orporate responsibility performance measures
about cenovus 2 3 4 economic 5 environment 2 4 workforce 6 community 6 governance our approach to CR reporting health and safety energy efficiency and R&D measurement abbreviations bbls: barrels m 3 : cubic metres CO 2E: carbon dioxide equivalent m 3 OE: cubic metres of oil equivalent MMcf/d: million cubic feet per day Mbbls/d: thousand barrels per day 3 m 3 /yr: thousand cubic metres per year BOE/d: barrel of oil equivalent per day
about Cenovus Cenovus Energy is a Canadian oil company headquartered in Calgary, Alberta. The company began independent operations on December, when Encana Corporation split into two distinct companies: one an oil company (Cenovus), the other a natural gas company (Encana). Cenovus s operations include our oil sands projects in northern Alberta, which use specialized methods to drill and pump the oil to the surface, and established natural gas and oil production in Alberta and Saskatchewan. We also have 5 percent ownership in two refineries in Illinois and Texas. The people at Cenovus are respectful of the environment and communities where we work and are committed to applying fresh, progressive thinking to the development of energy resources the world needs.
our approach to CR reporting We re committed to operating in a responsible manner and we recognize the importance of reporting to stakeholders in a transparent and accountable way. We disclose not only the information that s required by law and regulation, but also which more broadly describes our activities, policies, opportunities and risks. As the company was just formed in late, we had some unique challenges in preparing our corporate responsibility reporting. Cenovus s assets were held by Encana Corporation until November 3,, and the data contained in this report was derived from Encana s records on a carve-out basis for the periods prior to December,. In some cases, historical data prior to wasn t available. Despite these challenges, it was important for us in this first year to share some key measures that provide insight into how we re doing. We re always looking for ways to improve and are currently in the process of developing a more complete list of corporate responsibility priorities and performance measures tailored for Cenovus. We have used and will continue to use the Global Reporting Initiative guidelines as a framework for reporting and have started aligning our performance metrics with the standards set out by the CAPP Responsible Canadian Energy program. We have not yet engaged a third party to verify our corporate responsibility performance, but may look to do so for future reporting. We look forward to producing a more comprehensive report in 2. 2
health and safety We are a safety-focused company. Our work is never so urgent or important that we cannot take time to do it safely. Injury frequency Injury frequency (employees and contractors) 2..5..5.4.27.53.7.9. 27 28 Total recordable Lost time Frequency rate is per 2, hours worked (equivalent to person years), a standard industry measurement. Fatalities 27 28 Fatalities (employees and contractors) 2 3
economic We are a Canadian oil company anchored by stable production and cash flow from our established natural gas plays and oil resources. We are also integrated from crude oil production through to refined products. We are focused on the development of our vast bitumen resource. 28 Net land position (million hectares) 3.3 3.2 Common shares outstanding (millions) 75.3 Market capitalization ($ millions) 9,99 Revenues, net before royalties ($ millions) 7,57,57 Cash flow ($ millions) 3 3,5 2,845 Operating expenses ($ millions),292,32 Dividends on common shares ($ millions) 2 59 Current taxes ($ millions) 369 934 Year end December 3, data. Figures based on month carve-out, month actual information. Effective January, 2, we changed our reporting currency to Canadian dollars on a before royalties basis. Calculated using December 3, share price of C$26.5. 2 Cenovus declared and paid a dividend of US$.2 per share in December. The December dividend reflects an amount determined in connection with the arrangement, whereby Encana was split into two independent companies, based on carve-out earnings and cash flow. 3 Cash flow is a non-gaap measure, defined as cash from operating activities excluding net changes in other assets and liabilities and net change in non-cash working capital from continuing operations, both of which are defined on the Consolidated Statement of Cash Flows, in the Annual Information Form/Form 4-F and in the interim financial statements. Production Volume, before royalties (thousands BOE/d) 2 5 5 7. 85.7 79. 3.2 33.7 59. 74.4 47.5 39.5 27 28 Oil sands Other oil and NGLs Natural gas 4
