Sinopec Daylight Energy Ltd.

Climate Impact & Sustainability Data (2015, 2016)

Successful recertification of its Certificate of Recognition with Enform (the safety association for Canada’s Upstream Oil and Gas Industry).
Manages fugitive emissions with specialized infrared optical thermal imaging.
Received 6 reclamation certificates.
355 former facility or well sites under active surface remediation.

Maintained charitable spending at similar levels to 2014.
Principal sponsorship of the Calgary Zoo’s 2015 Illuminasia Lantern & Garden Festival.
Contributed approximately $500,000 to not-for-profit groups throughout Calgary and our field communities.
Sinopec Canada Shines Community Investment Program (Two Hands and Two Times Programs).

Compliance with Sinopec Daylight's Code of Business Conduct and Ethics is certified by each employee, officer and consultant.
Adopted a Whistleblower Policy and Procedure.
Developed written position descriptions and terms of reference for the Board Chair, the Chair of each Committee of the Board, and the Chief Executive Officer.
Three Board meetings in 2015; four Audit Committee meetings; three Corporate Governance Committee meetings; three Environment, Health & Safety and Reserves Committee meetings; five Human Resources & Compensation Committee meetings.

Short-term Goals:

Short-term evaluation and long-term development of our Wapiti Montney assets; Optimization of our base cash flow producing assets; Rationalization of non-core assets.

Significant reduction in non-Pacific Northwest (PNW) LNG-related exploration and development activity levels due to sustained lower oil and gas prices.

Reallocated significant resources to complete an extensive technical evaluation of our current asset portfolio and to undertake a comprehensive assessment and planning study on our key Wapiti Montney project.

Frameworks Used: International Financial Reporting Standards (IFRS)

Certifications: Certificate of Recognition with Enform

Third-party Assurance: KPMG LLP

Received 64 reclamation certificates in 2016
Managed fugitive emissions with specialized infrared optical thermal imaging, locating hydrocarbon gas leaks and venting

Maintained charitable spending at pre-recession levels
Supported relief efforts for the Fort McMurray wildfires, raising approximately $60,000
Continued support for community partners, including acting as principal sponsor of the Calgary Zoo’s Illuminasia Lantern & Garden Festival
Contributed approximately $509,000 to not-for-profit groups
Implemented the Sinopec Canada Shines Community Investment Program (Two Hands and Two Times programs)

Commitment to the highest standards of corporate governance
Compliance with Sinopec Daylight's Code of Business Conduct and Ethics certified by each employee, officer and consultant
Adoption of a Whistleblower Policy and Procedure
Development of written position descriptions and terms of reference for key roles
Four Board meetings held in 2016, two in Canada and two in China
Four standing subcommittees: Audit, Corporate Governance, Environment, Health & Safety and Reserves, and Human Resources & Compensation

Short-term Goals:

Challenging economic forces in the oil and gas industry, with lower production activity than pre-recession years

Significantly improved operating cost structure, reducing drilling and completion costs
Exceptional well performance of new wells due to improved technical evaluation
Successful divestiture of non-core projects