A partner in the community 2007 Summary Corporate Citizenship Report As a leading oil and natural gas company, Imperial’s aim is to meet increasing consumer demand for energy. Doing this well is essential to improving quality of life, and we are committed to doing so in an environmentally, socially and economically responsible manner. About this report This report presents highlights of our environmental, social and economic performance. Further information on statements and data in this report, including many specific examples, can be found in the full 2007 Corporate Citizenship Report available at www.imperialoil.ca Performance at a glance 2% decrease in greenhouse gas 50% reduction in the number of emissions from 2006 levels spills greater than one barrel see page 4 to 17 from 34 in 2006 see page 6 43% decrease in the number of major 33% reduction in the employee rate 85% reduction in the contractor rate of operating incidents to eight from of lost-time injuries and illnesses lost-time incidents since 2003 14 in 2006 since 2003 see page 8 see page 6 see page 8 68% increase in environmental $11.3m $13.8b in corporate contributions to in economic value distributed regulatory compliance incidents community initiatives in 2007 to Canada’s economy in 2007 to 37 from 22 in 2006 see page 10 see page 15 see page 6 Contents About Imperial Oil 1 Q&A with the chairman 2 Energy outlook 3 Climate change 4 Environment 6 Safety 8 People 9 Working with communities 10 Kearl project 12 Cover photo Research and technology 14 Recently the company completed reclamation of former refinery lands on Burrard Inlet near Economic performance 15 Vancouver. The refinery ceased operation in 1995 and has since been largely demolished. Key performance indicators 16 Peter Nicholson, a project manager with Imperial’s surplus property management division, Glossary Inside back cover helped to oversee the reclamation project. Conventions used in this report Most of this report focuses on activities in 2007. Where notable, we have added events in early 2008. Data is provided for all aspects of Imperial’s business that are both owned and operated. Dollar figures are in Canadian dollars, except where noted. Imperial Oil Limited 2007 Summary Corporate Citizenship Report 1 About Imperial Oil Imperial Oil is one of Canada’s largest corporations and a leading member of the country’s petroleum industry. We are one of Canada’s largest producers of crude oil and natural gas, the country’s largest petroleum refiner and a leading marketer of petroleum products. We supply energy to millions of people, providing fuels that generate heat, light and transportation and provide the building blocks for many essential daily products. OUR APPROACH TO Our corporate citizenship CORPORATE CITIZENSHIP commitments are governed by 2007 BUSINESS HIGHLIGHTS High standards of integrity, legal the Board of Directors and its compliance, governance and various committees. We ensure Earnings management control systems are that employees incorporate these integral to our business model. How commitments into their work-related $3.2 billion we achieve business results is as activities and decision-making Capital and exploration important as the results themselves. processes. We also actively encourage expenditures our employees to get involved in the Acting in a responsible manner communities where they work, and $1 billion allows us to: provide financial support for charitable causes in which they are involved. Gross crude oil and natural gas liquids production • manage key risks to the business • support our relationships with Our Standards of Business Conduct 275,000 barrels a day stakeholders provide each employee with guidelines • improve our ability to attract on ethics, conflict of interest, non- Gross natural gas production and retain talented people discrimination, and harassment in the 458 million cubic feet a day • build our reputation in the workplace. Our Operations Integrity community Management System and other related Refinery throughput systems form the framework by which 442,000 barrels a day we ensure safe, secure, reliable and environmentally sound operations. Net petroleum product sales Additional information In our full Citizenship Report 71.2 million litres a day on our website: • Corporate governance Chemical sales volumes • Management systems • Ethics 3,100 tonnes a day Business segments • Resources (Upstream business) • Refining and Marketing (Downstream • Chemical business produces a explores for and produces oil and natural business) manufactures, distributes and range of petrochemical products, gas. This division is a major developer markets petroleum products. This division including polyethylene and specialized of oil sands through the Cold Lake operates refineries in Dartmouth, Nova solvents, at manufacturing facilities operation and a 25 percent interest Scotia; Sarnia and Nanticoke, Ontario; and in Sarnia and Dartmouth. in Syncrude Canada. Development in Strathcona County, near Edmonton, opportunities are being pursued through Alberta. These refineries convert crude the Kearl oil sands project in northern oil into more than 700 petroleum products Alberta, the Mackenzie gas project in to meet consumer demand. These the Northwest Territories, and in offshore products are created with the support of areas of Atlantic Canada. Recently, our world-class research and development exploration focus has expanded to include facilities. Our fuels marketing business the Beaufort Sea and the Horn River Basin provides essential fuels to industrial, of northeastern British Columbia. wholesale and retail customers through 27 primary distribution terminals, more than 90 secondary bulk terminals and more than 1,900 retail service stations. Imperial Oil is a Canadian corporation whose ownership is divided between public shareholders (30.4 percent of common shares) and Exxon Mobil Corporation (69.6 percent). Imperial Oil shares (IMO) are listed on the Toronto Stock Exchange and the American Stock Exchange. 2007 Summary Corporate Citizenship Report Imperial Oil Limited 2 A conversation with the chairman Q&A Bruce March was appointed president in late 2007 and chairman and CEO in early 2008. In this interview, he discusses achievements and challenges for corporate citizenship at Imperial. How does your outlook on energy Our safety performance was close to What about other areas of performance? supply and demand fit with your our previous best ever and also one An important issue over the long perspectives on good corporate of the best in the Canadian industry. term is sustaining a strong workforce, citizenship? We recorded a very low number of representative of the diverse population It’s closely intertwined. The global serious safety incidents. in Canada. Many employees are energy outlook makes it clear that nearing retirement age, so we’re We also made progress in identifying we need to increase energy supply reviewing employment practices and eliminating process safety and make it possible for millions and working hard to recruit new risks. We further strengthened risk of people around the world to people and to promote mentoring management processes, and improved improve the quality of their lives. opportunities that encourage the building and safety standards in But developing energy resources transfer of knowledge. In Western our manufacturing sites. comes with a set of obligations that and Northern Canada, where many must be met. As producers, we not What are some priorities for opportunities for growth and new only must find ways to access, produce improving performance? production growth exist, we’re also and deliver new sources of energy increasing our focus on recruitment and Safety remains a top priority. We but must do so in a way that respects development of local Aboriginal people. won’t be satisfied until we achieve the environment, safety and health our goal of Nobody Gets Hurt. of our workforce, maintains good Outside the company, we’re pursuing Despite the gains made last year, community relations and keeps our new opportunities through industry 70 employees and contractors were high ethical standards. These priorities associations to improve dialogue injured, and that’s 70 incidents too are complementary to the extent that and communication with stakeholders. many. We’ve refocused our goals executing them at the same time This is an increasing