This year brings unprecedented challenges for the health and welfare of individuals and for companies. The COVID-19 pandemic reinforces the importance of health and safety and for us all to practice team backup, be kind and take care of one another.
The economic turmoil created by COVID-19 and other global factors is testing Husky’s resilience. The Company has taken steps to preserve our financial health, including reducing spending and managing debt. We must also remain focused on safety. We are making significant progress towards becoming a High Reliability Organization and top quartile in process and occupational safety by the end of 2022 as measured against industry benchmarks. In 2019 we saw a 55% improvement in our lost time incident rate over the previous year and a 15% improvement year-over-year in the total recordable injury rate.
In a business environment that’s largely discouraging at the moment, Husky’s safety performance
is an encouraging sign of what we can achieve when we set our minds to it.
To further protect Husky’s future, and our ability to provide well-paid jobs and returns to shareholders, governments and communities, we must continue to focus on ESG risks and priorities for the Company. While the analysis we undertook in 2019 shows Husky is resilient in different oil and gas demand scenarios, including one where global warming is limited to a less than two-degree Celsius rise, we know we must do more.
As such, we have set a target to reduce our greenhouse gas emissions intensity by 25% by 2025, from our 2015 level, and aspire to achieve net zero emissions by 2050. To support the 2025 target, the performance contracts of our operational Executive Vice Presidents and Senior Vice Presidents require the development of carbon management plans.
While the work we’re undertaking to meet our 2025 target puts us directionally on the path to net zero, investing in new technologies and carbon offsets is needed, along with an economy-wide ecosystem that enables cost-effective solutions globally.
Our drive to leverage innovation and technology includes using third-party artificial intelligence which has lowered the steam-oil ratio, and therefore emissions intensity, at our Lloyd thermal projects. After a successful trial at three facilities, we’ll be rolling the platform out to the other eight. We are embracing similar innovative technology solutions across our business.
Husky has the opportunity to responsibly produce the energy the world needs while making improvements that start to address climate change. We are acting on that. At the same time we are providing jobs and investing back in our communities through taxes, royalties and our Corporate Citizenship program.
We must ensure our neighbours participate in our success. We are expanding our economic inclusion program, which helps build capacity in Indigenous businesses, and have increased our spend with Indigenous vendors by 65% since 2016.
This year we have been reminded, yet again, that we all have more work to do to confront racism and intolerance in all its forms, and ensure we are moving towards more inclusion and diversity, building on our common bonds.
At Husky, we place the safety of all the people working for us, and the safety of our operations, above anything else.
We have introduced a gender diversity target, with the goal of having women in 25% of positions at the Vice President level and above. We are in a strong position to deliver on this with a deep pipeline of talent in place today.
As a company we will continue to adapt and improve to meet the expectations of our communities and neighbours, our employees and our shareholders. We’ve taken important steps over the past year and we will follow up on these in future reports.