Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions reduction
• Asset retirement obligations
• Water stewardship
• Energy consumption and clean energy transition
• Operational integrity
• Employee health and safety
• Employee engagement
• Community investment
• First Nations collaboration
• Corporate governance

Environmental Achievements

• 22% decrease in total GHG emissions (since 2018)
• 763 wells abandoned
• 228 wells reclaimed (since 2019)
• ~100% of produced water recycled or injected (2020 & 2021)
• Carbon credits earned (2021)
• Increased use of solar energy for well operation

Social Achievements

• 53% decrease in TRIF (from 2020) to 0.80 cases per 200,000 hours
• Improved employee engagement initiatives
• Introduction of “safety moments”
• 35% female staff (2021)
• Substantial representation and employment of First Nations communities
• $201.9 million economic benefit (2021)
• Local community donations and initiatives
• Improved communications and engagement with Frog Lake First Nations
• $7.6 million spent on First Nations businesses

Governance Achievements

• Restructured organization to fit future goals
• Created new ESG team
• Built ESG benchmarks and future goals
• Reviewed policies, processes and procedures and began improvements

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions due to increased production and the Boulder Energy Ltd. acquisition
• Restricted programs, availability of funds and geographically spread legacy assets challenged reclamation efforts
• Need to improve communication and engagement with stakeholders
• Need to improve governance practices and policies

Mitigation Strategies

• Replacing high bleed pneumatic controllers with low bleed controllers
• Converting facilities from instrument gas to instrument air systems
• Partnering with ECCC to pipeline vented gas
• Investing in gas conservation projects
• Building an experienced ARO team
• Implementing a multi-pronged process to rebuild relationships with Frog Lake First Nations
• Initiating two-way dialogue with employees, consultants, and contractors
• Reviewing and redesigning employee rewards structure
• Creating a new ESG and sustainability team
• Reviewing and building ESG benchmarks and goals
• Implementing a review of governance and internal policies, processes and procedures

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Utilization of First Nations suppliers, contractors and companies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Carbon capture, utilization, and storage

Reporting Standards

Frameworks Used: SASB Oil & Gas – Processing & Exploration Accounting Standard, GRI GRI 11: Oil & Gas Sector 2021, TCFD

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

• Carbon Capture, Utilization, and Storage (CCUS)
• Clean Energy Transition
• Environmental Stewardship
• Community Investment

Environmental Achievements

• Awarded the right to pursue development of a Carbon Capture Sequestration Hub with the capacity to sequester over 2.7 million tonnes of CO2 per year.

Social Achievements

• Supporting local communities through the creation of new economic ventures.
• Received support from the Municipal District of Pincher Creek No. 9, industry participants, clean energy developers, investment banks and First Nations groups.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Risks associated with the oil and gas industry (operational risks in development and exploration)
• Impact of government assistance programs
• Assumptions and expectations with respect to the Carbon Capture Sequestration Hub
• Inability to continue as a going concern
• Impact on energy demands due to regional and/or global health related events
• Delays or changes in plans with respect to exploration or development projects or capital expenditures
• Loss of markets
• Unanticipated operating or environmental events
• Risks associated with wars and armed conflicts
• Competition
• Failure to complete or realize the anticipated benefits of partnerships, acquisitions or dispositions
• Ability to access sufficient capital
• Failure to obtain required regulatory and other approvals
• Reliance on third parties
• Changes in legislation

Mitigation Strategies

• Working with Alberta Energy to evaluate the next stage of the project and demonstrate how the Hub can be safely and responsibly developed to meet Alberta’s rigorous safety and environmental standards.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of the Carbon Capture Sequestration Hub

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

The Carbon Capture Sequestration Hub contributes to these goals by reducing greenhouse gas emissions and promoting clean energy.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed