Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety of people and operations
• People and culture
• Emissions
• Community and Indigenous engagement
• Land management
• Water

Environmental Achievements

• Reduced gross CO2 equivalent emissions by approximately 20 percent by the end of 2021 (compared to 2018 asset base) through Gathering and Processing optimization plan.
• Reduced GHG emissions at Strachan facility by approximately 46 percent from 2017 to 2019 by shutting down sour gas processing equipment.
• 67% of water reused or recycled in 2019.

Social Achievements

• Named one of Alberta's Top 75 Employers for the seventh consecutive year.
• Named one of Canada's Top 100 Employers for the second consecutive year.
• Contributed over $1 million to more than 150 community programs and initiatives.
• 8,412 employee volunteer hours in 2019.

Governance Achievements

• Inclusion of key safety, reliability and environmental performance metrics in 2020 bonus plan for executives and employees.
• 98.4% gas plant reliability in 2019.
• Average executive compensation 77 percent performance based in 2019.

Climate Goals & Targets

Environmental Challenges

• Climate change risks and uncertainties.
• COVID-19 pandemic impact on employees, contractors, customers and communities.

Mitigation Strategies

• Developing emissions reduction targets and aligning with phase one TCFD disclosures in 2021.
• Establishing emergency response teams to address pandemic response, business continuity and critical facility operation.
• Implementing new operating practices and safety protocols to ensure well-being of staff and community members while continuing to provide essential services.

Supply Chain Management

Responsible Procurement

• Indigenous Business Involvement (IBI) program

Climate-Related Risks & Opportunities

Opportunities

• Carbon capture and sequestration
• Blue hydrogen production
• LNG opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: COR

Awards & Recognition

• MSCI ESG rating of 'A'
• Sustainalytics ESG 'Outperformer'
• One of Canada's Top 100 Employers

Environmental Metrics

ESG Focus Areas

• Climate Change
• Emissions Reduction
• Energy Transition
• Safety of People and Operations
• People and Culture
• Community and Indigenous Engagement
• Land Management
• Water

Environmental Achievements

• Reduced scope 1 and 2 emissions intensity by 35% from 2017 to 2020
• Reduced absolute scope 1 and 2 emissions by 15% from 2017 to 2020 (approximately 81,000 tonnes of CO2e annually)
• 15% increase in carbon sequestered from operations from 2019 to 2020 due to added acid gas injection units
• Signed a 15-year power purchase agreement for a 25-megawatt solar generation facility in Alberta (forecasted 53,000 MWh of power, equivalent to approximately 10% of Keyera's annual consumption)

Social Achievements

• Incorporated climate-related performance metrics (including emissions reductions) into the annual incentive compensation program in 2020
• Established a Keyera Innovation and Transformation Team (KITT) in 2021 to support innovation across the business

Governance Achievements

• Established a new Governance and Sustainability Committee effective January 1, 2022, to oversee climate-related matters and ESG priorities
• Completed a comprehensive Enterprise Risk Management (ERM) review in 2021, incorporating climate-related risks
• Conducted an independent materiality assessment of sustainability-based risks in 2020

Climate Goals & Targets

Environmental Challenges

• Increasing regulation and carbon-related compliance costs
• Decreased access to capital and financing
• Increased insurance costs
• Commodity price fluctuations and decreased consumer demand
• Advancement of non-fossil fuel-related technology
• Increased power costs
• Negative sentiment towards the energy industry
• Acute and chronic weather events

Mitigation Strategies

• Maintaining strict capital discipline and a strong balance sheet
• Incorporating energy transition into business strategy
• Decarbonizing operations through technology and strategies
• Creating new low-carbon lines of business
• Engaging with stakeholders and providing transparent disclosure
• Setting targets to demonstrate commitment
• Exploring sustainability-linked financial tools
• Monitoring legislative initiatives and regulatory trends
• Using a blended GHG/financial model to forecast potential financial impacts
• Including potential regulatory costs in ERM assessments
• Investing in lower-emitting technology
• Exploring lower-emitting business streams and services
• Managing compliance costs through renewable power and carbon offsets
• Engaging with governments and industry groups
• Working jointly with customers on energy transition opportunities
• Establishing broad and diversified insurance syndicates
• Exploring self-insurance
• Supporting oil sands customers to reduce their carbon intensity
• Monitoring commodity forecasts and shifting market factors
• Executing strategies to reduce the impact of climate-related pricing swings
• Conducting scenario analysis to ensure financial resilience
• Considering climate-related factors in capital investment decisions
• Exploring and pursuing product decarbonization and diversification
• Helping customers decarbonize their products
• Exploring and pursuing product diversification
• Decarbonizing current operations
• Investing in self-generation (cogeneration)
• Building out renewable energy partnerships and power purchase agreements
• Executing strategies to reduce the impact of price fluctuation
• Engaging in meaningful dialogue with stakeholders
• Monitoring stakeholder sentiment
• Including regulatory, market, and reputational impacts in ERM assessments
• Investing in lower-emitting technology
• Exploring lower-emitting business streams and services
• Engaging with customers and government on policy development
• Considering physical risks in infrastructure design and facility management
• Conducting routine inspections and maintenance
• Developing robust emergency response plans
• Putting protocols in place for working in severe weather
• Considering potential weather impacts to schedule for capital projects
• Actively using and expanding storage facilities
• Incorporating weather and commodity use predictions in planning
• Using financial and physical contracts to mitigate commodity price risks
• Creating diversified product offerings
• Securing multiple water sources

