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Values Matter
Sustainability Report
Values Matter
2016 Sustainability Report
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Environment Dashboard

SDGTARGETVermilion's Contribution

6.1 Ensure the availability and sustainable management of water for all

We focus on water stewardship, both in our marine environments (6.6) and from a conservation perspective (6.4). We report on water metrics (6.3), and we participate in multi-stakeholder partnerships (6.1 & 17.17)

7.2 Increase the share of renewable energy in the global mix

 7.3 Reduce energy consumption

Vermilion is developing expertise in geothermal energy projects while also focusing on reducing energy consumption through infrastructure renewal in all of our business units.

12.1 Ensure sustainable production patterns

12.2 Achieve the sustainable management and efficient use of natural resources

 12.6 Encourage companies to adopt sustainable practices and integrate sustainability information into their reporting cycle

Avoiding or mitigating the environmental, health and safety-related impact of our production processes is integral to Vermilion’s approach to responsible and safe operations. We are incorporating sustainable development into our business strategy (12.1), striving for increased energy efficiency (12.2) and expanding our sustainability reporting  (12.6).

13.1 Combat climate change

We are proactively identifying risks and opportunities, reporting on emissions and other key data, setting internal carbon prices, and working on target setting. 

14.1 Conserve and sustainably use the oceans for sustainable development

14.2  Sustainably manage marine and coastal ecosystems

We comply with or exceed regulations regarding wastewater and marine environment management, proactively improving western Australia’s capacity for oiled wildlife recovery.

SDG 15.1 Protect, restore and promote sustainable use of terrestrial ecosystems

15.5 Take urgent action to reduce or halt biodiversity loss

 Vermilion has environmental impact assessment procedures that comply with or exceed all regulations in our business units, and we proactively work to ensure our operations protect local biodiversity 

2018-2019 Updates

Strong CDP Results

Vermilion’s performance in the annual CDP scoring, which consistently places us at the top of our peer group, demonstrates the focus we have placed on understanding and managing the impact our operations and projects have on climate change. This is a significant achievement for a company of our size, and reflects the efforts from our HSE and Operations teams worldwide to increase energy efficiency and decrease greenhouse gas emissions, and to develop and implement renewable energy projects that support a circular economy.

Focusing on Emissions Intensity

We use both absolute and intensity metrics to assess our performance (see Performance Metrics). Our emissions intensity provides an important benchmark, as it demonstrates that even as production increases, the greenhouse gas emissions of each barrel of oil equivalent that we produce can decrease.

During the energy transition, there will continue to be a place for strong, responsible oil and gas producers to provide energy, both hydrocarbon-based and renewable energy options such as geothermal, to the market. We believe our track record of reducing emissions while optimizing production sets Vermilion apart as an industry leading producer.

As an example between 2014 and 2017, we integrated the Elkhorn assets we acquired in southeast Saskatchewan in 2014. This resulted in the identification of an emission reduction target and associated projects that have contributed to a significant reduction in our emissions and achievement of the target ahead of the timeline.

In 2018, we acquired another set of assets in southeast Saskatchewan and, once again, have integrated our sustainability-focused development strategy into the integration phase of this project including an emission reduction target and related operational initiatives.

As improvements continue, the emission intensities associated with the acquired assets will continue to decline and ultimately align with Vermilion's historical production metrics and performance trends.

Overall, our global emissions intensity is once again tracking downward from 2018.

 

Methodology note: In 2020, we reassessed our intensity methodology and have established that basing both emissions and production on operated throughput represents the most accurate measure possible. We have adjusted previous years to reflect this, to provide consistent tracking of the same measure over time 

When comparing emissions intensity between companies, it is essential that the basis of the intensity measure be consistent, and that production mix is analyzed as additional context, because gas-weighted producers will naturally be at a lower emissions intensity than oil-weighted. In Vermilion’s case, wwere approximately 56% oil production and 44% gas in 2019.  

Meeting Our Targets - Updated April 28, 2021

To date, we have focused on testing our ability to meet absolute targets based on our performance via operational activities. The following targets have been critical in this process, and have contributed to our strong CDP performance.

