Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental responsibility

Environmental Achievements

• Increased disposal volumes by over 30% in 2017; long-term contract signed in Q4 2017 to manage oil sands metal recycling.
• Increased focus on proactive environmental projects to prevent spills and reduce future environmental liabilities.

Social Achievements

• Production Chemicals Acquisition added over 100 fully formulated proprietary products, key infrastructure, and an experienced employee base.
• Ceiba Acquisition added ten new facilities, increasing capacity and geographic footprint; realizing synergies related to senior management, sales, and general and administrative costs.

Governance Achievements

• Increased dividend by 6% in November 2017; previously increased in Q2 2017.
• Board of Directors approved a 6% increase to the monthly dividend rate.

Climate Goals & Targets

Environmental Challenges

• Pipeline capacity constraints resulted in higher demand for full-service rail terminals.
• Lower than forecast results in 2017 led to impairment charges related to the Alida crude oil terminalling facility.

Mitigation Strategies

• Construction of Kindersley-Kerrobert light oil feeder pipeline system and receipt terminal to reduce truck traffic and transport costs.
• Cost management structure improvements resulted in improved operating margins across various facilities.
• Continued diversification efforts in the DPS division to become less dependent on drilling activity.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Sustainability

Environmental Achievements

• Expanded the mandate and name of the Board of Director’s Health, Safety and Environmental Committee to include the development and monitoring of sustainability initiatives.
• Published first ever Climate Policy for increasing energy efficiency and reducing emissions.
• Adopted an ‘Every Drop Matters’ campaign for spill prevention.
• Reduced motor vehicle incident rate by 16%.

Social Achievements

• Formalized stakeholder relations and Aboriginal vendor policies.
• Hosted and participated in fundraising events for KidSport, Providence, the Alberta Children’s Hospital Foundation and the United Way for a combined total of over $450,000.
• Invested over $1 million back into local communities across western Canada and North Dakota.

Governance Achievements

• Linked executive compensation targets to key corporate sustainability goals.

Climate Goals & Targets

Environmental Challenges

• Reduced oil and gas drilling and completion activity impacting Environmental Solutions and Technical Solutions divisions.
• Cyclical nature of service lines supporting drilling and completion activities.
• Ongoing environmental and political debates surrounding transportation of crude oil in Canada resulting in significant delays of proposed pipeline projects.

Mitigation Strategies

• Initiated a formal sales process for specific service lines that support drilling and completion activities to reduce exposure to their cyclical nature.
• Midstream growth initiatives (oil and water pipelines, crude oil storage, expanded marketing capabilities) to increase recurring production-based revenues.
• Focus on managing financial position and using funds flow from operations for debt reduction, midstream infrastructure growth, and share buybacks.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Sustainability
• Indigenous Relations
• Community Relations

Environmental Achievements

• Reduced fleet fuel consumption by 37%, resulting in a 3,216 tonne reduction in greenhouse gas emissions
• Overall water usage decreased by 29% from 2019
• Aggregate spill volumes were down 70% from 2019

Social Achievements

• Introduced a Supplier Code of Conduct
• Implemented enhanced health and safety measures during the COVID-19 pandemic
• Gave back over $3.6 million in the past three years to the communities in which we live and work through donations, sponsorships and fundraising efforts
• Utilized 49 Indigenous-owned businesses, contractors or suppliers for a total spend of $8.9 million, a 29% increase over last year despite lower overall Corporate spending
• Entered into five new mutually beneficial agreements with Indigenous communities and businesses in 2020
• 92% employee participation rate and an overall engagement score of 65% in 2019

Governance Achievements

• Formalized a Climate Policy
• Published an Indigenous Relations policy
• Introduced the concept of reviewing incidents for potential significant injuries and fatalities (SIF-P)

Climate Goals & Targets

Environmental Challenges

• Volatility of Industry Activity and Oil and Natural Gas Prices
• Force Majeure Events
• Global Financial Conditions
• COVID-19 Pandemic
• Timing and Execution of Government Site Rehabilitation Programs
• Governmental Regulation
• GHG Emissions
• Climate Change
• Competitive Conditions
• Impairment Losses on Physical Assets
• Merger and Acquisition Activity
• Commodity Price Risk
• Crude Oil Pipeline Transportation
• Credit Risk
• Regulation and Taxation of Energy Industry
• Trade Relations
• Foreign Operations Risk
• Performance Obligations
• Development of New Technology and Equipment
• Information Security
• Breach of Confidential Information
• Transition to Alternative Energy Sources
• Equipment Risks
• Potential Replacement or Reduced Use of Products and Services
• Scheduled and Unscheduled Maintenance
• Sources, Pricing and Availability of Products and Third-Party Services
• Contract Bidding Success and Renewal of Existing Contracts
• Seasonal Nature of the Industry
• Foreign Currency Risk
• Key Personnel
• Economic Dependence
• Asset Retirement Obligations
• Environmental Protection & Health and Safety
• Availability of Qualified Employees
• Proprietary Technology
• Risk of Third-Party Claims for Infringement
• Operating Risks and Insurance
• Financing Future Growth or Expansion
• Access to Capital
• Indigenous Peoples Consultation, Claims and Relationships
• Environmental Activism and Opposition
• Sustainability and Emissions Targets and Performance
• Reputation
• Volatility of Market Price of Common Shares
• Dividend Payout
• Leverage and Restrictive Covenants
• Interest Rates
• Legal Proceedings

