Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Social
• Governance

Environmental Achievements

• Heartland Petrochemical Complex estimated to produce 65% fewer GHGs than similar facilities globally.

Social Achievements

• $4 million invested and 3,800+ employee volunteer hours dedicated to various local initiatives.
• 3-year, $580,000 support for Women Building Futures.
• 10-year, $10 million research partnership with the Northern Alberta Institute of Technology to explore plastic reuse and recycling.

Governance Achievements

• Published second and significantly augmented sustainability report.
• Canadian businesses achieved 6 million workhours without an employee lost time accident.

Climate Goals & Targets

Environmental Challenges

• Constrained market access for hydrocarbon production.
• Discounted Canadian commodity prices.
• Anemic sector growth.
• Volatile liquids pricing in NGL processing business.
• Backwardated refined product markets in European operations (2018).

Mitigation Strategies

• $180 million multi-phase development of Central Alberta pipeline system (including storage expansion and Viking Connector).
• Canadian Natural Resources Kirby North project connection to oil sands transportation systems.
• Exploring the sale of European operations.
• Long-term take-or-pay contracts for Heartland Petrochemical Complex polypropylene production.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI Standards, TCFD

Sustainable Products & Innovation

• Polypropylene from Heartland Petrochemical Complex

Environmental Metrics

ESG Focus Areas

• Safety
• Mental Wellness
• Community Investment
• Sustainable Practices
• Operational Excellence
• Circular Economy
• Plastic Waste Management

Environmental Achievements

• More than 5 years and approximately 8 million hours worked without a lost-time injury.
• GHG emissions reduction by approximately 130,000 tonnes per year at Heartland Petrochemical Complex (HPC)

Social Achievements

• Industry leading mental health programs and a supportive work environment provided.
• Community contributions totaling $3.4 million.
• Collaboration with NAIT on Plastics Research in Action (PRIA) initiative, involving over 1,000 hours of student research.

Governance Achievements

• Divestment of most of European storage business to strengthen balance sheet and improve financial liquidity.
• Establishment of measurable ESG targets planned for 2021.

Climate Goals & Targets

Environmental Challenges

• Challenging business conditions due to global pandemic and severe deterioration of global commodity pricing.
• Impact on profitability of NGL processing assets and conventional oil pipeline business.
• Producer curtailments lowering throughput volumes on conventional pipeline systems.

Mitigation Strategies

• Lowered monthly dividend.
• Implemented targeted expense reductions.
• Divested most of European storage business.
• Secured new credit lines.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: ISO 14064-3

Third-party Assurance: Third-party audit verification processes

Sustainable Products & Innovation

• Polypropylene production at Heartland Petrochemical Complex

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Safety
• Workforce Diversity
• Community Investment
• Governance

Environmental Achievements

• Prevention of GHG emissions due to offgas operations: 279,503 tCO2e in 2021
• Increased recycled water usage: 3,239,193 m3 in 2021

Social Achievements

• Increased community investment: $4 million CAD in 2021
• Increased employee volunteer hours: 3,538 hours in 2021

Governance Achievements

• Board ESG oversight implemented in 2021

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted training hours and volunteer hours
• Data limitations and exclusions

Mitigation Strategies

• Adjusted reporting methodologies to account for revised calculation methodologies
• Continued focus on safety and environmental protection despite challenges

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: SASB, GRI, TCFD

Certifications: ISO 14064-3

Third-party Assurance: Third-party audit verification

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Commissioned Heartland Complex, designed as one of the lowest GHG emitting plants of its kind in the world
• Prevention of GHG emissions due to offgas operations: 329,849 tCO2e in 2022

Social Achievements

• Completed one of the safest industrial builds in Alberta history (Heartland Complex)
• Logged 1,526 employee volunteer hours

Governance Achievements

• Board ESG Oversight: Yes
• Code of Business Ethics: Yes

Climate Goals & Targets

Environmental Challenges

• Variance in emissions profile for 2022 due to Heartland Complex transitioning from construction to full operation

Mitigation Strategies

• Heartland Complex designed and built as one of the lowest GHG emitting plants of its kind
• Bow Valley Carbon underground storage project under consideration to reduce GHG emissions

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: SASB, GRI, TCFD

Certifications: ISO 14064-3

Third-party Assurance: Third-party audit verification for GHG emissions

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed