Husky Energy : Climate Change Information Request 2020

(C-OG0.7) Which part of the oil and gas value chain and other areas does your organization operate in? Row 1

Oil and gas value chain

Upstream

Downstream

Other divisions

Carbon capture and storage/utilization

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

C1.1b

(C1.1b) Provide further details on the board's oversight of climate-related issues.

C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

C1.2a

(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).

Authority for overall management of the ESG strategy, including climate, is the responsibility of Husky's Chief Executive Officer, who has delegated management of the Company's ESG vision and goals to the Chair of the ESG Steering Committee, the Senior Vice-President of Corporate Affairs and Human Resources. The ESG Steering Committee is comprised of the ESG topic owners at the Director level and above. The ESG Steering Committee is also responsible for the Company's ESG disclosure strategy and ensuring compliance with Husky's governance model, including providing ESG information to the Board via the Compliance and Risk Committee. The Chair of the Company's Environment, Social and Governance Steering Committee (the SVP Corporate Affairs and Human Resources) reports to the Corporate Governance Committee of the Board on ESG matters, including climate.

Husky's HS&E strategy and objectives are set by the Executive Health, Safety and Environment Committee (EHSEC), which maintains oversight of the elements of the Enterprise Risk Matrix related to HS&E, including Climate-Related Risks and Air Emissions. The EHSEC is the highest-level management committee with a mandate to provide executive level oversight and strategic direction for all critical HS&E issues, including regulatory and operational compliance relating to HS&E matters. This includes climate-related issues, as these have been identified as a critical risk in the Enterprise Risk Matrix. This committee consists of members of senior management (Vice- President and above), and is chaired by the Senior Vice-President of Safety, Operations Integrity and Environment, who holds accountability for management of, and reporting on, climate-related issues to the Board. Husky's ESG strategy is integrated with its business plans and Enterprise Risk Matrix, and is aligned with the Husky Operational Integrity Management System (HOIMS).

The Company's Enterprise Risk Matrix is maintained by the Compliance and Risk Committee, which reports the matrix on a quarterly basis to the Audit Committee of the Board, at least semi-annually to the HS&E Committee of the Board, and annually to the Board.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?

C1.3a

(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).

C2. Risks and opportunities

C2.1

(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?

Yes

C2.1a

(C2.1a) How does your organization define short-, medium- and long-term time horizons?

C2.1b

(C2.1b) How does your organization define substantive financial or strategic impact on your business?

A substantive financial impact to Husky would be any incident or tax that would cause a material financial impact and affect its ability to operate effectively and to have sufficient cash flow to fund both current operations and growth. As per Husky's enterprise risk management framework, any climate-related risks with a financial impact greater than $10 million would require additional scrutiny.

C2.2

(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities. Value chain stage(s) covered

Direct operations

Upstream

Downstream

Risk management process

Integrated into multi-disciplinarycompany-wide risk management process

Frequency of assessment

More than once a year

Time horizon(s) covered

Short-term

Medium-term

Long-term

Description of process

Owners of risks identified on Husky's Enterprise Risk Matrix review the risks regularly. Risk owners are Vice President level or above. Updates on Husky's Enterprise Risk Matrix are provided quarterly to the Audit Committee of the Board, and (for HS&E risks), semi-annually to the Health, Safety and Environment Committee of the Board, and annually to the Board of Directors. Husky's evaluation of climate-related risks considers both physical and transition risk. Risks are evaluated using Husky's Enterprise Risk Matrix, based on likelihood and severity of the risk. Severity of risk includes whether a given risk may have a substantive financial impact, i.e. more than $10 million.

Mitigations for each risk are identified and updates on implementation of those mitigations are provided as part of the regular risk review. For example, a low carbon transition may imply increasing carbon costs to Husky. This risk is evaluated annually based on the use of sensitivity analysis for carbon pricing in Husky's long-range plan. As a mitigation, an update on this analysis is provided at least annually to senior management, including options to reduce carbon costs over the short to medium term.

C2.2a

(C2.2a) Which risk types are considered in your organization's climate-related risk assessments?

C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business?

Yes

C2.3a

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business. Identifier

Risk 1

Where in the value chain does the risk driver occur?

Direct operations

Risk type & Primary climate-related risk driver

Primary potential financial impact

Increased indirect (operating) costs

Climate risk type mapped to traditional financial services industry risk classification

Company-specific description

Risk Description: Compliance costs associated with regulations of GHG emissions at Husky operations. Risk examples: Policies that put a price on greenhouse gas (GHG) emissions are in place across Canada. As of January 1, 2018, carbon pricing regulations have been enacted throughout Canada. Commonly referred to as "carbon pricing systems," the carbon pricing system varies between jurisdictions. An example of this policy: As of 2019, the federal Output-Based Pricing System applies in Manitoba, affecting Husky's Minnedosa ethanol plant. Prior to 2019, emissions costs were not applied to Husky's Minnedosa ethanol plant. The federal carbon policy has two key elements: a carbon levy applied to fossil fuels ($20 per tonne starting on April 1, 2019 and increasing by $10 annually to $50 per tonne in 2022), and an output-based pricing system for industrial facilities emitting GHG above 50,000 tonnes per year. Risk Effects: As costs increase, the risks associated with new developments are considered as part of the project's economics and integrated into long-range planning. Energy efficiency and new technology are evaluated and considered as part of the risk mitigation.

Time horizon

Short-term

Likelihood

Virtually certain

Magnitude of impact

Low

Are you able to provide a potential financial impact figure?

Yes, a single figure estimate

Potential financial impact figure (currency)

19112300

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

Husky makes carbon-related payments in British Columbia, Alberta, Saskatchewan, Manitoba and Newfoundland and Labrador. These payments totaled $19,112,300 in 2019. This figure was calculated by aggregating total costs from the Alberta fuel levy, Alberta Carbon Competitiveness Incentive Regulation, British Columbia carbon fees upstream assets, Saskatchewan output-based performance standards, Newfoundland and Labrador Carbon Tax, Federal Fuel Levy and the Federal Output-Based Pricing System. The Company's current financial exposure to fees associated with carbon emissions is approximately 0.1% of Husky's 2019 gross revenue (including marketing and other income as listed in Husky's 2019 Annual Report). With increased regulation, there will be increased costs associated with greenhouse gas emissions. Husky incorporates costs of existing and pending regulations in its long-range plan to budget for carbon pricing impacts on an annual cycle and to inform internal stakeholders of future costs as well as mitigation opportunities.

Cost of response to risk

22600000

Description of response and explanation of cost calculation

Husky manages its exposure to uncertainty in new regulation through strategic investments that focus on positive return on investment (ROI), reduced operating costs and lower emissions intensity. Husky participates in direct and joint industry engagement with policy makers to stay abreast of emerging trends in regulation and advocate for regulatory certainty. During the past year, Husky has actively participated in the technical working groups for the development of aggregated facility programs for conventional oil and gas production in Alberta and Saskatchewan. Husky continues to engage the Saskatchewan government on their Methane Action Plan and on the development of the Technology Fund and Offset Frameworks to ensure emissions reduction targets set by the province are achieved. Husky continues to monitor international and domestic efforts to address climate change, including developments through the UN Conference of the Parties process and emerging regulations in the jurisdictions in which the Company operates. Performance improvement may be achieved through technology. Husky invests in technology and participates in industry knowledge-sharing initiatives that will help it drive operational improvements. The total cost of implementation for emissions reduction initiatives implemented in 2019 as per the projects listed in C4.3b was $22.6 million.

Comment

Identifier

Risk 2

Where in the value chain does the risk driver occur?

Direct operations

Risk type & Primary climate-related risk driver

Primary potential financial impact

Decreased revenues due to reduced production capacity

Climate risk type mapped to traditional financial services industry risk classification

Company-specific description

Risk Description: Husky operates in some of the harshest environments in the world, including the offshore Atlantic region at the White Rose field. Climate change is expected to increase severe weather conditions, including winds and variable temperatures that are contributing to the melting of northern ice and increased iceberg activity. The Company has a number of policies to protect people, equipment, and the environment in the event of extreme weather conditions and adverse ice conditions. Risk Effects: Icebergs and pack ice off the coast of Newfoundland and Labrador may affect Husky's offshore facilities, necessitating temporary operational shut downs, or potentially causing damage to equipment, spills, asset damage and human impacts.

Time horizon

Long-term

Likelihood

Very unlikely

Magnitude of impact

Medium

Are you able to provide a potential financial impact figure?

Yes, a single figure estimate

Potential financial impact figure (currency)

63792720

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

The potential consequences of a severe weather or ice related event to Husky's offshore operations include possible production disruptions, spills, asset damage and human impacts. While this is mitigated through the methods described in this table, the potential production disruption from a two-month period of disconnection due to ice for the SeaRose Floating Production, Storage and Offloading (FPSO) vessel could result in $63,792,720 in reduced revenues. This estimate is based on 2019 average daily production numbers of 12,300 boe (net equity share) and 2019 average gross revenue per barrel of $86.44, as published in Husky's 2019 Annual Report. (12,300 boe x 60 days x $86.44/boe = $63,792,720).

Cost of response to risk

4700000

Description of response and explanation of cost calculation

Husky's Atlantic region business unit has an ice management program that uses a range of resources, including advanced detection, monitoring and management. Ice monitoring is facilitated through fixed-wing flight reconnaissance, satellite imagery processing and offshore supply vessel reconnaissance. Monitoring data is processed in georeferenced format and ice drift is predicted using established software developed by the National Research Council and the Canadian Ice Service. Supply vessels alter the trajectory of icebergs through various methods as needed. During ice season, Husky owned, operated and/or contracted offshore facilities are assigned ice observers, providing 24-hour coverage. Regular ice surveillance flights usually commence in February and continue throughout iceberg season. Husky maintains a series of ad-hoc relationships with contractors, providing for the quick mobilization of additional resources as required. The cost of the Company's ice monitoring and management activities was approximately $4.7 million in 2019.

Comment

Identifier

Risk 3

Where in the value chain does the risk driver occur?

Direct operations

Risk type & Primary climate-related risk driver

Primary potential financial impact

Decreased revenues due to reduced demand for products and services

Climate risk type mapped to traditional financial services industry risk classification

Company-specific description

Risk Description: Societal and consumer pressure to reduce GHG emissions from the transportation sector could affect the composition of the basket of fuels available to

the consumer as well as improved vehicle performance, as noted in the Canadian Fuels Association's "Fuels for Life" report. Risk Effects: Increased transportation fuel prices due to carbon pricing could result in increased demand for improved vehicle performance leading to increased fuel efficiency, which may reduce demand for gasoline and diesel at Husky's 553 (2019 average) retail locations in North America and/or the refined products produced at the Company's North American facilities.

Time horizon

Long-term

Likelihood

About as likely as not

Magnitude of impact

Low

Are you able to provide a potential financial impact figure?

Yes, a single figure estimate

Potential financial impact figure (currency)

1100000

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

If Husky were to experience a 1.4% decrease in annual fuel sales, corresponding to the EIA's largest estimated decline in energy demand for any mode of transport through 2050 in its 2020 Annual Energy Outlook, the scale of potential financial impacts to the Company are estimated at $1.1 million per year based on an average of Canadian Marketing earnings of -$5 million in 2019 and $158 million in 2018. This figure is considered immaterial compared to net earnings of -$1,370 million in 2019, and $1,457 million in 2018.

