Ovintiv targets methane reduction of 33 percent by 2025
Ovintiv is aiming to cut its methane intensity 33 percent by 2025, the company has announced. The effort, approved by the Ovintiv board of directors, will be tied to annual incentive compensation programs for all employees starting in 2021.
According to the company, the reduction will be benchmarked against its actual methane intensity of 0.15 metric tons CH4 per thousand barrels of oil equivalent from 2019, disclosed in Ovintiv's recent 16th annual sustainability report. Pushing its methane intensity down to 0.10 metric tons CH4/MBOE will significantly cut greenhouse gas emissions.
"ESG is one of the board's highest priorities. We safely produce the products that make modern life possible and realize the importance of reducing our emissions," said independent board chair Peter Dea. "From our ongoing dialogue with investors and other stakeholders, we know they share the importance we place on this topic."
Ovintiv is an early adopter of key disclosure frameworks from the Task Force on Climate-related financial disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). Using a methane-focused reduction metric supports UN sustainable development goals while providing guidance to direct Ovintiv's sustainability approach. Executives also serve in leadership roles on climate-related issues within large North American industry trade associations and collaborate with industry peers to ensure consistent disclosure of key metrics.
Ovintiv CEO Doug Suttles said, "We are proud of our track record on environmental performance but know we need to do more. By setting this ambitious target and linking it to every employee's compensation we are sending a clear signal. Based on our team's track record of innovation and efficient delivery, I'm confident we'll meet this target and strive to exceed it."