Mitigation Strategies

• Creating long-term partnerships with customers
• Building and connecting produced water pipelines and disposal facilities
• Building and connecting gathering oil pipelines
• Utilizing crude oil storage
• Expanding production-related services and recurring environmental project work
• Formalized social, health and safety, and environmental policies and procedures
• Implemented an updated Fugitive Emissions Management plan
• Implemented an energy optimization program
• Initiated the ‘Every Drop Matters’ campaign
• Formalized Indigenous consultation and economic inclusion with the publication of our Indigenous Relations policy
• Implemented business processes to identify Indigenous vendors and track spending with these businesses
• Entered into two credit facilities
• Amended the First Lien Facility

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Inclement weather

Transition Risks

• Regulatory changes
• Market shifts
• Decreased demand for hydrocarbons

Opportunities

• Building oil and water pipelines
• Consolidating volumes from multiple producers

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Environmental Challenges

• Wildfires, flooding, water scarcity, and extreme temperatures that threaten business continuity and damage assets.

Mitigation Strategies

• Integrating climate impacts into business risk assessments and ESG materiality assessments to prioritize and mitigate material risks.
• Regularly reviewing and revising the Climate Action Plan to effectively manage climate impacts and stakeholder expectations.

Supply Chain Management

Responsible Procurement

• Strategically locating Midstream Infrastructure and water and waste treatment services near customer production to reduce transportation requirements
• Building oil and water pipelines to reduce emissions associated with trucking
• Consolidating volumes from multiple producers and waste generators to reduce customers’ capital requirements and overall environmental impact
• Providing scrap metal recycling services
• Offering waste services and onsite customers waste management solutions that have lower carbon intensity

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Flooding
• Water scarcity
• Extreme temperatures

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Security
• Water Management

Environmental Achievements

• Reduced corporate GHG emission intensity by 5% year-over-year in 2023; 12.9% reduction since 2021.
• Decreased corporate GHG emission intensity by 21% year-over-year in Metals, Mining and Rail Business Unit.
• Avoided 135,658 tonnes of CO2e through recovery processes and pipelines, offsetting all Scope 1 emissions.

Social Achievements

• Displaced 140,000 trucks through pipeline infrastructure, reducing customer Scope 3 emissions and improving safety.
• Provided climate awareness training and promoted employee engagement in emission reduction initiatives through ESG ID program.

Governance Achievements

• Established an ESG Committee to oversee climate-related initiatives and report to the Board.
• Linked 25% of executive compensation to ESG factors.

Climate Goals & Targets

Environmental Challenges

• Decreasing demand for oil and gas due to policy changes or social pressure.
• Regulatory frameworks not conducive to rapid adoption of new emission reduction technologies.
• Potential disruptions to energy reliability and affordability due to energy transformation.
• Supply chain constraints on emission reduction technologies.
• Reputational risks if climate targets are not met.
• Changes in environmental regulations and carbon pricing.
• Acute and chronic physical risks from extreme weather events (flood, wind, wildfire).

Mitigation Strategies

• Seeking long-term contracts with customers, expanding customer base beyond oil and gas, and targeting resilient acquisitions.
• Exploring opportunities in energy transformation (carbon capture, hydrogen), remediation, and reclamation.
• Exploring multiple options for emission reduction solutions (fuels, vehicles).
• Proactive communication and reporting on climate action.
• Actively monitoring and engaging with changing policies and regulations.
• Emergency preparedness planning for extreme weather events.
• Staged capping on landfills to reduce leachate and costs.
• Robust asset integrity management programs.
• Internal requirements for emission reduction projects to meet criteria similar to other capital projects.
• Seeking government incentives to offset costs of emission reduction projects.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (drought, severe storms, wildfire, flooding)
• Water stress
• Changing weather patterns and rising mean temperatures

Transition Risks

• Decreasing demand for oil and gas
• Regulatory changes
• Supply chain constraints
• Need to accelerate emission reduction investments

Opportunities

• Energy transformation projects (carbon capture, hydrogen)
• Remediation and reclamation services
• Water treatment and recycling
• Renewable energy projects
• Carbon credit opportunities
• Improved resource efficiency

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)

Reducing truck traffic through pipeline infrastructure improves safety and reduces potential for accidents.

Sustainable Products & Innovation

• WiQ digital application for waste classification and regulatory reporting
• Bioplastic filters