Cost of response to risk

0

Description of response and explanation of cost calculation

As regulations develop and markets for its products change, Husky continues to manage the risk using the enterprise risk management process. Through this process, Husky monitors emerging regulations, advises management and lead officers of any developments, and advocates the Company's position with the regulators. Additionally, Husky's Executive Health, Safety, and Environment Committee reviews and approves compliance and emission reduction strategies and allocates resources as appropriate. This includes allocating resources as appropriate to growth opportunities in natural gas, enhanced oil production using CO2, and ethanol-blended transportation fuels. Husky is currently reducing emissions through increased renewable fuel blending to address this risk. The use of this technology allows us to produce some of the lowest carbon intensity ethanol in Canada. Husky has integrated its Climate Change GHG Management Framework into daily business operations at a corporate-services level. There are no additional material costs to manage the risks described in this response at this time. If any of these risks are determined to be more pressing or impactful, a reassessment of management plans and costs will be performed.

Comment

Identifier

Risk 4

Where in the value chain does the risk driver occur?

Direct operations

Risk type & Primary climate-related risk driver

Primary potential financial impact

Decreased revenues due to reduced production capacity

Climate risk type mapped to traditional financial services industry risk classification

Company-specific description

Risk Description: Where Husky has operations in flood-prone areas, extreme weather events can expose the Company to increased risk of disruption to operations. Risk

Effects: Flooding and extreme weather has the potential to disrupt operations in the field as well as at Husky's head office in Calgary. In June 2013, Calgary experienced a flood event that prevented access to the entire downtown core, including Husky's head office, for a week. In May of 2016, Husky shut down the Sunrise facility due to wildfires. The project was restarted in June. At the time, Sunrise was producing about 30,000 barrels gross per day of bitumen. Sunrise is 50% owned by JV partners, amounting to an approximate production loss net to Husky of 15,000 barrels per day during the outage.

Time horizon

Long-term

Likelihood

Likely

Magnitude of impact

Please select

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

Husky's business continuity plan and processes resulted in no financial losses from the head office closure during the 2013 flood.

Cost of response to risk

0

Description of response and explanation of cost calculation

Readiness for potential emergencies is strengthened through exercises, established processes and Emergency Response Plans (ERPs) designed to guide a consistent and effective response to any event which could affect employees, contractors, the community, the environment and/or the Company's assets and reputation. Additionally, Husky develops contingency plans and measures to mitigate the impacts should a business-interrupting event occur. There is no additional cost of management for this beyond Husky's existing Emergency Response planning process.

Comment

C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?

Yes

C2.4a

(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business. Identifier

Opp1

Where in the value chain does the opportunity occur?

Direct operations

Opportunity type

Energy source

Primary climate-related opportunity driver

Use of supportive policy incentives

Primary potential financial impact

Returns on investment in low-emission technology

Company-specific description

Husky has a number of CO2 sources where it may be feasible to capture emissions. These sources include ethanol plants, hydrogen plants and other post-combustion sources. There is currently no widespread infrastructure in place to transport captured CO2 for other uses. Regulations will influence the construction and operation of CO2 capture and transport infrastructure. Husky operates a pilot plant at the Pikes Peak South thermal project at Lashburn, Sask. that captures up to 30 tonnes a day of CO2 from once-through steam generators for use at the Pikes Peak South enhanced oil recovery (EOR) facility. Multiple low-emission technologies are under consideration for future application at thermal projects. Opportunity Effects: The CO2 sources available for carbon capture will provide opportunities for Husky to respond to regulatory changes influencing carbon capture and storage.

Time horizon

Long-term

Likelihood

Likely

Magnitude of impact

Low

Are you able to provide a potential financial impact figure?

Yes, a single figure estimate

Potential financial impact figure (currency)

3200000

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

Husky is evaluating the financial impact of this opportunity. Commodity prices of CO2 for EOR purposes can exceed $100 per tonne when delivered to remote sites. For example, if CO2 can be captured at $50 per tonne, it would represent $3.2 million in savings, based on 2019 injection volumes of CO2. (63,149 tonnes injected * $50 / tonne savings = $3.2 million)

Cost to realize opportunity

6300000

Strategy to realize opportunity and explanation of cost calculation

Husky's carbon management experts advise business units on potential projects for CO2 capture that could support EOR or other markets. As part of this process, support has been provided to submit applications for research and development funding in this area. In addition, through participation in joint industry projects and conferences, Husky keeps abreast of developing technologies that could improve the feasibility of this opportunity. Through its test facility at the Pikes Peak South thermal plant in Lashburn, Sask., Husky is currently implementing a CO2 capture program for an EOR pilot from once-through steam generators to evaluate technological and economic feasibility of large-scale technology adoption and opportunity exploitation. Carbon capture is assumed to cost $100/tonne ($100/tonne * 63,149 tonnes = $6.3 million)

Comment

Identifier

Opp2

Where in the value chain does the opportunity occur?

Direct operations

Opportunity type

Resource efficiency

Primary climate-related opportunity driver

Use of more efficient modes of transport

Primary potential financial impact

Reduced indirect (operating) costs

Company-specific description

Husky continually focuses on fuel consumption and emissions reduction. In 2019, Husky continued to use its FuelTrax Fuel Management and Monitoring system to conserve fuel and reduce air emissions from its Atlantic operations. Husky identified primary fuel consumption activities and installed fuel monitoring systems on select vessels to understand fuel consumption for these activities. This has allowed Husky to understand fuel consumption within the supply chain, and data obtained allowed for the identification of administrative controls in the supply chain that could have significant impact on fuel consumption. Further to those reduction initiatives Husky has now moved towards advanced vessel power management designs that are optimizing fuel consumption. In 2019, Husky approved a substitution of a hybrid diesel electric power management design vessel for a conventionally powered vessel, resulting in approximately a 4 cubic metres a day (m3/day) reduction in fuel consumption, for a larger more capable vessel.

Time horizon

Long-term

Likelihood

Very likely

Magnitude of impact

Low

Are you able to provide a potential financial impact figure?

Yes, a single figure estimate

Potential financial impact figure (currency)

2500000

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

Fuel savings from 2 new hybrid vessels: (4 cubic metres a day savings * 2 vessels * $857.80/m3 average 2019 fuel price * 365 = $2,500,000 annual savings).

Cost to realize opportunity

0

Strategy to realize opportunity and explanation of cost calculation

In November 2020, Husky will transition to using two vessels on long-term charter. Both vessels have diesel electric power management systems.

Comment

Identifier

Opp3

Where in the value chain does the opportunity occur?

Downstream

Opportunity type

Markets

Primary climate-related opportunity driver

Access to new markets

Primary potential financial impact

Increased revenues through access to new and emerging markets

Company-specific description

Husky may have an opportunity to provide low-carbon fuels to meet new market demand. Certain markets are assigning premium value to low-carbon transportation fuels and coal is being phased out in some jurisdictions and replaced by natural gas as the fuel of choice for power generation. Husky is well positioned to benefit from these trends in consumer behaviour as it has growth opportunities in natural gas production and ethanol-blended gasoline. The Company's Lloydminster Ethanol Plant currently provides low-carbon intensity ethanol to the B.C. market to support blending requirements to meet the province's Renewable and Low Carbon Fuels Requirements Regulation. Husky is also considering options for CO2 capture and storage at its Minnedosa Ethanol Plant in Manitoba. Opportunity Effects: Increased consumer demand for low-carbon transportation fuels and natural gas could result in new revenue opportunities.

Time horizon

Medium-term

Likelihood

Likely

Magnitude of impact

Medium-low

Are you able to provide a potential financial impact figure?

Yes, a single figure estimate

Potential financial impact figure (currency)

8430000

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

In 2019, Husky's low carbon intensity ethanol from the Lloydminster Ethanol plant received, on average, a premium of $0.059 per litre on sales. Approximately 90% of the production at Lloydminster has a low carbon intensity, resulting in an additional $8,430,000 in revenue above market pricing. (142,676,000 litres * 0.9 * $0.059 = $8,430,000).

Cost to realize opportunity

0

Strategy to realize opportunity and explanation of cost calculation

Husky identifies and manages opportunities related to consumer behaviour through several mechanisms. The Company's Enterprise Risk Matrix with mitigation strategies is reviewed by the Audit Committee quarterly and provided to the Board of Directors annually. Through the application of this risk matrix over time, the Company will be able to determine the appropriate response to changing markets as they develop. This includes allocating resources as appropriate to growth opportunities in natural gas, and ethanol-blended gasoline. For example, the Company's Lloydminster Ethanol Plant currently provides low-carbon intensity ethanol to the B.C. market. Husky has integrated its risk and opportunity identification processes into everyday business operations at a corporate services level. There are no additional material costs to identify and manage the opportunities described in this response at this time. If any of these opportunities are determined to warrant further study, a formal project sanctioning process would follow with the appropriate decision gates as needed. Costs would be refined at each of these gates.

Comment

Identifier

Opp4

Where in the value chain does the opportunity occur?

Direct operations

Opportunity type

Resource efficiency

Primary climate-related opportunity driver

Use of more efficient production and distribution processes

Primary potential financial impact

Increased revenues resulting from increased production capacity

Company-specific description

Regulations may encourage research into the use of CO2 for enhanced oil recovery. Husky completed a project in 2012 which included capturing CO2 and injecting it into heavy oil reservoirs to assist with enhanced heavy oil recovery, and continues to investigate additional capture technologies. Husky is developing this recovery method, which has not yet been applied commercially in the thin, shallow, viscous formations typical of heavy oil. Specifically, the Company is developing knowledge and methods on how to capture CO2 from its Lloydminster Ethanol Plant and other sources; and then purify, dehydrate and compress it before transporting it to heavy oil reservoirs located in proximity to the plant. The CO2 is injected into the reservoirs and used to enhance oil recovery. When the reservoirs are fully depleted, the CO2 can be stored in the reservoir.

Time horizon

Short-term

Likelihood

Very likely

Magnitude of impact

Please select

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

If CO2 can be injected successfully and used for Enhanced Oil Recovery, it has potential to increase the recoverable reserves in several heavy oil assets over time.

Cost to realize opportunity

26100000

Strategy to realize opportunity and explanation of cost calculation

Husky continues to develop EOR development as part of its broader heavy oil business strategy. The results of ongoing pilots will determine the commercial feasibility of a large-scale CO2 EOR project. In 2019, total operating and capital expenditure in Husky's Lloydminster area CO2 capture and injection projects was $26.1 million. This figure is part of the ongoing cost to realize profitable EOR.

Comment

C3. Business Strategy

C3.1

(C3.1) Have climate-related risks and opportunities influenced your organization's strategy and/or financial planning?

Yes

C3.1a

(C3.1a) Does your organization use climate-related scenario analysis to inform its strategy?

Yes, quantitative

C3.1b

(C3.1b) Provide details of your organization's use of climate-related scenario analysis.

