Our success requires critical input and feedback from stakeholders and Indigenous communities. As part of our materiality assessment, we developed a list of candidate ESG topics as informed by global reporting frameworks (GRI, SASB, and EO100TM), regulators third-party ratings agencies, media and trend analyses. While six focus areas were identified, we recognize the importance of addressing additional topics.
In addition to areas with a potential material impact on our business, there are several other sustainability topics such as human rights, climate policy, waste management, cybersecurity, and others that are managed internally, but are not covered in our reporting. Additional information on these topics can be found here.
We continue to monitor and track sustainability trends, and evolve our approach based on relevance to our business.
ARC manages both hazardous and non-hazardous waste associated with its operations. Our goal is to achieve waste minimization through re-use, recycling, or treatment of products whenever possible.
ARC is governed by many regulations and directives associated with waste management, including Directive 058 in Alberta, which outlines the requirements for waste characterization, classification, manifesting, and tracking of oilfield waste. In BC, ARC is governed by the Environmental Management Act, Oil and Gas Waste Regulation – 254_2005.
With respect to wastewater disposal, ARC follows the Alberta Energy Regulator’s requirements. This includes directives that set out regulatory requirements for handling, treatment, and disposal of upstream oilfield waste. In British Columbia, strict laws are also in place to manage produced wastewater. ARC adheres to these laws, which prohibits direct discharge to the environment and requires all wastewater to be managed and stored in engineered piping and containment structures built to store the fluids. For more information on wastewater management, refer to BCOGC wastewater storage.
ARC regularly provides input to provincial and federal governments to seek to ensure policy efficiently achieves our shared goals of running efficient and sustainable business, reducing emissions, advancing reconciliation with Indigenous Peoples, fostering continuous improvement and innovation, and ensuring Canadians have access to a reliable and affordable energy supply.
We strive to ensure that all government engagement aligns with our commitment to responsible energy development. Over the course of our 27-year history, ARC has consistently achieved industry leading environment, social, and governance (ESG) performance. Today, we have one of the lowest GHG emission intensities among our Canadian upstream peer group. Moving forward, our ambition is to be North America’s lowest-emission intensity energy producer. For more information, please visit ARC’s most recent ESG Report which describes our climate change strategy and our approach to emissions reduction, as well as tangible actions we have taken to elevate our ESG performance.
The Governments of Alberta and British Columbia stipulate lobbyist reporting requirements for their respective jurisdictions. These requirements apply to individuals and organizations inside and outside the oil and gas sector. ARC takes its lobbyist reporting obligations seriously and intends to comply with all government requirements. The public may view ARC’s lobbyist activities by accessing the online Lobbyists Registry for British Columbia and Alberta. We do not currently maintain a filing with the Office of the Commissioner of Lobbying of Canada.
ARC’s government engagement is conducted in alignment with our core values and adheres to the following guidelines and principles:
ARC’s Manager of Government Relations and Policy is accountable for ensuring ARC employees are aware of the principles described above.
ARC is committed to honesty and integrity in how we conduct our business and from all involved in our business operations. Individuals shall carry out their duties in accordance with the principles set out in our and, specifically, will comply with all applicable anti-bribery and fair practices legislation that prohibit receiving, promising or authorizing the provision of anything in order to obtain special favours, treatment or agreements. Corruptive activity can be either direct or indirect, and is strictly prohibited. Accordingly, ARC personnel will not engage in any acts that are improper or could appear to be improper, such as:
ARC is supportive of government efforts to reduce Canada’s emissions profile. We advocate for the development of policy and regulations that are in balance with operating a sustainable and successful business, while ensuring emissions reductions are meaningful, measurable, and cost-effective while allowing for the growth of low carbon intensity natural gas and fuels. See our 2022 ESG Report (pg. 13-19) for more information.
ARC uses an online contractor and supplier management platform, which helps manage risk and support sustainability efforts. Additionally, ARC’s Master Services Agreement has outlined expectations of contractor or contractor-related parties working with ARC, who are prohibited from engaging in any behaviour related to slavery, unlawful child labour, exploitation of children, forced labour or human trafficking. Direct contractors are also required to sign-off on ARC’s Code of Business Conduct and Ethics on an annual basis.
ARC maintains policies and procedures that address and implement employee protocols with respect to electronic communications and electronic devices and conducts regular cybersecurity risk assessments and training and education programs for its employees. ARC also employs encryption protection of its confidential information on all computers and other electronic devices. For more information on ARC’s approach to managing cybersecurity refer ARC’s 2023 ESG Update.
The Extractive Sector Transparency Measures Act (“ESTMA”) requires extractive entities active in Canada to publicly disclose, on an annual basis, specific payments made to all governments in Canada and abroad. View ARC’s annual ESTMA filings.
As stated in our Code of Business Conduct and Ethics, compliance with all laws, rules, and regulations applicable to our business is critical to our reputation and continued success. All employees must respect and obey the laws of all jurisdictions in which we operate. Failure to comply with this Code will result in disciplinary action which may include termination of employment with the corporation. Human trafficking, forced labour, child labour are illegal in Canada, and labour rights, freedom of association, collective bargaining and working hours are regulated by our labour and employment laws, for which Canada is a recognized as a leader internationally.
ARC is committed to supporting the human rights principle that entitles employees to a workplace free of harassment and discrimination. We seek to provide a safe, healthy, and rewarding work environment for employees. Harassment and discrimination will not be tolerated at ARC and there are measures in place to help protect employees from harassment and discrimination. For more information refer to ARC’s Harassment & Discrimination Policy.
ARC is a member of multiple industry associations. While these associations do conduct lobbying on behalf of member companies, they also provide a platform to engage our peers on technical, regulatory, and policy issues. In addition, associations serve as an efficient single window of engagement for government, government agencies, Indigenous communities, and non-governmental organizations.
We regularly evaluate how the positions of industry associations align with our own.
Below is a list of organizations we supported in 2022. All organizations received more than CAD $10,000.