Cenovus Energy

Cenovus is targeting a 35% reduction in its scope 1 and 2 emissions by 2035 compared to 2019 and a 100% reduction by 2050. However, although the company states that scope 3 emissions “provide the most significant opportunity to address climate change globally”, it does not include scope 3 emissions in its targets. Scope 3 emissions account for over 85% of the company’s total emissions. Cenovus should develop a long-term target that aligns with its 1.5°C pathway and includes all of its emissions. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

The company demonstrates elements of transition planning; however, it has not developed a low-carbon transition plan or demonstrated an intention to develop one in the future. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway.

Cenovus is targeting a 35% reduction in its scope 1 and 2 emissions by 2035 compared to 2019 and a 100% reduction by 2050. The company does not have any targets to reduce its scope 3 emissions which account for over 85% of the company’s total emissions.

Cenovus has not developed a low-carbon transition plan. There is no evidence that the company intends to develop one in the near future. The company’s long-term plans focus on reducing operational emissions through energy efficiency improvement and implementing CCS.

Cenovus currently operates two CCS projects which capture around 90,000 tonnes of carbon dioxide (CO2) a year which is then used for enhanced oil recovery. Cenovus has also started projects to put CCS in place at four more of its facilities. The company is also undertaking various initiatives to measure and reduce its methane emissions and purchasing renewable electricity.

Cenovus has made some progress in reducing its scope 1, 2 and 3 emissions intensity over the last three years. This decrease is likely due to the increased proportion of gas in the company’s portfolio but gas remains a small proportion of the company’s total production. However, this reduction was not sufficient to align with the company’s 1.5°C pathway. There is no evidence to suggest that the company has made significant reductions in its scope 1 and 2 emissions intensity.

Cenovus has not developed a transition plan and is not intending to transition away from its hydrocarbon business. The company is implementing changes to reduce its operational emissions, however, beyond its ethanol plants is not taking action to reduce its scope 3 emissions and the company’s ethanol production is insignificant in comparison to its oil and gas output. The company is projected to exceed its 1.5°C Carbon budget for the period 2022-2050 by over 30%.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and upskilling specifically for women and vulnerable groups. It does this through training programs for young women, and it has an indigenous hiring program which includes training as part of the support. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and discloses the share of the workforce that is covered by collective bargaining agreements. The company can however strengthen its disclosure on these issues and most other decent work issues including its living wage and working hours practices.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. The company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. However, no relevant disclosure was found of the company’s expenditure on lobbying activities.