C3.1d

(C3.1d) Describe where and how climate-related risks and opportunities have influenced your strategy.

C3.1e

(C3.1e) Describe where and how climate-related risks and opportunities have influenced your financial planning.

C3.1f

(C3.1f) Provide any additional information on how climate-related risks and opportunities have influenced your strategy and financial planning (optional).

C4. Targets and performance

C4.1

(C4.1) Did you have an emissions target that was active in the reporting year?

Both absolute and intensity targets

C4.1a

(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets. Target reference number

Abs 1

Year target was set

2018

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Base year

2017

Covered emissions in base year (metric tons CO2e)

401552

Covered emissions in base year as % of total base year emissions in selected Scope(s) (or Scope 3 category)

3.57

Target year

2019

Targeted reduction from base year (%)

6

Covered emissions in target year (metric tons CO2e) [auto-calculated]

377458.88

Covered emissions in reporting year (metric tons CO2e)

258000

• of target achieved [auto-calculated]595.821545735878

Target status in reporting year

Achieved

Is this a science-based target?

No, and we do not anticipate setting one in the next 2 years

Please explain (including target coverage)

This absolute target is applicable to Husky's SeaRose asset. The target is established by the regulatory agency and the stringency is adjusted annually. The baseline year is an average of 2016 through 2017.

C4.1b

(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s). Target reference number

Int 1

Year target was set

2018

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Metric tons CO2e per unit of production

Base year

2017

Intensity figure in base year (metric tons CO2e per unit of activity)

0.581605

• of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure 100

Target year

2019

Targeted reduction from base year (%)

0

Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]

0.581605

• change anticipated in absolute Scope 1+2 emissions
  0

Intensity metric

Metric tons CO2e per unit of production

Base year

2015

Intensity figure in base year (metric tons CO2e per unit of activity)

0.321

• of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure 100

Target year

2019

Targeted reduction from base year (%)

0

Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]

0.321

• change anticipated in absolute Scope 1+2 emissions
  0
• change anticipated in absolute Scope 3 emissions

0

Intensity figure in reporting year (metric tons CO2e per unit of activity)

0.473

• of target achieved [auto-calculated]

Target status in reporting year

New

Is this a science-based target?

No, and we do not anticipate setting one in the next 2 years

Please explain (including target coverage)

Husky's Minnedosa Ethanol Plant has an Output-Based Standard of 0.321 (tCO2e/kilolitres of absolute ethanol) set by The Output-Based Pricing System Regulations (OBPS Regulations) made under the Greenhouse Gas Pollution Pricing Act (GGPPA) established the Output-Based Pricing System (OBPS), as per the Schedule 1, Part

13. The first compliance period for facilities that met the criteria of the Notice Establishing Criteria Respecting Facilities and Persons and Publishing Measures begins on January 1 and ends December 31 for each calendar year, starting in 2019. The results of the Assessment under section 44 of those Regulations was determined to be 24,400 tCO2e above the GHG emissions limit in 2019.

Target reference number

Int 4

Year target was set

2019

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Metric tons CO2e per unit of production

Base year

2017

Intensity figure in base year (metric tons CO2e per unit of activity)

0.3649

• of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure 100

Target year

2019

Targeted reduction from base year (%)

0.83

Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]

0.36187133

• change anticipated in absolute Scope 1+2 emissions
  0
• change anticipated in absolute Scope 3 emissions

0

Intensity figure in reporting year (metric tons CO2e per unit of activity)

0.3713

• of target achieved [auto-calculated]-211.313877048342

Target status in reporting year

New

Is this a science-based target?

No, but we anticipate setting one in the next 2 years

Please explain (including target coverage)

Husky's Lloydminster Upgrader is subject to The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations (the Regulations) and The Management and Reduction of Greenhouse Gases (Baselines, Returns and Verification) Standard (the Standard), which came into effect January 1, 2019. The emissions return will be used to assess a facility's performance under the Regulations for each compliance year by comparing its total regulated emissions against its permitted emissions. The emissions return for 2019 has exceeded its allowable emissions limit in 2019 by 30,174 tCO2e.

Target reference number

Int 5

Year target was set

2019

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Metric tons CO2e per unit of production

Base year

2017

Intensity figure in base year (metric tons CO2e per unit of activity)

0.265

• of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure 100

Target year

2019

Targeted reduction from base year (%)

0.42

Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]

0.263887

• change anticipated in absolute Scope 1+2 emissions
  0
• change anticipated in absolute Scope 3 emissions

0

Intensity figure in reporting year (metric tons CO2e per unit of activity)

0.2393

• of target achieved [auto-calculated]2309.07457322552

Target status in reporting year

New

Is this a science-based target?

No, but we anticipate setting one in the next 2 years

Please explain (including target coverage)

Husky's Lloydminster Ethanol Plant is subject to The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations (the Regulations) and The Management and Reduction of Greenhouse Gases (Baselines, Returns and Verification) Standard (the Standard), which came into effect January 1, 2019. The emissions return will be used to assess a facility's performance under the Regulations for each compliance year by comparing its total regulated emissions against its permitted emissions. The emissions return for 2019 has met its allowable emissions in 2019 and it is below the emissions limit by 3,744 tCO2e.

Target reference number

Int 6

Year target was set

2019

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Metric tons CO2e per unit of production

Base year

2018

Intensity figure in base year (metric tons CO2e per unit of activity)

0.4732

The Paradise Hill thermal facility has a BEI submitted under the Saskatchewan output-based performance standards (pending SK MOE Approval). BEI is based on Stationary Combustion only. As per Management and Reduction of Greenhouse Gases (Standards and Compliance), facilities under the Upstream Oil and Gas Stationary Fuel Combustion sector, are provided with 0.9875 Performance Standard Allocation for the first year of compliance (2019). The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations (the Regulations) and The Management and Reduction of Greenhouse Gases (Baselines, Returns and Verification) Standard (the Standard) came into effect January 1, 2019. The emissions return will be used to assess a facility's performance under the Regulations for each compliance year by comparing its total regulated emissions against its permitted emissions. The emissions return for 2019 has exceeded its allowable emissions limit in 2019 by 27,414 tCO2e.

Target reference number

Int 8

Year target was set

2019

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Metric tons CO2e per unit of production

Base year

2017

Intensity figure in base year (metric tons CO2e per unit of activity)

0.4886

• of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure 100

Target year

2019

Targeted reduction from base year (%)

1.25

Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]

0.4824925

• change anticipated in absolute Scope 1+2 emissions
  0
• change anticipated in absolute Scope 3 emissions

0

Intensity figure in reporting year (metric tons CO2e per unit of activity)

0.3911

• of target achieved [auto-calculated]1596.3978714695

Target status in reporting year

New

Is this a science-based target?

No, and we do not anticipate setting one in the next 2 years

Please explain (including target coverage)

The Pikes Peak South thermal facility has a BEI submitted under the Saskatchewan output-based performance standards (pending SK MOE Approval). BEI is based on Stationary Combustion only. As per Management and Reduction of Greenhouse Gases (Standards and Compliance), facilities under the Upstream Oil and Gas Stationary Fuel Combustion sector, are provided with 0.9875 Performance Standard Allocation for the first year of compliance (2019). The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations (the Regulations) and The Management and Reduction of Greenhouse Gases (Baselines, Returns and Verification) Standard (the Standard) came into effect January 1, 2019. The emissions return will be used to assess a facility's performance under the Regulations for each compliance year by comparing its total regulated emissions against its permitted emissions. The emissions return for 2019 has met its allowable emissions in 2019 and it is below the emissions Limit by 59,495 tCO2e.

Target reference number

Int 9

Year target was set

2019

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Metric tons CO2e per unit of production

Base year

2018

Intensity figure in base year (metric tons CO2e per unit of activity)

0.2946

The Sandall thermal facility has a BEI submitted under the Saskatchewan OBPS (pending SK MOE Approval). BEI is based on Stationary Combustion only. As per Management and Reduction of Greenhouse Gases (Standards and Compliance), facilities under the Upstream Oil and Gas Stationary Fuel Combustion sector, are provided with 0.9875 Performance Standard Allocation for the first year of compliance (2019). The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations (the Regulations) and The Management and Reduction of Greenhouse Gases (Baselines, Returns and Verification) Standard (the Standard) came into effect January 1, 2019. The emissions return will be used to assess a facility's performance under the Regulations for each compliance year by comparing its total regulated emissions against its permitted emissions. The emissions return for 2019 has exceeded its allowable emissions limit in 2019 by 5,765 tCO2e.

Target reference number

Int 11

Year target was set

2019

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Metric tons CO2e per unit of production

Base year

2018

Intensity figure in base year (metric tons CO2e per unit of activity)

0.4287

• of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure 100

Target year

2019

Targeted reduction from base year (%)

1.25

Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]

0.42334125

• change anticipated in absolute Scope 1+2 emissions
  0
• change anticipated in absolute Scope 3 emissions

0

Intensity figure in reporting year (metric tons CO2e per unit of activity)

0.5685

• of target achieved [auto-calculated]-2608.81735479356

Target status in reporting year

New

Is this a science-based target?

No, and we do not anticipate setting one in the next 2 years

Please explain (including target coverage)

The Vawn thermal facility has a BEI submitted under the Saskatchewan output-based performance standards (pending SK MOE Approval). BEI is based on Stationary Combustion only and currently includes only 2017 and 2018. A three year (2017-2019) baseline is underway. As per Management and Reduction of Greenhouse Gases (Standards and Compliance), facilities under the Upstream Oil and Gas Stationary Fuel Combustion sector, are provided with 0.9875 Performance Standard Allocation for the first year of compliance (2019). The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations (the Regulations) and The Management and Reduction of Greenhouse Gases (Baselines, Returns and Verification) Standard (the Standard) came into effect January 1, 2019. The emissions return will be used to assess a facility's performance under the Regulations for each compliance year by comparing its total regulated emissions against its permitted emissions. The emissions return for 2019 has exceeded its allowable emissions limit in 2019 by 59,397 tCO2e.

Target reference number

Int 12

Year target was set

2019

Target coverage

Site/facility

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Metric tons CO2e per unit of production

Base year

2018

Intensity figure in base year (metric tons CO2e per unit of activity)

0.3415

% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure

Stationary Combustion only and currently includes only 2017 and 2018. A three-year(2017-2019) baseline is underway. As per Management and Reduction of Greenhouse Gases (Standards and Compliance), facilities under the Upstream Oil and Gas Stationary Fuel Combustion sector, are provided with 0.9875 Performance Standard Allocation for the first year of compliance (2019) The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations (the Regulations) and The Management and Reduction of Greenhouse Gases (Baselines, Returns and Verification) Standard (the Standard) came into effect January 1, 2019. The emissions return will be used to assess a facility's performance under the Regulations for each compliance year by comparing its total regulated emissions against its permitted emissions. The emissions return for 2019 has exceeded its allowable emissions limit in 2019 by 30,901 tonne CO2e.

