ESG

Introduction

In June 2022, i3 Energy published its inaugural environment, social and governance (ESG) report and updated the report in November 2022 to include data on the additional assets acquired in Central Alberta in the summer of 2021. We are proud to share our vision and outline steps to strengthen our approach to these issues. We are a dynamic and rapidly-growing team who are passionate about operating with integrity, respecting the interests of our stakeholders, and creating value for our shareholders.

i3 Energy is committed to conducting its operations responsibly and in accordance with industry best practices. We choose to operate in jurisdictions with world-class regulations governing all aspects of ESG. Our commitment to high ESG standards is central to maintaining our social licence to operate, creating value for all stakeholders and ensuring long-term commercial success. We recognise the safety and well-being of our employees, local communities and other key stakeholders as a priority, and consider climate change as having a material impact on our business. We endeavour to set a high standard of ESG performance not only to benefit our business and stakeholders, but also to encourage similar actions amongst peers and have a positive influence on the energy sector.

i3 Energy is a young company, and we have been working to gather, integrate and reconcile ESG-related data since we completed the transformative acquisition of largely operated assets from Cenovus Energy in August 2021. Our ESG report reflects the early stages of our ESG journey, and we aim to improve our ESG disclosure – and performance – in future years as we consolidate our portfolio. As part of a comprehensive ESG review we conducted in late 2021 following the completion of the Cenovus Energy transaction, we developed an ESG roadmap, setting out a detailed action plan to align our ESG approach with industry best practices and to achieve net zero Scope 1 and Scope 2 emissions no later than 2050 or earlier if technologically and commercially feasible. Our action plan includes commitments in each of the environmental, social and governance issue areas. We will measure progress on these key ESG issues on both quantitative metrics and qualitative measures, informed by key ESG standards, industry best practices and climate science. These will drive improvements in our ESG performance and further strengthen our approach, especially as we grow our business and expand our operational footprint.

Our operating portfolio is relatively well positioned for a lower-carbon economy, given its profile – majority gas – and overall lower emissions intensity. Our combined Scope 1 and Scope 2 emissions intensity is 36.4 kgCO2e/boe. This is considerably lower than the average emissions intensity for conventional oil production and natural gas production and processing in Canada, which Environment and Climate Change Canada projections for 2020 put at 48.1 kgCO2e/boe and 42.0 kgCO2e/boe, respectively.

We are now in the initial stages of planning how to achieve our ambition to reach net zero Scope 1 and 2 emissions by 2050 – and have undertaken a preliminary analysis to explore the company’s pathway to net zero, and how we might accelerate our 2050 target.

Maintaining safe operations throughout our portfolio is of the utmost importance to i3 Energy. This commitment has two elements. First, we are committed to protecting the health and safety of our workforce, and maintaining a strong safety culture for our employees and contractors. Our goal is to achieve zero harm. Second, we will ensure that our operations do not negatively impact the health and safety of local communities, landowners or other affected stakeholders.

i3 Energy’s approach to ESG is supported by strong governance structures and corporate policies. To reflect the increasing importance of ESG-related risks and opportunities, i3 Energy has formed a Health, Safety, Environment and Security (HSES) committee with oversight of ESG matters. We are in the process of developing a suite of ESG-focused policies and procedures, recognising that this is a critical element of good corporate governance as we continue to grow our business.

i3 is wholly committed to maintaining a high standard of corporate governance and complies with the Quoted Companies Alliance (QCA) corporate governance guidelines for AIM Companies. These include a code of best practice comprising principles intended as a minimum standard, and recommendations for reporting corporate governance matters. The Company’s compliance with these principles can be viewed on the Corporate Governance page.

Anti-Bribery, Human Rights and other policies are available on the Corporate Governance page.