ConocoPhillips

Canada-wide

We will work towards zero injuries, zero vehicle collisions and no reportable spills

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We track and investigate incidents to identify ways to reduce and eliminate injuries, vehicle collisions and spills. After a review of our incidents we implemented two programs that we will begin tracking formally in 2010. We installed driving monitors in employee vehicles to encourage and enforce safe driving behaviours through real-time coaching to drivers, helping them maintain focus and improve their driving skills. We also implemented a contractor management program with tools to assist our supervisors with health and safety screening and performance monitoring of our contractors. This helps us identify contractors with similar safety philosophies and allows us to provide assistance to contractors in improving their own safety performance. Our philosophy regarding contractors includes face-to-face communication, which is enhanced through our Advanced Safety Auditing conversations between field personnel and leaders in the area. We also work to reduce spills through continual improvements to our mechanical integrity programs and procedures.

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We will design new wells and facilities to take advantage of alternative energy sources, including solar and wind power where these are available.

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Within our Western Canada Gas operations, we installed solar powered chemical pumps on 86 wellsites. As well, we installed solar power for communication and control equipment on the majority of wellsites. We also installed technology to recover heat from engine and turbine generator exhausts, thereby reducing our use of fuel-gas. We are presently installing this type of technology on another project and are evaluating a number of additional facilities for suitability. Our Oil Sands operations are using solar power at all observation, water source and water wells where power requirements are minimal. The design for our Surmont 2 project currently includes solar panels for 70 reservoir observation wells, thermoelectric generators for several water disposal wells and "green" designs, including solar power, on approximately 300,000 square feet of occupancy buildings.

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We will develop a ConocoPhillips Canada Climate Change Strategy and Action Plan and implement it to mitigate climate change impacts.

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We developed and implemented a climate change action plan in 2009. Actions include:

  • Improving the management of our climate change risk program. Carbon management models and tools have been developed to optimize the achievement of our compliance obligation and enhance our participation in the carbon market.
  • Developing and enhancing the capacity of ConocoPhillips Canada staff. Internal programs to enhance engagement and awareness of staff were implemented.
  • Constructively influencing and working with government in the formulation of climate change policy.

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We will establish and publicly report our greenhouse gas reduction targets in 2009.

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While we did not set a specific numerical target for emissions reductions in 2009, we remain committed to taking action to expand our business planning processes to address greenhouse gas emissions.

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We will:

  • improve air emissions reporting and data management quality.
  • set air emissions reduction targets in our areas of operation by 2010.
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We reviewed source (fuel, flare, vent) and equipment information with operations and established a link between management of change (for equipment) and air emissions management systems for improved data quality in the future. We improved our air emissions reporting and data management.

We will not set air emissions reductions targets in our areas of operation by 2010. This decision is due to uncertainty in the regulatory environment at the national and provincial levels. We are developing an Air Management Strategic Plan that will inform future decisions on air emission reduction targets.

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We will track and report the impact of our surface land footprint and set reduction targets.

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To understand, manage and minimize our land-based impacts we initiated several projects. We examined the footprint data, our management needs as well as the tools and processes we use. From this we are now working to consolidate our footprint management systems into a consistent and accurate methodology. This will take some time. In addition, we initiated a pilot program in the Little Smoky region of Alberta, to better understand the nature and extent of our footprint. This is largely attributed to the age of some of our assets and the need for better monitoring and data management. We are working to remedy this by actively monitoring our land-based footprint, correcting the database and mitigating associated impacts. We are also reviewing our total land holdings to identify where we have opportunities to relinquish lands back to the Crown. As of June 2010 we found 278 land holdings that can be cancelled resulting in recoverable funds of approximately $1.5 million and a return of 435 hectares of land back to the Crown.

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As part of the reclamation process we will replant trees on 100 percent of drilling related sites in forested regions within five years of site abandonment.

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In our Oil Sands business unit, a multi-disciplinary team was established and a work plan developed to accelerate reclamation, including the planting of trees, on upland sites. More than 30,000 trees have been planted by ConocoPhillips Canada as part of an Oil Sands Leadership Initiative program on sites identified by Alberta Sustainable Resource Development as priority sites for reforestation. The Faster Forest planting program is voluntary and in addition to any reforestation that ConocoPhillips Canada is required to do by regulation. The program has become systematic and will expand in 2010 and beyond. In our Western Canada Gas business unit, we have been replanting trees on green zone sites that have been drilled and abandoned since late 2007. A list of sites abandoned after January 1, 2009, was compiled and sites are being assessed through our routine assessment, remediation and reclamation process. Approximately 75 sites on Crown Lands within the green zone had been flagged for replanting after the assessment and remediation (if required) are complete. Since assessment and remediation can take several years to complete, tree planting on these sites will likely start in 2011.

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We will work with federal and provincial governments and other stakeholders and agencies to determine and support areas for biological conservation that may also serve as biodiversity or greenhouse gas offsets.

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We developed a draft Biodiversity Management Framework document, which provides an approach for assessing, screening, rating and identifying options for managing risk to biodiversity. We continued working with government regulators to identify opportunities for managing high-value biodiversity resources (e.g., caribou habitat in Alberta and northeastern British Columbia).

