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Sustainability Report
Values Matter
2016 Sustainability Report
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Measurement & Evaluation

MEASUREMENT, EVALUATION AND ADJUSTMENT 

Internal Approach: We proactively focus on achieving Best-in-Class performance in environmental stewardship. We assess this based on a robust framework of measurement, reporting and adjustment, including the following actions:

External Approach – Regulatory and Reporting Framework:  The following table illustrates the significant reporting and regulatory bodies under which we operate:

Business Unit

Reporting Body

Reporting and Action Activities

All Business Units

CDP Climate Change and CDP Water Security

We initiated reporting under CDP Climate in 2014, beginning with a base year of 2012, and CDP Water in 2020, with a base year of 2019.

All Business Units

Montreal Protocol

We have phased out Freon-22 in our C3 cooling plants in Netherlands to reduce the risk that this substance could be released.

Canada

Greenhouse Gas Reporting and National Pollutant Release Inventory reporting under the Canadian Environmental Protection Act

Federal Greenhouse gas reporting regulated by Environment and Climate Change Canada for facilities over 10,000 tonnes CO2e per year. Vermilion has around 10 facilities reporting into this regulation, dependant on facility production and activity levels. 

 Canada

Greenhouse Gas Pollution Pricing Act

In December, 2019, the Canadian government announced that Alberta's newly created Technology Innovation and Emissions Reduction (TIER) regulation met the federal stringency requirements for the emission sources covered. As such, the federal fuel charge  would apply in Alberta in 2020 but not the federal output-based pricing system (OBPS). Similar to the federal OBPS, the Alberta TIER system applied a tax rate of $30 per tonne of CO2e commencing January 1, 2020, increasing to $40/tonne in 2021 and $50/tonne in 2022. Vermilion has opted-in to both the Alberta TIER program and to the Saskatchewan Carbon Tax output-based pricing system, which directly interacts with the Federal GGPPA

Canada

Alberta's Directive 060 Methane Regulations

 

 

Alberta's Directive 039

 

 

Alberta's Environmental Protection and Enhancement Act 

Regulation aimed at reducing vented emissions from process equipment, tanks, and other field related sources, also requiring upgrades to low or no emission process equipment. Fugitive emission leaks are also addressed in this regulation for all production.

 

Directive 039: Regulation directed at reducing and eliminating the release of benzene emissions from glycol dehydrators

 

Regulates large facilities under a formal approval process, and outlines requirements for conservation, water management, substance release, and waste management 

 Canada

Saskatchewan’s Directive PNG036 & PNG-017

Formerly Directive S-10, this provides regulatory requirements for reducing flaring, incinerating and venting of associated gas, including financial penalties for methane emissions in excess of defined limits. 

 Europe

European Union Emissions Trading Scheme

Our European operations fall under the European Union Emissions Trading Scheme; however, due to the size of our facilities we exceed the reporting threshold (total thermal rated input capacity greater than 20MW), only in Ireland. Under the revised EU ETS Directive in effect 2021-2030, it is anticipated that there will be an active market and consumers for the offset credits generated at some of Vermilion's sustainability initiatives around the world. This upcoming shift in the cap and trade scheme will likely provide opportunities for Vermilion to generate certified energy reduction/offset credits through our geothermal cogeneration projects in France and other potential renewable energy projects in Netherlands.

France

Register and the Annual Reporting of Emissions and Transfers of Pollutants and Waste

We report operations water, waste and greenhouse gas (GHG) information annually.

 France

Agreement to End Routine Flaring by 2030

Projects are being identified on an ongoing basis that will result in increased operational efficiency and a reduction in methane and VOCs once implemented.

Netherlands

Netherlands Long-term Agreements with Industry (MJA3)

We report operations energy efficiency and emissions information annually.  Vermilion has participated in the MJA3 program in our Netherlands business unit since 2005. This has resulted in project and initiatives that have reduced our operations energy intensity by 75.7%.

Australia

National Greenhouse and Energy Reporting Act (2007)

We report under the robust emissions accounting required by this Act, and have examined three potential carbon taxation pricing scenarios and budgeted the costs associated with compliance. No carbon tax applies to Australian production at this time.

 United States

Environmental Protection Act (EPA)

Vermilion’s United States operations comply with the EPA requirements associated with stationary engines and holds permits to operate which includes emissions testing, inspections and triennial reporting requirements across our operation.

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