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About this Report

Imperial’s sustainability report summarizes our approach to managing our operations and describes our environment, social and governance (ESG) performance.

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Performance data presented in this report reflects our activities from Jan. 1 to Dec. 31, 2022, unless otherwise stated. Information regarding events or activities in the first half of 2023 may also be included.

Identifying sustainability risks and opportunities

Imperial has a robust issues and opportunities management process to identify and prioritize key actions for the company, which help inform our sustainability priorities. This issues and opportunities process includes analysis that considers stakeholder input, issues research, trends assessment and potential business impact. The process ensures these items receive the appropriate level of management attention so strategies can be developed to mitigate risk or progress opportunities. Oversight responsibilities by the management committee and the board and its committees, as described on page 10 [of report pdf], are a key part of risk governance.

Identify
Monitor external developments:
- Public policy engagement
- Stakeholder feedback
- Trends assessment
- Peer benchmarking
- Ad hoc research
Analyze
Assess risk and opportunity impacts:
- Safety, security, health and environment
- Financial and economic
- Market and customer needs
- Stakeholder priorities
- Reputation
Evaluate
Prioritize issues/topics by considering:
- Degree of impact on business
- Influence on stakeholder decisions
Priorities are regularly re-evaluated based on changing business environments and stakeholder expectations
Steward

Issues and opportunities are reviewed with Imperial’s board of directors and management committee based on potential impact and prioritization

Relevant frameworks

The reporting guidelines and indicators in the Sustainability Reporting Guidance for the Oil and Gas Industry (fourth edition, 2020) developed by Ipieca, the American Petroleum Institute (API), and the International Association of Oil & Gas Producers (IOGP) informed this report. This report also cross-references Global Reporting Initiative Standards (GRI) and the Sustainability Accounting Standards Board (SASB). A SASB content index is included on page 68 of this report to highlight where our disclosures overlap with SASB metrics.

Imperial recognizes the importance of the United Nations Sustainable Development Goals (SDGs) and contribute to many of these goals throughout our business. The SDGs identified below represent those most relevant to our focus areas in this report.

Our Advancing Climate Solutions report is guided by the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD).

LRQA Inc. has confirmed our Operations Integrity Management System meets the requirements of the international standard for Environmental Management systems, ISO 14001 and Occupational Health & Safety Management Systems, ISO 45001. They have also certified that our Global Product Quality Management System used at our Sarnia facility, and applicable for manufacture and distribution of petrochemical and polymer products, meets the intent of ISO 9001. In addition, LRQA Inc. has confirmed our distribution of lubricating oils and greases meets ISO 14001:2015 standards.

Business controls outlined in our Controls Integrity Management System (CIMS) meet or exceed the requirements of the Sarbanes-Oxley Act and the New York Stock Exchange (NYSE) American listing standards. Assessments are performed annually confirming that our internal controls system is sound.

Our financial reporting is in accordance with regulatory requirements and United States Generally Accepted Accounting Principles.

Additionally, as required by provincial regulation in Alberta and Ontario, our greenhouse gas emissions are third-party verified