Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social License to Operate

Environmental Achievements

• Focus on natural gas, the cleanest fossil fuel; Production close to markets saves on transportation and reduces overall emissions; Investment in new technologies and adoption of best practices to minimize surface footprint; Use of technology to improve efficiencies and reduce emissions from operations; Water recycling and reuse wherever possible; Responsible disposal of produced water at controlled sites.

Social Achievements

• Proactive engagement with the Quebec government and other stakeholders leading to the endorsement of new hydrocarbon legislation; Focus on areas with low population density, specifically excluding urban areas for contingent resources development.

Governance Achievements

• Commitment to transparency; Respectful of public involvement in energy future choices; Compliance with strict environmental regulations.

Climate Goals & Targets

Environmental Challenges

• Difficult two years due to downturn in the industry; Lower commodity prices; Need to secure social license to operate in Quebec; Appraisal and development of oil shale in Jordan; Access to capital.

Mitigation Strategies

• Efficiency improvements in the Montney; Steadfast work in Quebec; Resource delineation in Jordan; Preserving liquidity; Reduced capital spending by 30%; Reduced overheads by about 25%; Two private placements for gross proceeds of $12 million in 2016 and an additional $24 million in 2017.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 51-101, COGE Handbook

Third-party Assurance: PricewaterhouseCoopers LLP

Environmental Metrics

ESG Focus Areas

• Near-zero environmental impact
• Social acceptability
• Clean technology
• Sustainability

Environmental Achievements

• Agreements with Schlumberger and SNC-Lavalin to advance the Clean Tech Energy project in Quebec, aiming for zero emissions natural gas production with zero fresh water usage and zero toxic chemicals below ground.
• Using Schlumberger Stewardship Tool to model and measure environmental impacts.

Social Achievements

• Teamsters Canada publicly declared support for natural gas development in Quebec.
• Engaged Industrial Alliance Securities Inc. to find Quebec-based strategic investors for the Clean Tech Energy project.
• Formation of an independent clean tech energy alliance including environmental NGOs, educational institutions, and engineering firms.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Communicating economic and environmental benefits of the Clean Tech Energy project to the government and stakeholders is taking longer than expected.
• Securing social acceptability for the Clean Tech Energy project in Quebec.

Mitigation Strategies

• Applying to extend the deferral of judicial review until early next year to allow time for engineering completion and stakeholder engagement.
• Step-by-step approach to align technical work with social acceptability and regulatory approvals.
• Engaging with stakeholders, including the Quebec government, to build support for the project.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes in Quebec

Opportunities

• Leadership in clean natural gas production

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)

Clean Tech Energy project aims to produce clean energy and reduce emissions.

Sustainable Products & Innovation

• Clean Tech Energy project (zero emissions natural gas)

Awards & Recognition

• Not disclosed