Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Inability to generate sufficient cash to service all indebtedness.
• Volatility in commodity prices.
• Difficulty raising capital for development projects.
• Restrictive covenants in debt agreements.
• Potential for projects not being completed on time or within budget.
• Uncertainties in bitumen in-situ recovery processes.
• Potential for increased natural gas prices to negatively impact profitability.
• Public perception of Canada's oil sands.
• Lack of or impediments to constructing sufficient pipeline, shipping, or refining capacity.
• Operational risks and hazards associated with oil sands exploration and development.
• Uncertainties in reserves and resources definitions.
• Reservoir characteristics may vary from analogues.
• Environmental regulations.
• Climate change legislation.
• Potential for unsuccessful future delineation programs.
• Highly competitive oil sands and oil industry.
• Potential for Oil Sands Leases not being renewed.
• Significant government regulation.
• Potential for claims by aboriginal peoples.
• Difficulties for non-Canadian investors.
• Volatility in share price and trading volume.
• Potential for future sales of Shares by substantial shareholders.
• Inability to pay dividends on Shares.
• Dilution of shareholder interests due to share option schemes.

Mitigation Strategies

• Seeking additional financing through debt, equity, joint ventures, and asset sales.
• Implementing improvement work to increase efficiency of West Ells SAGD plant.
• Developing projects in stages to manage costs and risks.
• Investigating rail and pipeline alternatives for transportation.
• Pursuing strategic alliances and partnerships.
• Focusing on attracting, retaining, and training key personnel.
• Applying current and future technologies for development of carbonate resources.
• Regularly reviewing and revising reserves and resources estimates.
• Implementing hedging arrangements to reduce exposure to price fluctuations.
• Seeking exemptions to carbon levies.
• Working to address public concerns regarding environmental issues.
• Monitoring and evaluating options for diluent supply.
• Developing related infrastructure such as roads and pipelines.
• Exploring saline water sources for long-term operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Changes in climate change legislation and regulations.

Reporting Standards

Frameworks Used: NI 51-101, COGE Handbook

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• Environment and Natural Resources
• Employment and Labour Practices
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Substantial compliance with environmental laws and regulations.
• Slight decrease in air pollutants emissions from stationary combustion due to more reliable production and decrease in fuel consumption.
• Decrease in GHG scope 1 emission from stationary combustion due to decrease in steam generation.
• Decrease in GHG scope 1 emission from mobile combustion due to decrease in diesel consumption.
• Recycling of paper, metals, and cooking oil (though cooking oil was disposed of in domestic waste in 2019 as a cost-saving measure).
• All non-hazardous wastes other than EVAP blowdown water were recycled in Canada during 2019.

Social Achievements

• No work-related fatalities and no lost days due to injury in 2019.
• Commitment of $1,000,000 Canadian dollars to local community groups.

Governance Achievements

• No legal cases regarding corrupt practices were brought against the Group or its employees in 2019.
• Established “Whistle Blowing Policy” to address malpractice concerns.

Climate Goals & Targets

Environmental Challenges

• Air pollution associated with SAGD facilities.
• GHG emissions from stationary combustion of natural gas and diesel.
• Potential negative impact on the environment and natural resources from oil sands operations (air, land, and water pollution).
• Labour and services shortage for projects in Alberta.
• Potential risks associated with oil sands activities and their impacts on indigenous groups.

Mitigation Strategies

• Compliance with Alberta Ambient Air Quality Objectives.
• SAGD facilities designed with integrated natural gas driven cogeneration.
• Air quality assessment conducted before commencement of West Ells project.
• Continuous monitoring of SAGD facilities to ensure compliance.
• Refining existing SAGD extraction technology to reduce steam usage.
• Exploring alternative oil extraction technologies to reduce or eliminate steam needs.
• Environmental impact assessment for every oil sand project application.
• Reclamation plan to restore lands to pre-development state.
• Soil monitoring program to screen for contamination.
• Internal control policy to maintain and restore wildlife habitats.
• Detailed guidelines and policies for spill response, cleanup, and reporting.
• Human resources strategy to create a sense of belonging and job satisfaction.
• Employment programs with First Nations groups, schools, colleges, and universities.
• Aboriginal Stakeholders Engagement Process and Strategy.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers to ensure compliance with environmental policies and procedures.

Responsible Procurement

• Preference for local suppliers (over 95% of goods and services sourced locally).
• Environmental Purchasing Policy supporting the purchase of recycled and environmentally preferred products.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Guidelines, Appendix 27 of the Listing Rules (Hong Kong Stock Exchange)

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Energy consumption
• Occupational health and safety

Environmental Achievements

• Air emissions did not exceed AAAQOs or Approval limits in 2021.
• GHG emission did not exceed the reporting threshold of 100,000 tonnes as regulated by CCIR in 2021.
• Obtained seven (7) Reclamation Certificates for outstanding Oilsands Exploration (OSE) programs, representing 65 sites and 30.5 hectares of footprint.

Social Achievements

• No work-related fatalities and no lost days due to work injury in the past three years.
• Various employment programs with First Nations groups, local and remote community schools, colleges and universities to attract talents.
• Maintained excellent working relationships with all current regional stakeholders including indigenous groups such as First Nations in the Athabasca oil sands region.

Governance Achievements

• No legal cases regarding corrupt practices were brought against the Group or its employees in 2021.
• Implemented policies on anti-corruption and procedures concerning offering or accepting gifts and gratuities.

Climate Goals & Targets

Environmental Challenges

• Potential impacts on the environment from oil sands operations (air, land, and water pollution).
• Climate change risks, including extreme weather events affecting operations.
• Labour and services shortage for projects in Alberta.

Mitigation Strategies

• Continuous improvement of air quality and GHG emissions by improving energy conservation and efficiency, and adopting innovative technology for emission reduction.
• Insurance policies and emergency plans to respond to disruptions from extreme weather events.
• Human resources strategy to create a sense of belonging and job satisfaction in the workplace to address recruitment challenges.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers to ensure their compliance with the environmental policies and procedures of the Group.

Responsible Procurement

• Environmental Purchasing Policy supporting the purchase of recycled and environmentally preferred products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Guidelines, Appendix 27 of the Listing Rules (HKEx)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed