Metric to be directly tied to compensation for all employees
DENVER – Ovintiv Inc. (NYSE: OVV) (TSX: OVV) today disclosed a goal to reduce methane intensity 33% by 2025. The objective, approved this week by its board of directors, will be tied to Ovintiv’s annual incentive compensation program for all employees beginning in 2021. The significant reduction will be benchmarked against the Company’s 2019 actual methane intensity of 0.15 metric tons CH4/thousand barrels of oil equivalent (CH4/MBOE), which was recently disclosed in its 16th annual sustainability report. The 33% reduction in methane intensity to 0.10 metric tons CH4/MBOE by 2025 will significantly reduce greenhouse gas emissions.
Independent Board Chair Peter Dea said, “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. From our ongoing dialog with investors and other stakeholders, we know they share the importance we place on this topic.”
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.”
Ovintiv has been a leader and early adopter of key disclosure frameworks from the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). A methane-focused reduction metric supports the United Nation’s Sustainable Development Goals and provides guidance to direct the Company’s approach to sustainability. Ovintiv executives also serve in leadership roles on climate-related issues within the largest industry trade associations in North America and are collaborating with industry peers to ensure the consistent disclosure of key metrics.
About Ovintiv Inc.
Ovintiv is one of the largest producers of oil, condensate and natural gas and natural gas liquids in North America. The Company is committed to preserving its financial strength, maximizing profitability through disciplined capital investments and operational efficiencies and returning capital to shareholders. A talented team, in combination with a culture of innovation and efficiency, fuels our economic performance, increases shareholder value and strengthens our commitment to sustainability in the communities where we live and work.