Our sustainability reporting provides a platform to assess current performance, trending and comparisons to industry peers. Our Performance Metrics include significant economic, environmental, social and governance measures, and are reported with reference to TCFD, SASB (Value Reporting Foundation) and GRI Standards.
Climate-related metrics include but are not limited to:
We use these and other metrics in several key ways to monitor our progress, including:
In April 2021, following our climate research scenario analysis and extensive internal assessment, we announced two new emission-related targets. The first is our commitment to net zero emissions in our own operations, including Scope 1 and Scope 2 emissions, by 2050. We are transparent that this is an aspirational goal, and that we will build the plan to achieve this target over time. There are significant inherent uncertainties in how the energy transition will accelerate over the next three decades. Our intention is to manage these by focusing on responsible production of essential oil and natural gas for as long as these forms of energy are needed, while developing opportunities in other areas that are an economic and synergistic fit for our business.
Committing to an aspirational net zero target was important, but setting a company-wide nearer term target as the first step in creating a clear pathway was even more so. We looked at our own operations – from how we manage emissions data to options for emission reduction – and at how our peers and the majors are approaching this. From, this, we identified emissions intensities and opportunities for reduction within our business units, and set a second target, to reduce Scope 1 emissions from our operations by 15 to 20% by 2025, using a baseline year of 2019.
This will be achieved, starting with our business units with higher emissions intensities, with an initial focus on efficiency, including process changes, venting reductions, instrumentation upgrades from gas to air and power efficiency options, along with improved metering and field measurements. Going forward, we will be setting new targets every five years, building on this foundation while exploring broader options, including the potential to reduce Scope 3 emissions.
Details of our continued progress against previous targets specific to the Canada Business Unit, are provided here.
We believe there is a direct link between sustainability performance and overall business performance, including shareholder return. Moreover, we expect sustainability performance to be a very significant factor in the long-term viability of our economic model. We therefore include sustainability- and climate-related measures to incentivize all members of our staff to focus on sustainability performance.
Our sustainability goals are reviewed regularly at the Executive Committee and Board levels to assess and confirm progress. We connect this to compensation through a pay-for-performance philosophy, combining base compensation with short-term and long-term incentive opportunities that are directly tied to operating and financial results, including fulfilment of sustainability- and climate-related commitments.
Thus, sustainability and climate-related performance is linked not only to executive but also all employee compensation, given that we use the same scorecard for every staff member. We report on this externally through our Proxy Statement and Information Circular each year.