b'BUSINESS PRINCIPLE IN ACTION:TAKING A CLOSER LOOKAT CLIMATE CHANGEWe recognize the challenge.We report these emissions in our Benchmarked Kosmos approach Kosmos recognizes that the worldon climate against a set ofannual sustainability report and is facing a serious challenge fromindustry peers report key environmental data to climate change influenced byAnalyzed stakeholder attitudes,IOGP annually. At the request ofhuman activity.including emerging investorinvestors, we aim to report for the expectations around climatefirst time to the CDP (formerly We welcome the Paris Agreementthe Carbon Disclosure Project) in reached within the United Nationschange reporting and initiatives2019. We also follow developments Framework Convention on Climatesuch as the Task Force forin operational best practices and Change in 2015 and see it asClimate-Related Financialclimate change, including through a crucial step in global effortsDisclosures (TCFD) IOGP and IPIECA.to address climate change. We Examined the wider policy understand that achieving theenvironment and climate-changeIn 2015 and 2016 Kosmos internationally accepted target ofrisks and opportunities for ourdiscovered significant natural gas limiting mean global temperaturebusiness reserves offshore Mauritania and rises to well below 2C will requireSenegal, opening a major new significant and sustained reductionsThe reviews findings werenatural gas province in which in greenhouse gas emissions.presented and discussed inwe are now partnered with BP. Kosmos Health, Safety andExpanding use of natural gas In addition, around 1 billionEnvironment Management andglobally is widely regarded as people (roughly 13% of the worldsBoard Committees. critical to reducing CO2 emissions, population) still lack access toWe continue to monitorgiven that it produces about half electricity, and global energydevelopments on climate onas much CO2 as coal when burned needs are expected to increasean ongoing basis, includingfor power, and therefore offers by 25% by 20402. This will bethrough engaging in leadinga cleaner alternative to coal for particularly driven by emergingindustry associations such as thepower generation.economies such as those inInternational Association of Oil andThe IEA expects demand for which Kosmos focuses much ofGas Producers (IOGP) and IPIECA,natural gas to increase by 45% by its investment. The Internationalthe global oil and gas industry2040 in its New Policies Scenario Energy Agency (IEA) estimatesassociation for environmental andand positions it as the largest that demand growth will requiresocial issues. We will continuefuel in the global energy mix by more than $2 trillion of investmentto consider and integrate keythat year under its Sustainable in new energy supply per year.developments as needed into ourDevelopment Scenario. Tackling this challengereducingbusiness strategy.greenhouse gas emissions whileWe are now working with our meeting growing energy demandpartner BP and the Governments of We do what we can within theMauritania and Senegal to developwill require actions from all partsconstraints of our own business.of society: governments, civilthe resources we have discovered society and the private sector,Kosmos operates to highinto an efficient, competitive natural and companies like Kosmos mustenvironmental standards and wegas projectboth for export in the consider the opportunities andcontinually consider opportunitiesform of Liquid Natural Gas (LNG) challenges that the global energyfor efficiencies within our business.and to provide a cheaper, cleaner transition may present to ourAt this time, Kosmos does notsource of energy for the economies business. operate production platforms orof Mauritania and Senegal.vessels. Our direct greenhouse We are looking at how climategas emissions arise primarily fromWe are also looking beyond our change may affect us long term. exploration activities such as use ofbusiness. In 2017, Kosmos conducted aan exploration drilling rig, seismicFinally, Kosmos is looking for review of our approach to climatevessels and support vessels, andcontributions we can make to the change and the external policy andour offices and logistics bases.dual energy challenge beyond our stakeholder environment. In thedirect operations. review, we: 2.nternational Energy Agency, World Energy Outlook, 2018I16'