Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Social Responsibility
• Governance
• Stakeholder Engagement

Environmental Achievements

• CDP Climate disclosure score of 93 out of 100
• 6% reduction in Scope 1 GHG emissions in Canada
• Submitted first CDP Water Report
• Completed two energy-efficiency audits

Social Achievements

• Nine lost-time injuries (below target of 10)
• 64% decrease in Motor Vehicle Incidents since 2012
• $1.2 million spent on community investments
• Launched Owning It Safety Recognition program
• Launched Match It Up With Enerplus Program

Governance Achievements

• Developed S&SR Management System
• Completed third-party review of S&SR Management System
• Developed S&SR Risk Registry
• Merged Environment and Health & Safety policies into single S&SR Policy

Climate Goals & Targets

Environmental Challenges

• Increased energy intensity in North Dakota due to midstream gas processing issues and changes in gas flaring volume reporting
• Greater number of spills than targeted
• Decrease in reclamation certificates due to stricter criteria and organizational changes
• Increased number of low-risk non-compliance events

Mitigation Strategies

• Implementing detailed Pipeline Operations Maintenance Manual, Operator Competency Manual, and How Work Gets Done program to improve spill performance
• Addressing midstream infrastructure issues to decrease gas flaring volumes
• Improving processes to facilitate reclamation certificate processing
• Implementing Own Your Location initiative to improve compliance

Supply Chain Management

Supplier Audits: 12 Leader-to-Leader Safety Summits with contractors

Responsible Procurement

• Rigorous criteria for health and safety, insurance, legal, and financial matters; consideration of local contractors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, Oil and Gas Sector Supplement

Certifications: Enform Certificate of Recognition

Awards & Recognition

• Corporate Knights, Future 40 Responsible Corporate Leaders, 2014
• Certificate of Recognition (COR) for Safety Management System, 2014
• CDP Leadership Index, 2012, 2013
• Mandan, Hidatsa and Arikara Nations, Industry Community Service Award, 2013, 2014
• Mandan, Hidatsa and Arikara Nations Best Management Practices Award, 2013
• United Way, Spirits of Gold, 2013, 2014

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Footprint
• Regulatory Compliance
• Community Relations
• Employee Engagement
• Economic Performance
• Governance & Ethics
• Water Management
• Air Emissions
• Supply Chain Management
• Human Rights

Environmental Achievements

• 25% reduction in flaring emissions
• 19% reduction in total greenhouse gas (GHG) emissions
• 5% reduction in freshwater consumption
• 345 active reclamation projects and 32 reclamation certificate applications submitted

Social Achievements

• 31% reduction in recordable injuries
• 67% reduction in lost-time injuries
• Improved lost-time injury frequency from 0.49 to 0.21
• Successful completion of Enform Certificate of Recognition external maintenance audit
• Development of Leader Fuel Up program to improve leadership effectiveness and employee engagement
• Hosted over 9,000 people at 10 community events

Governance Achievements

• Fewest incidents of non-compliance in company history
• 126 of 148 government inspections deemed satisfactory
• 5,784 internal inspections of facilities and infrastructure conducted
• Exceeded the goal of the $75 Million Challenge, resulting in improved operational efficiency

Climate Goals & Targets

Environmental Challenges

• Challenging commodity price environment
• Increased average release volume of environmental releases despite decreased number of reportable releases

Mitigation Strategies

• $75 Million Challenge to improve operational efficiency
• Focus on increasing the number of inspections in fugitive emissions management program
• Reducing gas flaring
• Improving operational efficiency
• Developing GHG Management Strategy
• Maintaining focus on reducing methane emissions
• Implementing Water Security Management Plan and Water Source Decision Tool

Supply Chain Management

Responsible Procurement

• Contractors must meet rigorous criteria for health and safety, insurance, legal matters, and financial stability

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, GRI G4 Oil and Gas Sector Supplement (2013)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Reduced energy consumption (specifics not quantified in provided text)
• Reduced GHG emissions (specifics not quantified in provided text)
• Water recycled and reused (specifics not quantified in provided text)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

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: GRI Standards: Core option

