Energy solutions for a better tomorrow Corporate sustainability report b Imperial Oil Limited | CORPORATE SUSTAINABILITY REPORT INDEX Imperial is committed to providing our shareholders and stakeholders with disclosures INTRODUCTION that impart meaningful insights about our business. This sustainability report addresses environmental, social and governance (ESG) areas of focus for the company. CORPORATE GOVERNANCE Our performance table and metrics include data up to year-end 2018. MANAGING THE RISKS OF CLIMATE CHANGE Index ENVIRONMENTAL PERFORMANCE Introduction Innovation 33 Safety, health & the workplace Letter to stakeholders 01 Our future 34 Workplace safety and security 65 Key sustainability priorities 02 Collaboration 35 Safety performance 66 SAFETY, HEALTH & Company operations 03 Mitigating emissions in our operations 36 Process safety 67 THE WORKPLACE Canada’s oil sands 06 Digital technology 37 Security is everybody’s business 68 Global ESG ranking 07 Providing solutions for our customers Emergency preparedness and response 69 to reduce their emissions 38 Inclusion and diversity 71 COMMUNITY & Corporate governance Engaging in climate policy 39 Self identification 72 INDIGENOUS Corporate governance 09 ENGAGEMENT Workforce diversity 73 Board diversity 10 Environmental performance Employee training and development 74 Shareholder engagement 12 Environmental management 41 Workforce health and wellness 75 Stakeholder engagement 13 Air emissions 43 ECONOMIC DEVELOPMENT Ethics and integrity 15 Water management 44 Community & Indigenous engagement Transparency and disclosure 17 Water commitment 45 Indigenous engagement 77 Executive compensation 18 Water strategy 46 Consultation 78 PERFORMANCE Director compensation 19 Water innovation 47 Business development 80 DATA Risk management 20 Water metrics 48 Workforce development 81 Facility resiliency 21 Water use and performance 49 Community relations 83 Our management systems 22 Land use and biodiversity 51 Indigenous youth programs 84 All about OIMS 23 Caribou 52 Community investment 85 All about CIMS 24 Commitment to progressive reclamation 53 Audits 25 Cold Lake 54 Economic development Kearl 55 Economic development 89 Managing the risks of climate change Tailings ponds 57 Taxes and royalties 90 Energy Outlook 27 Decommissioning and remediation 59 Performance data 91 Climate strategy 31 Preventing unplanned releases 61 Imperial’s progress 32 Waste management 63 Imperial Oil Limited | CORPORATE SUSTAINABILITY REPORT 01 Letter to stakeholders INDEX INTRODUCTION We are inspired and committed to provide responsible, affordable energy CORPORATE to improve the quality of life — for Canadians and those around the world. GOVERNANCE Imperial has worked to understand local, regional, and responsible development of resources, our strong Technology advancement MANAGING THE RISKS national and global perspectives on resource talent pool, and access to step change technology, OF CLIMATE CHANGE We are proud of our progress in reducing operated development for nearly 140 years. Canadians we strive everyday to meet those expectations. oil sands GHG emissions intensity (GHGi) by more understand that access to reliable and affordable People are our strength than 20 percent from 2013 to 2018. We have ENVIRONMENTAL energy enriches well-being and prosperity, at home plans for improvement and our future target of PERFORMANCE and across the globe. Our customers, shareholders, Canada leads the world in exemplary human rights. reducing GHGi by 10 percent in 2023 compared business and government associates, and Indigenous Within that framework, Imperial’s approach reflects to 2016 levels is within sight. Imperial’s progression and community neighbours all have high expectations the value we place on safety, health, inclusion, SAFETY, HEALTH & to lower-carbon energy is lifted by a developing THE WORKPLACE of us. Through robust management of our company diversity and human talent. We have an unwavering suite of advanced technologies that could reduce commitment to, and expect every person in our GHGi by about 25 to 90 percent for future oil sands company to observe the highest standards of fairness, production. In addition, we are taking action to be COMMUNITY & professionalism and integrity. This commitment starts INDIGENOUS a leader in advancing digital and artificial intelligence ENGAGEMENT with our board of directors and corporate governance technology across the value chain. policies. We demonstrate industry-leading safety performance. From a socioeconomic standpoint, I am pleased to share with you Imperial’s ECONOMIC we are committed to shared prosperity and capacity- sustainability report, a report that captures the DEVELOPMENT building for Indigenous peoples and our local dedication of our employees who are focused community neighbours. on society’s dual challenge. PERFORMANCE DATA Imperial is taking action to manage We hope this report provides you meaningful the risks of climate change information and welcome your feedback. Climate change is a global issue that requires global solutions. We recognize the dual challenge of supplying responsible and affordable energy with the need to take action on climate change. Imperial supports the work of the Paris signatories and Brad Corson believes our company has a constructive Chairman, President and CEO role to play in developing and deploying meaningful solutions. 