Cenovus sets bold sustainability targets
Company further integrates ESG into strategy to enhance business resilience
Calgary, Alberta (January 9, 2020) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is establishing ambitious environmental, social and governance (ESG) targets to guide performance in its four ESG focus areas: climate & greenhouse gas (GHG) emissions, Indigenous engagement, land & wildlife, and water stewardship. These targets reflect the company’s continued integration of sustainability into its strategy and business plan to help foster long-term resilience. Leading safety practices, strong governance and ongoing innovation remain foundational to Cenovus. The ESG targets are part of Cenovus’s focus on maintaining a low cost structure, growing free funds flow and shareholder returns, and continuing to strengthen its balance sheet as it implements the five-year business plan that was communicated at Investor Day in October.
“Our environmental practices, low-emissions oil sands operations and the relationships we’ve built with residents in areas where we operate - including Indigenous communities -demonstrate our commitment to sustainability leadership,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “The meaningful targets we’re announcing today build on our achievements to date and position us to thrive in the transition to a lower-carbon future. I’m confident we have the right business model and talent in place to achieve them.”
- Reduce emissions intensity by 30%(1)
- Hold absolute emissions flat(1)
Cenovus’s long-term ambition is to reach net zero emissions by 2050.
- Achieve a minimum of $1.5 billion of additional spending with Indigenous businesses
- One hundred percent of staff will have completed Indigenous awareness training by the end of 2020 and will update their training biennially(2)
- Reclaim 1,500 decommissioned well sites
- Complete $40 million of caribou habitat restoration work
- Achieve a fresh water intensity of maximum 0.1 barrels per barrel of oil equivalent
(1) Includes scope 1 and 2 emissions from operated facilities. Uses a 2019 baseline. For more details, see the Definitions section of our ESG targets news release.
(2) An exception to the all staff target is made for staff on leave
In addition to its 2030 climate & GHG emissions target, Cenovus’s long-term ambition is to reach net zero emissions by 2050.
Cenovus’s Christina Lake project in northern Alberta uses steam-assisted gravity drainage (SAGD) technology to produce oil. The process involves drilling into the reservoir and injecting steam at a low pressure to soften the oil so it can be pumped to the surface.
Steam generators at Cenovus’s Foster Creek project in northern Alberta. The project uses a process called steam-assisted gravity drainage (SAGD) to produce oil, which involves drilling into the reservoir and injecting steam at a low pressure to soften the oil so it can be pumped to the surface.
Cenovus’s Wolf Lake Natural Gas Plant in the Deep Basin in west central Alberta.