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Sustainability Report
Values Matter
2016 Sustainability Report

Approach to Climate-Related Issues

Climate Policy and Business Strategy

We recognize the importance of creating and implementing climate policy. We believe that our approach goes well beyond climate and, in fact, speaks to our business strategy, balancing the needs of the planet as expressed in the 2015 Paris Agreement, with a strong focus on shareholder return. These are not mutually exclusive. In fact, our success as a business provides us with the ability to innovate in ways that will continue to reduce our impact on the environment.

At Vermilion, we have always been committed to the priorities of health and safety, environmental stewardship, and economic prosperity – in that order. Our management of climate-related issues – both risks and opportunities – follows that approach, in which we focus on best-in-class performance, founded on our sustainability leadership within the oil and gas industry and our core values of Excellence, Trust, Respect and Responsibility. (For more information about our governance of climate-related risks, please see our Leadership section.)

 We are deeply embedded in the low-carbon transition, guided by global initiatives that include The Paris Agreement and the United Nations Global Goals for Sustainable Development. We are actively engaged in this critical work, with a focus on supporting a stable and managed energy supply that meets the energy needs of our global customers and communities, while also ensuring financial and organizational sustainability. The low carbon transition requires collaboration from all parts of the energy value chain, from producers through governments, industry, communities and consumers. As a responsible exploration and production company, Vermilion is looking forward to continuing our collective efforts on climate-related initiatives while also considering the wider issues of environmental and social responsibility.

Our strategy focuses on the following key elements:

  1. Lower carbon fuels. We have shifted our production mix towards natural gas, as a cleaner burning fuel than other fossil fuels, and we continue to focus on reducing the carbon intensity of the oil and gas that we produce. This includes producing fuel that is used within the country of production wherever possible, contributing to a reduced carbon footprint associated with transportation of the fuel to consumers, and to increased national energy security.
  2. Greater energy efficiency. Many energy- and operational-efficiency initiatives go hand-in-hand, which in turn helps us to minimize our carbon footprint and reduce greenhouse gas emissions. G4-EC2 G4-EN19
  3. Lower greenhouse gas emission intensity. We are committed to reducing the greenhouse gas emissions associated with our production, with particular focus on methane.
  4. Socially responsible fuels. We operate in regions noted for their stable, well-developed fiscal and regulatory policies related to oil and gas exploration and development, and for their robust framework of health, safety, environmental and human rights legislation. We are committed to ensuring that our fuels are produced in the most environmentally and socially responsible manner possible, respecting worker rights and community engagement.
  5. Renewable Energy. We are continuing to pilot the production of renewable energy, including geothermal energy, for which our internal expertise in geophysics and drilling is particularly well suited. This work has begun with a focus on the geothermal potential of our produced water, which supports a circular economy model, and is expanding into other areas, including biogas and the conversion of traditional oil and gas assets to geothermal production.
  6. Transparency and Reporting. We have established a strong record of reporting on greenhouse gas emissions, energy usage and other key environmental metrics. This data is helping us to understand our opportunities for improvement, and we will continue to use it to determine emissions and energy reduction targets. 

 

How We Manage Climate-Related Initiatives

We have been working to analyze science-based target setting in relation to our operations in critical areas identified by both internal and external stakeholders, including energy use, greenhouse gas emissions and water use. One issue is that a decarbonization pathway for the oil and gas sector has not yet been published by the Science-Based Targets initiative, so we are undertaking our own research into this area. Understanding that organizations often progress along a continuum of action, we have achieved the following milestones:

New Facility Construction: We employ new and efficient technology that adapts to changing requirements and has the potential to decrease our environmental impact. This includes:

Retrofit of Existing Construction:

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