Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Governance
• Social Responsibility

Environmental Achievements

• Achieved and maintained a methane-intensity rate of 0.28% or lower in 2019, meeting its 2019 target. Reduced flaring intensity to well below 1% of gross natural gas produced company-wide in the first three quarters of 2020. Injected approximately 5.5 million metric tons of CO2 for enhanced oil and natural gas recovery since 2008.
• Expanded leak detection and repair (LDAR) program, resulting in improved leak detection rates.

Social Achievements

• Proactive stakeholder engagement with investors, nonprofits, industry associations, and government agencies.
• Continued focus on employee safety and business continuity, demonstrated by effective responses to Hurricane Harvey and the COVID-19 pandemic.

Governance Achievements

• Board of Directors has primary responsibility for oversight of climate risk assessment and strategy. Methane intensity measure is a component of executive and employee compensation.
• Alignment of disclosure practices with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Climate Goals & Targets

Environmental Challenges

• Current and emerging GHG regulations, particularly those targeting industry activity on federal lands.
• Reputational risks associated with climate change and potential for higher cost of capital.
• Access to water for operations and potential regulatory restrictions on water use and disposal.
• Natural disasters and extreme weather events.

Mitigation Strategies

• GHG emissions management through expanded LDAR programs, transition to air-driven pneumatic controllers, flare reduction, and exploration of new emission detection technologies.
• Financial performance and portfolio optimization, including divestments of higher-risk assets.
• Proactive stakeholder engagement to build trust and cooperation.
• Innovative water management through water reuse and recycling, and proactive planning to consider water access and costs in project designs.
• Robust emergency preparedness and business continuity capabilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural Disasters
• Extreme Weather

Transition Risks

• GHG Regulations
• Reputational Risks
• Access to Capital
• Reduced Competitiveness of Carbon-Based Fuels

Opportunities

• Carbon Capture, Utilization, and Storage (CCUS)
• Natural Gas Monetization
• Technological Innovation for Emissions Reduction

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• SDG 7
• SDG 13

Environmental Metrics

ESG Focus Areas

• safety
• greenhouse gas emissions
• climate change
• water recycling and conservation
• corporate governance
• shareholder engagement
• diversity, equity and inclusion
• corporate culture
• community relationships

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions 14% and methane emissions by 47% in 2020 compared to 2019.
• Reduced Scope 1 and 2 GHG emissions intensity 13% and methane emissions intensity by 47% in 2020 compared to 2019.
• Reduced flared volume intensity by 33% in 2020 compared to 2019.
• Used approximately 37 million barrels of recycled water in 2020. Over 150 million barrels of recycled water used since 2015.
• 90% non-freshwater usage for completions in most active Delaware Basin operating areas

Social Achievements

• Launched Inclusion and Equity Grants program to support nine Black community organizations in Oklahoma City.
• Distributed over 10,000 at-home STEM resources for children and teachers in our operating areas.
• Addressed urgent community needs resulting from the COVID-19 pandemic by modifying our social investment plan activities.
• Raised $1.4 million in our expedited annual employee giving campaign.
• Honored the Tulsa community’s support of legacy WPX Energy with grants focused on economic development, education, social services and community enrichment.

Governance Achievements

• Enhanced the structure and composition of the board of directors to cultivate strong risk management, decision-making and communications.
• Earned top-tier rankings among peer companies on major ESG-focused surveys and assessments.
• Continued track record of increasing transparency on political activity and lobbying through our 2021 Political Activity and Lobbying Report.
• Engaged with approximately 100 governance representatives of institutional investors representing more than 46% of outstanding shares.
• Expanded the responsibilities of the former Governance Committee to include environmental and public policy oversight, renaming it the Governance, Environmental, and Public Policy (GEPP) Committee.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Water scarcity in some operating areas
• Capacity constraints in the Williston Basin leading to flaring
• Maintaining a diverse workforce after the merger

Mitigation Strategies

• Modified social investment plan to address community needs during the pandemic
• Increased recycling capacity and use of recycled water
• Investing in midstream assets to alleviate capacity constraints
• Implementing revised recruiting practices to improve candidate diversity
• Offering flexible work arrangements and responsive wellness programs to retain employees

Supply Chain Management

Supplier Audits: Annual evaluations of contractors by 2023

Responsible Procurement

• Supplier qualification process
• ESG priorities incorporated into contractor questionnaires

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: IPIECA, TCFD, SASB, UN SDGs

Certifications: Null

Third-party Assurance: AECOM

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 13
• Goal 15
• Goal 17

Devon's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Landscape Stewardship Certificate of Appreciation (2019)

Environmental Metrics

ESG Focus Areas

• Reducing Scope 1 & 2 GHG emissions intensity
• Air emissions
• Water management practices

Environmental Achievements

• Reduced production costs by 2% compared to the previous quarter, driven by lower production taxes resulting in higher field-level cash margins.
• Successful restart of Stateline compressor station 8 and commencement of operations at station 10, improving operational flexibility.

Social Achievements

• Not disclosed

Governance Achievements

• Increased share repurchase authorization by 50 percent to $3.0 billion.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

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