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Canacol Energy Ltd (2)
Symbol CNE
Shares Issued 170,858,922
Close 2022-06-27 C$ 2.58
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Canacol Energy releases 2021 ESG report

2022-06-28 11:09 ET - News Release

Mr. Charle Gamba reports


Canacol Energy Ltd. has released the following information concerning its environmental, social and governance (ESG) strategy and 2021 ESG integrated report.

Charle Gamba, president and chief executive officer of the corporation, stated: "As the world navigates the complexities of climate change and other political and economic challenges, we continue to believe in the vital role natural gas has to play in displacing more carbon intensive energy options. Specifically, in Colombia, we maintain our commitment to contribute to the country's goal of 51 per cent emissions reduction by 2030. As indicated in our ESG report, Canacol currently leads the industry as one of the cleanest oil and gas producers in both Colombia and North America with scope 1 and 2 GHG [greenhouse gas] emissions that are 80 per cent lower than our oil producing peers and 50 per cent lower than our gas producing peers, on average. Our ambition is to continue to lead the oil and gas industry in Colombia in terms of suppling the increasing energy demands of Colombians while reducing carbon emissions, exploring avenues for renewable energy generation, fostering national energy self-sufficiency, and catalyzing the growth and development of Colombia's economy and its people."

The move away from oil production in 2018 has positioned Canacol to become a pro-active leader in Colombia's energy transition and GHG reduction initiatives. The company's primary objective is to generate value for all the company's stakeholders in a sustainable, collaborative, responsible, respectful, and transparent way. The company supports the company's neighbouring communities through beneficial social investment projects that improve public and community infrastructure as well as provide access to educational opportunities. Canacol's actions are based on the company's corporate values, strategies and objectives. Within the company's focus on sustainability leadership, continuous improvement has become a fundamental axis of effort.

The methodologies and standards that Canacol uses include: GRI (Global Reporting Initiative) oil and gas G4 sector disclosures, Sustainability Accounting Standards Board (SASB), Carbon Disclosure Project (CDP), Task Force on Climate-Related Financial disclosures (TCFD), Corporate Sustainability Assessment S&P Global, and the United Nations Sustainable Development Goals (SDG).

The 2021 ESG highlights for Canacol include the following:

A cleaner energy future:

  • Reported scope 1 and 2 GHG emission intensities that are more than 50 per cent lower on average than gas focused peers (and more than 80 per cent lower on average than oil focused peers) in North and South America;
  • Increased solar energy usage by 32 per cent with the installation of photovoltaic systems in 100 per cent of new well sites and at the offices of three gathering facilities;
  • In the company's continuous commitment to identify and decrease fugitive emissions, the company performed periodical in-house and third party inspections to detect and repair leaks;
  • Developed a long-term strategy to implement circular economy practices with the ambition to divert more than 34 per cent of total direct waste from landfill and achieve a zero waste certification (a global initiative, in partnership with ICONTEC Colombia);
  • Strengthened the protection of biodiversity in the Cordoba and Sucre regions by establishing 10 conservation agreements and seven community environmental projects with local stakeholders.

A safe and committed team:

  • Lost-time injury frequency rate (LTIFR) (0.9) for employees and contractors was 72 per cent better than the target (3.16);
  • Increased diversity and inclusiveness in the work environment including:
    • The establishment of a diversity and inclusion corporate policy and committee;
    • The implementation of a gender equality management system to identify and eliminate gender gaps;
    • Women make up 35 per cent of the total work force, 8 per cent above the average of Colombia's female work force in the petroleum industry. Women represent 27 per cent of top management positions.

A transparent and ethical business:

  • Formalized a share ownership policy and specific ESG-related KPIs (key performance indicator) linked to short-term and long-term compensation of the executive team;
  • Updated the company-wide ethics and compliance system including a focus on anti-competitive practices.

Guided by sustainable development:

  • Created opportunities through local employment and development substantially exceeding regulatory requirements. Sixty per cent of Canacol's skilled labour and 100 per cent of Canacol's unskilled labour were hired locally. Canacol purchased 95.1 per cent of all goods and services locally, regionally and nationally, representing an economic stimulus of $151-million;
  • Implemented more than 60 social projects that have benefited over 25,000 community members across 13 municipalities;
  • The Corporation executed the second phase of its gas massification project, which aims to reduce energy poverty and serve societal needs by constructing a local utility gas distribution network to replace firewood with a cleaner and more efficient fuel, benefiting hundreds of additional households;
  • All social investment projects were aligned with national development plans; 11 projects included a gender focus.

About Canacol Energy Ltd.

Canacol is a natural gas exploration and production company with operations focused in Colombia. The corporation's common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America and the Colombia Stock Exchange under ticker symbols CNE, CNNEF and CNE.C, respectively.

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