environment The different areas where we operate challenge us to identify the unique needs of the environment and our impact on it. We take very seriously our responsibility for managing air emissions, using and disposing of water safely, and limiting our physical footprint and impact on natural diversity. One of our company strategies is to fully integrate environmental considerations into our business. air Direct GHG emissions intensity Our direct GHG emissions intensity has increased over 28 as a result of: ) an increased weighting of bitumen in our production mix, which involves a more carbon intensive recovery process than conventional oil and natural gas; and 2) an increase in the amount of energy required to produce natural gas in our operations..25 Direct GHG emissions intensity (weighted average, tonnes CO2E/m 3 OE/yr).2.5..5.72.25.95.2 26 27 28 5
Bitumen production GHG emissions intensity The bitumen intensity is expected to be reduced in the future as we continue to explore technologies aimed at improving efficiencies in our operations. Bitumen production GHG emissions intensity (percentage decline from 24) 2 9.8.4 4.8 6.5 26 27 28 Direct GHG emissions Our direct GHG emissions (gross operated) have increased over 28 as a result of an increase in weighted average GHG intensity of production, and increased production. Direct GHG emissions (kilotonnes CO2E/yr) 4, 3, 2,, 3,395 3,97 3,657 3,868 26 27 28 6
Mass of CO 2 sequestered Represents the annual amount of CO 2 sequestered at our Weyburn facility on a gross operated basis. Mass of CO2 sequestered (kilotonnes CO2/yr) 2,5,875,25 625,734,97 2, 2,42 26 27 28 Equivalent to taking 476, cars off the road for one year. Cumulative mass of CO 2 sequestered Represents the amount of CO 2 sequestered at our Weyburn facility to date on a gross operated basis. 2, Cumulative mass of CO2 sequestered (kilotonnes CO2) 5,, 5, 9,2,983 2,994 5,35 26 27 28 Equivalent to taking 3.3 million cars off the road for one year. 7
SO 2 emissions Improvement due to installation of additional recycling capacity at Weyburn. 8, 7,22 SO2 emissions (tonnes/yr) 6, 4, 2, 2,629 4,8,67 26 27 28 NOx emissions 2, 9,674 9,38 NOx emissions (tonnes/yr) 9, 8, 8,539 8,2 26 27 28 8
Total gas flared Improvement due to installation of additional recycling capacity at Weyburn. 25, 242,523 Total gas flared ( 3 m 3 /yr) 2, 5,, 5, 76,547 46,673 38,249 26 27 28 Total gas vented, Total gas vented ( 3 m 3 /yr) 8, 6, 7,47 8,24 7,57 8,295 26 27 28 9
land Reclamation 27 28 Well site reclamation certificates received 4 36 65 Total wells undergoing active reclamation 82 949,5 Total reclaimed land (hectares) 97 75 5 Reportable spills In, Cenovus experienced two produced water spills from a pipeline break and an uncontrolled release on a drilling rig. Water from the uncontrolled release was largely recovered. These incidents account for the increase in volume spilled. 27 28 Number of reportable spills 86 75 88 Estimated reportable volume spilled (m 3 ),225 946,466
water We are unable to report on historical data for water use prior to as our previous method of collecting water data is not consistent with our newly developed water use reporting protocol. Non-saline water use intensity oil sands operations (m 3 /m 3 ).4 Saline water use intensity oil sands operations (m 3 /m 3 ).78 Non-saline water use intensity (m 3 /m 3 OE).6 Saline water use intensity (m 3 /m 3 OE).55 Non-saline water use (m 3 ) 2,426,987 Saline water use (m 3 ) 8,29,84 waste Total waste volumes can vary based on our drilling activity, plant turnaround, plant expansions and reclamation projects. Our hazardous waste has increased over 28 as a result of the start up of production of a new phase at our Foster Creek facility and consists primarily of produced water. 26 27 28 Hazardous waste (tonnes) 2,8 55,58 23,795 422,69 Non-hazardous waste (tonnes) 373,234 382,53 74,229 5,45
energy efficiency and R&D Technology plays a key role in improving how we extract energy resources; in particular, enhancing the amount of resource recovered while minimizing our impact on the environment. We want to advance technologies to reduce the amount of water, natural gas and electricity used in our operations, and decrease air emissions intensity and land disturbance. Energy efficiency commitments 27 28 Environmental Opportunity Fund commitments ($ millions/yr).7.9 2.4 Energy efficiency initiative commitments ($ millions/yr) 2. 6. 8.4 Commited $4 million since 23 towards early stage external technologies that advance alternative forms of energy and reduce the environmental impact of hydrocarbons. 2 We invest funds into the use of technologies that contribute to a reduction in our energy consumption and related reductions in greenhouse gas emissions in our operations. Steam to oil ratio our key oil sands operations Increase in our steam to oil ratio (SOR) at Foster Creek in is due to new wells coming online during startup of a new phase. Our SOR is one of the lowest in the industry. A low SOR generally means lower capital cost, operating cost, energy use and emissions, and a smaller surface footprint. 3 Steam to oil ratio 2 2.46 2.22 2.55 2.48 2.3 2.4 2.5 2. 26 27 28 Foster Creek Christina Lake 2
R&D spending under SR&ED tax credit The decline in our spending in is due to a reduction in our SAP (solvent aided process) project expenditures that qualify for SR&ED credit. Research expenditures continue on this project. Not included is R&D spending that does not qualify for SR&ED. R&D spending under SR&ED tax credit ($ millions/yr) 4 3 2 4.8 27 39.6 28 22.8 Scientific Research and Experimental Development Canadian federal government 3