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Acute weather events (floods, fires, storms)
• Chronic weather changes (temperature changes, droughts)

Transition Risks

• Increasing regulation and compliance costs
• Decreased access to capital
• Increased insurance costs
• Commodity price fluctuations
• Advancement of non-fossil fuel technology
• Increased power costs
• Negative sentiment towards the energy industry

Opportunities

• Developing low-carbon service offerings
• Exploring carbon capture, utilization, and storage (CCUS)
• Investing in renewable energy
• Improving operational efficiency
• Exploring hydrogen opportunities
• Providing customers with low-carbon solvents

Reporting Standards

Frameworks Used: TCFD, SASB

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Diversity & Inclusion
• Safety
• Community and Indigenous Engagement
• Land Management
• Water

Environmental Achievements

• ~20% reduction in absolute emissions from 2018 to 2021

Social Achievements

• Diversity & Inclusion Program in Place
• 25% female employees
• 27% female executives
• 33% female board

Governance Achievements

• Compensation linked to ESG performance
• 90% independent board
• 98% average say on pay voting result
• ESG Performance has board oversight
• TCFD report in 2021
• Inaugural ESG Report in 2020, SASB aligned with 3 year trends

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: SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• OUTPERFORMER (Sustainalytics)
• GLOBAL ESG BEST IDEA (RBC)
• #1 ESG PERFORMER (Scotiabank)
• A RATING (MSCI)

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Diversity & Inclusion
• Corporate Governance
• Safety
• Community and Indigenous engagement
• Land management

Environmental Achievements

• Emission intensity lowered by 12% from 2019 to 2021
• Absolute emissions down by 4% from 2019 to 2021

Social Achievements

• Diversity & Inclusion program update: 50% female SVP, 36% female board
• ESG-Aligned Community Investment Program
• Stakeholder Engagement
• Capacity Building

Governance Achievements

• 100% independent board
• 98% average say on pay voting result
• Compensation linked to ESG performance
• Transparent ESG Disclosures
• New Board Governance & Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Continued uncertainty of the COVID-19 pandemic
• Weather
• Availability of and/or prices of materials and/or labour
• Customer project schedules and expected in-service dates
• Contractor productivity
• Contractor disputes
• Quality of cost estimating
• Decision processes and approvals by joint venture partners
• Changes in project scope at the time of project sanctioning
• Regulatory approvals, conditions or delays (including possible intervention by third parties)
• Keyera’s ability to secure adequate land rights and water supply
• Macro socio-economic trends

Mitigation Strategies

• Risk management program
• Take-or-pay contracts
• Conservative payout ratio
• Investment grade credit ratings
• Total liquidity of $1.7B

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Potential to provide CCS services for customer
• Exploring opportunities to help refiners meet CFS requirements using iso-octane
• Further enhance the value of isooctane through decarbonization
• Actively exploring co-generation opportunities to further lower our overall emissions
• 1,290 acres of undeveloped land available for H2 development
• Existing H2 production
• Existing H2 pipeline
• Options for H2 cavern storage

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• emissions reductions
• Governance & Sustainability Committee of the Board

Governance Achievements

• creation of a new Governance & Sustainability Committee of the Board

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water

Environmental Achievements

• Reduced scope 1 & 2 equity-based emissions intensity by 21% since 2019.
• Michichi Solar Project operational, providing nearly 10% of commercial power requirements.

Social Achievements

• Not disclosed

Governance Achievements

• Recalibrated ERM program in 2023 to align with revised corporate strategy, adding 'Carbon' as a principal risk.

Climate Goals & Targets

Environmental Challenges

• Increased risk of severe wildfires impacting operations due to climate change.
• Increased costs of carbon compliance due to climate-related regulatory obligations.
• Volatility in power prices due to Alberta’s evolving energy system.
• Lack of internal resources, capabilities, or expertise for scenario analysis.
• Absence of standardized procedures for assessing supplier dependencies/impacts and prioritizing supplier engagement on environmental issues.
• Absence of standardized procedures for reporting scope 3 emissions for midstream companies.

Mitigation Strategies

• Emergency Response and Contingency Planning at each facility.
• Investing in renewable energy partnerships and power purchase agreements.
• Executing strategies to reduce the impact of power price fluctuations.
• Exploring efficient self-generation of power.
• Developing a supply chain management tool to assess and prioritize suppliers based on emissions.
• Building internal capacity and engaging with external experts for scenario analysis.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Using ISNetworld to gather climate information from suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Drought
• Flooding
• Heat waves

Transition Risks

• Carbon pricing mechanisms
• Changes to international/national legislation
• Increased difficulty in obtaining operations permits
• Poor coordination between regulatory bodies
• Changing customer behavior
• Increased partner and stakeholder concern
• Negative press coverage
• Stigmatization of sector
• Data access/availability or monitoring systems
• Transition to lower emissions technology and products
• Unsuccessful investment in new technologies
• Exposure to litigation
• Non-compliance with regulations

Opportunities

• Use of renewable energy sources
• CCUS services for customers
• Hydrogen storage and transportation services
• Solvents that enable lower-carbon oil production

Reporting Standards

Frameworks Used: GRI, IFRS, TCFD, IPIECA

Certifications: Null

Third-party Assurance: Third-party verification (Deloitte)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed