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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

We initiated reporting under CDP in 2014, beginning with a base year of 2012.

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

Specific Gas Emitter Regulation

Reduction requirements do not apply, as Vermilion is below the threshold of 100,000 tonnes of CO2e annually; our current and projected CO2e reductions indicate that even with a 50% reduction in this threshold, we would still be below it. Although Vermilion meets our regulatory requirements, we maintain a detailed initiative database to identify and implement CO2 reduction projects where practical.

Canada

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

Reduction requirements for Greenhouse Gas Reporting do not apply, as Vermilion is below the threshold of 50,000 tonnes of CO2e annually; our current and projected CO2e reductions indicate that even with a 20% reduction in this threshold, we would still be below it. We report under the National Pollutant Release Inventory (NPRI) requirements.

 Canada

Greenhouse Gas Pollution Pricing Act

In April 2019, Vermilion’s Canadian operations outside Alberta became subject to the federal Greenhouse Gas Pollution Pricing Act (GGPPA). Carbon tax rates under the GGPPA are set at $20 per tonne of CO2e in 2019 and escalate to $50 per tonne of CO2e by 2022. The economy wide carbon tax that took effect in Alberta in 2017 was repealed in May 2019 and as a result, the Canadian federal government announced in June 2019 that the fuel charge element of the GGPPA will apply in Alberta starting in 2020.

Canada

Alberta's Methane Reduction Retrofit Compliance Plan and update to Directive 039 (benzene emissions from glycol dehydrators)

A 2013 regulatory change in Directive 039 led us to plan and begin the implementation of additional elements in our facility engineering and maintenance program to reduce benzene emissions associated with glycol dehydrators; more recent changes led us to complete engineering reviews and facility updates resulting in emission reductions beyond regulatory requirements.

 Canada

Saskatchewan’s Directive S-10

Provides regulatory requirements for reducing flaring, incinerating and venting of associated gas, including financial penalties beginning in 2020 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 by and large, due to the size of our facilities we do not exceed the reporting threshold defined as facilities with a total thermal rated input capacity greater than 20MW, with the exception of our Ireland operations, which do fall within the criteria associated with the EU ETS. 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 our gas-to-geothermal and other 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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Vermilion Energy