priority, and strengthened our programs. enables us to build support from especially given recent debate about And so far this year we’re off to stakeholders and shareholders and oil sands development. In this debate, a strong start for safety results. so grow our business to meet future there’s a remarkable degree of energy demand. Process safety risks are better consensus around environmental and understood and we want to make economic goals that should be How important is good corporate consistent progress in reducing those adopted. The areas of difference tend citizenship to Imperial? risks. We know that reducing risks is to revolve around the pace of progress It fits hand in glove with our key to sustained improvement in toward these goals. Industry and mission to safely provide reliable plant reliability. stakeholders alike need to have a and affordable energy. Expectations On the environmental side, we’re balanced and effective dialogue if for strong environmental and social making significant investments in lasting progress is to be achieved. performance are higher in the our refineries and chemical plants As a country, we need to develop community, and rightly so. This so as to continue to lower air quality this resource in a way that meets our is an area where we have a distinct emissions to best-in-class levels. environmental and economic needs – advantage. Our culture – one that both at the same time. constantly seeks improvements Another priority remains managing in everything we do – is right for greenhouse gas emissions. Much of Are you optimistic about the industry’s the times. our near-term focus is on improving prospects in Canada? our energy efficiency so that we use Absolutely. Canada has energy What did you think of Imperial’s less energy to run our equipment, development opportunities of a global performance during 2007? thereby emitting lower greenhouse scale and is next door to one of the Overall, 2007 was a year of gas emissions. Our longer-term focus world’s biggest energy markets. So considerable progress. continues to be investing in the it’s an exciting place to be. As the development of breakthrough lower global focus on Canadian energy We achieved our lowest number and emission technologies and exploring volume of spills. Our air emissions development grows, more people opportunities for carbon capture in the world will be watching our went down. Our total greenhouse and storage. gas emissions decreased even though performance. Our company and our production increased. And we our industry must achieve very sustained best-in-class performance high standards of environmental for flaring. and social performance. At Imperial, we’re up for the challenge. Imperial Oil Limited 2007 Summary Corporate Citizenship Report 3 Energy outlook Understanding and projecting energy supply and demand trends are important elements of Imperial’s strategic planning process. By 2030, as populations grow and IMPORTANCE OF HYDROCARBONS Imperial Oil is helping to meet future economies expand, global energy By comparison, more than 80 percent energy needs by continuing to make demand is expected to be about 40 of future energy needs are expected to significant investments in energy percent higher than it was in 2005. be met by oil, natural gas and coal. Oil development – about $6.7 billion Growth in energy use will continue and natural gas alone are expected to from 2003 to 2007 in capital and in North America, but will be strongest maintain close to a 60 percent share. exploration expenditures. Today, for in developing countries, where example, we are contributing to the economies are growing most rapidly This energy outlook is positive for development of Canada’s oil sands and where billions of people require Canada. With abundant undeveloped resources through our Cold Lake access to increasing quantities of hydrocarbon resources, Canada is the operation, our investment in Syncrude energy to improve their quality of life. only G7 country with the resource base Canada, and our proposed Kearl oil to support significant growth in oil and sands project. We also are focused Meeting this demand will require us natural gas production. The oil sands on future development of natural to use all economic forms of energy. of Western Canada represent about gas through the proposed Mackenzie Renewable energy is one option. The 13 percent of global known reserves, gas project, which would bring use of wind, solar and hydro power the second-largest source of oil in the 6 trillion cubic feet of discovered will increase. However, even with world after Saudi Arabia. In addition, natural gas to market (with 3 trillion better than 10 percent annual growth our country’s northern and offshore cubic feet being our share), and rates, wind and solar combined are regions have the potential for through exploration in our recently not likely to contribute more than significant future supply, particularly acquired natural gas-prone Horn 1 percent of the world’s energy needs for natural gas. Global oil and gas River acreage in northeastern in the next 25 years. markets will increasingly turn to British Columbia. Canada as a secure and accessible source of energy. INVESTMENTS BY IMPERIAL Investing in new technologies that reduce the environmental impact of our national operations is also a priority. During the past five years, we have invested about $976 million in Global energy demand up 40% by 2030 environmental capital expenditures and about $263 million in research World energy demand by fuel type and technology. Such investments million oil-equivalent barrels a day have led to improvements that result 350 in a smaller footprint on the land, 300 increased energy efficiency, lower 250 emission intensity, and cleaner fuels Other* for Canadian consumers. 200 Coal 60% 150 As demand for energy grows, so will 60% Natural gas the need for Canadian energy. We 100 Oil are committed to meeting these 50 needs through continued investments 0 in energy supplies and cleaner 1980 1990 2000 2010 2020 2030 technologies that help create a strong energy future for Canadians. Oil Natural gas Coal Other* * Other energy sources include nuclear, hydro, biomass, wind and solar. Additional information On our website: Oil and natural gas will continue to supply about 60 percent of the world’s energy • Energy outlook over the outlook period, reflecting their availability, versatility and affordability. • Investor presentations 2007 Summary Corporate Citizenship Report Imperial Oil Limited 4 Climate change Climate change is an important issue for Canadians. At Imperial, we remain committed to expanding the use of economic, lower- emission technologies while maintaining the search for innovative approaches that can reduce greenhouse gas (GHG) emissions. In the near term, our efforts are Cogeneration focused on improving the energy Another way we save energy is efficiency of our operations. We are through cogeneration, a clean and also funding a variety of longer-term efficient method of producing electricity initiatives to bring about large-scale and steam at the same time. We have improvements. cogeneration facilities at Cold Lake and Sarnia, with a combined capacity of Examples of Imperial’s efforts include: 265 megawatts. NEAR-TERM ACTIONS Flare reduction Energy efficiency in refineries We continue to reduce flaring through We are applying international best improved operating practices and the Emissions down 2% practices in energy management to installation of new equipment. Reducing from 2006 reduce the energy we use and, as a flaring helps to avoid the loss of result, reduce GHG emissions. Since energy and decreases GHG emissions. the inception of a Global Energy Our recovery rate of natural gas GHG emissions million tonnes of CO2 equivalent Management System in 2000, we have associated with crude oil production identified new opportunities to improve (in other words, energy that otherwise 11.7 11.9 11.7 11.8 11.5 energy efficiency in our refining and would be flared or vented) was chemical plants. Today our refineries 99.9 percent in 2007 – among the best are about 3 percent more energy in Alberta industry. Gas flare volumes efficient than they were in 2003 and across our oil production facilities 16 percent more energy efficient than were reduced 9 percent from 2006 in 1990. levels, and best practices are being carried out at our refining and chemical plants to minimize flaring. 