7G does not have an absolute emissions target because it believes that emissions intensity is a more valuable measure of emissions performance. It enables the company to grow its business while maintaining accountability for emissions performance across the enterprise. As 7G’s business model evolves from higher to lower growth rates, the company plans to establish an emissions intensity target.
Over the past few years, 7G has acquired detailed information and data about its operations, assets and emissions, which includes building a comprehensive inventory of all emitting assets, and the resulting greenhouse gas (GHG) emissions, projecting new sources of GHG emissions on a yearly basis and extrapolating the emissions profile and subsequent emissions intensity for 7G. Ultimately, 7G’s GHG emissions intensity target will be informed by its GHG emissions profile based on five-year development plans and the application of marginal abatement cost curves regarding emissions reduction activities to establish an economic optimum regarding GHG emissions management across its operations. For more information about our emissions, please see our 2020 ESG Report.
7G has long considered the potential market, capital and operational scenarios that could impact its business through the manifestation of a carbon-constrained regulatory, commercial and social environment. However, 7G has not formally adopted a scenario analysis that contemplates a global GHG budget constrained to a global 2 degrees Celsius increase.
Over the past several years, 7G has continued to build a detailed understanding of its emissions profile. We have a quantification methodology document that outlines our methodology that adheres to ISO 14064 and the Alberta Environment and Parks requirements. In addition, our inventory of GHG emissions is verified by a third party who is required to follow ISO 14064 protocol. 7G will consider the best course of action based on informed understanding and thoughtful consideration acquired through its own research and public discourse, public policy engagement, provincial and federal regulations as well as input from other relevant stakeholder groups. Please see our 2020 ESG Report for more information about 7G’s climate strategy.
Seven Generations manages the waste, both hazardous and non-hazardous, associated with its Kakwa River Project production. Our goal is to achieve waste minimization through re-use, recycling or treatment of products whenever possible. 7G is governed by many regulations and directives associated with waste management, including Directive 058, which outlines the requirements for waste characterization, classification, manifesting, and tracking of oilfield waste.
7G follows the Alberta Energy Regulator’s requirements for wastewater disposal. This includes directives that set out regulatory requirements for handling, treatment, and disposal of upstream oilfield waste.
Our Guiding Principle states that 7G will comply with applicable laws, child labour, forced labour, human trafficking and slavery are illegal in Canada, and labour rights, freedom of association, collective bargaining and working hours are regulated by our labour and employment laws, for which Canada is recognized as a leader internationally. In addition to complying with the laws of Canada, we strive to have industry-leading best practices that exceed legislated requirements with respect to our employment and human rights practices, and in all facets of our business.
7G is committed to providing a compensation program consistent with the governance standards and practices expected of a leading, publicly traded Canadian energy company. Our short-term incentive plan (STIP) scorecard is the tool that is used to assess 7G’s corporate performance. The scorecard has a number of categories, including sustainability metrics under the health, safety and environment category. The company’s performance is assessed against this scorecard, which then impacts the annual bonuses that will be awarded, if any, to executives and employees. Please see the compensation discussion and analysis section of our management information circular for further details regarding our compensation programs and the STIP scorecard. Click here to to view the management information circular.
90 percent of 7G’s board members are independent. All committees are 100 percent independent. 7G’s director profiles are disclosed our Board of Directors page.
Lobbying and Political Spending
In the course of our business activities, we engage with a number of industry associations who seek to advance and advocate for responsible energy development in Canada. A list of our industry memberships is outlined in our 2020 ESG Report.
Additionally, our lobbying activities are disclosed publicly and updated every six months on the Alberta Lobbyist Registry.
7G also publicly reports payments to governments in the countries where we operate as required by the Extractive Sector Transparency Measures Act (ESTMA). 7G has been reporting under ESTMA since 2016. View our ESTMA disclosure.
Seven Generations' decommissioning liabilities reflect the estimated cost to dismantle, abandon, reclaim and remediate the company's assets in the Kakwa River Project at the end of their useful lives (the “ARO liability”). To date, 7G has not engaged in significant ARO restoration activities because the majority of the Company’s core assets have been developed within the last 10 years and are still actively contributing to ongoing production or operations. These liabilities are anticipated to be incurred over the next 35 years with the majority of costs occurring after 2040. All of the company’s assets are in Alberta and the Alberta Energy Regulator (AER) assigns a Liability Management Rating (LMR) to each operator to determine if restoration security deposits are needed. The LMR is determined by dividing deemed assets by deemed liabilities. As at December 31, 2019, the company’s LMR was 29.30 which means the company has assets 29.3 times greater than its liabilities. The AER has not required Seven Generations to post a security deposit.
As set out in 7G’s Respectful Workplace Policy, all workers at all levels within the organization are to be treated respectfully, free from discrimination, harassment, bullying, and workplace violence. The Respectful Workplace Policy explains what is considered discrimination, harassment, bullying, and workplace violence under the Alberta Human Rights Act and the Occupational Health and Safety Act. 7G prohibits discrimination in the workplace based on protected grounds under the Alberta Human Rights Act, which includes race, colour, ancestry, place of origin, religious beliefs, gender, gender identity, gender expression, among others. The policy also describes how a worker may respond to a violation of the policy and how the company as a whole is encouraged to promote and maintain a respectful workplace. The Respectful Workplace Policy includes a training element, setting out that training under the policy will provide workers with the tools to recognize discrimination, harassment, bullying and workplace violence, and how to appropriately report, investigate and document any violations under the policy. The term “workers” is defined broadly under the policy and includes our contractors, vendors and students as well as employees of 7G. There is always a risk that a worker may contravene the Respectful Workplace Policy, but the company has procedures in place to manage any violations or suspected violations, and invites all stakeholders to report any suspected violations to the company. Suspected violations can also be reported anonymously through the company’s Whistleblower Hotline.
The following policies help govern sustainability at 7G: