Vermilion has reported publicly on climate risks and opportunities via our CDP submissions since 2014, with data back to 2012.
Integrated Sustainability is an important component of our long-range business plan because sustainability impacts every business unit, department and employee. The Board has responsibility for oversight of Vermilion’s sustainability performance, with Board committees providing additional sustainability-related expertise in their areas of focus; in particular, the GHR Committee, the Audit Committee and the HSE Committee.
The Board established a Sustainability Committee comprised of independent directors, to provide additional advice for the oversight of Vermilion’s approach, including:
The Board reviews sustainability performance reports quarterly, which include ESG performance, sustainability activities, environmental and social trends, and strategic community investment activities. In 2019, the Board also received briefings on sustainability from business unit leaders, visited field sites in Canada, Ireland and France, met with stakeholder representatives, and augmented these sustainability insights with continuing education from third parties in fields such as climate change and the energy sector, the energy transition, and ESG factors in institutional investment. The Board and the Sustainability Committee use this information to ensure the integration of sustainability and climate-related risks within our enterprise risk management system, to better inform decisions on business strategy and risk mitigation, and to provide direction on policy and strategy.
Organizational responsibility for sustainability and climate-related issues flows from the Board and its Sustainability Committee throughout the Company via our Executive Committee. This comprises the Executive Chair, President, Chief Financial Officer, EVP People & Culture, VP Business Development, VP International & HSE, VP North America, and VP European Operations.
Our Director, Sustainability reports monthly to the Executive Committee, and is focused on developing and implementing sustainability strategy, working in partnership with corporate teams and business units to ensure that our strategy and reporting reflect Vermilion’s goals as a company overall and for each region.
Our VP, North America and our VP, International & HSE lead the operationalization of sustainability, with the Managing Directors of each business unit responsible for sustainability activities, including managing climate-related risks and opportunities within their organizations. Each of our business units has also identified a Sustainability Lead, to support sustainability-related work.
Our corporate sustainability team provides a centre of excellence approach, advising the business on all aspects of sustainability, including environmental, climate and social trends, and reporting quarterly to the Board and the Sustainability Committee regarding progress. The corporate team is also responsible for external sustainability reporting.
Various departments within the Company report sustainability-related priorities and progress quarterly to either the full Board or Board committees, including governance updates, HSE targets and performance, and public and government relations.