28-Nov-2022

To our stakeholders:

I am pleased to confirm that National Energy Services Reunited Corp (NESR) reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Sherif Foda
NESR Chairman & CEO

NESR complies with relevant local and international laws and regulations everywhere we operate and strive to ensure that human rights are upheld in our operation. We make concerted efforts to confront human rights violations in our operations and ensure a work environment where employees are treated with respect and dignity, enabling them to achieve their full potential free from discrimination, as defined in the United Nations Universal Declaration of Human Rights, and the International Labor Organization Declaration on Fundamental Principles and Rights at Work, U.N. Guiding Principles. We communicate our commitment to Human Rights in the NESR ESG Report.

Our commitment to conduct business with the highest level of integrity includes compliance with international labor and workplace laws and regulations governing our operations worldwide. We also commit to dealing only with those business partners who share our commitment to protect human rights and safeguard diversity in our supply chain. We prescreen potential business partners and suppliers to confirm legal compliance by requiring that proposals include a statement of their intent to adhere to laws and regulations regarding forced or child labor and the payment of wages (NESR Code, p. 19).

Our commitment includes compliance with international labor and workplace laws and standards in:
* Freedom of association
* Collective bargaining
* Privacy
* Immigration
* Working time, wages & hours
* Health, safe & secure workplaces
* Employment discrimination
* Harassment
* Forced, compulsory or child labor, and
* Human Trafficking

NESR conducts periodic reviews of results on the aforementioned Human Rights policy areas, by senior management, in addition to tracking training & certification within the organization related to these policy areas.

Additionally, NESR undergoes an annual Sustainability Assurance audit related to one of its sustainability-linked loans, with a specific KPI related to supplier compliance around the Company's governance policies (including Human Rights policies).

NESR Code protects the rights of workers and preserves and respects human dignity. We are committed to the fair treatment and welfare of all our employees, individuals within our supply chains, contractors, and others who interact with our business. We respect freedom of association, freedom of choice, and equal opportunities for all. As such, and in alignment with the United Nations Organization Declaration of Human Rights and the International Labor Organization Declaration on Fundamental Principles and Rights at Work, U.N. Guiding Principles, we prohibit child labor, human trafficking, all forms of modern-day slavery including forced labor (NESR Code of Conduct, p. 6, 19).

NESR screens thousands of suppliers for environmental, human rights, and social impact performance (starting with the screening of 2,100 suppliers in 2020 and more screenings on an ongoing basis).

NESR is committed to creating a collaborative, equitable, diverse, and inclusive work environment, and is proud to be an equal opportunity employer. As such, NESR conducts its hiring practices with careful focus on equal consideration, with all qualified applicants receiving consideration for employment without regard to race, color, religion, sex, disability, marital status, military or veteran status, citizenship, or any other characteristic or class protected by the laws and regulations in the locations where we operate.

Diversity and inclusion have been part of NESR's core values since the Company was created, and this is built into ongoing employee training.

Through its annual ESG report, NESR monitors gender diversity and diversity, equity & inclusion across all parts of the organization. Performance is evaluated based on year-to-year improvement on key KPIs, including:
1) Total population of women in NESR
2) Country-level population of women in NESR

At NESR, we believe that our sustainability, business continuity, and success are closely tied to the health of the economies, environments, and communities in which we live and work. This belief drives our commitment to integrate ESG into our practices, business processes, decisions, and strategic planning. We are dedicated to maintaining a sustainable and responsible Company and strive to reduce our environmental footprint, deepen our social impact, and strengthen our corporate governance everywhere we operate.

Internally, we have targets set to improve water stewardship, waste & recycling, and energy use. Our sustainability-linked loan has specific KPIs around water recycling, which are audited by a third party on an annual basis.

Externally, NESR has established the "ESG Impact" business unit to bring decarbonization technology to the MENA O&G industry, with specific focus on technology around 1) produced water treatment, 2) flare elimination & carbon capture, 3) emissions detection, and 4) heat capture. Much of the Comapny's business development, R&D, and technology partnerships are rooted in the ESG Impacts segment, with several flagship projects having been successfully implemented with quantifiable, positive impact on the environment.

Internal environmental policies and ambitions can be found in the Company's most recent ESG Report (2020).

External environmental projects include:
1) Iraq brackish water treatment to brine for internal use (offsets freshwater consumption from RO plant, reduces waste, eliminates trucking around water and brine procurement to produce brine with a supermajor customer in N. Rumaila.
2) Saudi produced water treatment to freshwater & salt recovery (eliminates produced water waste from O&G wells, offsets freshwater consumption from aquifer, generates valuable freshwater and mineral resources that can be used in the industry or supplied to other industries and the community).
3) Indonesia CCS project - flagship carbon sequestration project executed in Indonesia.
4) Emissions Monitoring pilots - Continuous, metal-oxide sensor AI emissions monitoring (CH4, H2S, other gasses) in multiple countries in MENA.

Internal environmental performance is tracked and published in the annual ESG report, and water use is furthermore tracked & audited as part of the Company's sustainability-linked loan.

External progress through the ESG Impact segment can be tracked based on project count and revenue growth, but this process has not been formalized.

NESR adopts a zero tolerance approach to bribery and corruption. We conduct our business honestly and in an ethical manner and expect our people to act professionally, fairly, and with integrity wherever we operate. We implement and enforce effective programs, training, communications to counter improprieties and ensure anyone doing business on behalf of NESR has sufficient awareness to conduct themselves accordingly (NESR Code, p. 12).

The anti-corruption and anti-bribery policies stipulated in the NESR Code of Conduct are published on the website.

We require our suppliers to comply with the laws of the countries in which they operate, and that they act responsibly and ethically in a manner consistent with our code. Each of our suppliers are required to maintain policies to safeguard against human rights violations. NESR conducts ongoing audits of its supply chain on this basis.

NESR employees are required to promptly report actual or suspected violations of the Code to support an ethical workplace, as per the Whistleblower Protection policy of the Company.

In terms of Conflicts of Interest, all NESR Directors, Officers, and employees are expected to avoid situations where an employees personal interest may interfere in any way with the Company's interest or work objectives. All employees must make prompt and full disclosure to their supervisors of any situations involving an actual or possible conflict of interest (NESR Code, p. 14).

NESR conducts periodic reviews of its anti-corruption policies and practices, in addition to conducting ongoing employee training around this topic. Training compliance is tracked digitally.