Husky responsibly produces the energy the world needs, and has done so for more than eight decades.
You can only be successful for that long if you keep evolving and looking for opportunities to improve economic, environmental and social performance, while adhering to high standards of corporate governance. This is what Husky aims to do and this report details our programs and our performance across priority environmental, social and governance (ESG) topics.
Our industry operates in a constantly changing environment and we’re proud to have built a company resilient to changing conditions. Economic sustainability and resiliency are core among our responsibilities to shareholders, employees, governments and the communities where we operate. Thinking and acting with a long-term perspective helps us to avoid risk and take important investment decisions, which create the steady, well-paid jobs and solid returns to shareholders, governments and communities that we like to be known for.
However, expectations of our industry – of all large businesses – are changing. Our shareholders, stakeholders and employees are demanding increased transparency about how we operate, about our ESG performance and, where needed, about our plans to demonstrate progress on these issues. In 2018 Husky’s safety and operations integrity performance fell short of my expectations. Our goal is to operate safely, always – safety remains our top priority.
We set three safety and operations integrity priorities in 2018 and have actioned all of them. First, our new Senior Vice President, Safety & Operations Integrity started in April 2019 and reports directly to me. Second, compensation for all employees, including senior management, is now more closely and transparently linked to safety performance. And third, we have started our work to become a high reliability organization, ensuring processes and procedures are the right ones and are strictly followed, and we are institutionalizing the right behaviours, including the life-saving rules.
In 2018 we had two serious safety and operations integrity incidents: a fire at our refinery in Superior, Wisconsin and an oil spill offshore Newfoundland and Labrador. We are using these incidents as a catalyst to drive further improvements and apply what we learn throughout the Company.
In addition to a focus on safety and operations integrity, we are hearing from our stakeholders that continuous improvement on our ESG performance and how we address greenhouse gas emissions is paramount. At our Sunrise and Tucker thermal projects, production since 2015 has been growing at a rate greater than our energy use, lowering total energy intensity and Scope 1 GHG intensity.
In the area of asset retirement, we have pioneered an Area-Based Closure program, recognized by the Alberta government, which sees land reclaimed more quickly. This assists biodiversity while being more efficient and cost effective.
These initiatives speak to the innovation of our people, supported by a diverse and inclusive workplace. Our Innovation Gateway team is exploring how innovation and technology can improve safety and environmental performance and reduce costs.
Advancements on environmental performance are key as demand continues to grow for the products we produce, products which are vital to the way we all live. We strive to make improvements because we take seriously our responsibility as a safe and ethical employer, neighbour, taxpayer and innovator, with a commitment to environmental stewardship.
There is always lots to do. Our ongoing drive to innovate and improve, while being accountable to our stakeholders, puts us on a firm foundation to thrive in the coming decades.
Rob Peabody