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

• Safety
• People and Culture
• Stakeholder Engagement
• Community Investment
• Air Emissions and Climate Change
• Water
• Environmental Footprint
• Supply Chain
• Regulatory Compliance
• Recycling and Reuse

Environmental Achievements

• Reduced truck traffic by 42,000 trips in North Dakota by installing temporary water lines, resulting in safer roads, reduced air emissions, and more economical wells.
• Reused approximately 99% of water produced from the wellhead in Canadian waterflood operations.
• Abandoned 545 kilometers of pipeline (208 segments) and 232 wells.
• Recovered over $2.2 million through the sale or donation of surplus equipment materials.
• Successfully decommissioned, abandoned, and completed environmental assessments and remediation on a 35-year-old facility in four months.

Social Achievements

• Decreased contractor Total Recordable Injuries (TRI) from 16 in 2017 to 14 in 2018.
• Launched a technology platform for employees to contribute and discuss new ideas.
• Contributed $735,000 in support of communities through donations and sponsorships.
• Provided over 400 fire extinguishers to employees as part of the Off-the-Job Safety Program.
• Reported over 800 employee volunteer hours and matched over $34,000 in employee donations to charities.

Governance Achievements

• Achieved a 90% average compliance rating from 2016 through 2018, exceeding industry average compliance rates in some jurisdictions.

Climate Goals & Targets

Environmental Challenges

• Increase in Lost-Time Injuries (LTI) from three in 2017 to six in 2018.
• Greenhouse gas (GHG) emissions intensity ratio remained relatively flat compared to 2017.

Mitigation Strategies

• Addressing the increase in LTIs in 2019 by enhancing safety leadership activities and increasing attention and education around common injuries.
• Continuously looking for ways to improve GHG emissions performance and managing potential impacts from evolving carbon policies.

Supply Chain Management

Responsible Procurement

• Purchase of local goods and services
• Rigorous criteria for contractors regarding health and safety, insurance, and financial stability

Climate-Related Risks & Opportunities

Transition Risks

• Evolving carbon policies

Reporting Standards

Frameworks Used: GRI Standards: Core option

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Water Management
• Community Engagement
• Board Constitution & Culture
• Health & Safety
• Culture

Environmental Achievements

• Reduced greenhouse gas emissions intensity by 24% relative to 2019 (exceeding the 10% target)
• Reduced freshwater water use per well completion in North Dakota by 23% compared to 2019 through the use of produced formation water in well fracturing operations

Social Achievements

• Achieved the best safety performance in the company's history (lowest lost time injury frequency)
• Increased year-over-year employee engagement score throughout the pandemic
• Generated CAD$113 million in current and future-year free cash flow improvements through an employee-driven improvement challenge

Governance Achievements

• Transitioned principal revolving credit facility to a Sustainability-Linked Credit Facility (SLL Credit Facility), incorporating ESG-linked incentive pricing terms
• Aligned ESG reporting with the Task Force on Climate Related Financial Disclosures (TCFD) recommended guidelines

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied due to the mention of managing supply chain as an emerging focus area)
• Evolving climate-related policies and regulations around carbon emissions

Mitigation Strategies

• Closely monitoring the evolving landscape of climate-related policies and regulations to identify impacts and opportunities
• Initiated tracking of contractor ESG metrics through ISNetWorld

Supply Chain Management

Supplier Audits: 86% of contractor base completed ESG questionnaire through ISNetWorld

Responsible Procurement

• Code of Business Conduct
• Supplier Qualification Requirements
• Monitoring contractor commercial risk

Climate-Related Risks & Opportunities

Transition Risks

• Evolving climate-related policies and regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Environmental Metrics

ESG Focus Areas

• GHG Emissions
• Water Management
• Community Engagement
• Health & Safety
• Culture

Environmental Achievements

• Reduced methane intensity by 35% (exceeding target one year ahead of schedule)
• Reduced GHG emissions intensity by 25% relative to 2019
• Reduced freshwater use per completion in North Dakota by 31% compared to 2019

Social Achievements

• Achieved zero lost time injuries in 2021 (best performance in company history)
• Formalized an educational program for Volunteer Fire Departments (promoting safety, mental health, and community capacity building)
• Increased employee volunteer hours to 2,207 in 2021

