Letter to stakeholders
Imperial is developing pathways in support of a net-zero future
Letter to stakeholders
Very few periods in history have challenged our industry and the world’s economy as significantly as in 2020 — a global pandemic, the unprecedented erosion of oil and natural gas demand, and highly volatile conditions have tested the resiliency of energy companies around the world.
Overcoming adversity of this scale and not only recovering, but embracing the opportunity ahead requires deep collaboration among all stakeholders and a recognition of the intrinsic linkage of a company’s resilience to environmental, social and governance performance.
Imperial is committed to working together to provide energy solutions in a way that protects people, the environment and the communities where we operate, including addressing the risks of climate change.
Our strategy for collective success and delivering value comes down to three elements: reducing our environmental footprint; capturing high value business efficiencies and opportunities by making strategic investments in economic, lower emissions energy solutions; and, advancing social innovation and engagement by meaningfully supporting and contributing to local and Indigenous communities.
Our teams have successfully reduced operated oil sands GHG emissions intensity (GHGi) by more than 20 per cent since 2013. We continue to focus on our performance and our target of reducing GHGi by 10 per cent in 2023, compared to 2016 levels, is in sight. A 2020 life cycle analysis study led by Stanford University, the University of Calgary, and the University of Toronto, revealed that our Kearl oil sands operation GHG emissions intensity is better than the global upstream crude average and continues to improve.
In 2020, we also started operation of our newly constructed cogeneration unit at our Strathcona refinery. The unit increases energy efficiency at the facility and reduces greenhouse gas emissions, the equivalent to removing 24,000 vehicles from the road.
And we know it doesn’t end there. As we develop pathways in support of a net-zero future, Imperial is exploring next-generation technologies, which when paired with carbon capture and storage, could result in incremental production with zero emissions.
Our commitment to innovation extends to our focus on partnership, shared prosperity and capacity building for Indigenous peoples and our local communities. In early 2020, we surpassed the $3 billion spend mark with Indigenous businesses in Canada. Our innovative Indigenous benefits model was recognized by the Canadian Centre for Diversity and Inclusion with the employer initiative of the year award for western Canada and we are proud to be the only oil and gas company to sit on an advisory panel supporting the federal government’s efforts to increase its own Indigenous business spend.
As we look ahead, we believe we have the tools and expertise to not only create value in a competitive marketplace in a way that’s profitable to our shareholders, but also meaningfully contributes to Canada’s energy future.
This year’s sustainability report provides more detail about Imperial’s collaborative efforts to develop energy solutions for a better tomorrow. I appreciate your interest and feedback.
Chairman, President and CEO