Husky shoots for carbon emissions and diversity targets in 2020 ESG report
Husky Energy has released its 2020 ESG Report and identified several goals for the near future, including a GHG emissions intensity reduction target of 25 percent by 2025 and a gender diversity target of 25 percent women in senior leadership roles. The report also addresses Husky's aspiration to be net zero by 2050.
Additional highlights of Husky's ESG performance include:
- Improved safety performance, including achievement of Husky's lowest Total Recordable Injury Rate to date, and a 55% improvement in its Lost Time Incident Rate over the previous year
- Details on Husky's vision to become global top quartile in process and occupational safety, measured against industry benchmarks, by the end of 2022
- Development of the ESG Steering Committee, a group of senior leaders responsible for performance in each of Husky's priority ESG areas, which reports regularly to Husky's Board of Directors
- Enhanced link between executive compensation, safety performance and delivery against Husky's ESG targets, including GHG intensity reductions
- Introduction of formal climate change scenario analysis to assess Husky's business resiliency in an oil and gas demand environment consistent with a Paris Agreement 2-degree limit world
- Implementation of a new Indigenous Relations Policy recognizing the Rights of Canada's Indigenous Peoples and articulating the role Husky plays in supporting reconciliation through cultural awareness and economic empowerment
- Significant achievements within Husky's Indigenous Economic Inclusion program, including a 65 percent increase in Indigenous procurement spend since 2016
"Husky's approach to ESG took a major step forward in 2019 with strong safety performance and now with setting our first carbon intensity reduction target of 25 percent," said CEO Rob Peabody.
"And our gender diversity target of 25 percent women in senior leadership roles is a tangible start to measuring Husky's culture of inclusivity and talent management. Going forward I see added opportunity to align ESG goals to our business strategy, demonstrating our ability to adapt and change, and further increase the performance of our business."
Climate Change Target, Reporting and Governance
Husky has set a target to reduce its Scope 1 greenhouse gas emissions intensity by 25 percent by 2025. To meet objectives under the Paris Agreement we, along with several other energy companies and governments, aspire to achieve net zero emissions by 2050. Achieving our 2025 target is a start, while we continue to invest in new technologies and carbon offsets that will bring us closer to this goal.
Some concrete steps Husky has already taken include our technology partnerships with Svante on carbon capture and with White Whale to use artificial intelligence to improve steam-to-oil ratios. Husky has played a key role in piloting both technologies which have wider application.
Starting in 2020, all Husky business units will maintain a carbon management plan, including requirements to meet or exceed our 2025 25% emissions intensity reduction target. The performance contracts for each Executive Vice President and Senior Vice President reporting to the CEO are directly linked to compensation and include the requirement to meet or exceed carbon performance requirements.
Husky's 2020 ESG Report aligns with the Task Force on Climate-related Financial Disclosure's requirements, and our performance data table indicates how our air emissions and other metrics align with the Sustainability Accounting Standards Board's guidance and UN Sustainable Development Goals.
Gender Diversity Targets
A culture of inclusion, respecting differences of thought and perspective, is the foundation of a better and more productive working environment. Husky aims to create a workplace that reflects the communities where we work, where people are treated with dignity and respect, free of harassment, and where diversity is valued in all its forms.
Husky acknowledges that shareholders, employees, prospective employees and other stakeholders assess our Company's inclusion and diversity culture, in part, by who succeeds at our most senior levels.
Recognizing the need to improve the representation of people from diverse backgrounds at senior levels, in 2020 we took the step of setting a gender diversity target of 25 percent women at or above the Vice President level. This target is achievable through our existing talent management and development programs, combined with targeted recruiting to ensure our talent pipeline continues to include women and people of diverse backgrounds, including Indigenous people, Black people, other people of colour, and persons with disabilities.
Managers and leaders across Husky play a key role in meeting and exceeding Husky's gender diversity target. Each business performance contract, against which pay-for-performance compensation is evaluated, includes inclusion and diversity plans and goals. These targets are supported by other corporate human resources programs, employee career development plans, education, training, mentorships and sponsorships designed to help employees achieve their potential and contribute strongly to Husky across their careers.
Read Husky's full ESG report.