Climate Change Data

Canadian Natural Resources Limited

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:23.15 million tonnes CO2e
Scope 1 Emissions:23.15 million tonnes CO2e
Scope 2 Emissions:3.26 million tonnes CO2e
Scope 3 Emissions:132 million tonnes CO2e
Carbon Intensity:0.045 tonnes CO2e/BOE (2021 corporate total)

ESG Focus Areas

  • Climate (Governance, Strategy, GHG reduction)
  • Workplace and Process Safety
  • Community and Indigenous Relations
  • Environment (spill prevention, water stewardship, biodiversity)
  • Tailings Management

Environmental Achievements

  • 13% reduction since 2017 in Scope 1 GHG emissions intensity
  • 45% reduction from 2016 in North America E&P Methane Emissions
  • 57% reduction from 2017 in in situ fresh water use intensity
  • 48% reduction from 2017 in oil sands mining fresh river water use intensity
  • 11.4 million tonnes of CO2e conserved in primary heavy crude oil and in situ operations since 2017
  • 6 million tonnes CO2e captured and safely stored at Quest since 2015
  • 86% recycle rate of surface water in oil sands mining
  • 85% recycle rate of produced water in thermal operations
  • 3,079 inactive wells abandoned in 2021
  • 1,644 hectares of land reclaimed in 2021
  • 7.3 million trees planted across operations to date

Social Achievements

  • 80,728 full-time equivalent jobs supported by operational and capital spending
  • $572 million awarded in contracts with 144 Indigenous businesses (17% increase from 2020)
  • $32 million invested in creating shared value for local communities near our operations
  • Launched Strive wellness app
  • Launched Canadian Mental Health Association’s program, Not Myself Today

Governance Achievements

  • 4 of 9 independent directors are women (44.4%)
  • Increased Safety, Asset Integrity and Environmental performance measure weighting by 50% (from 10% in 2020 to 15% in 2021) in executive compensation
  • AAA rating for tailings management in Tier 1 and Tier 2 process safety events versus 2017 for Horizon and Albian

Climate Goals & Targets

Long-term Goals:
  • Net zero GHG emissions from oil sands operations by 2050 (Pathways Alliance)
Medium-term Goals:
  • 50% reduction by 2030 from 2016 baseline (NA E&P methane emissions)
Short-term Goals:
  • 40% reduction in fresh water use by 2026 from 2017 baseline (oil sands mining)
  • 40% reduction in fresh river water use by 2026 from 2017 baseline (oil sands mining)

Environmental Challenges

  • Reducing GHG emissions across operations
  • Managing climate change related risks and opportunities
  • Maintaining safety excellence across operations
  • Ensuring process safety performance
  • Managing tailings effectively
  • Reducing fresh water use and improving water reuse
Mitigation Strategies
  • Participation in the Pathways Alliance
  • Investment in CCUS projects
  • Solution gas conservation
  • Compressor optimization
  • Pneumatic device retrofits and removals
  • CO2 addition to oil sands tailings
  • Robust Safety Management System (SMS)
  • Frontline-driven Incident Prevention
  • Process Safety Management (PSM) system
  • Risk Based Inspection (RBI) continuous improvement project
  • Asset Integrity Management Systems
  • Tailings management strategies aligned with regulatory requirements
  • Maximizing produced water recycling and using saline water for steam generation

Supply Chain Management

Responsible Procurement
  • Indigenous Contractor Directory
  • Business development meetings with community representatives
  • Contracts with 144 Indigenous businesses

Climate-Related Risks & Opportunities

Transition Risks
  • Regulatory changes
  • Market shifts
  • Carbon pricing
Opportunities
  • Development of energy-efficient products
  • Investment in natural gas production
  • CCUS projects
  • Renewable energy integration

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

  • Goal 4: Quality Education
  • Goal 5: Gender Equality
  • Goal 6: Clean Water and Sanitation
  • Goal 7: Affordable and Clean Energy
  • Goal 8: Decent Work and Economic Growth
  • Goal 9: Industry, Innovation and Infrastructure
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 15: Life on Land

Canadian Natural’s activities contribute to the UN Sustainable Development Goals (SDGs) through providing affordable energy, improving energy efficiency, creating jobs, investing in communities, and protecting the environment.

Sustainable Products & Innovation

  • Blue hydrogen
  • Activated carbon
  • Graphene
  • Graphite

Awards & Recognition

  • United Way Quantum Leap award

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Climate (Governance, Strategy, and Greenhouse Gas Reduction)
  • Workplace and Process Safety
  • Community and Indigenous Relations
  • Environment (spill prevention, water stewardship, biodiversity)
  • Tailings Management and Dam Safety

Social Achievements

  • $830 million in contracts with Indigenous businesses in 2023, a 21% increase from 2022
  • $36.6 million invested in local communities in 2023
  • 1,000+ community activities supported in 2023, a 25% increase from 2022
  • 157 scholarships and bursaries awarded across operations in 2023

Governance Achievements

  • 4 of 10 independent directors are women (40%)
  • ESG performance is linked to executive compensation (20% of total weighting)

Climate Goals & Targets

Environmental Challenges

  • Uncertainty regarding the interpretation and application of amendments to the Canadian Competition Act concerning environmental communications
Mitigation Strategies
  • Postponement of environmental and climate-related disclosure until sufficient guidance is received from the federal government

Supply Chain Management

Responsible Procurement
  • Indigenous Contractor Registry

Climate-Related Risks & Opportunities

Awards & Recognition

  • Forbes Canada’s Best Employers 2024
  • Top 50 Employer in Overall and Engineering categories by Canada’s Future Workforce