Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Responsible, sustainable resource development
• Good governance practices
• Community engagement
• Emissions & Climate Change
• Governance & Business Ethics

Environmental Achievements

• Reduced carbon emissions per completion by approximately 27% by utilizing bi-fuel frac in all completion operations starting in 2019.
• Designed and constructed two well sites with almost no emissions using new technology.
• Permanently switched fuel source for all frac operations to displace carbon-intense diesel, reducing carbon emissions by at least 25%.

Social Achievements

• 25% reduction in injury-related incidents in 2019 despite the company's most active year for capital expenditures.
• Positive investment in communities through employment, support of local services and businesses, and donations and sponsorships.

Governance Achievements

• Implemented high standards of corporate governance to improve risk oversight and enhance accountability to shareholders and stakeholders.
• Annual election of all directors under a majority vote standard.
• Board committees comprised solely of independent directors (except for the HSE Committee chaired by the CEO).

Climate Goals & Targets

Environmental Challenges

• Transition to a lower-carbon economy.
• Managing sour produced water reuse due to H2S content.
• Managing abandonment and reclamation liabilities.

Mitigation Strategies

• Developing and implementing longer-term emission reduction targets (planned for 2021).
• Constantly reviewing new technology for H2S removal to enable produced water reuse.
• Prioritizing improvement of Liability Management Rating (LMR) and developing medium and long-term targets to manage oil and gas liabilities.
• Proactive management of abandonment and reclamation liabilities.

Supply Chain Management

Responsible Procurement

• Vendor management system to ensure Kelt hires competent, experienced and skilled contractors and vendors.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Emissions and Climate Change
• Spill Prevention and Response
• Abandonment and Reclamation Liabilities
• Water Use
• Hydraulic Fracturing
• Community Impacts
• Economic Impact
• First Nations
• Business Ethics
• Transparency
• Profitable Growth

Environmental Achievements

• Reduced methane emissions by 1,000 tonnes in 2021 (49% decrease from 2020)
• Avoided more than 19,000 tonnes of CO2e annually through initiatives at Oak facility
• Replaced all high-bleed methane-venting pneumatic valves in Alberta
• 90% reduction in potential emissions at a pilot sustainable low emission well site facility in 2020
• Reduced carbon emissions per completion by approximately 25 percent since 2019 using bi-fuel frac equipment

Social Achievements

• Invested $193 million in local communities in taxes, services, and employment in 2020
• Appointed Janet E. Vellutini and Geri Greenall to the Board, increasing female representation to 40% of independent board members
• Engaged in stakeholder consultation prior to undertaking any development in an area
• Worked with First Nations, incorporating First Nations vendors into bidding processes ($0.9 million directly with First Nations vendors and $40.0 million in affiliated vendors in 2020)

Governance Achievements

• Implemented high standards of corporate governance to improve risk oversight and enhance accountability
• Annual election of all directors under a majority vote standard
• 5 of 6 directors are independent (excluding CEO)
• Director share ownership requirement of 3X annual compensation
• Continual board renewal with an average tenure of 5 years among independent members

Climate Goals & Targets

Environmental Challenges

• High proportion of Kelt’s produced water contains H2S, posing challenges for reuse or recycling
• Managing abandonment and reclamation liabilities

Mitigation Strategies

• Significant investments in fresh water storage, in-field water pipelines, and water disposal to minimize fresh water withdrawal
• Reusing flowback water whenever possible
• Using flowback water, produced water, and landfill runoff in place of fresh water sources
• Developing medium and long-term targets to manage oil and gas liabilities
• Prioritizing the improvement of its Liability Management Rating (LMR)

Supply Chain Management

Responsible Procurement

• Engaging local businesses to drive employment and economic benefits

Climate-Related Risks & Opportunities

Transition Risks

• Escalating carbon taxes

Opportunities

• Development of energy-efficient products and technologies
• Investment in Nauticol Energy's Net Zero Blue Methanol facility

Reporting Standards

Frameworks Used: SASB for Oil & Gas – Exploration & Production Sustainability Accounting Standard

Sustainable Products & Innovation

• Sustainable low-emission well site design