Sustainability Governance and Stewardship

Corporate Responsibility

Sustainability Governance and Stewardship

Our Corporate Management Committee, a group comprised of Canadian Natural’s senior executives who share the responsibilities normally associated with a Chief Executive Officer position, approves the Stewardship Report to Stakeholders as delegated by the Board of Directors. Two members of the Management Committee are also directors of the Company — the Executive Chair and the President.  

Our teams work together with management and all operating areas to ensure safety, asset integrity, environmental stewardship, and community and stakeholder relations  are factored into our decision-making process. Senior Management supports our teams by ensuring adequate resources are in place to implement programs, maintain documentation and conduct training. Training is essential to ensure knowledge on critical procedures for Canadian Natural’s staff at all levels. 

Governance Structure

Our governance structure, including our Board, Management Committee (MC) and Operations Committees, is supported by policies and controls (including performance standards) that influence our decisions at every level of the Company.

  • Board of Directors

    Canadian Natural’s Board of Directors oversees management’s risk identification assessment and mitigation processes, which include reviews of long-term strategic and operational planning; executive development and evaluation; code of conduct compliance; regulatory compliance; safety and environmental compliance; financial reporting and controllership; and information technology and security.
    Directors brings a mix of experience, knowledge and understanding gained through senior level positions held in the public and private sectors. Our directors bring expertise from a range of sectors, such as oil and natural gas, energy storage solutions, technology, legal, finance, health, and retail, where leadership and governance over corporate social responsibility matters have been a longstanding priority. Specifically,  seven directors have relevant experience in the area of climate change (carbon policy and emissions), and eight directors have relevant experience in the areas of health, safety and environment.  More information on our Directors and their experience is available in our Annual Information Form. 
  • Health, Safety, Asset Integrity and Environmental (HSAI&E) Committee of the Board

    Meets every quarter  to discuss sustainability matters, and oversee and monitor company-wide efforts to support, manage and improve our performance, ensuring the effectiveness of our sustainability programs  related to health, occupational and process safety, asset integrity, environmental stewardship regulatory, risk management and social initiatives, including community and Indigenous relations. Directors in the HSAI&E Committee review internal stewardship reports about objectives, performance and key performance indicators, targets, and actions and initiatives undertaken to mitigate related risk.
  • Nominating, Governance and Risk Committee of the Board

    Reviews and monitors the status of risk management activities across the organization, including corporate governance practices and the management of enterprise risk exposure. 
  • Management Committee

    Responsible for the identification, assessment and management of risks and opportunities. 
  • Environmental, Social, Governance (ESG) Committee

    A sub-group of the Management Committee that provides internal stewardship reports to the HSAI&E Committee of the Board, reporting on sustainability performance, key indicators and actions taken to mitigate risks. 

ESG Performance Reporting

The Health and Safety, Asset Integrity, Environment, Stakeholder and Indigenous  Relations and Community Investment groups report on a regular basis to Senior Management in the ESG Committee, who in turn provide updates to the HSAI&E Committee  of the Board. Progress is tracked regularly and shared across all levels of employees.

Alignment of Performance to Executive Pay 

Directors in the Compensation Committee oversee alignment of executive compensation with performance under set categories which include sustainability metrics related to safety, asset integrity and environmental performance. 

More information on Canadian Natural’s Board Committees and the Performance Scorecard section are available in the most recent  Management Information Circular, including the Board’s expertise and experience in Schedule A. Governance policies are available here.

Managing Risk

 

Enterprise Risk Management (ERM) Framework

Canadian Natural uses a multidisciplinary Enterprise Risk Management (ERM) framework to identify, assess, and mitigate risks. Our ERM framework is used to capture, monitor and report the status of relevant current and emerging risks, through a top -down, bottom-up up process that includes Board oversight, internal reporting and working together with stakeholders, such as landowners, investors, industry groups, etc. 

The ERM framework incorporates a matrix approach to risk assessment that categorizes and aligns risks across operational areas, allowing teams to better understand those risks and their impacts, and implement mitigation measures. 

Summaries of corporate risk, including climate-related and operational risks, are provided in the corporate enterprise risk register and reported to the Nominating, Governance and Risk Committee of the Board twice a year. To ensure proper accountability of risk, this semi-annual report includes an assessment of the inherent risk areas, mitigating action plans and the Board or Management Committees that have oversight and management responsibilities for each risk. 

Our risk processes include an assessment of the significance and scope of identified existing and emerging climate-related risks. We use an Enterprise Risk Matrix  to determine likelihood (probability) and impact of risks, and classify them as High, Moderate, or Low. This process helps us prioritize climate-related risks and determine materiality .  

For climate-related governance, and risk and opportunities management, visit our Climate governance and risk management page.