Target reference number

Int 14

Year target was set

2020

Target coverage

Company-wide

Scope(s) (or Scope 3 category)

Scope 1

Intensity metric

Other, please specify (Metric tonnes CO2e per unit production and throughput)

Base year

2015

Intensity figure in base year (metric tons CO2e per unit of activity)

• of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure 100

Target year

2025

Targeted reduction from base year (%)

25

Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]

• change anticipated in absolute Scope 1+2 emissions
• change anticipated in absolute Scope 3 emissions

Intensity figure in reporting year (metric tons CO2e per unit of activity)

• of target achieved [auto-calculated]

Target status in reporting year

New

Is this a science-based target?

No, and we do not anticipate setting one in the next 2 years

Please explain (including target coverage)

In 2020, the Board approved Husky's carbon target of a reduction of 25% Scope 1 emissions intensity from 2015 levels. This carbon target is based on gross operated emissions adjusted for Husky's equity share in large joint venture partnerships.

C4.2

(C4.2) Did you have any other climate-related targets that were active in the reporting year?

Target(s) to reduce methane emissions

C4.2b

(C4.2b) Provide details of any other climate-related targets, including methane reduction targets. Target reference number

Oth 1

Year target was set

2018

Target coverage

Country/region

Target type: absolute or intensity

Absolute

Target type: category & Metric (target numerator if reporting an intensity target)

Target denominator (intensity targets only)

Base year

2012

Figure or percentage in base year

3802961

Target year

2025

Figure or percentage in target year

2091629

Figure or percentage in reporting year

1742000

• of target achieved [auto-calculated]120.43022627988

Target status in reporting year

Underway

Is this target part of an emissions target?

No

Is this target part of an overarching initiative?

No, it's not part of an overarching initiative

Please explain (including target coverage)

Husky is aligning with national and provincial government plans to reduce methane emissions by 40-45% of 2012 levels by 2025 as part of its general compliance strategy. Husky's compliance approach is being influenced by the publication of methane reduction equivalency agreements between the federal and provincial governments.

C4.3

(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or implementation phases.

Yes

C4.3a

(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, the estimated CO2e savings.

C4.3b

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.

Initiative category & Initiative type

Estimated annual CO2e savings (metric tonnes CO2e)

900

Scope(s)

Scope 1

Scope 3

Voluntary/Mandatory

Voluntary

Annual monetary savings (unit currency - as specified in C0.4)

0

Investment required (unit currency - as specified in C0.4)

1200000

Payback period

No payback

Estimated lifetime of the initiative

1-2 years

Comment

Partial Upgrading, leading to less diluent needed for transportation.

Initiative category & Initiative type

Estimated annual CO2e savings (metric tonnes CO2e)

10950

Scope(s)

Scope 1

Voluntary/Mandatory

Voluntary

Annual monetary savings (unit currency - as specified in C0.4)

0

Investment required (unit currency - as specified in C0.4)

20000000

Payback period

No payback

Estimated lifetime of the initiative

3-5 years

Comment

Husky continue to evaluate additional carbon capture technologies. The Company started in 2015 with a 0.5 tonne-per-day pilot, and in 2019 commissioned a 30 tonne- per-day system.

Initiative category & Initiative type

Estimated annual CO2e savings (metric tonnes CO2e)

74000

Scope(s)

Scope 1

Voluntary/Mandatory

Mandatory

Annual monetary savings (unit currency - as specified in C0.4)

161000

Investment required (unit currency - as specified in C0.4)

1400000

Payback period

4-10 years

Estimated lifetime of the initiative

6-10 years

Comment

In 2019, Husky installed compressors at heavy oil sites that will capture otherwise vented produced gas, generating estimated savings of more than 74,000 tonnes CO2e.

C4.3c

(C4.3c) What methods do you use to drive investment in emissions reduction activities?

C4.5

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party to avoid GHG emissions?

Yes

C4.5a

(C4.5a) Provide details of your products and/or services that you classify as low-carbon products or that enable a third party to avoid GHG emissions. Level of aggregation

Product

Description of product/Group of products

Ethanol

Are these low-carbon product(s) or do they enable avoided emissions?

Low-carbon product

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions

Other, please specify (Natural Gas Resources Canada's GHGenius model)

• revenue from low carbon product(s) in the reporting year
  1
• of total portfolio value

Asset classes/ product types

Comment

The term "carbon intensity" refers to a single value that represents the sum of GHG emissions from fuel life cycle. Approved carbon intensities assign a fuel a unique fuel code which is used for compliance reporting. Husky has 18 approved carbon intensities registered with the B.C. Ministry of Energy and Mines using the GHGenius model to calculate carbon intensities. Due to a revised Data Quality Plan, the number of carbon intensities has dropped from 53 in 2018 to 18 in 2019.

Level of aggregation

Group of products

Description of product/Group of products

Gasoline and diesel blends with renewable fuels

Are these low-carbon product(s) or do they enable avoided emissions?

Avoided emissions

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions

Other, please specify (Natural Resources Canada's GHGenius model )

• revenue from low carbon product(s) in the reporting year
  8
• of total portfolio value

Asset classes/ product types

Comment

Scope 1 GHG emissions from transportation fuel combustion were avoided by blending renewable alternatives to gasoline (ethanol) and renewable alternatives to diesel (Hydrogenation-Derived Renewable Diesel [HDRD] and biodiesel) into gasoline and diesel, respectively. Where possible, Husky blends up to 10% ethanol into all blends of its gasoline. In 2019, this equated to an average of 9.1% ethanol blend, which exceeded federal and provincial requirements at the point of blending (Canada Federal - 5%, BC - 5%, AB - 5%, SK - 7.5%, MB - 8.5%, ON - 5%). The most up-to-date version of National Resources Canada's (NRCan) GHGenius model was used to calculate the carbon intensities of Husky's fuel blends. The B.C. Renewable and Low Carbon Fuel Requirements Regulation's Emissions Calculation was used to determine emissions reductions. Emissions Reduction (tonnes) = (CI class x EER fuel - CI fuel) x EC fuel / 1,000,000, where CI class = the prescribed carbon intensity limit for the compliance period for the class of fuel of which the fuel is a part; EER fuel = the prescribed energy effectiveness ratio for that fuel in that class of fuel; CI fuel = the carbon intensity of the fuel (via GHGenius); EC fuel = the energy content of the fuel calculated in accordance with the regulations. For biodiesel and HDRD, the 2019 blend resulted in an average of 2.8% renewables for Husky's Canadian supply of diesel to the market.

C-OG4.6

(C-OG4.6) Describe your organization's efforts to reduce methane emissions from your activities.

Husky continues engagement with regulators to contribute to the development of voluntary and mandatory methane emission reduction programs to meet federal and provincial targets.

Husky has worked towards reducing methane emissions as follows:

• Increased understanding and focus on gas production (calculated via gas oil ratio or GOR) and the implications on emissions.
• Increased understanding and focus on gas management strategies.
• Developing an inventory of methane emitting equipment to inform where investment will have the largest impact in reducing methane emissions.
• Developing new ways to reduce venting other than conventional conservation (pipeline and compressor).
• Added enclosed combustors as a gas management reduction tool. No significant impact to date, but step-change reductions are anticipated with regulatory change to address spacing issues.
• Developing processes and tools to help focus on leading indicators to resolve potential vent issues before they become a regulatory concern.
• Partnering with external parties to sponsor the development of new technology to address methane emissions.
• Participation in external committees which emphasize industry sharing of best practices with focus on methane.
• In 2019 Husky continued a project to reduce methane venting from pneumatic controllers through replacements and retrofits that is expected to result in reductions of greater than 40,000 tCO2e/year.
• In 2019, Husky installed compressors at heavy oil sites that will capture otherwise vented produced gas, generating estimated savings of more than 74,000 tonnes CO2e.

C-OG4.7

(C-OG4.7) Does your organization conduct leak detection and repair (LDAR) or use other methods to find and fix fugitive methane emissions from oil and gas production activities?

Yes

C-OG4.7a

(C-OG4.7a) Describe the protocol through which methane leak detection and repair or other leak detection methods, are conducted for oil and gas production activities, including predominant frequency of inspections, estimates of assets covered, and methodologies employed.

Husky meets regulatory compliance requirements for monitoring, repairing and reporting.

Canadian Upstream Facilities:

Husky's upstream sites and facilities are subject to provincial regulations to manage equipment leaks of methane. A prescriptive fugitive emissions management program (FEMP) was developed by Husky for the leak detection and repair (LDAR) of fugitive emission sources. The program specifies sites can be monitored up to a quarterly frequency with additional surveys completed as needed to address specific fugitive emission issues.

As per the FEMP program, Husky conducts quarterly LDAR surveys of its Lloydminster thermal assets. These surveys utilize infrared and ultrasonic detection to identify leaks in real time. Methodologies used include optical gas imaging cameras and toxic/organic vapour analyzers, which are supported by point source qualification/quantification technology, remote sensing, or other applicable methods to meet the requirements of LDAR program.

Canadian Downstream Facilities:

Husky has a LDAR program specific to its Canadian downstream facilities for the survey of lines and equipment that contain natural gas, fuel gas, and volatile organic compounds (VOCs). The LDAR program is designed to identify leaking equipment components, prompt the timely repair of the leaks, verify repair success, quantify the emission and report the volume/mass of the fugitive emissions. Downstream facilities are monitored once annually with a toxic/organic vapour analyzer under the methodology outlined in United States Environmental Protection Agency (EPA) Method 21 as directed Canadian Council of Ministers of the Environment (CCME) Environmental Code of Practice for the Measurement and Control of Fugitive VOC Emissions from Equipment Leaks (1993). Any component identified with a VOC concentration above 10,000 parts per million (ppm) is considered leaking and requires an attempt to repair within five days of detection with final repairs completed within 15 days. Maintenance personnel accompany leak detection staff to perform repairs as leaks are discovered, wherever possible.

US Refineries:

Husky's US refineries are subject to numerous U.S. federal regulations and state regulations for managing equipment leaks of volatile organic compounds ("VOC") whereby the most stringent requirements for each program are combined into a facility LDAR Management Plan. The management plans outline monitoring, inspection, testing, record- keeping, reporting, maintenance and use of low leak valves. For example, the facilities monitor valves, pumps, and compressors. This is conducted at least quarterly, and in some instances monthly. Component leaks above certain thresholds trigger an obligation to repair, replace, or repack the component

C-OG4.8

(C-OG4.8) If flaring is relevant to your oil and gas production activities, describe your organization's efforts to reduce flaring, including any flaring reduction targets.

Regulations in British Columbia, Alberta and Saskatchewan mandate both operational and economic evaluations that prioritize collection and conservation of produced gas over flaring. In addition, Husky engages in voluntary and collaborative efforts with government and industry organizations to reduce flaring through application of technology and sharing of knowledge and experience. Husky is also piloting enclosed combustors as an alternative to flaring, providing for a more controlled combustion of waste gases where gas conservation is not a viable solution. In the Atlantic region, Husky proposes targets for flaring volumes with the regulator and is then required to stay within those limits. These targets are approved for the period beginning April 1 and ending March 31 of the following year. For 2019-2020, the approved flare limit was 55.7 million cubic metres (m3) and Husky flared approximately 31.4 million m3, staying 43.7% below the target.