As the external focus on environmental, social and governance ("ESG") matters and the energy transition continues to increase, particularly in the lead-up to the Conference of the Parties (COP 26) in November 2021, we are progressing the development of our comprehensive, long-term ESG strategy, based on the leadership position we have established in sustainability in the mid-cap energy space for more than a decade. This progress is reflected in our announcement in April 2021 of two new emissions-related targets. The first is our commitment to net zero emissions in our own operations, including Scope 1 and Scope 2 emissions, by 2050. This aligns with the objectives of many of our key stakeholders, including our governments and regulators, investors and communities. We are transparent that this is an aspirational goal, and that we will build the plan to achieve this target over time. There are significant inherent uncertainties in how the energy transition will accelerate over the next three decades. Our intention is to manage these by focusing on responsible production of essential oil and natural gas for as long as these forms of energy are needed, while developing opportunities in other areas that are an economic and synergistic fit for our business.

We also recognize the need to develop a clear pathway to our net zero goal. As the first step, we have set a second target, to reduce Scope 1 emissions from our operations by 15 to 20% by 2025, using a baseline year of 2019. This will be achieved, starting with our business units with higher emissions intensities, with an initial focus on efficiency, including process changes, venting reductions, instrumentation upgrades from gas to air and power efficiency options, along with improved metering and field measurements. Going forward, we will be setting new targets every five years, building on this foundation while exploring broader options. Our fully updated ESG strategy is expected to be in place by mid-2021.

Category

Target

Progress (See Energy and Emmissions Reduction Page for Details)

Scope 1 – flaring and venting

Set in 2014: Reduce flaring emissions at our light-oil assets in southeast Saskatchewan acquired in 2014 by 50% by 2020

Above Target:  90% reduction in annual emissions as of end 2019

 Scope 1 - methane

Set in 2014: Methane reduction target included in the target above to reduce flaring emissions at our light-oil assets in southeast Saskatchewan acquired in 2014 by 50% by 2020

Above Target: 110% of the target achieved as of end 2019

Scope 1 – flaring and venting

Set in 2014: Reduce flaring emissions at one of our major facilities in France by 65% by 2015

Achieved: 65% reduction in emissions (avoiding the flaring of 14,500 tCO2e annually) by implementing a gas export system

Scope 2 - renewable energy

Set in 2015: Exceed 5% of our total power consumption coming from renewable sources (and replacing traditionally generated electricity) by 2017

Above Target: Reduced Scope 2 emissions in The Netherlands from 41% of our 2015 gross Scope 2 emissions to 2% of our 2016 gross Scope 2 emissions through the purchase of 100% green power certificates beginning on January 1, 2016, from our largest power provider in our Netherlands Business Unit. This represents an estimated 39,145 tCO2e avoided annually based on 2015 emission intensity levels for purchased energy and annual energy consumption. We have continued the purchase of green power certificates in 2018 and 2019.

Renewable Heat Energy Target

Set in 2015: Generate 31,380MWh of renewable geothermal energy annually in our France Business Unit from our Parentis battery’s tomato greenhouse project until at least 2035

Above Target: 2019 production was 77,088MWh of geothermal energy primarily from the Parentis site, with additional input from the La Teste site

Renewable Heat Energy Target

Set in 2016: Begin generating renewable geothermal energy annually in France from our La Teste ecohousing site in 2017

Achieved: ecohousing geothermal heat technology installed, 450 housing units in place, with another 100 in development

Emissions Intensity

Set in 2016: Top quartile emissions intensity (lowest emission rate on a per BOE basis) when compared against our peer group annually

On Target: Vermilion’s emissions reduction initiatives and activities have resulted in top quartile performance in our peer group with similar production weightings.

Scope 1 – flaring and venting  

Set in 2018: reduce the flaring and venting emissions, including methane, associated with the Spartan assets acquired in 2018 by 50% by 2024

Progressing:  27% reduction achieved as of end 2019 

Scope 1 – methane

Set in 2018: Similar to our 2014 acquisition of Elkhorn, this is a proportional target associated with our program to reduce methane emissions for our 2018 acquisition of Spartan by 50% by 2024.

Progressing: 31% achieved as of end of 2019.

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