HIGHLIGHT Key metrics to assess climate-related risks and opportunities are; In this report, 5 gases are discussed due to their relationship with normal operational activities including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), and sulfur hexafluoride (SF6). To determi ne the GHG emi ss i ons , the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5) was used on Global Warming Potential (GWP). The emission factors were derived from the revised edition of the Corporate Accounting and Reporting Standards and if applicable, the specific emission factors taken from the regional guidelines were used. Barnett Zero, CCUS project in the US. BKV, a prominent natural gas producer in the United States, recently celebrated the launch of the Barnett Zero initiative in Bridgeport, bringing together experts and industry leaders. This initiative aims to reduce greenhouse gas emissions while also generating significant revenue. Barnett Zero utilizes carbon capture and sequestration (CCS) methods to capture and store carbon dioxide (CO₂) deep underground, preventing its release into the atmosphere. As the first EPA-approved Class II CCS project in the country and a pioneering effort in commercial CCS, Barnett Zero demonstrates a financially viable approach to addressing environmentally harmful emissions. Government subsidies, including $85 per ton of CO₂ equivalent processed and injected received from the Internal Revenue Service, play a crucial role in the project’s revenue stream. After two years of focused efforts, BKV achieved a significant milestone in November by successfully initiating CO₂ injection at Barnett Zero, in partnership direct emission indirect emission other indirect emission (partially) Scope 1 Scope 2 Scope 3 with EnLink. It is anticipated that the project will sequester up to 210,000 metric tons of CO₂ equivalent annually over its operational lifetime. Looking ahead, BKV is poised to introduce its second CCS project, the Cotton Cove initiative, this year. Additionally, the company is actively pursuing three additional natural gas processing projects geared toward capturing third-party emissions, with an estimated injection capacity of around 970,000 metric tons of captured CO₂ equivalent per year. Climate Change Report 2023 34 Introduction Governance Strategy Risk Management Metrics & Targets Looking Ahead