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We will develop and implement a biodiversity conservation approach that will frame and guide our approach to planning, development and operations to conserve biodiversity.

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We developed a draft Biodiversity Management Framework document, which provides an approach for assessing, screening, rating and identifying options for managing risk to biodiversity. We continued working with government regulators to identify opportunities for managing high-value biodiversity resources (e.g., caribou habitat in Alberta, northeastern British Columbia).

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We will develop and implement a Canada-wide water strategy that incorporates the distinct business interests of the Western Canada Gas, Oil Sands and Arctic assets.

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A draft water strategy for our Western Canada Gas business is under review and several of its initiatives are underway. A draft oil sands water strategy is under development.

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We will track commitments to stakeholders and hold ourselves accountable for meeting these commitments.

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We have systems to track commitments in place in our Capital Projects, Arctic and Oil Sands groups. The regulated consultation tracking required for our Western Canada Gas business needs a unique solution. We plan to select and fund a tracking tool pilot project.

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We will require employees to complete a level of Aboriginal cultural awareness training consistent with their level of engagement with Aboriginal communities.

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Though we have provided regular Aboriginal cultural awareness training on an ad hoc basis, gaps within this approach have led us to begin developing three new levels of training, including:

  • A one-hour, computer-based, mandatory course that will be built and piloted through the remainder of 2010 for release in 2011.
  • One-day, in-class training that targets those employees with more direct engagement with Aboriginal communities or who make decisions affecting Aboriginal communities. Eight sessions for approximately 160 employees have been scheduled for 2010.
  • Cultural camps that provide a robust cultural immersion experience for those staff with regular, direct engagement with Aboriginal peoples are being identified for 2010.

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We will continue to strive toward designing and operating our business in support of long-term relationships, culture, economics and other societal benefits, the environment, health and safety.

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Our sustainable development process was formalized. This process begins with the identification and ranking of sustainable development issues by the potential risk they represent to our business and the interest of stakeholders. Our actions to address these issues are then discussed in our sustainable development report (released in 2008) and on this website. Metrics for each sustainable development issue were also reviewed and verified and new indicators were identified. Metrics from 2007 through to 2009 are also now found on this website. An non-government environmental organization reviews and ranks both the sustainable development issues and draft metrics and provides feedback. Commitments, strategies and associated action plans are then developed for high risk issues. Finally, issues identified in both 2008 and 2009 have been considered and incorporated into the ongoing long range business planning process for the business units.

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We will improve our career development programs to enable our staff to achieve their career aspirations and enhance our work environment where our staff are recognized, their voices are heard and acted upon and fun is a part of our business success.

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We expanded our support of employee career development through increasing staff knowledge and use of existing programs, providing formal mentoring opportunities and holding numerous courses, talks and seminars on career development issues. Successes included an increased focus on leadership development, over 1,000 staff attending events during 2009’s annual Career Development Week and 75 staff pursuing career coaching through our mentorship program.

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We will create a culture of sustainable development that transcends the workplace by identifying opportunities and encouraging actions that we can take in the office and at home to reduce energy, water and waste.

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In 2009, we launched the Green Team, an employee-driven, volunteer-based team comprised of about 100 members. The team focused on reducing waste in the office and at home. Key projects included a highly successful waste reduction pilot in our Gulf Canada Square location. The building manager is now looking to expand this project building-wide. We also engaged staff in order to help them better understand how to reduce waste through a number of events including a series of five seminars presented by an external expert on topics such as composting. Finally, we held an Earth Day event, attended by more than 450 employees. At this event, employees recycled 5,000 plastic bags and replaced them with 500, 80% recycled/reusable bags.

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We will work to eliminate ethical violations.

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ConocoPhillips Canada employees must complete mandatory ethics compliance training and certification every year and, if required, Foreign Corrupt Practices Act training and certification. Compliance is tracked. A mandatory ethics training refresher program for those employees who have not recently completed training was implemented in 2009 with 100 percent compliance. We monitor and require compliance with respect to relevant ConocoPhillips policies including anti-boycott, insider trading, export compliance, drug and alcohol, sanctions and disclosures of conflict of interest.

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The senior leadership team will fully integrate the nine Sustainable Development Commitments into ConocoPhillips Canada practices and policies through the development of a formal sustainable development process.

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Our sustainable development process was formalized. This process begins with the identification and ranking of sustainable development issues by the potential risk they represent to our business and the interest of stakeholders. Our actions to address these issues are then discussed in our sustainable development report (released in 2008) and on this website. Metrics for each sustainable development issue are also reviewed and verified and new indicators were identified. Metrics from 2007 through to 2009 are also now found on this website. An non-government environmental organization reviews and ranks both the sustainable development issues and draft metrics and provides feedback. Commitments, strategies and associated action plans are then developed for high risk issues. Finally, issues identified in both 2008 and 2009 have been considered and incorporated into the ongoing long range business planning process for the Business Units.

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We will track, monitor and publicly report Aboriginal contracting and employment results in the next sustainable development report.

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We have contractor tracking systems for our Oil Sands and Arctic business units and have identified a tracking system that will be implemented in our Western Canada Gas business in 2010. We also developed and are testing a system to track the number of Aboriginal people who are employed by ConocoPhillips Canada.

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