2003 2004 2005 2006 2007 Includes direct and indirect emissions from all facilities owned and operated by Imperial. Q&A What are Imperial’s refineries doing to become more energy efficient? There’s a tremendous effort underway to optimize energy use in our refineries. Over the last few years, we’ve carried out assessments at all our plants to identify opportunities to increase the efficiency of our existing equipment and some of our most energy-intensive manufacturing processes. For example, we look at ways to better integrate hot product streams and cold feedstock streams within the refineries so we can preheat the feedstock and reduce the amount of fuel needed in our furnaces. We pay close attention to the condition of our heat transfer equipment and furnaces, and keep them in peak condition through a program of regular cleaning and maintenance. We bring a tremendous discipline to this work and we’re able to tap into global experiences and best practices through ExxonMobil. Increasingly, we’re turning to the use of newer technologies, such as computer simulations that help to better optimize the use of energy across different parts of the plants. In the future, we will continue to look for ways to incorporate emerging energy technologies such as advanced heat exchanger equipment. Neil Miller, energy adviser, Downstream and Chemical businesses Imperial Oil Limited 2007 Summary Corporate Citizenship Report 5 LONGER-TERM ACTIONS Research 16% improvement in We conduct our own research as well energy efficiency since 1990 as work with academic experts to develop energy technologies that Refinery energy intensity normalized energy intensity index benefit our business and reduce emissions. At our Calgary research 1.00 facility, for example, we are exploring non-aqueous methods for heavy oil .867 recovery that can reduce GHG .835 .830 .841 .837 emissions, compared with thermal recovery processes. We also sponsor the Imperial Oil-Alberta Ingenuity Centre for Oil Sands Innovation at the University of Alberta in Edmonton. Through the centre, university experts are conducting groundbreaking 1990 2003 2004 2005 2006 2007 research to address a variety of environmental challenges associated with oil sands development, including climate change. In addition, along with Cold Lake’s cogeneration facilities ExxonMobil, we support the Global reduce GHG emissions, notably CO2, by about 40 percent compared Climate and Energy Project at Stanford Consumer use of energy with generating electricity from University. This is the largest-ever We believe that addressing climate coal-fired plants and producing independent research effort to identify change is a shared global challenge, steam from conventional boilers. technologies that can meet energy and that consumers of energy can demand with significantly lower GHG play an important role. As a result, a emissions. Study areas include solar, 99.9% priority for our company is to invest hydrogen, biofuels and advanced in grassroots community initiatives transportation. that promote the efficient use of energy by consumers. For example, Carbon capture and storage we have supported the Clean Air of gas associated with oil A promising long-term option to Foundation’s Car Heaven program, production captured in 2007 reduce GHG emissions is carbon since its inception in 2000. This capture and storage. CCS technology national program facilitates retiring involves capturing carbon dioxide older, higher-emitting vehicles at no (CO2) from industrial processes cost to the owner and provides before it can be emitted into the incentives for the purchase of new atmosphere. Once captured, CO2 can vehicles or other cleaner alternatives. be safely and permanently stored in deep geological formations or injected In 2008, we became a primary sponsor into mature oil fields to enhance oil of the foundation’s Marine Engine recovery. Since 2005, we have been Exchange program, which will a member of the Integrated CO2 encourage the retirement of older Network (ICO2N), a consortium of two-stroke marine engines, which are We are a founding sponsor of the companies that has proposed a CCS a source of aquatic and air pollution, Imperial Oil-Alberta Ingenuity Centre system for Western Canada. In 2007, for Oil Sands Innovation, which is and promote the purchase of engines focused on researching breakthrough the network released an update report with cleaner technologies. The pilot technologies for cleaner, more highlighting CCS as an important program will be launched at selected economic oil sands development. opportunity for Canada and calling for marinas in Ontario in 2009. In addition, close cooperation between industry we also support Clean Nova Scotia, and government in CCS funding and which provides homeowners with ICO2N policies to support this environmental expert advice on how to save energy initiative. Network members are while helping the environment. continuing to meet with government officials to discuss fiscal and regulatory arrangements to make the project Additional information Imperial is a member of the more economically viable. In our full Citizenship Report Integrated CO2 Network (ICO2N), on our website: an industry-led research initiative • Climate change regulations exploring opportunities for carbon capture and storage 2007 Summary Corporate Citizenship Report Imperial Oil Limited 6 Environment Our success as a business enterprise will only be as good as our record of delivering strong environmental performance. We sum up this commitment with our focus to ”Protect Tomorrow. Today.” ENVIRONMENTAL BUSINESS 22 in the previous year. Contributing to PLANNING this increase was a series of incidents An important part of our approach at the Quirk Creek gas plant south of to delivering on our environmental Calgary, where we briefly exceeded commitments is Environmental SO2 emission limits. While none of Business Planning (EBP), an activity the incidents posed health or safety that integrates environmental threats, we have fully investigated improvement into business plans and all cases and taken corrective action. strategies. EBP is used to identify key At Quirk Creek, we are making environmental priorities, set goals in significant investments, including in focus areas and establish multi-year new equipment, to improve long- plans to achieve goals. One goal term reliability. Number of spills reduced is to achieve zero regulatory non- compliance incidents. In addition, the MAJOR OPERATING INCIDENTS by half Upstream business has focused on We track events that result in adverse actions to reduce flaring and improve impact to the environment or Oil and chemical spills spill prevention. The Downstream and number of spills to land and water significant cost to our operations greater than one barrel Chemical businesses also have goals (involving direct costs of US$50,000 or to proactively prevent environmental more). In 2007, there were eight major 50 incidents and continuously reduce operating incidents, compared with emissions and wastes. 14 in 2006. These included fires at 37 Nanticoke and Strathcona refineries, 34 REGULATORY COMPLIANCE which disrupted supply of petroleum 28 An important measure of our products to markets. There were no 17 performance is the number of injuries or adverse environmental regulatory incidents where company impacts. Affected areas of the facilities temporarily exceeded refineries were repaired and both government environmental regulations incidents were fully investigated by 2003 2004 2005 2006 2007 or other regulatory reporting Imperial and experts outside the requirements were not fully met. In company. As a result, we have 2007, we recorded 37 environmental improved the effectiveness of risk regulatory incidents, compared with assessments and implemented enhanced reliability systems. Q&A What is Imperial doing to protect wetlands? We’re one of a handful of companies who are pioneering wetland reclamation techniques. Our conservation efforts include wetlands that are home to unique plants and wildlife. At the Cold Lake operation, we have a program to monitor different environmental indicators – water levels, water quality, the type and abundance of vegetation – to minimize the impact of operations on wetlands. For example, we’re using wetland monitoring wells to measure water levels and aerial photography to track changes to vegetation