We have reported on key climate-related metrics annually since 2012 (see Performance Metrics), including:
Climate-related performance feeds into our Corporate performance scorecards (STIP and LTIP Scorecards), which are used to assess overall corporate results and are major drivers in determining short and long-term incentives (bonus and share awards). Potential bonus is available to reward employees for personal contributions and achievement of organizational objectives. Environmental performance and performance against our peer group is a weighted component in annual bonus calculation and compensation reviews. Potential long term incentives are available to reward employees for achievement of long-term corporate objectives, promote sustained increases in shareholder value and drive achievement of long-term strategy. Performance against project goals and outcomes therefore impacts each employee's total compensation, including Vermilion's Executive Team.
(additional details provided in our Environment section):
|Southeast Saskatchewan asset purchase in April 2014||Reduce flaring by 50% by 2020||204% achieved||In 2015 and 2016, through the construction of new infrastructure, operational changes and increased infrastructure runtimes, we have reduced emissions in our Southeast Saskatchewan assets by 75% since our acquisition.|
|The Netherlands||Vermilion set a target corporately to identify areas within our operation we could leverage green energy as a means to replace traditionally generated electricity. This grew from implementing solar and TEG powered lease sites across the Canada Business Unit to initiating ongoing and planned reviews of purchased power across our operations||100% achieved||On January 1, 2016, Vermilion began purchasing 100% green power from our largest power provider in our Netherlands Business Unit, resulting in a 97% reduction in Scope 2 emissions in that Business Unit from 2015 to 2016. This represents an estimated 39,145 tCO2e avoided based on 2015 emission intensity levels for purchased energy and 2016 energy consumption.|
|Global||Top quartile emissions intensity (lowest emission rate on a per BOE basis) when compared against our peer group||100% achieved||Vermilion’s emissions reduction initiatives and activities have resulted top quartile performance when compared against our peer group.|
Given our successful meeting of targets to date, we are assessing global, science-based target setting, and will continue this work into 2018.