C5. Emissions methodology

C5.1

(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).

Scope 1

Base year start

January 1 2011

Base year end

December 31 2011

Base year emissions (metric tons CO2e)

9360000

Comment

Baseline adjusted for the divestiture of the Prince George Refinery in 2019

Scope 2 (location-based)

Base year start

January 1 2011

Base year end

December 31 2011

Base year emissions (metric tons CO2e)

1940000

Comment

Baseline adjusted for the divestiture of the Prince George Refinery in 2019

Scope 2 (market-based)

Base year start

January 1 2011

Base year end

December 31 2011

Base year emissions (metric tons CO2e)

1940000

Comment

Per CDP guidance, the location-based result has been used as a proxy since a market-based figure cannot be calculated for baseline year.

C5.2

(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate emissions.

American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009 Canadian Association of Petroleum Producers, Calculating Greenhouse Gas Emissions, 2003

IPCC Guidelines for National Greenhouse Gas Inventories, 2006 The Greenhouse Gas Protocol: Scope 2 Guidance

Other, please specify (Canada's Greenhouse Gas Quantification Requirements, Greenhouse Gas Reporting Program, Dec 2019. Quantification Methodologies for the Carbon Competitiveness Incentive Regulation and the Specified Gas Reporting Regulation, AB Government, Nov 2019.)

C5.2a

(C5.2a) Provide details of the standard, protocol, or methodology you have used to collect activity data and calculate emissions.

• Environment Canada and Climate Change: Canada's Greenhouse Gas Quantification Requirements, December 2019, Version 3
• Quantification Methodologies for the Carbon Competitiveness Incentive Regulation and the Specified Gas Reporting Regulation, Version 1.4
• Environment and Climate Change Canada: Technical Guidance on Reporting Greenhouse Gas Emissions -2019 Data
• Western Climate Initiative: Quantification Method 2013 Addendum to Canadian Harmonization Version (December 20, 2013);
• Western Climate Initiative: Final Essential Requirements of Mandatory Reporting - 2011 Amendments for Harmonization of Reporting in Canadian Jurisdictions (December 21, 2011, as amended on February 10, 2012);
• Western Climate Initiative: Final Essential Requirements of Mandatory Reporting - 2010 Amended for Canadian Harmonization (December 17, 2010)

C6. Emissions data

C6.1

(C6.1) What were your organization's gross global Scope 1 emissions in metric tons CO2e? Reporting year

Gross global Scope 1 emissions (metric tons CO2e)

9570000

Start date

January 1 2019

End date

December 31 2019

Comment

Past year 1

Gross global Scope 1 emissions (metric tons CO2e)

10265000

Start date

January 1 2018

End date

December 31 2018

Comment

Past year 2

Gross global Scope 1 emissions (metric tons CO2e)

10975000

Start date

January 1 2017

End date

December 31 2017

Comment

C6.2

(C6.2) Describe your organization's approach to reporting Scope 2 emissions. Row 1

​Scope 2, location-based​

We are reporting a Scope 2, location-based figure

Scope 2, market-based

We are reporting a Scope 2, market-based figure

Comment

Husky has adjusted its location-based emissions factors based on the most current (updated April 2019) NIR values Husky uses Green-e Residual Mix emissions factors for the regions where it has operations that acquire and consume electricity to report a Scope 2, market-based figure, per CDP guidance. These factors are significantly lower than the emission factors generated from National Inventory Reporting and local electricity system operator data used to report location-based Scope 2 emissions, due to their large regional coverage.

C6.3

(C6.3) What were your organization's gross global Scope 2 emissions in metric tons CO2e? Reporting year

Scope 2, location-based

1915000

Scope 2, market-based (if applicable)

1205000

Start date

January 1 2019

End date

December 31 2019

Comment

Electricity emissions factors for location-based Scope 2 accounting are taken from the 2019 Canadian National Inventory Report as submitted to the United Nations Framework Convention on Climate Change or supplied by grid operators where available. Market-based figures are calculated using Green-e Residual Mix electricity emission factors as recommended by CDP. The market-based and location-based emission factor for steam emissions is the same.

Past year 1

Scope 2, location-based

2035000

Scope 2, market-based (if applicable)

1285000

Start date

January 1 2018

End date

December 31 2018

Comment

The market-based and location-based emission factor for steam emissions is the same.

Past year 2

Scope 2, location-based

2135000

Scope 2, market-based (if applicable)

Start date

January 1 2017

End date

December 31 2017

Comment

C6.4

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Yes

C6.4a

(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure.

Source

Drilling and Completions Emissions from areas where not regulatory reportable

Relevance of Scope 1 emissions from this source

Emissions are not relevant

Relevance of location-based Scope 2 emissions from this source

Emissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)

Emissions are not relevant

Explain why this source is excluded

Onshore drilling and completions operations emissions are only estimated and reported in jurisdictions where mandated. Offshore drilling and completions emissions in Canada and China are included.

Source

Emissions from Husky owned and operated vehicles that are operated outside of specific large-emitting facilities

Relevance of Scope 1 emissions from this source

Emissions are not relevant

Relevance of location-based Scope 2 emissions from this source

Emissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)

Emissions are not relevant

Explain why this source is excluded

Husky estimates that this is not a major emissions source at this time. Some transportation emissions are included in the Company's site diesel and propane use, but cannot be broken out from on-site combustion for process.

Source

Emissions from some Husky-owned transportation fuels retail sites, i.e. bulk plants, travel centres, cardlocks and retail stations

Relevance of Scope 1 emissions from this source

Emissions are not relevant

Relevance of location-based Scope 2 emissions from this source

Emissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)

Emissions are not relevant

Explain why this source is excluded

Husky includes retail site electricity Scope 2 emissions data where available (primarily in Alberta and Saskatchewan). Based on sampling of those retail sites with available emissions data, Husky estimates that emissions from building heating and electricity consumption from sites where data is unavailable are immaterial when compared to the Company's total Scope 1 and Scope 2 emissions.

C6.5

(C6.5) Account for your organization's gross global Scope 3 emissions, disclosing and explaining any exclusions. Purchased goods and services

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Capital goods

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Upstream transportation and distribution

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Waste generated in operations

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Business travel

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Employee commuting

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Upstream leased assets

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Downstream transportation and distribution

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Processing of sold products

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Use of sold products

Evaluation status

Relevant, calculated

Metric tonnes CO2e

19300000

Emissions calculation methodology

Emission factors from Environmental Protection Agency 40 Code of Federal Regulation part 98 subpart MM regulation.

Percentage of emissions calculated using data obtained from suppliers or value chain partners

0

Please explain

Data is only provided where there is a regulatory requirement to disclose emissions associated with use of sold product emissions. This includes only Husky's Downstream assets in the U.S.

End of life treatment of sold products

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Downstream leased assets

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Franchises

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Investments

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Other (upstream)

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

Other (downstream)

Evaluation status

Not relevant, explanation provided

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Please explain

This source of Scope 3 GHG emissions is not material when compared against the emissions related to the end-use combustion and / or oxidation of the products sold by Husky.

C6.7

(C6.7) Are carbon dioxide emissions from biogenic carbon relevant to your organization?

Yes

C6.7a

(C6.7a) Provide the emissions from biogenic carbon relevant to your organization in metric tons CO2.

C6.10

(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unit currency total revenue and provide any additional intensity metrics that are appropriate to your business operations.

Intensity figure

0.000566

Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO2e)

11430000

Metric denominator

unit total revenue

Metric denominator: Unit total

20306000000

Scope 2 figure used

Location-based

• change from previous year 3.82

Direction of change

Increased

Reason for change

Revenues decreased primarily due to reduction in commodity prices and sales volumes

C-OG6.12

(C-OG6.12) Provide the intensity figures for Scope 1 emissions (metric tons CO2e) per unit of hydrocarbon category. Unit of hydrocarbon category (denominator)

Thousand barrels of crude oil/ condensate

Metric tons CO2e from hydrocarbon category per unit specified

97.11

• change from previous year
  1

Direction of change

Increased

Reason for change

Increase in intensity for offshore oil production due to the SeaRose FPSO being offline in 2019. Offset by intensity decline for conventional oil due to natural declines in aging fields. Prior year number adjusted for methodology change to the denominator.

Comment

Unit of hydrocarbon category (denominator)

Thousand barrels of oil sands (includes bitumen and synthetic crude)

Metric tons CO2e from hydrocarbon category per unit specified

73.89

• change from previous year
  9

Direction of change

Decreased

Reason for change

Slight increase in production with a larger decrease in emissions as no new Husky thermal facilities were steaming in 2019.

Comment

Unit of hydrocarbon category (denominator)

Million cubic feet of natural gas

Metric tons CO2e from hydrocarbon category per unit specified

1.45

• change from previous year
  57

Direction of change

Decreased

Reason for change

Prior year number adjusted for methodology change to the denominator. Husky shut in a large number of high-carbon intensity facilities in 2019.

Comment

Unit of hydrocarbon category (denominator)

Thousand barrels of refinery throughput

Metric tons CO2e from hydrocarbon category per unit specified

27.32

• change from previous year
  1

Direction of change

Increased

Reason for change

The slight increase is due to an overall decrease in emissions with a higher relative decrease in throughput. Throughput declined at Husky's U.S. refineries in 2019 due to a shut down related to a crude oil flexibility project at the Lima Refinery and ongoing shut in of the Superior Refinery.

Comment

C-OG6.13

(C-OG6.13) Report your methane emissions as percentages of natural gas and hydrocarbon production or throughput. Oil and gas business division

Upstream

Estimated total methane emitted expressed as % of natural gas production or throughput at given division

0.084

Estimated total methane emitted expressed as % of total hydrocarbon production or throughput at given division

0.67

Comment

Oil and gas business division

Downstream

Estimated total methane emitted expressed as % of natural gas production or throughput at given division

Estimated total methane emitted expressed as % of total hydrocarbon production or throughput at given division

0.031

Comment

Husky classifies all gas assets as Upstream

C7. Emissions breakdowns

C7.1

(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?

Yes

C7.1a

(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and provide the source of each used greenhouse warming potential (GWP).