over time. We’ve also formed a partnership with Ducks Unlimited Canada to evaluate how best to restore wetlands at the operation. At a trial site, we’ve removed the clay pad that’s typically built over a wetland area to support well pads, and we’re allowing vegetation to naturally re-establish. Results from these projects and other activities will help us to protect the environment when operating in wetland areas such as at Cold Lake and the Kearl site. Hanna Janzen, environmental team leader, Cold Lake operation Imperial Oil Limited 2007 Summary Corporate Citizenship Report 7 Water recycling at high levels Cold Lake operation’s water use 5.0 100 000 Fresh water to bitumen ratio per cubic metre of bitumen produced) 4.5 90 000 (cubic metres of fresh water used Water volume (m3/d) 4.0 80 000 3.5 70 000 3.0 60 000 2.5 50 000 2.0 40 000 1.5 30 000 1.0 20 000 0.5 10 000 0 0 We are using advanced optical imaging 1975 1983 1991 1999 2007 equipment at our manufacturing sites to better detect and reduce fugitive Fresh Brackish emissions from different sources. Recycled Fresh water per bitumen ratio 12% decrease in combined air emissions (SO2, NOx, VOCs) since 2003 SPILLS Our goal is to achieve zero spills to land or water. Our continued efforts to reduce spills resulted in a significant Recycled water contributes about 87 percent of the operation’s total water needs while fresh water provides 12 percent and brackish water from improvement in 2007 from the deep saline aquifers makes up previous year. The number of spills 1 percent. Our freshwater use intensity greater than one barrel fell from 34 to continues at low levels. In 2007, we 17. At the same time, the total volume used 85 percent less fresh water per from these spills was 126 barrels – our unit of production than in the mid- best-ever performance. This improved 1980s, when Cold Lake began performance is mainly due to our commercial operation. We currently efforts over the last several years to require less than a half cubic metre provide more training to workers, of fresh water to make one cubic upgrade tanks and equipment, and metre of oil. increase surveillance of pipelines. LAND EMISSIONS TO AIR We manage potential impacts to land In accordance with government throughout all phases of our operations, regulations, we have added new from project planning and operation emission controls and invested in fuel to decommissioning and remediation. reformulation to reduce air emissions State-of-the-art water treatment from operations and products. Overall, Some highlights of our activities facilities at Cold Lake enable the operation to recycle 95 percent of the our combined emissions of sulphur in 2007 include: water that is recovered with the oil. dioxide, nitrogen oxides and volatile organic compounds have decreased • planting 65,000 trees and shrubs by 12 percent since 2003. In addition, at the Cold Lake operation as part our refineries now supply diesel for 133m of ongoing land reclamation $ on-road vehicles with an ultra-low level of sulphur – less than 15 parts per million (ppm), or 97 percent cleaner • working with industry and the Port of Montreal to complete a multi-year remediation project to address than previous grades. During 2007, past industrial impacts on the spent in 2007 on capital we made further operational changes investments to protect the St. Lawrence River environment, including emission to reformulate diesel fuels to reduce • investing more than $2 million to controls and upgrades to produce sulphur content for off-road use such advance land remediation and cleaner fuels as rail and marine transportation. reclamation technologies WATER MANAGEMENT We focus on the efficient use of water through the design and operation of Additional information our facilities and recycling and reuse. In our full Citizenship Report on our website: At our Cold Lake operation, water is • Managing environmental performance used to generate steam that is injected • Emergency preparedness into underground oil sands to heat the • Biodiversity heavy oil to allow it to be recovered. • Waste management 2007 Summary Corporate Citizenship Report Imperial Oil Limited 8 Safety We strive for a workplace that will enable us to achieve our clear and simple objective: Nobody Gets Hurt. SAFETY PERFORMANCE half-day program designed to increase Improved results for Imperial’s A key indicator of our safety awareness and involvement in safety. contractors in 2007 can be performance is the rate of lost time In 2007, a similar course for attributed to: due to workplace injuries and illnesses. Downstream workers was piloted. Our employee lost-time performance • more focused safety leadership was 0.04 incidents per 200,000 hours EMPHASIS ON OFFICE ERGONOMICS training and greater field presence worked in 2007, up slightly from the Office-related injuries accounted of supervisors previous year. Our lost-time incident for about one-fifth of recordable • the role of contractor safety frequency for contractors, at 0.02, was employee safety incidents in 2007, leadership teams in bringing forward one-fifth of our rate in 2006 and one with repetitive strain injuries remaining new ideas and practices of our lowest rates ever. Over the last the leading office workplace illness. • a more rigorous contractor five years, we have achieved steady Programs such as OIMS for Offices, supervisor screening process progress toward our target of zero which focuses on human factors to • continuation of the short-service workplace injuries and illnesses. The help prevent injuries in the office, and work program, in which lost-time incident rate for employees the computer-based program Office inexperienced workers are mentored has decreased by a third since 2003, Athlete are expected to mitigate by more seasoned individuals while contractors have experienced these risks. • further deployment of the Loss less than one-fifth the lost-time injuries Prevention System (LPS) across and illnesses they recorded five IMPROVEMENTS IN our company years ago. CONTRACTOR SAFETY We made significant progress in To further improve our performance, improving contractor safety, including Additional information we are encouraging workplace safety substantial reductions in the frequency In our full Citizenship Report in a number of ways: of recordable contractor incidents in on our website: Alberta. The total recordable injury • Process safety SAFETY TRAINING frequency for our Alberta contractors • Driver safety • Workplace health We continue to strengthen our safety improved to 1.20, compared with 1.92 • Responsible Care® culture through the training of in 2006, but was still higher than our • Security employees and contractors. Since average rate in the rest of Canada – 2004, more than 510 employees 0.54. We continue to seek further and nearly 580 contractors in our improvements in the rate of contractor Upstream business have participated injuries in Alberta and across all in Fundamentals of Safety, a three-and- operating regions. Q&A What is the Loss Prevention System (LPS) and why is it important to safety at Imperial? LPS provides a behaviour-based approach that focuses our attention on “at risk” behaviours that can lead to incidents. It challenges us to think about whether we are using the right tools, the right techniques, the right sequence of tasks to do a job safely. One of the LPS tools we use is Loss Prevention Observations. Here, peers are trained to observe job tasks and provide feedback to co-workers to reinforce correct safety practices and understand the reasons behind unsafe practices. General learnings from each observation are shared with workers through safety meetings and a database to further safety awareness. LPS is a proven system, and industry experience has shown that it can make a real difference to workplace safety. In 2003, Imperial piloted LPS at Dartmouth. In 2006, Dartmouth was completely free of recordable incidents and it has continued to sustain a zero lost-time incident rate for the last decade. Based on this successful pilot as well as industry experience, LPS is now being expanded to other areas of the company. Willy Gelevan, environment, health and safety supervisor, Dartmouth refinery Imperial Oil Limited 2007 Summary Corporate Citizenship Report 9 People Our goal is to attract and retain the best-quality people and support their success through development opportunities, training