workforce We have leading human resources (HR) practices and a culture that fosters new ideas and new approaches to develop energy resources safely and responsibly. Breakdown of total workforce Total: 37 employees and contractors Contractors 849 28% Number of employees/contractors Percentage of employees/contractors Employees 2,22 72% Employee total is based on full-time equivalent. Voluntary employee turnover Voluntary employee turnover (percentage) 2.6 Significantly lower than the industry average of 6.5 percent (source: The Conference Board of Canada). 4
Breakdown of employees by gender Female 746 34% Number of employees Percentage of employees Male,475 66% Breakdown of employees by age 6% 39 2% >6 7% 2% 5-55 278 56-6 29 <26 5 26-3 296 3% Number of employees Percentage of employees 6% 46-5 36 3-35 32 4% 4-45 35 36-4 352 4% 6% 5
community We live and work in the communities where we operate. In 2, we will be identifying key focus areas for Cenovus s community investment efforts and developing the guidelines for community partnerships and sponsorships. We strive to treat all communities in which we work in a fair and equitable manner. Our spend decreased as a result of reduced company activity. 28 Aboriginal business spend ($ millions) 4 82 All goods and/or services provided by either an Aboriginal owned company (5 percent or more ownership) or an Aboriginal joint venture. governance Our Board of Directors is committed to evaluating and enhancing our corporate governance practices. Governance matters relating to our corporate responsibility performance including safety, environment, occupational health, security, overall business conduct and ethics are overseen and reviewed by the Safety, Environment and Responsibility Committee, and Audit Committee of our Board of Directors. Monetary value of significant fines and total non-monetary sanctions for non-compliance 346, with laws and regulations ($) Fines related to Crown mineral trespass occurrences (for a short period of time, production was inadvertently taken from an area in which we did not have rights). No non-monetary sanctions were rendered. 28 Business conduct investigations 22 9 Total incidents of violations involving rights of indigenous people Potential breaches of Code of Business Conduct & Ethics may be investigated by members of the Cenovus Investigations Committee represented by internal HR, Legal, Internal Audit and Corporate Security personnel. Investigations include (but are not limited to) compliance with laws and regulations, conflict of interest, fraud (or similar irregularities), confidentiality and disclosure, acceptable use of Cenovus s systems and assets, inducements and gifts and a wide variety of other potential breaches of policies and practices. 6
indicator index health and safety Total recordable injury frequency (employees and contractors) Lost time injury frequency (employees and contractors) Fatalities (employees and contractors) economic Net land position (million hectares) Common shares outstanding (millions) Market capitalization ($ millions) Revenues, net before royalties ($ millions) Cash flow ($ millions) Operating expenses ($ millions) Dividends on common shares ($ millions) Current taxes ($ millions) Production, before royalties (thousands BOE/d) environment Direct GHG emissions intensity (weighted average, tonnes CO 2E/m 3 OE/yr) Bitumen production GHG emissions intensity (percentage decline from 24) Direct GHG emissions (kilotonnes CO 2E/yr) Mass of CO 2 sequestered (kilotonnes CO 2/yr) Cumulative mass of CO 2 sequestered (kilotonnes CO 2) SO 2 emissions (tonnes/yr) NOx emissions (tonnes/yr) Total gas flared ( 3 m 3 /yr) Total gas vented ( 3 m 3 /yr) Well site reclamation certificates received Total wells undergoing active reclamation Total reclaimed land (hectares) Number of reportable spills Estimated reportable volume spilled (m 3 ) Non-saline water use intensity oil sands operations (m 3 /m 3 ) Saline water use intensity oil sands operations (m 3 /m 3 ) Non-saline water use intensity (m 3 /m 3 OE) Saline water use intensity (m 3 /m 3 OE) Non-saline water use (m 3 ) Saline water use (m 3 ) Hazardous waste (tonnes) Non-hazardous waste (tonnes) energy efficiency and R&D Environmental Opportunity Fund commitments ($ millions/yr) Energy efficiency initiative commitments ($ millions/yr) Steam to oil ratio R&D spending under SR&ED tax credit ($ millions/yr) workforce Total workforce (employees and contractors) Voluntary employee turnover (percentage) Gender (employees) Age (employees) community Aboriginal business spend ($ millions) governance Monetary value of significant fines and total non-monetary sanctions for non-compliance with laws and regulations ($) Business conduct investigations Total incidents of violations involving rights of indigenous people affiliations
Cenovus Energy Inc. 42 7 Ave SW PO Box 766 Calgary, AB T2P M5 Telephone: 43.766.2 Toll free in Canada:.877.766.266 corporate.responsibility@cenovus.com www.cenovus.com