Integrated Sustainability was established in 2015 as one of six Matters of Importance within Vermilion’s business framework, or VET Vision, which we revitalized in 2020-21. In our new VET Vision, each of our Matters of Importance has a clear 2030 outcome, along with a strategy for achieving it. Within Integrated Sustainability, our goal is to be an energy producer of choice for our key stakeholders: our people, shareholders, communities, governments and regulators, customers, partners and suppliers. This contributes significantly to Vermilion’s Purpose: to responsibly produce essential energy, while delivering long-term value to our stakeholders.
To achieve our 2030 sustainability outcome, our strategy identifies three key areas:
These areas are based in part on our robust climate scenario analysis. In 2019 and 2020, the Board of Directors, executive team and senior management, including the leaders of our business units, examined two key scenarios from the World Economic Forum that bring together the work of significant contributors in this area, from the International Energy Agency to Carbon Tracker. These scenarios compare a Gradual and a Rapid transition to low carbon, with the latter meeting the aims of the Paris Agreement to limit global temperature increases to 1.5ºC to 2 ºC, with 1.5 ºC preferred.
This provided an opportunity to assess major factors impacting the speed of the energy transition, including the influence of new energy technologies, their potential speed of adoption, anticipated changes in energy policy and regulation and their rate of change, and emerging market pathways such as India. The scenario analysis extended to the risks and opportunities related to these factors, the resulting impacts on the company’s future in the short, medium and long term (2050+), and strategies for resilience – overall and by business unit.
Countries in all of our operating regions are implementing policies to create a low-carbon future for the world’s economy. As a global energy producer, we have an opportunity to be part of the solution: to help ensure the supply of safe, reliable and affordable energy during this transition. That’s why we have set an aspirational target of net zero emissions from our operations by 2050 (Scopes 1 and 2).
We recognize this must be founded on a clear pathway. Supported by our existing track record in setting and meeting emission reduction targets, we are continuing the journey with a target to reduce our company’s Scope 1 emissions intensity by 15-20% by 2025, compared to a 2019 baseline. We have also committed to setting additional targets every five years, which will include assessing how Scope 3 emissions and intensity may be reduced.
Our plan rests on three strategic activities:
We are committed to reducing the impact our operations have, beginning with regulatory compliance across all business units. Our conservation efforts are further focused in three areas:
Our communities comprise a wide diversity of people and organizations, but they have one key thing in common: they care deeply about the safety, environmental stewardship and corporate citizenship that we bring to our local operations. In addition, our people care deeply about their communities - whether we work there or live there, these are the places we call home.
We therefore steward our operations and relationships to demonstrate our commitment to being a responsible producer and a valued and trusted neighbor and business partner, including:
With these broader categories, Vermilion emphasizes initiatives that will have a positive, lasting impact both short-term and long-term. We assess these on a project-specific basis, including benefit to the communities where we operate, benefit to the environment (reduced carbon emissions or fuel consumption, carbon offset, water reduction/reuse, etc.), and financial considerations. Progress is being tracked on a monthly, quarterly and annual basis, shared with all staff (office, field staff, management, etc.), and used to support initiatives that are in the assessment, planning or initial implementation stages.