and a supportive work environment. IMPERIAL EMPLOYEES TRAINING AND LEADERSHIP EMPLOYEE NETWORKS We employ about 4,800 people. Of DEVELOPMENT Employee networks provide mentoring this total, about 26 percent are women, As a business with a long-term focus, and coaching opportunities. Among 8 percent are visible minorities, Imperial’s goal is to develop high skill a number of mentoring initiatives 2 percent are Aboriginal people and levels and leadership capability is the Network Advisor Program, 1 percent have declared a disability. within the organization. We provide through which newly hired employees employees with many opportunities meet managers and longer-service RECRUITMENT to upgrade their skills and capabilities employees, enabling them to gain We take a focused approach to campus over the span of their careers. insight about the company and our recruitment, participating in career work environment and learn about fairs and information sessions at In their first year with Imperial, new various career paths. more than a dozen universities across professional and technical employees Canada. This involves more than 400 attend a three-day orientation seminar, DIVERSITY employees who represent Imperial at which includes an overview of the We provide development recruitment events and conduct initial company and provides an opportunity opportunities, policies and programs interviews with potential candidates. to meet with senior management. that support diversity in the workplace In 2007, we implemented an online job Employees are then involved in a and enhance the representation of application and processing system to process that provides a wide range of designated groups throughout the make our campus recruitment program development opportunities, including company. This is supported by an more efficient and responsive. job rotation, classroom learning, and education program designed to help performance feedback and mentoring, managers in enhancing employees’ COMPENSATION PROGRAMS to enrich their skills and experience. understanding and support of our Imperial’s total employment offer commitment to diversity. includes competitive compensation In 2007, there were more than and benefits, savings and retirement 1,400 attendees at the approximately benefits. The company also offers 80 in-house courses offered across the company on topics with broad Additional information personal development and training, application designed to help In our full Citizenship Report paid education assistance and flexible on our website: work schedules. In 2007, we paid employees be more productive and • Equal opportunity and $1 billion in compensation and benefits achieve their maximum potential. anti-harassment policies to employees. • Workplace flexibility • Communication and feedback • Labour relations Q&A What is Imperial doing to attract new talent? We hire university and technical college graduates as well as experienced professionals. Our preference is to develop and promote talent from within the organization, so campus recruitment is fundamental to our workforce strategy. Our recruitment program is designed to attract new university graduates, mainly from engineering, business and earth sciences. Shortly after students return to school in the fall, company representatives visit campuses across Canada to speak about potential careers at Imperial. Representatives are often recent graduates and alumni who can share their perspectives on what it’s like to work for Imperial and provide real-life examples of the diverse career and development opportunities offered by the company. Additionally, Imperial has a strong summer student, co-op and internship program, which provides students with challenging projects, enabling them to apply their academic knowledge in real work settings. Students today have many employment options available to them. With a strong reputation on campus and a highly competitive total employment offer, we continue to be successful in attracting talented people from across the country. Meghan Stephenson, recruitment manager 2007 Summary Corporate Citizenship Report Imperial Oil Limited 10 Working with communities Through our corporate contributions, volunteer efforts and active engagement with stakeholders, we strive to make a positive and lasting impact in the communities where we operate. INVESTING IN COMMUNITIES support a pre-technology program, As a company with deep roots in consisting of upgrade courses and Canada, we view community mentoring, to prepare Aboriginal investments not simply as a students for technology programs responsibility but as an essential at NAIT. component in building strong and healthy communities. We give back • SEEDS Foundation to local communities where we We contributed $500,000 to the have a presence through financial non-profit SEEDS Foundation to contributions, in-kind donations and bring a new environmental volunteer efforts. Our contributions education program to junior-high Investment totals are focused on math, science and and high-school students in Canada. technology education; the The program, called Habitat in $11.3 million in 2007 environment; and civic and the Balance, teaches students Allocation of community investment community programs. about sustainable development – percent of total by focus area balancing human endeavours and In 2007, we contributed $11.3 million the environment – while developing 49 to more than 440 projects across students’ understanding of the 27 Canada. Three of our notable decision-making process. Water, contributions during the year included: air, land and inhabitants are key topics discussed in the program. • Northern Alberta Institute of Technology (NAIT) • Bluewater Health 24 Our largest contribution during the Our donation of $250,000 helped year – $1 million payable over five to establish a Critical Assessment years – will fund the Imperial Oil Resource Evaluation (CARE) team Math, science and Process Control Laboratory at NAIT. at Bluewater Health, a community technology education – $3.1 million This state-of-the-art laboratory hospital in Sarnia-Lambton. The Environment – $2.7 million Civic and community – $5.5 million provides students with hands-on team, which is the first of its kind training on advanced equipment in Ontario, will monitor patients at specific to the oil and gas industry. the hospital to reduce heart attacks In addition, part of the funds will through early interventions. Q&A Besides dollars, how does Imperial support non-profit agencies? Our contribution to the community may start with a cheque. But it doesn’t end there. We’re getting involved with non-profits we fund to see if there are ways we can provide advice and management assistance. With each donation, we set out standards for program accountability and measuring success. In addition, we’re encouraging the involvement of executives on the boards of non-profits. These individuals are able to share business expertise in planning and strategy development. In this way, we’re making more than a donation – we’re making an investment in these organizations by sharing our skills and business acumen. In turn, our people are learning more about community needs, our partner organizations and the passion and commitment of people in the community who are trying to make the world a better place. Monica Samper, president, Imperial Oil Foundation Imperial Oil Limited 2007 Summary Corporate Citizenship Report 11 UNITED WAY • commissioning a telephone survey We recognize the positive impact of residents near Nanticoke refinery of United Way-Centraide in to measure their awareness of communities and are a strong emergency preparedness supporter of campaigns across Canada. Each year we are a leading ABORIGINAL RELATIONS corporate participant in Calgary We have a long history of supporting and Toronto; in smaller centres such educational programs for Aboriginal as Sarnia-Lambton and the Cold Lake people. Across Canada, we fund region, our contributions make up scholarships to help students gain the Our Volunteer Involvement Program a significant share of total dollars academic qualifications and technical (VIP) provides a means to encourage, raised. In 2007, our company, skills they need to compete for jobs recognize and support employees and employees and retirees contributed in the oil and gas industry. In 2007, retirees who volunteer for community more than $3 million to United 34 individuals were awarded initiatives. In 2007, VIP contributed more than $223,000 to charitable and Way-Centraide campaigns across scholarships sponsored by Imperial non-profit organizations. the country. for use at post-secondary institutions. VOLUNTEERISM We continue to promote education and >$ 3m raised for United Way-Centraide campaigns across Canada Imperial employees and retirees are active volunteers in many community organizations across Canada. We look for ways to reward the good work they do in the community while growth opportunities in other ways. In Sarnia, Ontario, we sponsored a three-day cross-cultural camp for youth held at the Aamjiwnaang First Nation. In Alberta, we pledged $150,000 over supporting a wide range of non-profit three years toward an elders program organizations that touch and improve at Iniskim Centre, a new Aboriginal lives across the country. Under the student centre at Calgary’s Mount Volunteer Involvement Program (VIP), Royal College. The Cold Lake employees, retirees and their spouses operation’s Native Internship Program or partners can apply for grants for enables Aboriginal people to get charitable and non-profit organizations hands-on training in field and plant for which they volunteer services. operations. In early 2008, this program Through VIP, more than $223,000 was was recognized with the Rewarding granted in 2007 to support about Partnership Award, presented 230 organizations across the country. annually by the Alberta Chamber We invest in community initiatives that of Resources and the Alberta advance environmental education, COMMUNITY ENGAGEMENT government to recognize the efforts conservation and understanding. of companies in enhancing capacity Community engagement is an essential part of our approach to of Aboriginal communities. >440 helping us understand stakeholder concerns and build and maintain strong relationships. This engagement In 2008, we adopted a set of guiding principles to reinforce our approach community initiatives were takes many forms, including individual to Aboriginal relations and provide supported by our community meetings, community presentations, guidance in our daily interactions investment program in 2007 open houses, newsletters and with our Aboriginal neighbours. electronic media. The principles will cover the key areas of consultation, workforce development, Highlights of our activities in 2007 business development and community included: relations. They were developed based on current commitments and • carrying out 85 documented programs, industry best practices and consultation meetings with input from Aboriginal representatives. stakeholders in the Northwest An action plan to support the principles Territories to better understand will be developed and implemented, local issues and concerns about starting in 2008. the Mackenzie gas project • establishing an advisory committee with the Athabasca Chipewyan First Additional information Nation (ACFN) to provide a forum On our website: for ongoing communication with • Community investment the ACFN on the Kearl oil sands • Aboriginal scholarships project and its impacts Part of a recent $1 million donation to the In our full Citizenship Report: • meeting with local residents at our Northern Alberta Institute of Technology • Esso retailers in the community will be used to support a pre-technology annual Neighbour Night in the Cold • Stakeholder engagement highlights program to prepare Aboriginal students Lake area to discuss operations and • Aboriginal relations for success in technology programs at business plans the Edmonton college. 2007 Summary Corporate Citizenship Report Imperial Oil Limited 12 Kearl project Through our proposed Kearl project, we are exploring ways to develop oil sands in an environmentally, socially and economically responsible way. Kearl, located in the Fort McMurray ENERGY EFFICIENCY gypsum and other tailings to thicken area of northern Alberta, has an We plan to minimize the project’s and form a consolidated (solid) estimated total recoverable resource GHG emissions by reducing energy material. This material will be returned of 4.6 billion barrels of bitumen. Our use through the application of to the mining pit and covered with plans call for phased development, advanced technologies, which are overburden, to be followed by topsoil with an initial mine of about 100,000 being developed by Imperial and and other reclamation materials. barrels a day and subsequent through our partnerships with the expansions to about 300,000 barrels Imperial Oil-Alberta Ingenuity Centre TRADITIONAL KNOWLEDGE STUDIES a day. The project will use proven for Oil Sands Innovation and the We fund traditional land use studies technologies such as truck-and-shovel Global Climate and Energy Project. to gain a better understanding of mining and hydro transport, but The project has been designed to be traditional knowledge relating to without an on-site upgrader. highly energy efficient with a low the Kearl project lease area and energy extraction process and the use surrounding region. Through interviews The project strategy includes a strong of cogeneration. Energy management with elders and site visits, the studies emphasis on advanced technology to processes will be applied to are used to map and inventory minimize impacts on the environment. continuously improve the energy traditional land uses such as medicinal We are consulting with stakeholders to efficiency of the operation. plant areas, game trails and animal assess different options to develop the habitats, as well as sacred and project in an environmentally, socially LAND RECLAMATION ceremonial grounds. The collection and economically responsible way. Advancing effective land reclamation of this information provides an practices is also an essential part of the important cultural resource for Here is a brief overview of how project. As mining progresses Aboriginal communities and supports different project challenges are on the site, efforts will focus on the informed dialogue throughout project being met: salvage and conserving of topsoil consultation and development. In late to reclaim areas when mining is 2007, for example, Imperial, along complete. Fine tailings (a mixture of with other companies, sponsored clay, sand, bitumen and water) will be a traditional land use study for the managed by a consolidated tailings Wood Buffalo Elders Society in process, which mixes the tailings with northern Alberta. Q&A How is traditional knowledge shaping project plans? For Imperial, traditional knowledge is extremely useful in developing our land reclamation plans for Kearl, whether it’s planning land contouring, selecting the right vegetation or learning more about local fish and wildlife habitat. Our reclamation plans include a series of lakes to replace fish habitat affected by mining. Through consultation with elders and the sharing of traditional land use knowledge, we’ve learned that Kearl Lake, a lake on the project lease, was too shallow to allow fish to survive over the winter. We revised our reclamation plans to include three smaller but deeper lakes, instead of one large lake, to improve water flow and oxygen levels, which are essential to fish habitat and will allow fish to overwinter. The importance of the studies will continue as we build on this work, visit the site with elders to learn more about the land, and continue to actively consult with Aboriginal people in the region. Mary Pat Campbell, stakeholder relations adviser, Kearl project Imperial Oil Limited 2007 Summary Corporate Citizenship Report 13 WATER MANAGEMENT BUSINESS DEVELOPMENT Like other similar developments in Our project plans provide opportunities the region, the project will draw water for local businesses. We have from the Athabasca River. To help developed procurement guidelines ensure that requirements on the river for the Kearl project which outline our are efficiently managed, we have been commitment to hire qualified local and a key driver in a co-operative program Aboriginal businesses. We are meeting involving the major oil sands companies with local Aboriginal companies and operating, or planning to operate, in business associations to further the Athabasca area. These companies discuss the project and our guidelines. have committed themselves to a plan aimed at preserving acceptable flow KEARL GRANTED AUTHORIZATION