Climate Change & Greenhouse Gas Emissions

Globally, climate change has been identified as one of the most pressing challenges of our time. We understand the importance and momentum behind the low carbon energy transition, and recognize the increasing demand for responsibly developed, low carbon energy from shareholders, policy makers, and society at large. Canada has climate policy in place and global trends point towards increasing stringency in climate-related regulation.

The oil and gas sector continues to receive significant attention with respect to our response to climate change risks, with a focus on enhanced disclosure aligned with the Task Force on Climate-Related Disclosure (TCFD) recommendations. We recognize the importance of managing climate-related risks to maintain our business model resilience. We believe we must be part of the solution.

We have set a target to achieve net zero GHG emissions (scope 1 and scope 2) by 2050 in support of these objectives, as well as a mid-term target of a 30% reduction in bitumen GHG emissions intensity (scope 1 and scope 2) from 2013 levels by 2030.

Oil Sands Pathways to Net Zero Alliance

On June 9th, 2021, MEG Energy, Canadian Natural Resources, Cenovus Energy, Imperial and Suncor Energy, who collectively represent 90% of oil sands production, announced the Pathways to Net Zero Alliance. The goal of this unique alliance, working collectively with the federal and Alberta governments, is to achieve net zero greenhouse gas (GHG) emissions from the companies’ oil sands operations by 2050, to help Canada meet its climate goals, including its Paris Agreement commitments and 2050 net zero aspirations.

Read more on our press release or visit www.oilsandspathways.ca

Performance

We continue to achieve one of the lowest GHG emissions intensities in the in situ industry (approximately 20% below the industry Average). Since 2013, we have achieved a 10% reduction in Bitumen GHG Intensity, relative to our 2030 target.

Note on GHG Intensity

In previous disclosures, we reported emissions in the form of a Net GHG Emission Intensity metric we developed to recognize the production and sale of two products (bitumen and power). The approach recognizes the power consumed for the purpose of bitumen processing and the benefit of providing a cleaner supply of electricity onto the Alberta Power Grid. In this latest disclosure, we are introducing two new metrics to represent the two product types generated from our Christina Lake operations: Bitumen GHG Intensity and Electricity GHG Intensity. These metrics are independent of the composition of the Alberta Power Grid, which allow us to trend our performance more closely to operational changes at the facility level. The Bitumen GHG Intensity has an apparent trend of roughly 7% higher than the Net GHG Emission Intensity and is approximately 20% below the industry average, in 2020.

The Electricity GHG Intensity of cogeneration has remained relatively consistent since 2013 and is approximately one-third that of coal-fired electricity generation and more than 40% below that of the Alberta electricity grid.

Special Focus: Methane Management

As a result of our investments in gas conservation and fugitive emissions management, we conserve greater then 99.5% of methane which comprise less than 0.5% of our total site wide GHG emissions and remains a top priority at MEG.

Global perspective: our 2020 methane intensity of bitumen production is 99% below the estimated global average methane emissions intensity.