Governance Achievements

• Updated credit facility to a Sustainability-Linked Credit Facility
• Continued to tie ESG performance to compensation practices
• Evolved ESG focus area management

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (logistics issues, manufacturing delays, labor shortages, inflation)
• Ensuring ability to meet water management targets by increasing produced water in completions
• Managing emissions (operational, reputational, and regulatory risks)

Mitigation Strategies

• Enhanced oversight, planning, and management of supply chains
• Focusing on logistics management and stakeholder partnerships for produced water
• Beyond compliance management approach to emissions, investment in data collection and reporting, participation in industry trade associations, and tying financing to ESG targets

Supply Chain Management

Responsible Procurement

• Sourcing goods and services from local contractors, especially tribal affiliated businesses

Climate-Related Risks & Opportunities

Physical Risks

• Changes to water availability
• Severe weather
• Increased wildfire activities

Transition Risks

• Regulatory reforms
• Policy changes
• Reputational concerns
• Carbon pricing

Opportunities

• Emissions reduction projects
• Improved energy efficiency
• New technologies

Reporting Standards

Frameworks Used: SASB Oil & Gas – Exploration & Production Standard, GRI Standards: Core option, IPIECA Oil and Gas industry guidance on voluntary sustainability reporting, TCFD

Third-party Assurance: ERM CVS (limited assurance)

Awards & Recognition

• 5-Star Energy and Resource Company

Environmental Metrics

ESG Focus Areas

• Emissions Management
• Water Management
• Health & Safety
• Community Engagement
• Culture
• Cybersecurity
• Liability Management
• Digital Technology & Advancement
• Biodiversity
• Supply Chain Management

Environmental Achievements

• Reduced methane intensity by 4% in 2022 (2021 baseline)
• Reduced Scope 1 & 2 GHG emissions intensity by 14% in 2022 (2021 baseline)
• Reduced freshwater use per completion in North Dakota by 36% on average compared to 2019

Social Achievements

• Successfully achieved community engagement target of formalizing and providing an educational program for Volunteer Fire Departments promoting safety and mental health awareness
• Increased employee volunteerism program participation by 40% from 2021
• One lost time injury in 2022

Governance Achievements

• ESG targets factored into bonus structure for all executives and employees since 2015
• 50% of Enerplus’ Independent Directors are female, including the Board Chair

Climate Goals & Targets

Environmental Challenges

• Climate impacts
• Energy transition
• Environmental management practices
• Safe working practices
• Human rights
• Supply chain disruptions due to pandemic, inflation, logistics, labor shortages, severe weather, and geopolitical tensions

Mitigation Strategies

• Comprehensive emissions management program
• Improved data quality and reporting
• Setting targets
• Utilizing strong governance and controls
• Implementing emissions reduction technologies
• Investing in pilot technologies and data management systems
• External auditing of emissions and produced water inclusion
• Alignment of credit facilities with ESG targets
• Proactive management of emissions performance
• Effective community engagement
• Creative reuse of produced water in completions
• Monitoring changes to the physical environment and responding when appropriate
• Incorporating potential severe weather events into infrastructure design
• Business continuity and emergency response plans

Supply Chain Management

Supplier Audits: Utilizes International Suppliers Network (ISN) to evaluate contractor safety performance and programs.

Responsible Procurement

• Utilizing local contractors
• ESG considerations in sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Changes to water availability
• Severe weather
• Increased wildfire activities
• Increased winter storm activities
• Increased extreme temperatures
• Increased potential for flood activity

Transition Risks

• Regulatory reforms and policy changes
• Reputational concerns
• Carbon pricing
• Technological advancement
• Market risks and potential volatility

Opportunities

• Proactive management of emissions performance leading to improved economics
• Improved energy efficiency
• Pilot new technologies
• Prioritize continuous improvement
• Ensure regulatory compliance

Reporting Standards

Frameworks Used: TCFD, SASB, IPIECA, GRI, CDP, AXPC ESG Metrics Template

Third-party Assurance: ERM CVS