C-OG7.1b

(C-OG7.1b) Break down your total gross global Scope 1 emissions from oil and gas value chain production activities by greenhouse gas type. Emissions category

Combustion (excluding flaring)

Value chain

Downstream

Product

Oil

Gross Scope 1 CO2 emissions (metric tons CO2)

1685000

Gross Scope 1 methane emissions (metric tons CH4)

61

Total gross Scope 1 emissions (metric tons CO2e)

1694000

Comment

Emissions category

Combustion (excluding flaring)

Value chain

Upstream

Product

Gas

Gross Scope 1 CO2 emissions (metric tons CO2)

319000

Gross Scope 1 methane emissions (metric tons CH4)

1000

Total gross Scope 1 emissions (metric tons CO2e)

348000

Comment

Emissions category

Combustion (excluding flaring)

Value chain

Upstream

Product

Oil

Gross Scope 1 CO2 emissions (metric tons CO2)

4795000

Gross Scope 1 methane emissions (metric tons CH4)

2000

Total gross Scope 1 emissions (metric tons CO2e)

4858000

Comment

Emissions category

Combustion (excluding flaring)

Value chain

Other (please specify) (Drilling & Completions offshore)

Product

Unable to disaggregate

Gross Scope 1 CO2 emissions (metric tons CO2)

60000

Gross Scope 1 methane emissions (metric tons CH4)

3

Total gross Scope 1 emissions (metric tons CO2e)

62000

Comment

Emissions category

Flaring

Value chain

Downstream

Product

Oil

Gross Scope 1 CO2 emissions (metric tons CO2)

143000

Gross Scope 1 methane emissions (metric tons CH4)

203

Total gross Scope 1 emissions (metric tons CO2e)

149000

Comment

Emissions category

Flaring

Value chain

Upstream

Product

Gas

Gross Scope 1 CO2 emissions (metric tons CO2)

13000

Gross Scope 1 methane emissions (metric tons CH4)

72

Total gross Scope 1 emissions (metric tons CO2e)

15000

Comment

Emissions category

Other (please specify) (On-site Propane & Diesel for Transportation & Stationary Combustion)

Value chain

Upstream

Product

Oil

Gross Scope 1 CO2 emissions (metric tons CO2)

8000

Gross Scope 1 methane emissions (metric tons CH4)

0

Total gross Scope 1 emissions (metric tons CO2e)

8000

Comment

C7.2

(C7.2) Break down your total gross global Scope 1 emissions by country/region.

C7.3

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.

By business division

By facility

By activity

C7.3a

(C7.3a) Break down your total gross global Scope 1 emissions by business division.

C7.3b

(C7.3b) Break down your total gross global Scope 1 emissions by business facility.

C7.3c

(C7.3c) Break down your total gross global Scope 1 emissions by business activity.

C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4

(C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4) Break down your organization's total gross global Scope 1 emissions by sector production activity in metric tons CO2e.

C7.5

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

C7.6

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.

By business division

By facility

By activity

C7.6a

(C7.6a) Break down your total gross global Scope 2 emissions by business division.

C7.6b

(C7.6b) Break down your total gross global Scope 2 emissions by business facility.

C7.6c

(C7.6c) Break down your total gross global Scope 2 emissions by business activity.

C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7

(C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7) Break down your organization's total gross global Scope 2 emissions by sector production activity in metric tons CO2e.

C-CH7.8

(C-CH7.8) Disclose the percentage of your organization's Scope 3, Category 1 emissions by purchased chemical feedstock.

C-CH7.8a

(C-CH7.8a) Disclose sales of products that are greenhouse gases.

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFC)

Perfluorocarbons (PFC)

Sulphur hexafluoride (SF6)

Nitrogen trifluoride (NF3)

C7.9

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?

Decreased

C7.9a

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined), and for each of them specify how your emissions compare to the previous year.

C7.9b

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

Location-based

C8. Energy

C8.1

(C8.1) What percentage of your total operational spend in the reporting year was on energy?

More than 10% but less than or equal to 15%

C8.2

(C8.2) Select which energy-related activities your organization has undertaken.

C8.2a

MWh fuel consumed for self-generation of steam

22000

MWh fuel consumed for self-generation of cooling

MWh fuel consumed for self-cogeneration or self-trigeneration

Emission factor

261

Unit

kg CO2e per MWh

Emissions factor source

WCI Final Essential Requirements of Mandatory Reporting Canada Dec 2011 Table 20-2

Comment

Fuels (excluding feedstocks)

Propane Liquid

Heating value

HHV (higher heating value)

Total fuel MWh consumed by the organization

22000

MWh fuel consumed for self-generation of electricity

0

MWh fuel consumed for self-generation of heat

22000

MWh fuel consumed for self-generation of steam

0

MWh fuel consumed for self-generation of cooling

MWh fuel consumed for self-cogeneration or self-trigeneration

Emission factor

219

Unit

kg CO2e per MWh

Emissions factor source

Husky uses emission factors specific to the regulatory reporting requirements of the region. The value reported is a weighted average.

Comment

Fuels (excluding feedstocks)

Motor Gasoline

Heating value

HHV (higher heating value)

Total fuel MWh consumed by the organization

490

MWh fuel consumed for self-generation of electricity

0

MWh fuel consumed for self-generation of heat

490

MWh fuel consumed for self-generation of steam

0

MWh fuel consumed for self-generation of cooling

MWh fuel consumed for self-cogeneration or self-trigeneration

Emission factor

254

Unit

kg CO2e per MWh

Emissions factor source

Husky uses emission factors specific to the regulatory reporting requirements of the region. The value reported is a weighted average.

Comment

C8.2d

(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in the reporting year.

C-CH8.2d

(C-CH8.2d) Provide details on electricity, heat, steam, and cooling your organization has generated and consumed for chemical production activities.

C8.2e

(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts that were accounted for at a zero emission factor in the market-based Scope 2 figure reported in C6.3.

Sourcing method

Heat/steam/cooling supply agreement

Low-carbon technology type

Other, please specify (Recycled waste steam)

Country/region of consumption of low-carbon electricity, heat, steam or cooling

Canada

MWh consumed accounted for at a zero emission factor

230000

Comment

The Lloydminster Ethanol Plant receives low pressure steam from the Husky Lloydminster Upgrader (HLU), which is a waste steam for the HLU.

C-CH8.3

(C-CH8.3) Does your organization consume fuels as feedstocks for chemical production activities?

No

C9. Additional metrics

C9.1

(C9.1) Provide any additional climate-related metrics relevant to your business.

C-OG9.2a

(C-OG9.2a) Disclose your net liquid and gas hydrocarbon production (total of subsidiaries and equity-accounted entities).

C-OG9.2b

(C-OG9.2b) Explain which listing requirements or other methodologies you use to report reserves data. If your organization cannot provide data due to legal restrictions on reporting reserves figures in certain countries, please explain this.

Husky's oil and gas reserves are estimated in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook ("COGEH"), and the reserves data disclosed conforms with the requirements of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). All of Husky's oil and gas reserves estimates are prepared by internal qualified reserves evaluation staff using a formalized process for determining, approving and booking reserves.

For the purposes of Husky's NI 51-101 reserves disclosure in the 2019 AIF, Sproule Associates Ltd. ("Sproule"), an independent firm of qualified reserves evaluators, was engaged to conduct a complete audit and review of 100% of Husky's oil and gas reserves estimates. Sproule issued an audit opinion stating that Husky's internally generated proved and probable reserves and net present values based on forecast and constant price assumptions are, in aggregate, reasonable, and have been prepared in accordance with generally accepted oil and gas engineering and evaluation practices as set out in the COGEH. Sproule has also this year executed the Form 51-101F2 attached as Appendix B to the AIF.

The Board of Directors has approved, on the recommendation of the Audit Committee, the content of Husky's disclosure of its reserves data and other oil and gas information. The reserves in C-OG9.2 are Husky's gross reserves, which are the working interest share of reserves before deduction of royalties and without including any royalty interests.

C-OG9.2c

(C-OG9.2c) Disclose your estimated total net reserves and resource base (million boe), including the total associated with subsidiaries and equity-accounted entities.

C-OG9.2d

(C-OG9.2d) Provide an indicative percentage split for 2P, 3P reserves, and total resource base by hydrocarbon categories.

C-OG9.2e

(C-OG9.2e) Provide an indicative percentage split for production, 1P, 2P, 3P reserves, and total resource base by development types.

Development type

Other, please specify (Light & Medium Crude Oil)

In-year net production (%)

8

Net proved reserves (1P) (%)

7

Net proved + probable reserves (2P) (%)

9

Net proved + probable + possible reserves (3P) (%) Net total resource base (%)

Comment

Possible reserves are not disclosed

Development type

Other, please specify (Heavy Crude Oil)

In-year net production (%)

11

Net proved reserves (1P) (%)

3

Net proved + probable reserves (2P) (%)

3

Net proved + probable + possible reserves (3P) (%) Net total resource base (%)

Comment

Development type

Other, please specify (Bitumen)

In-year net production (%)

44

Net proved reserves (1P) (%)

66

Net proved + probable reserves (2P) (%)

65

Net proved + probable + possible reserves (3P) (%) Net total resource base (%)

Comment

Development type

Other, please specify (Conventional Natural Gas)

In-year net production (%)

29

Net proved reserves (1P) (%)

18

Net proved + probable reserves (2P) (%)

17

Net proved + probable + possible reserves (3P) (%) Net total resource base (%)

Comment

Development type

Other, please specify (Natural Gas Liquid)

In-year net production (%)

8

Net proved reserves (1P) (%)

6

Net proved + probable reserves (2P) (%)

6

Net proved + probable + possible reserves (3P) (%) Net total resource base (%)

Comment

C-CH9.3a

(C-CH9.3a) Provide details on your organization's chemical products. Output product

Ethanol

Production (metric tons)

247580

Capacity (metric tons)

205000

Direct emissions intensity (metric tons CO2e per metric ton of product)

0.21

Electricity intensity (MWh per metric ton of product)

0.93

Steam intensity (MWh per metric ton of product)

1.27

Steam/ heat recovered (MWh per metric ton of product)

Comment

C-OG9.3a

(C-OG9.3a) Disclose your total refinery throughput capacity in the reporting year in thousand barrels per day.

Total refinery throughput capacity (Thousand barrels per day)

Capacity308

C-OG9.3b

(C-OG9.3b) Disclose feedstocks processed in the reporting year in million barrels per year.

C-OG9.3c

(C-OG9.3c) Are you able to break down your refinery products and net production?

No

C-CE9.6/C-CG9.6/C-CH9.6/C-CN9.6/C-CO9.6/C-EU9.6/C-MM9.6/C-OG9.6/C-RE9.6/C-ST9.6/C-TO9.6/C-TS9.6

(C-CE9.6/C-CG9.6/C-CH9.6/C-CN9.6/C-CO9.6/C-EU9.6/C-MM9.6/C-OG9.6/C-RE9.6/C-ST9.6/C-TO9.6/C-TS9.6) Does your organization invest in research and development (R&D) of low-carbon products or services related to your sector activities?

C-CH9.6a

(C-CH9.6a) Provide details of your organization's investments in low-carbon R&D for chemical production activities over the last three years.

C-CO9.6a/C-EU9.6a/C-OG9.6a

(C-CO9.6a/C-EU9.6a/C-OG9.6a) Provide details of your organization's investments in low-carbon R&D for your sector activities over the last three years.

C-OG9.7

(C-OG9.7) Disclose the breakeven price (US$/BOE) required for cash neutrality during the reporting year, i.e. where cash flow from operations covers CAPEX and dividends paid/ share buybacks.

37

C-OG9.8

(C-OG9.8) Is your organization involved in the sequestration of CO2?

Yes

C-OG9.8a

(C-OG9.8a) Provide, in metric tons CO2, gross masses of CO2 transferred in and out of the reporting organization (as defined by the consolidation basis).

C-OG9.8b

(C-OG9.8b) Provide gross masses of CO2 injected and stored for the purposes of CCS during the reporting year according to the injection and storage pathway.

C-OG9.8c

(C-OG9.8c) Provide clarification on any other relevant information pertaining to your activities related to transfer and sequestration of CO2.

