CEO Statement

CEO_Bolaji_Osunsanya

It is my utmost pleasure to present our Sustainability Report for the year ended December 2022. Sustainability is at the heart of our business and central to the trust placed in our company by customers, employees, suppliers, and partners alike. With our shared value as the compass guiding our decisions and actions, Axxela continued to make considerable progress in pursuance of our sustainability targets comprising environmental stewardship, social responsibility, and ethical business practices during the year.

This report is in accordance with the core requirements of the Global Reporting Initiative (GRI) Standards, with a focus on areas that are considered material to Axxela, its assets and stakeholders.

2022 in Retrospect
As the world continues to elevate the conversation on carbon neutrality and climate change, natural gas is expected to play a pivotal role as the transition fuel that will power our industries and sustain African economies. At the heart of our mission is the recognition that industries are the backbone of any nation's economy, and by offering a sustainable alternative source of energy, we are helping businesses enhance their operational efficiency while reducing their environmental footprints.

As part of our strategic growth ambition and to deepen natural gas utilisation in Nigeria, we further expanded our pipeline infrastructure network with an additional pipeline length of 20.4km in Sagamu and Greater Lagos Area while also completing a 150MMSCFD (Million Standard Cubic Feet Per Day) City-Gate in Ibefun within the Sagamu Gas Distribution Zone.

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Kilometers

Additional pipeline in Sagamu and Greater Lagos Area

150
MMSCFD

City-Gate in Ibefun within the Sagamu Gas Distribution Zone

We made significant progress in our power development aspiration with the successful commissioning of a 5.8MW Independent Power Plant for one of our Fast-Moving Consumer Goods (FMCG) customer in Lagos. The successful completion of these projects will provide a more accessible, cost-efficient energy alternative to business entities in the South-West region and surrounding territories and will also contribute significantly to the growing industrial hub along Sagamu-Benin express way.

Our consistent growth performance and strong competitive position earned us an upward revision in our corporate and issuer rating to "A-(NG)" with a positive outlook from Global Credit Ratings (GCR) and a retention of our "A2(NG)" rating from Agusto & Co.

Safety remains an integral part of our business and we uphold world class standards across all our operations. For another year running, we recorded an impressive zero lost time injury (LTI) in 2022 across all our facilities, project sites and workstations. This is proof of our commitment to building and maintaining a proactive culture of good Environmental, Health, Safety and Quality (EHSQ) standards.

We recognise the critical roles our host communities play in supporting our business continuity; hence, we continue to implement sustainable targeted interventions that will improve their well-being and impact their future. Leveraging our CSR pillar on education, we continue to support local communities in many diverse ways.

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Pupils

From less privileged homes given scholarships

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LTI

Across all our facilities, project sites and workstations

Under our 'Back to School' initiative, we provided scholarships to 100 pupils from less privileged homes. We also commenced the refurbishment and equipping of the Welding and Fabrication workshop of the Federal Science and Technical College, Yaba to reduce the dearth of technical knowledge in the oil and gas sector. We constructed and equipped a Health Centre in Imodi-Ijasin to promote the wellbeing of the people; built and furnished a block of six classrooms in Ilado and donated books to public schools in Olowogbowo, Sagamu and Ilado to encourage a reading culture in children and prepare them for a worthy future.

Our employees are our biggest asset, and they continue to play a vital role in delivering our business strategy. Their hard work and unalloyed commitment to the growth of the organisation has consistently positioned us to be ahead and win in the marketplace. We would continue to leverage diversity and multi- disciplinary backgrounds to build an inclusive workplace culture and serve our stakeholders effectively.

0%

Reduction in direct CO2 emissions

0%

Reduction in indirect CO2 emissions

Enabling Carbon Emission Reduction in Our Environment

As a business, our greatest contribution to a better and sustainable world is through our offerings with the ultimate target to support our customers across sectors to reduce their annual greenhouse emissions, encourage the switch to natural gas as a more efficient power source and with the potential to significantly reduce their carbon footprint. With a total 42.75% reduction in direct CO2 emissions and 31.25% reduction in indirect emissions between 2021 and 2022, Axxela continues to advance efforts and take important steps towards achieving carbon neutrality while paying close attention to the impact of our operations on the environment.

As the world continues to clamour for the transition to lower-carbon energy sources, we are positioned to accelerate the role of natural gas in the future energy mix. We remain resolute in our mission to deliver innovative energy solutions that create a sustainable benefit for all our stakeholders. This report showcases our commitment to integrating sustainability into every aspect of our business operations.

While we continue to record considerable progress in different areas of our sustainability journey, I am proud of what we have achieved thus far, and I acknowledge that there's still more work to be done. However, I believe that through collaboration and setting the right targets, we can collectively play our part in contributing to a sustainable future.