Cenovus Energy Inc.
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- climate and greenhouse gas (GHG) emissions
- Indigenous engagement
- land and wildlife
- water stewardship
- biodiversity
- Indigenous reconciliation
- inclusion and diversity
Environmental Achievements
- Oil Sands Pathways to Net Zero initiative, an alliance of peers working collectively with governments with a goal to achieve net zero GHG from oil sands operations by 2050
- Published 2020 ESG report, including refreshed targets in five key ESG focus areas
Social Achievements
- Response to the COVID-19 pandemic: implemented active health screening, physical distancing and advanced cleaning and sanitation measures at its field operations
- Increased dividend to $0.035 per common share for the fourth quarter of 2021
Governance Achievements
- Credit facility consolidation and reduction: $8.5 billion of committed credit facilities were cancelled and replaced with a $6.0 billion committed revolving credit facility
Climate Goals & Targets
Long-term Goals:
- Oil Sands Pathways to Net Zero initiative: achieve net zero GHG from oil sands operations by 2050
Environmental Challenges
- Significant decline in world benchmark crude oil prices
- COVID-19 pandemic impact on business
- Volatility of commodity prices
- WTI-WCS differential in Alberta
- Climate change and the Company’s assumptions relating thereto
- Government actions or regulatory initiatives to curtail energy operations or pursue broader climate change agendas
Mitigation Strategies
- Reduction of capital spending
- Temporary suspension of the crude-by-rail program
- Used dynamic storage to shift production into stronger price environment
- Senior notes offering
- Credit facility consolidation and reduction
- Debt reduction
- Asset sales to adjust portfolio