Husky is not currently operating a dedicated carbon capture and sequestration project. However, its CO2 EOR activities do result in partial retention and storage of carbon dioxide during and following operation.

Husky injects CO2 into several reservoirs in the Lloydminster area of Saskatchewan for the purposes of enhanced oil recovery. While some CO2 is retained, this activity is cyclic and not specifically designed to store CO2 in the formation. There is no assurance of long-term storage implied. As understanding of the reservoir response increases, Husky will be able to determine storage and retention capacity of the formation.

C10. Verification

C10.1

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

C10.1a

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements. Verification or assurance cycle in place

Annual process

Status in the current reporting year

Underway but not complete for reporting year - previous statement of process attached

Type of verification or assurance

Limited assurance

Attach the statement

ESG Report 2019.pdf

Page/ section reference

pp. 49 - 50

Relevant standard

ISAE3000

Proportion of reported emissions verified (%)

100

C10.1b

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 2 emissions and attach the relevant statements. Scope 2 approach

Scope 2 location-based

Verification or assurance cycle in place

Annual process

Status in the current reporting year

Underway but not complete for reporting year - previous statement of process attached

Type of verification or assurance

Limited assurance

Attach the statement

ESG Report 2019.pdf

Page/ section reference

pp. 49 - 50

Relevant standard

ISAE3000

Proportion of reported emissions verified (%)

100

C10.2

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figures reported in C6.1, C6.3, and C6.5?

Yes

C10.2a

(C10.2a) Which data points within your CDP disclosure have been verified, and which verification standards were used?

C11. Carbon pricing

C11.1

(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?

Yes

C11.1a

(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.

Alberta Carbon Competitive Incentive Regulation (CCIR) - ETS

BC carbon tax

Canada federal fuel charge

Canada federal Output Based Pricing System (OBPS) - ETS

Newfoundland and Labrador carbon tax

Saskatchewan OBPS - ETS

Other carbon tax, please specify (Alberta Carbon Tax)

C11.1b

(C11.1b) Complete the following table for each of the emissions trading schemes you are regulated by.

Alberta Carbon Competitive Incentive Regulation (CCIR) - ETS

• of Scope 1 emissions covered by the ETS 5.45
• of Scope 2 emissions covered by the ETS 6.21

Period start date

January 1 2019

Period end date

December 31 2019

Allowances allocated

1752305

Allowances purchased

521781

Verified Scope 1 emissions in metric tons CO2e

2274087

Verified Scope 2 emissions in metric tons CO2e

118899

Details of ownership

Other, please specify (Operated and owned outright or jointly)

Sunrise: 50% ownership with BP Tucker: 100% Husky ownership

Comment

Husky's Sunrise and Tucker thermal projects were subject to Alberta's CCIR in 2019. Both facilities exceeded their output-based allocation limit in 2019 and used a combination of compliance fund and offset/EPC credit purchases.

Canada federal OBPS - ETS

• of Scope 1 emissions covered by the ETS 0.24
• of Scope 2 emissions covered by the ETS
  0

Period start date

January 1 2019

Period end date

December 31 2019

Allowances allocated

52281

Allowances purchased

23302

Verified Scope 1 emissions in metric tons CO2e

75583

Verified Scope 2 emissions in metric tons CO2e

Details of ownership

Other, please specify (Operated and owned outright or jointly)

Comment

Verification of Scope 1 data underway. The facility included in the federal Output-Based Pricing System is the Minnedosa Ethanol Plant.

Saskatchewan OBPS - ETS

• of Scope 1 emissions covered by the ETS 1.55
• of Scope 2 emissions covered by the ETS
  0

Period start date

January 1 2019

Period end date

December 31 2019

Allowances allocated

2364256

Allowances purchased

148257

Verified Scope 1 emissions in metric tons CO2e

2490048

Verified Scope 2 emissions in metric tons CO2e

Details of ownership

Other, please specify (Operated and owned outright or jointly)

Comment

The allocations are purchased allowances and are estimated based on the facility-specific baseline applications under the SK output-based performance standards which are pending approval from the SK Ministry of Environment. The payments/credits for 2019 facility performance will be paid/issued as part of the 2021 reporting cycle as per SK output-based performance standards. Facilities included in the SK output-based performance standards include the Lloydminster Upgrader, Lloydminster Ethanol Plant, and the Bolney, Paradise Hill, Pikes Peak South, Rush Lake, Sandall, and Vawn thermal plants.

C11.1c

(C11.1c) Complete the following table for each of the tax systems you are regulated by. BC carbon tax

Period start date

January 1 2019

Period end date

December 31 2019

• of total Scope 1 emissions covered by tax 0.29

Total cost of tax paid

550740

Comment

BC fuel levy.

Canada federal fuel charge

Period start date

April 1 2019

Period end date

December 31 2019

• of total Scope 1 emissions covered by tax 2.33

Total cost of tax paid

249000

Comment

Federal Fuel Levy imposed as of April 1, 2019.

Newfoundland and Labrador carbon tax

Period start date

January 1 2019

Period end date

December 31 2019

• of total Scope 1 emissions covered by tax 0.58

Total cost of tax paid

1258325

Comment

Newfoundland and Labrador Fuel Levy

Other carbon tax, please specify

Period start date

January 1 2019

Period end date

May 29 2019

• of total Scope 1 emissions covered by tax 0.39

Total cost of tax paid

1423929

Comment

AB Carbon Tax. Alberta Fuel levy was rescinded effective May 29, 2019. Federal Fuel levy not in effect until Jan 1, 2020.

C11.1d

(C11.1d) What is your strategy for complying with the systems you are regulated by or anticipate being regulated by?

Husky seeks to reduce emissions at its facilities through improved energy and emissions management and generation of carbon offsets, and offsets the balance of compliance obligations through the use of emissions performance credits, purchases of project-based carbon offsets, and purchases of technology fund credits

C11.2

(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?

Yes

C11.2a

(C11.2a) Provide details of the project-based carbon credits originated or purchased by your organization in the reporting period.

Credit origination or credit purchase

Credit origination

Project type

Methane avoidance

Project identification

Husky has almost 100 methane reduction projects capable of generating offset credits in Alberta. These projects are either high-to-low bleed conversions or device electrification (solar). All projects are located on natural gas wellsites. In past years these projects have prevented emissions of 12,000-15,000 tonnes CO2e per year. Verification of 2019 volumes are ongoing. Numbers of credits (metric tons CO2e) for 2019 are not yet confirmed, however, it is conservatively estimated they will be at least 5,000 tonnes

Verified to which standard

Other, please specify (Alberta Standard for Validation, Verification, and Audit)

Number of credits (metric tonnes CO2e)

5000

Number of credits (metric tonnes CO2e): Risk adjusted volume

5000

Credits cancelled

No

Purpose, e.g. compliance

Compliance

C11.3

(C11.3) Does your organization use an internal price on carbon?

Yes

C11.3a

(C11.3a) Provide details of how your organization uses an internal price on carbon. Objective for implementing an internal carbon price

Navigate GHG regulations

Stakeholder expectations

Change internal behavior

Drive energy efficiency

Stress test investments

Supplier engagement

GHG Scope

Scope 1

Scope 2

Application

Upstream and Downstream Canadian operations

Actual price(s) used (Currency /metric ton)

50

Variance of price(s) used

Husky employs a geographically differentiated shadow price that is sensitive to the realistic pricing assumptions of each jurisdiction in which it operates. For Canada, this results in an evolutionary pricing model that is based on the proposed Pan-Canadian Climate Framework, which calls for annual escalating prices approaching $50/tonne by 2022. The starting point for this pricing varies by province based on the carbon pricing regulations currently in place.

Type of internal carbon price

Shadow price

Impact & implication

Husky uses an internal price on carbon to evaluate projects in jurisdictions where there is a regulatory compliance obligation for GHG emissions or where there is a reasonable expectation that additional material compliance obligations will be implemented in the near to mid-term. The Company considers both the cost and value of GHGs; for example, Husky places a value on CO2 as a means to enhance heavy oil production. Husky has evaluated investments in energy efficiency at the Sunrise and Tucker thermal facilities using internal carbon pricing in line with current and proposed regulations of $30 per tonne, escalating to $50 per tonne by 2022 to determine additional sensitivity for the projects.

C12. Engagement

C12.1

(C12.1) Do you engage with your value chain on climate-related issues?

Yes, our suppliers

Yes, other partners in the value chain

C12.1a

(C12.1a) Provide details of your climate-related supplier engagement strategy. Type of engagement

Compliance & onboarding

Details of engagement

Included climate change in supplier selection / management mechanism

• of suppliers by number 100
• total procurement spend (direct and indirect) 4.96
• of supplier-related Scope 3 emissions as reported in C6.5

Rationale for the coverage of your engagement

All new trades payable suppliers are required to respond to a series of questions in the supplier pre-qualification questionnaire. In this questionnaire, suppliers are asked specific questions regarding their disclosure of climate related information. Additionally, they are asked if they comply with all applicable environmental laws and regulations, which include climate-related regulations, within their jurisdiction.

Impact of engagement, including measures of success

Impact: Suppliers are aware that Husky is interested in their climate risks disclosure. Measure of success: New trades payable suppliers to complete the questionnaire.

Comment

100% of new suppliers onboarded in 2019. 4.96% = 2019 new supplier spend & suppliers onboarded in 2019, over 2019's total procurement spend.

Type of engagement

Engagement & incentivization (changing supplier behavior)

Details of engagement

Other, please specify (Emissions reduction initiative)

• of suppliers by number 18.8
• total procurement spend (direct and indirect)
  63
• of supplier-related Scope 3 emissions as reported in C6.5

Rationale for the coverage of your engagement

In 2016, Husky joined the SmartWay Transport Partnership. This collaboration is designed to help businesses reduce fuel costs while transporting goods in the cleanest, most efficient way possible. SmartWay works with freight carriers and shippers that are committed to benchmarking their operations, tracking their fuel consumption and improving their annual performance. While not all Husky suppliers are SmartWay members, as the program grows, Husky anticipates further fuel efficiency and cost improvements in the supply chain. By joining SmartWay, Husky is signalling a commitment to clean freight to its suppliers.

Impact of engagement, including measures of success

Impact: Husky's Canadian Products Marketing business unit participates to drive fuel cost reductions, contributing to improved efficiency. Measure of success: Onboarded additional carriers. Tracked total tonne-kilometers driven and emissions by Canadian Products Marketing's Downstream operations carriers to measure year-on-year performance.

Comment

18.8% = SmartWay-registered carriers for Canadian Products Marketing Light and Heavy Oil freight services (Six carriers out of 32 total). 63% = Total 2019 spend on SmartWay carriers over total procurement spend on Canadian Products Marketing Light and Heavy Oil.

C12.1d

(C12.1d) Give details of your climate-related engagement strategy with other partners in the value chain.

Husky engages with its JV partners on large projects through JV committees that discuss numerous issues, including GHG emissions. Specifically, Husky and BP collaborate on GHG issues related to BP-Husky Refining LLC and the Sunrise Energy Project with the aim of achieving compliance strategy consensus. Husky prioritizes GHG engagement with value chain partners where there is a major risk posed by exposure to climate-related issues such as regulatory changes. Success is measured through financial indicators, including performance against carbon-related fee targets for facilities that fall under a regulatory scheme that includes a compliance cost for carbon emissions.