02 Imperial Oil Limited | CORPORATE SUSTAINABILITY REPORT INDEX Imperial’s key sustainability priorities INTRODUCTION CORPORATE Imperial provides energy solutions people and society need while GOVERNANCE reducing environmental impacts and demonstrating shared commitment to improve the quality of life in Indigenous and operating communities. MANAGING THE RISKS OF CLIMATE CHANGE Increasingly, our shareholders, stakeholders and the public regard management of environmental and social risks as integral to running a sound, successful ENVIRONMENTAL business. Canada and Canadian companies rank among the best in the world PERFORMANCE when environmental, social and governance (ESG) scores are aggregated.(1) Our approach to sustainability focuses on: SAFETY, HEALTH & THE WORKPLACE - Every day, keeping the importance of safety top of mind — Nobody gets hurt - Becoming the most valued partner for Indigenous peoples, for key stakeholders and within our industry COMMUNITY & INDIGENOUS ENGAGEMENT - Maintaining an unwavering commitment to the highest ethical standards - Providing responsible, reliable and affordable energy to improve Canadians’ quality of life ECONOMIC DEVELOPMENT - Reducing greenhouse gas emissions intensity - Attracting, retaining, supporting and developing an inclusive and diverse, high-performing workforce PERFORMANCE DATA - Delivering operationally excellent performance while continuously improving - Providing timely disclosures that provide meaningful insights to our stakeholders Imperial Oil Limited | CORPORATE SUSTAINABILITY REPORT 03 Company operations: Imperial in Canada INDEX INTRODUCTION As an integrated energy company, we explore for, produce, CORPORATE refine and market products essential to society. GOVERNANCE Since 1880, Imperial has consistently demonstrated the highest quality resources from opportunities in Canadians. We are a leading marketer of fuels, unwavering high standards, pioneering Canadian diverse geological and geographical environments. lubricants, asphalts and specialty products. MANAGING THE RISKS OF CLIMATE CHANGE spirit, innovation and leadership in the challenging energy industry. At Imperial, we believe we can have We are Canada's largest refiner of petroleum In addition to Imperial’s industrial and wholesale products. We refine raw hydrocarbons into about businesses, our retail brands, Esso and Mobil are reliable and affordable energy, a strong economy ENVIRONMENTAL and a clean environment — and we’re committed 650 petroleum products essential to consumers and familiar fixtures across Canada. For more than PERFORMANCE to making it happen. businesses: gasoline, diesel, heating oil, natural gas, 80 years, Imperial and the Esso brand has been lubricants, and chemicals used to make plastics. closely linked to hockey. Three stars were first In our upstream business, we are contributing to awarded in the 1936-37 NHL season as a means for SAFETY, HEALTH & THE WORKPLACE reliable, affordable supplies of oil and natural gas Imperial offers these products and services to Imperial to advertise its Three Star brand of gasoline. for Canadians. From coast to coast to coast, we play consumers across Canada as well as in export Today, Three Stars remains an enduring symbol for markets. In total, we refine and sell about a quarter a major role in developing Canada’s oil and natural excellence in performance — both in hockey and COMMUNITY & gas resources, investing billions of dollars to select of the petroleum products used every day by in business. INDIGENOUS ENGAGEMENT ECONOMIC DEVELOPMENT PERFORMANCE DATA 04 Imperial Oil Limited | CORPORATE SUSTAINABILITY REPORT INDEX Scope of Imperial’s operations in Canada INTRODUCTION Largest refiner and a major producer (2) CORPORATE GOVERNANCE Production MANAGING THE RISKS OF CLIMATE CHANGE ENVIRONMENTAL 383K PERFORMANCE oil-equivalent barrels of gross (3) production per day in 2018 Ke nn SAFETY, HEALTH & Oil, natural gas THE WORKPLACE Fe nd nt marken Refining and supply COMMUNITY & Snde nn INDIGENOUS ENGAGEMENT 504K Disn nework ECONOMIC barrels of net petroleum Stran efney DEVELOPMENT nd en product sales per day in 2018 PERFORMANCE