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.

2024 environmental investments: 

• Capex: $1.66 millions of dollars 
• Opex: $0.44 millions of dollars

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 ESG Report.

Canacol is responsible for complying with the obligations established by environmental authorities under the terms of the environmental licenses granted in its areas of operation. To ensure compliance, the Company conducts rigorous monitoring and actively shares relevant information with local communities and authorities regarding the content of Environmental Impact Assessments (EIAs), the resolutions that grant these licenses, and the specific measures for the development of projects such as platforms, wells, and flowlines, through the implementation of tailored Environmental Management Plans (PMA, for its acronym in Spanish).

In 2024, Canacol completed two EIAs and initiated two additional ones. Each study included all information required by the environmental authority, in accordance with the terms of reference, with particular emphasis on the identification, evaluation, and in-depth analysis of environmental risks, as well as on the definition of measures to prevent, mitigate, or compensate for potential impacts.

As part of its commitment to transparency and effective communication, Canacol has established three key engagement milestones with communities and local authorities during the development of each EIA:

Initial engagement: the Company informs stakeholders about the technical scope of the project and the corresponding environmental study.

Participatory workshop: a collaborative session is held to identify potential environmental risks and associated management measures.

Final disclosure: the results of the study are communicated to communities, local governments, and regional environmental authorities.

Once the environmental license is granted, Canacol is responsible for communicating its content to the communities within the area of influence and to the corresponding municipal authorities. During this process, it is emphasized that the license is a public document, available to any interested party, and can be accessed through the information systems of national and regional environmental authorities.

Below is a summary of the environmental licenses currently held by the Company.

The European Union (EU) Taxonomy Regulation is a classification system designed to guide capital flows toward environmentally sustainable economic activities. Although Canacol Energy Ltd., headquartered in Calgary, Canada, is not legally required to comply with this regulation, the Company has chosen to report voluntarily in the interest of transparency and alignment with international sustainable finance frameworks. This report presents our 2024 performance with respect to the Taxonomy Regulation, based on data from our latest financial statements and the 2024 ESG Integrated Report.

Canacol endorses the EU's and Colombia's objectives of reaching net-zero emissions by mid-century. Our corporate climate ambition is to achieve net-zero emissions by 2050. Intermediate goals include zero methane emissions by 2026 and a 50% reduction in Scope 1 and 2 emissions by 2035 from a 2022 baseline. In 2024, Canacol was recognized as a leader in human rights and social responsibility by Sustainalytics, S&P Global CSA, and ISS ESG evaluations.

• Net revenues (excluding royalties and transportation): USD 352.3 million (16% increase compared to 2023).
• Adjusted EBITDAX: USD 296.1 million (25% increase compared to 2023).
• Adjusted funds from operations: USD 209.4 million (43% increase compared to 2023).
• Year-end cash position: USD 79 million.
• Fully compliant with all financial covenants
• These figures are based on Canacol's audited financial statements for the fiscal year ending December 31, 2024.

Canacol reports voluntarily on the EU Taxonomy based on the financial consolidation boundary. Eligible activities are limited to our power generation and nature-based solutions (NBS) business segments. As of 2024:

• Turnover from eligible activities: 0%
• Capital expenditure (CapEx) from eligible activities: 1%
• Operating expenditure (OpEx) from eligible activities: 1%

Currently, there is no clear consensus in the market on the interpretation of several technical screening criteria and Do No Significant Harm (DNSH) conditions. Therefore, Canacol adopts a conservative approach and reports 0% alignment for the 2024 fiscal year. Nonetheless, some of our activities related to fossil gas, solar, and renewable energy technologies are considered close to meeting alignment requirements.

In 2024, Canacol conducted its first double materiality assessment, in accordance with the European Corporate Sustainability Reporting Directive (CSRD). This analysis identified the most relevant ESG risks and opportunities from both internal and external stakeholder perspectives.

Our climate and environmental data are aligned with the Greenhouse Gas (GHG) Protocol Corporate Standard and are subject to third-party assurance. Climate risks and opportunities are integrated into the Company’s governance and decision-making processes through oversight by the Executive Committee and the Audit and Corporate Governance Committee.

Canacol continues to strengthen internal capabilities to improve the identification, documentation, and reporting of taxonomy-eligible and aligned activities. This includes integrating EU Taxonomy criteria into investment planning, sustainability risk management, and ESG governance frameworks.

We are committed to advancing the transparency and credibility of our sustainability disclosures and aligning with internationally recognized standards for responsible business conduct and climate action.