From the Chair & CEO
We have a powerful purpose – producing safe, affordable, reliable and secure oil and natural gas from shale profitably and sustainably. Our products fuel the world and make modern life possible. From transportation to education to healthcare, the energy we responsibly produce contributes to our energy security, ensures quality of life for many, and helps lift people out of poverty.
To achieve our purpose, we have built a world-class team with a unique culture of innovation, teamwork and discipline. Our culture and expertise combine with our top-tier multi-basin portfolio to drive industry-leading capital efficiency. We use these capabilities to create value for our shareholders by generating superior returns. To accomplish this, we are focused on disciplined capital allocation, free cash flow, financial strength, and importantly, driving environmental, social and governance (ESG) progress. We are committed to a sustainable and well-governed business rooted in value creation.
Our 2021 ESG accomplishments include:
Delivered on lowering our methane emissions – We reduced our year-over-year methane emissions intensity by 30% in 2021 which helped us to meet our target of a 33% reduction in methane emissions intensity from 2019 levels — four years ahead of schedule. This is a total reduction of more than 50% compared to our 2019 baseline. Additionally, in 2021 Ovintiv was one of the first E&P companies to declare full alignment with the World Bank Zero Routine Flaring Initiative, nine years ahead of the 2030 target.
Chairman of the Board
President & Chief Executive Officer
Committed to a greenhouse gas (GHG) emissions reduction target – We achieved a 12% year-over-year reduction in our Scope 1 & 2 GHG emissions intensity in 2021, resulting in the 24% GHG intensity reduction we have achieved since 2019. This puts us well on our way to achieving our target of reducing our Scope 1 & 2 GHG emissions intensity by 50% by 2030 compared to our 2019 baseline. Starting in 2022, our progress towards meeting this target is tied to the compensation of all Ovintiv employees.
Renewed our Social Commitment – We launched a renewed social commitment to define what we expect of ourselves and our strategic partnerships – respecting our stakeholders and Indigenous partners, strengthening communities and fostering inclusion. This social commitment works alongside our foundational values to empower employees, set expectations and guide decisions, practices and relationships in our day-to-day operations.
Made 2021 our safest year ever for the eighth consecutive year – Protecting our people is paramount at Ovintiv and is embedded in our social commitment. Our leading safety culture has enabled us to achieve year-over-year improvements for the past eight years and we have no intention of stopping.
Strengthened our Board diversity – We have been intentional about enhancing diversity throughout our ongoing Board refreshment process. In 2021, we welcomed Katherine Minyard and George Pita to the Board, which marked our fourth and fifth new independent directors since 2019. We also formally adopted a Diversity in Board Recruitment policy, to backstop our commitment to Board diversity and drive further progress.
In 2021, Ovintiv delivered on every aspect of our value proposition. We continued to rapidly reduce net debt, drove efficiency gains to more than offset cost inflation, implemented a new capital allocation framework to enhance returns to shareholders and generated significant free cash flow, all while making meaningful ESG progress.
As we reflect on this past year and look forward into 2022, we recognize the significant uncertainty that continues to exist across the globe – the lingering effects of COVID-19, increasing inflationary pressures, energy poverty in large parts of the world and rising geopolitical uncertainty, all of which highlight the continued importance of reliable, affordable and responsible energy. As a leading operator with a history of rigorous governance, we understand that we have an environmental responsibility to reduce our impact and a social responsibility to model the behavior we want to see.
In the meantime, we will remain focused on producing a safe and secure supply of oil and natural gas to reliably power the schools, hospitals and transportation that delivers the necessary food, goods and services to make modern life possible.
Thank you for your interest in our commitment to sustainability and we trust that you will find this website helpful in understanding our ESG approach and ongoing accomplishments.