rates in the river, as set out in a water The federal government gave final Intensive environmental surveys, management framework established approval through an Order-in-Council including traditional land-use studies, by Alberta Environment and the in August 2007 to the Kearl project have been carried out to ensure federal Department of Fisheries and following a joint review by provincial we understand land, water and Oceans. A key component of the and federal government representatives biodiversity issues affecting the Kearl project design will be the use and 16 days of public hearings in late Kearl project. of water storage to enable reduced 2006. The panel thoroughly reviewed water withdrawal during low-flow various stakeholder concerns and 2:1 winter periods. issues such as social and economic effects, mine plan and resource FISH HABITAT conservation, tailings management, Mining for the proposed project is reclamation, air emissions, surface The creation of additional lakes expected to cause some impacts to water, aquatic resources, traditional will double the aquatic habitat that the Muskeg River watershed. Streams, land use and human health. exists on our entire Kearl lease small bodies of water and the upper reaches of the river will be diverted The joint review panel report was from time to time during the mine challenged in the Federal Court of operation. These diversions will Canada by a coalition of environmental affect fish and fish habitat in the area. groups. The joint review panel We plan to build three smaller but reconvened at the court’s request and deeper lakes, linked to Kearl Lake. provided additional rationale for one The additional lakes will improve water of the report’s conclusions, and the flow and create twice as much fish project received the necessary habitat as existed on the original lease. authorization in June 2008 to allow We have consulted with local First preliminary work to proceed at the site. Nations and government wildlife experts to identify appropriate fish species for the lake, such as northern pike, yellow Additional information perch and brook stickleback. On our website: We are actively engaging with • Project description update stakeholders, including Aboriginal ABORIGINAL COMMUNITIES groups, on issues and opportunities We have established co-operation In our full Citizenship Report: related to the Kearl project. • Consultation for Kearl project agreements with key First Nation and Metis communities in the region. The agreements establish a framework for ongoing consultation and address such issues as capacity-building, environmental action plans and impact on traditional lands. 2007 Summary Corporate Citizenship Report Imperial Oil Limited 14 Research and technology We look to technology to overcome seemingly insurmountable challenges inherent to the energy industry. We believe issues can be solved through human ingenuity and innovation. We are one of a select number of oil addition to steam to enhance recovery) extract bitumen from oil sands and gas companies in Canada with to further improve CSS performance. in order to reduce water use, lower dedicated research facilities. Scientists LASER involves adding special GHG emissions and minimize tailings. at our Calgary and Sarnia facilities solvents to increase a well’s life, One of the projects involves modifying conduct their own research as well enhance efficiency and lower GHG the structure of catalysts through as partner with academic experts emission intensity. By adding solvents, the use of nanotechnology. The use and scientists at ExxonMobil. Our more resource can be recovered from of nano-materials holds promise to investments are focused on oil and mature wells for the same amount both reduce energy requirements natural gas recovery technologies, of steam injected. As a result, LASER and improve operating efficiencies fuels and petroleum products, and has the potential to significantly in bitumen upgrading. land remediation and reclamation improve the overall resource recovery technologies. Together, these efforts at Cold Lake. Based on successful Research to date has resulted in help to improve production, reduce field tests, we will expand the use two patents, and research programs environmental impacts, and produce of the technology in 2008. continue to expand. Eventual new or improved products. breakthroughs from the centre’s SUPPORTING OIL SANDS RESEARCH research will be applied to projects Highlights of our recent activities We are the founding sponsor of such as Kearl. include: the Imperial Oil-Alberta Ingenuity Centre for Oil Sands Innovation at PROJECTS FUNDED AT UNIVERSITIES NEW RECOVERY TECHNOLOGY the University of Alberta. The We also support the research efforts Four decades ago, we invented a centre’s mandate is to find more of others through our University process called cyclic steam stimulation efficient, economically viable and Research Awards program. This (CSS) to recover heavy oil. CSS is environmentally responsible ways to program provides funding for a process in which steam produced develop Alberta’s oil sands resources. research projects carried out by in large boilers is injected into the The only research initiative of its kind faculty members and their students ground at very high pressure, in Canada, the centre brings together in areas of interest – including the where it softens and mobilizes the some of the best scientific and environment – to our businesses. oil for recovery. engineering minds to address these In 2007, we invested $500,000 to pressing challenges. sponsor 21 projects at 17 universities Our scientists continue to find ways across Canada. to improve on these innovations. In Some of the centre’s work in 2007 2007, Imperial commercialized a new focused on evaluating the use of non- technology called LASER (liquid aqueous methods to separate and Q&A How do Imperial’s research investments contribute to environmental improvement? We’re researching and developing technologies that will translate into enhanced economic performance and significantly improved environmental performance. At our research facility in Calgary, we’re working on a technology that adds solvent to steam- assisted gravity drainage, a process we hope to use to recover heavy oil at Cold Lake. By adding solvent to steam, we can produce more bitumen for the same amount of steam, resulting in lower emissions and energy intensity. We’re also exploring breakthrough technologies through the Imperial Oil-Alberta Ingenuity Centre for Oil Sands Innovation. For example, we’re developing a solvent-based process to extract bitumen from mined oil sands that could result in higher recovery of the resource, fewer tailings and a substantial reduction in water. Scientists at the centre are helping us to address important questions such as which solvents work best and how solvents interact with oil sand clays and fine particles. It’s early days for this research, but a preliminary analysis says this effort offers great potential to benefit our business and the environment. Ron Myers, manager of facilities and environment research, Calgary research centre Imperial Oil Limited 2007 Summary Corporate Citizenship Report 15 Economic performance We seek to deliver superior shareholder value through strong financial performance. At the same time, our financial success benefits society in many different ways. Imperial’s financial Economic impact • Governments receive tax payments, duties and royalties from Imperial. performance Imperial’s direct economic impact can These payments help governments In 2007, strong commodity prices and be measured by the payments that fund education, health care and improved margins resulted in a year we make to stakeholder groups during other essential social services. of record results for Imperial. Earnings the course of business. For example: • We work with suppliers who were $3.2 billion. Annual return on provide a range of services, capital employed was an industry- • We have employees across Canada. including engineering, construction, leading 38 percent. Regular annual per- Some of our major operations are in transportation, security and facilities share dividends paid were increased small cities and towns where we are maintenance as well as materials for the 13th consecutive year. And total a significant employer. required to support daily operations shareholder return, including