Our Approach to ESG

Global energy needs are evolving, with overall demand expected to increase amid a transition to a lower carbon economy. ARC has both the responsibility and opportunity to successfully meet these energy needs both today and into the future by safeguarding its ESG strategies and practices and generating strong returns.

Our Objective

By maintaining our leading ESG performance and delivering long-term profitability and value to our stakeholders, our goal is to be Canada’s progressive energy leader. To support this objective, we have identified the following key focus areas:

1. Climate Strategy

Continued focus on emissions reduction and mitigation through the application of clean technologies, the use of alternate fuel sources and electrification of existing and new facilities.

2. Commercial Opportunities

The pursuit of commercial initiatives with joint shareholder and stakeholder benefits.

3. Social and Governance Structures

Continue to progress and integrate our holistic approach to sustainability on the full suite of ESG factors.

4. Transparency

Maintain and progress ARC’s position as an ESG leader through enhanced reporting and disclosure.

To guide the Company’s efforts, ARC has developed an ESG framework that examines the key risks and opportunities to the organization, as well as contemplates the larger purpose that the Company serves in creating a better world for everyone. The framework outlines guiding principles, core commitments, and measurable, ESG-specific goals and targets.

ESG Framework

  • Environment

    ARC is committed to carrying out its operations in a manner that reduces harmful impacts to the environment, and believes that the most effective response for ARC to combat climate change is to produce energy that generates the least GHG emissions possible. ARC is committed to continue reducing its corporate GHG emissions intensity and upholding its commitment to use fresh water in a responsible manner, protect biodiversity, and reclaim sites back to their original state at the end of their productive phase.

    Guiding Principles: 

    • Provide low-carbon energy for the future
    • Protect ARC’s water resources – “Secure, Reduce, Recycle”
    • Restore land

    Key Performance Highlights:

    • ARC has among the lowest GHG emissions intensity in its peer group
    • Achieved ~16% reduction in GHG emissions intensity relative to 2019 baseline
    • 89% of produced water is recycled
  • Social

    ARC is committed to providing opportunities to society, including meaningful employment, a safe workplace, prosperous communities, and a healthy environment that respects tradition and local culture.

    Central to ARC’s operations is the health, safety, and wellbeing of its employees, contractors, and the communities in which ARC operates. Through strong ESG practices, ARC has always been committed to building strong and lasting relationships with Indigenous Peoples, improving the quality of lives in local communities, and developing its assets in the most responsible manner possible. ARC adheres to the highest employment standards, which has made ARC an employer of choice. Delivering on these commitments requires a diverse and inclusive workforce. ARC is committed to equitable treatment of its staff and values all employees for their unique contributions.

    Guiding Principles:

    • Be an industry leader in health, safety, and environmental practices and performance
    • Form strong relationships with Indigenous communities
    • Create shared value for society
    • Foster a diverse and inclusive workforce

     Key Performance Highlights:

    • 7 years without an employee lost-time incident
    • Over $1.5 million donated to charitable organizations in 2020

    Health and Safety

    The health and safety of all employees, contractors, stakeholders and members of the public is at the core of ARC’s values. Our focus on health and safety is a part of all areas of our day-to-day operations. In addition to our commitment to operational excellence, which prevents incidents from occurring, our team is well-trained in hazard recognition, proper follow-up on corrective actions and addressing emerging trends.

    Learn more about our approach to health and safety, including documentation for the Company's Operational Excellence Policy and Emergency Management Program.

  • Governance

    ARC is committed to maintaining the highest standards of corporate governance and risk management through its adherence to regulatory standards and industry-leading practices in ESG oversight. ARC believes that its sound corporate governance practices are foundational in realizing the Company’s organizational purpose; in building trust with stakeholders and Indigenous partners; and in ensuring that ARC and its employees adhere to the highest standards of ethical conduct.

    Guiding Principles:

    • Ensure appropriate focus and oversight on ESG strategies and practices
    • Continually improve governance structure and processes
    • Ensure strong link between executive compensation and performance, including incorporating ESG metrics into determination of compensation levels

    Key Performance Highlights:

    • 8 of 9 directors are independent
    • 22% of directors are female
    • 5x base salary share ownership requirement for the CEO, ≥2x for all other officers

Learn more about ESG reporting and performance at ARC, from our 2021 ESG Performance Update and past ESG reports here