (opex) were 1%. Currently, there is no consensus in the market regarding the interpretation of various aspects of the technical screening criteria. Canacol chooses to adopt a cautious approach, which for 2023 indicates zero alignment. However, we believe that some of our activities in fossil gas, solar, and renewable energy technology are close to alignment.