Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emission Reduction & Climate Change
• Water Management
• Asset Integrity & Spills
• Workplace, Health & Safety
• Indigenous Partnerships
• Business Ethics & Integrity

Environmental Achievements

• Alberta thermal in situ recycle ratio >89%
• Invested $2.5 million to proactively replace composite piping fittings and install pressure transmitter technologies towards proactive spill mitigation.
• GHG emissions intensity of 0.056 tCO2e/boe (including acquired assets, pro-rated)
• Methane reduction projects at Kakwa resulting in ~24,500 tCO2e/yr reduction
• Improved energy efficiency at Lindbergh site, reducing GHG emission intensity by 4.8%.

Social Achievements

• 279 Leadership field visits reinforcing safety
• Contributed $300,000 to communities through Community Investment Strategy
• >1,500 hours volunteered through One Team Volunteering initiative
• $50,000 contributed to 10 Indigenous students through Momentum Indigenous Scholarship

Governance Achievements

• 25% incentive compensation for employees and Executive Leadership team tied to HSE performance
• Formalized Health and Safety Policy
• Developed Indigenous Inclusion Strategy with four pillars: meaningful consultation, community engagement, education, training & employment, and procurement.

Climate Goals & Targets

Environmental Challenges

• Global climate change and the need to reduce GHG emissions while maintaining safe, reliable production.
• Managing water resources effectively and reducing reliance on freshwater.
• Maintaining asset integrity to prevent spills and leaks.
• Cybersecurity risks associated with digitalization and automation.

Mitigation Strategies

• Investing in innovative emission reduction opportunities and initiatives, including CCS.
• Improving water recycling and exploring alternative water sources.
• Implementing proactive measures such as EAM system, composite pipe replacements, and pressure transmitter technology.
• Implementing technical security measures and cybersecurity training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing local and Indigenous suppliers
• Exploring ESG metrics disclosure from suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Inclement weather events (flooding, wildfires, extreme temperatures)
• Changes in mean temperatures and increased weather variability

Transition Risks

• Changing government regulations (carbon tax, emission caps)
• Availability of emission-reducing technology
• Changes in market demand for fossil fuels

Opportunities

• CCS opportunities
• Development of energy-efficient products
• Investment in renewable projects

Reporting Standards

Frameworks Used: TCFD, SASB

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

• Health & Safety
• Emission Reduction
• Water Management
• Asset Integrity & Spills
• Business Ethics & Integrity
• Indigenous Relations
• Land & Reclamation
• Community Investment

Environmental Achievements

• Invested $26M towards emission reduction projects.
• Achieved an average of >87% recycle ratio for Cold Lake Thermal operations in 2023.
• Invested $495,000 towards gasket replacements and composite pipe replacements in 2023.
• 17% reduction in drilling greenhouse gas (GHG) emissions from battery energy storage system-equipped rigs.
• 15% reduction in volume of freshwater makeup from North Saskatchewan River at Lindbergh asset.
• Spent more than $35 million in site closure and remediation activities, exceeding all required regulatory spending.
• 15,540 trees planted in 2023
• 645 hectares of land reclaimed in 2023

Social Achievements

• Over 65% increase in community investments.
• Launched SAFE360, Strathcona’s safety brand.
• 3,000+ hours of employee volunteerism.
• Introduced three-pillar Indigenous-led Cultural Awareness Program.
• $60,000 in scholarships awarded to 12 Indigenous students.
• $566K total 2023 community investments

Governance Achievements

• Target of >20% board independence achieved.
• 2 new independent board members appointed.
• 25% of incentive compensation tied to health, safety and environment performance.

Climate Goals & Targets

Environmental Challenges

• Emissions-related risks (changes in market demand, geopolitical conditions, supply chain continuity, inclement weather impacts, environmental and regulatory exceedance potential, carbon tax implications, policy and regulatory changes, safety events, records and performance, asset retirement obligations, availability of technology solutions, cybersecurity, debt service obligations).

Mitigation Strategies

• Emissions strategy focusing on methane emission reduction, CO2 emission reduction and optimization, and carbon capture and storage/sequestration.
• Proactive spill mitigation measures.
• Comprehensive enterprise-wide cybersecurity program and incident response plan.
• Asset Integrity Management System integrating process safety, design and quality assurance controls.

Supply Chain Management

Supplier Audits: Review of top-spend vendors to ensure no unethical practices equating to modern slavery.

Responsible Procurement

• Robust health and safety programs required from vendors; disclosure of sustainability metrics (emissions and water use) planned.

Climate-Related Risks & Opportunities

Physical Risks

• Inclement weather impacts

Transition Risks

• Carbon tax implications; policy and regulatory changes

Opportunities

• Carbon capture and sequestration opportunities

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: Null

Third-party Assurance: Third-party verification for a significant portion of emissions data

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CN Safe Handling Award (Hamlin rail terminal)