C12.3

carbon pricing mechanisms that are transparent, uniform and predictable are useful tools to send clear price signals across the economy that can effectively and efficiently reduce Canada's carbon footprint.

How have you influenced, or are you attempting to influence their position?

Husky participates in working groups within CFA to inform the industry association's position relative to climate change policy in Canada.

Trade association

Canadian Manufacturers and Exporters Association

Is your position on climate change consistent with theirs?

Consistent

Please explain the trade association's position

CME Advocacy Highlights: https://cme-mec.ca/blog/initiatives/lowering-business-costs/ including position on Carbon Taxes and Revenue Recycling and the Clean Fuel

Standard. CME's policy position on carbon taxation and revenue recycling: "CME is calling for the revenue-neutral distribution of carbon pricing monies. Funds collected under the federal backstop system should be returned to the "person" (the company) to invest in projects that improve environmental performance and increase investment in emissions-reducing machinery, equipment and technologies. We believe that federal carbon pricing backstop system must be balanced and cannot compromise economic growth, industrial investment, or the global competitiveness of manufacturers. The system must be designed in such a way so that companies receive access to funds directly in proportion to how much they pay in carbon taxes or cap-and-trade expenses". CME's policy position on Clean Fuel Standard: "CME supports efforts to reduce GHG emissions intensity across Canada but is concerned about the impact the CFS will have on Canada's business competitiveness. The CFS will add cost to doing business and will further discourage investment in Canada. CME calls on the on the federal government to: 1. Complete a comprehensive economic analysis and modelling exercise; and, 2. Exempt all manufacturing fuels from the CFS. The CFS must not result in carbon leakage -whereby companies simply shift their production to other jurisdictions with less stringent regulations, a loss of manufacturing jobs, a weaker economy, or a net increase in global GHG emissions".

How have you influenced, or are you attempting to influence their position?

Husky participates in working groups within CME to inform the industry association's position relative to climate change policy in Canada.

Trade association

Canadian Chamber of Commerce

Is your position on climate change consistent with theirs?

Consistent

Please explain the trade association's position

The Canadian Chamber of Commerce recognizes that climate policy must be part of a broader national conversation about Canada's competitiveness. This discussion must include concrete action to address the decline in foreign direct investment in Canada, and our inability to move forward on major infrastructure projects. The CCC has supported putting a price on carbon since 2011. However, the organization believes it must be part of coherent strategy to deal with climate change, and not simply add to a hodge-podge of other measures. The Canadian Chamber of Commerce's Statement on Carbon Pricing is presented at: http://www.chamber.ca/media/news- releases/20181217_statement_on_carbon_pricing/ The CCC's support for putting a price on carbon is not unconditional. It depends upon the carbon pricing mechanism being revenue neutral, that the overall regulatory burden on business is reduced, and that the revenue generated is used to help businesses invest in innovation and technologies to reduce their carbon emissions and energy costs. The Chamber believes that a well-executed carbon pricing policy has the potential to reduce the overall costs to business through the reduction or elimination of other duplicative regulatory burdens. The CCC released a report that outlined the cumulative costs of climate policy in Canada. The CCC recognized the imperative need for Canada to pursue greenhouse gas emissions reductions at the lowest possible cost to Canadians and Canadian businesses. The report highlighted the layering of different carbon prices and increased costs of jurisdictional overlaps will needlessly raise the cost of compliance for Canadian businesses. Energy affordability is key to Canada's economic competitiveness, and the impacts of additional implicit carbon pricing costs must be carefully balanced so energy remains affordable for households, and businesses remain competitive with other jurisdictions that may not face the same regulations. Policymakers must continue to be attentive to how implicit and explicit carbon pricing makes Canada a more expensive place to invest in energy-intensive projects when compared to other jurisdictions. The CCC recommends that emission reductions be approached in a manner that balances the environment, the economy and energy affordability.

How have you influenced, or are you attempting to influence their position?

Husky participates in working groups within CCC to inform the industry association's position relative to climate change policy in Canada.

Trade association

American Fuel & Petroleum Manufacturers

Is your position on climate change consistent with theirs?

Consistent

Please explain the trade association's position

AFPM acknowledges climate change is real and is committed to the development of sound policies that enable our members to supply the fuel and petrochemicals that growing global populations and economies need to thrive, and to do so in an environmentally sustainable way. Position link here: https://www.afpm.org/issues/environment/climate Policies addressing climate change must be: •Balanced and measured to improve quality of life, ensuring the long-term economic, energy, and environmental needs of humanity are met; •Protective of U.S. competitiveness and prevent the shifting of production, jobs, and emissions from the United States to other countries; •Harmonized, preemptive, and economy-wide; •Simple and transparent; and •Achievable and flexible to adjust as necessary. AFPM and our members are further committed to: •Delivering affordable, reliable fuel and petrochemicals products that lift the standards of living for people all over the world; •Improving the efficiency and sustainability of our operations; •Offering fuels and petrochemicals that make engines and other products more efficient; and •Continuing research, innovation, and application of new technologies and products.

How have you influenced, or are you attempting to influence their position?

Husky participates in working groups within AFPM to inform the industry association's position relative to climate change policy in the United States.

C12.3d

(C12.3d) Do you publicly disclose a list of all research organizations that you fund?

Yes

C12.3f

(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

Key individuals in the business units and supporting service groups collaborate to align Husky's position through the Carbon Management Regulatory Monitoring Committee. The Company's climate change strategy is clearly communicated to policy makers either directly or through participation in industry association working groups within the jurisdictions where the Company operates. Husky's Government Relations department works with Company representatives involved in policy engagement to ensure that policy advocacy activities are aligned. As of 2020 Husky has a Government Relations Policy that directs behaviour related to advocacy, including industry association participation that ensures consistent application of the Company's corporate position across all engagement. The Policy also includes direction on Husky not participating in industry associations that do not align with its corporate vision on climate change and climate policy.

C12.4

(C12.4) Have you published information about your organization's response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s).

Publication

In voluntary sustainability report

Status

Complete

Attach the document

ESG Report 2020.pdf

Page/Section reference

Key Performance Data (pp. 5) Climate-Related Risks and Air Emissions (pp. 23 - 27)

Content elements

Governance

Strategy

Risks & opportunities

Emissions figures

Emission targets

Other metrics

Comment

Publication

In mainstream reports

Status

Complete

Attach the document

AIF 2019.pdf

Page/Section reference

Air and Climate Change (pp. 46-49), Social, Environmental and Governance Considerations: Climate Change (pp. 53-54), Climate Change Risks (pp. 60-61).

Content elements

Governance

Risks & opportunities

Comment

Publication

In other regulatory filings

Status

Complete

Attach the document

Page/Section reference

Content elements

Emissions figures

Emission targets

Comment

C15. Signoff

C-FI

(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response. Please note that this field is optional and is not scored.

READER ADVISORIES

Forward-Looking Statements and Information

Certain statements in this document are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of applicable Canadian securities legislation, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. The forward-looking statements contained in this document are forward-looking and not historical facts.

Some of the forward-looking statements may be identified by statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "is targeting", "estimated", "intend", "plan", "projection", "forecast", "guidance", "could", "may", "would", "aim", "vision", "goals", "objective", "target", "schedules" and "outlook"). In particular, forward-looking statements in this document include, but are not limited to, references to: the Company's general strategic plans and growth strategies; anticipated increases to carbon-related payments; potential financial impacts and time horizons of identified risks; potential climate-related opportunities and their corresponding likelihood, time horizon, magnitude of impact, potential financial impact and the costs and strategies to realize the opportunities; the results of the Company's scenario analysis; Scope 1 greenhouse gas emissions reduction targets and associated timelines; methane reduction target and associated timeline; number of emissions reduction initiatives at various stages of development and their estimated annual CO2e savings; estimated annual CO2e savings, annual monetary savings, investment required, payback period and estimated lifetime of implemented emissions reduction initiatives; and a proposed investment in Husky Diluent Reduction.

In addition, statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves described can be profitably produced in the future. There are numerous uncertainties inherent in estimating quantities of reserves and in projecting future rates of production and the timing of development expenditures. The total amount or timing of actual future production may vary from reserve and production estimates.

Although the Company believes that the expectations reflected by the forward-looking statements presented in this document are reasonable, the Company's forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to the Company about itself and the businesses in which it operates. Information used in developing forward-looking statements has been acquired from various sources, including third party consultants, suppliers and regulators, among others.

Because actual results or outcomes could differ materially from those expressed in any forward-looking statements, investors should not place undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur. Some of these risks, uncertainties and other factors are similar to those faced by other oil and gas companies and some are unique to the Company.

The Company's Annual Information Form for the year ended December 31, 2019 and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com and the EDGAR website www.sec.gov) describe risks, material assumptions and other factors that could influence actual results and are incorporated herein by reference.

New factors emerge from time to time and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent upon other factors, and the Company's course of action would depend upon management's assessment of the future considering all information available to it at the relevant time. Any forward-looking statement speaks only as of the date on which such statement is made and, except as required by applicable securities laws, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

Non-GAAP Measures

This document contains reference to the term "breakeven price", which does not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and is therefore unlikely to be comparable to similar measures presented by other issuers. This measure is not used to enhance the Company's reported financial performance or position and there are no comparable measures to this non-GAAP measure in accordance with IFRS.

Breakeven price reflects the estimated WTI oil price per barrel priced in US dollars required in order to generate funds flow from operations equal to the Company's sustaining capital requirements in Canadian dollars over a 12-month period ending December 31. This assumption is based on holding several variables constant throughout the period, including: foreign exchange rate, light-heavy oil differentials, realized refining margins, forecast utilization of downstream facilities, estimated production levels, and other factors consistent with normal oil and gas company operations. Breakeven price is used to assess the impact of changes in WTI oil prices on the net earnings of the Company and could impact future investment decisions.

Disclosure of Oil and Gas Information

Unless otherwise indicated: (i) reserves estimates in this document have been prepared by internal qualified reserves evaluators in accordance with the Canadian Oil and Gas Evaluation Handbook, have an effective date of December 31 in the years indicated and represent the Company's working interest share before royalties; (ii) projected and historical production volumes provided represent the Company's working interest share before royalties; and (iii) historical production volumes provided are for the year ended December 31, 2019.

The Company uses the term barrels of oil equivalent ("boe"), which is consistent with other oil and gas companies' disclosures, and is calculated on an energy equivalence basis applicable at the burner tip whereby one barrel of crude oil is equivalent to six thousand cubic feet of natural gas. The term boe is used to express the sum of the total company products in one unit that can be used for comparisons. Readers are cautioned that the term boe may be misleading, particularly if used in isolation. This measure is used for consistency with other oil and gas companies and does not represent value equivalency at the wellhead.

C15.1

(C15.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Submit your response

In which language are you submitting your response?

English

Please confirm how your response should be handled by CDP

Please confirm below

I have read and accept the applicable Terms