share • Shareholders and investors provide and projects. appreciation and dividends, was 28 Imperial equity in exchange for • Communities receive tax payments, percent, compared to 9.5 percent for dividends and gains in shareholder as well as cash and in-kind donations the Standard & Poor’s/Toronto Stock value. We have more than 175,000 and the community involvement Exchange Equity Energy Index. direct registered and non-registered of employees. Our donations and shareholders, most of whom reside volunteer hours support local in Canada. Many others have a stake initiatives and contribute to quality in our share performance through of life in the communities where Additional information ownership of mutual funds or our employees live and work. On our website: participation in pension plans that • Annual report hold shares in the company. • Investor presentations In our full Citizenship Report: • Regional benefits • Industry benefits to Canada’s economy DISTRIBUTION OF EXPENDITURES 2007 Employees Wages and benefits $1 billion Suppliers Payments for goods and services (approximate) $3.2 billion Shareholders Common shares purchased $2.4 billion Dividends $319 million On-the-job mentoring programs Governments reinforce the importance of safety Taxes, duties and royalties to local, performance to our employees provincial and federal governments $5.8 billion and contractors. Communities Community investments $11.3 million Imperial (retained/reinvested) Capital and exploration expenditures $1 billion Research expenditures $83 million Total $13.8 billion A measure of a company’s economic contribution is the distribution of expenditures. This is the sum of wages and benefits, payments to suppliers, shareholder benefits, taxes, community investments, and capital and research expenditures. On this basis, Imperial contributed $13.8 billion to Canada’s economy, a 10 percent increase from 2006. Taxes, duties and royalties to governments were about 1.8 times the company’s net earnings. 2007 Summary Corporate Citizenship Report Imperial Oil Limited 16 Key performance indicators Issue Priorities Indicator 2003 2004 2005 2006 2007 Future plans Environmental performance Climate change Invest in energy efficiency Greenhouse gas emissions 11.7 11.9 11.7 11.8 11.5 • Target to improve energy improvements while (million tonnes of efficiency across refining advancing breakthrough CO2 equivalent) and chemical operations energy technologies that by 1 percent to 1.5 percent can significantly reduce each year. emissions. • Continue to sponsor long-term research through universities. • Evaluate opportunities for carbon capture and storage. Air quality Implement cost-effective Sulphur dioxide emissions 44.2 49.3 48.5 47.6 38.5 • Invest in emission controls technologies and new (thousand tonnes) at Cold Lake, Sarnia and operating practices to Dartmouth to further reduce further reduce emissions. SO2 and NOx emissions. • Modify refinery equipment to further reduce sulphur content of off-road diesel fuels. Nitrogen oxide emissions 22.9 23.1 21.8 20.8 20.4 • See above. (thousand tonnes) Volatile organic compounds 22.1 21.6 20.8 19.9 20.0 • Expand efforts in the (thousand tonnes) Upstream business to identify and repair fugitive emissions. • Implement advanced optical imaging equipment to better detect fugitive emissions. Spills Equal or better our best- Number of oil and 37 50 28 34 17 • Continue to strengthen spill ever performance, with chemical spills prevention by providing goal of achieving zero spills (greater than one barrel) additional training, to environment. improving tanks and equipment, and increasing surveillance of pipelines. Water Continually seek ways to Freshwater use at Cold Lake 0.48 0.53 0.41 0.43 0.44 • Maintain high levels of reduce water use and operation recycling produced water. preserve water quality. (cubic metres of fresh water • Research non-aqueous to produce a cubic metre of resource recovery bitumen) technologies. Regulatory Apply rigorous processes to Environmental 25 37 19 22 37 • Increase investments at meet all regulatory regulatory incidents selected facilities to improve compliance requirements. (number) long-term reliability and prevent future incidents. • Continue to emphasize the importance of compliance through environmental leadership training. Workplace Safety Create a work environment Lost-time incident frequency 0.06 0.02 0.03 0.02 0.04 • Increase the use of where Nobody Gets Hurt. for employees – incidents behaviour-based tools Equal or better our best- and illnesses expressed as and processes. ever performance, with goal a rate per 200,000 hours • Expand safety leadership of achieving zero incidents. worked (equivalent of 100 training. workers working for a year) See above. Lost-time incident frequency 0.13 0.10 0.01 0.11 0.02 • Support contractors in for contractors – incidents development of safety tools and illnesses expressed as and processes. a rate per 200,000 hours worked (equivalent of 100 workers working for a year) Community Community Invest in programs that meet Total community $9.1 $10.4 $12.0 $12.4 $11.3 • Increase contributions to community needs and are investments environmental initiatives. investment aligned with business (million dollars in funding • Increase funding of interests. Focus contributions and in-kind support) programs that address on math, science and Aboriginal people’s needs, technology education; the especially education. environment; and civic and community programs. Imperial Oil Limited 2007 Summary Corporate Citizenship Report Glossary Barrel: Common unit of volume for Decommissioning: Process to safely Lost-time incidents: Work-related measuring petroleum. One barrel and responsibly close all or parts of injuries or illnesses that result in equals 42 US gallons or about a facility. This is followed by removal workers being unable to report to 159 litres. of equipment and treatment of land work the following day. or water, as needed. Bitumen: Very high viscosity crude Produced water: Salt water and oil found throughout the Athabasca, Ergonomics: Application of human condensed steam brought to the Peace River and Cold Lake regions of sciences to optimize the working surface along with oil during Alberta, typically recovered through environment. Through education and production. mining or in situ thermal operations. procedures, ergonomics seeks to improve the match between the job Reclamation: Process of restoring Carbon capture and storage: Method and a worker’s physical abilities, disturbed land to its former use or of reducing carbon dioxide emissions information handling and workload other productive uses. Reclamation to the atmosphere by capturing capacities. may include removal of equipment, and storing them in another domain. treatment of land or water, land One option being studied involves Flaring: Controlled burning of contouring and reconstruction, and capturing emissions and injecting hydrocarbon gases, which are released the planting of trees and vegetation. them into large underground from a facility for safety or economic structures like mines, coal seams reasons. Flaring is sometimes needed Recordable incidents: Work-related or depleted oil and gas reservoirs. at oil wells that produce small volumes injuries or illnesses that require of natural gases (called solution gas) medical attention, could restrict Carbon dioxide equivalent: that are located far from pipelines a person’s ability to do his or her To calculate the effect of the various and cannot be economically recovered. normal job, or prevent a return greenhouse gases involved in climate Periodically, flaring is also used to to work for one or more days. change, all greenhouse gases (for safely burn gases to prevent excess example, carbon dioxide, methane, pressure from occurring in refinery Remediation: Removal, reduction or nitrous oxide, water vapour) are processing equipment. Recovering this treatment of contaminants at a site converted to this unit of measurement. gas wherever possible avoids the loss to prevent or minimize any adverse of an energy resource and reduces effects on the environment. Catalysts: Materials that assist greenhouse gas emissions. chemical reactions by increasing the rate at which they occur. A catalyst is Fugitive emissions: Leaks or other not consumed by the reaction process. emissions from facilities and operating equipment such as valves, flanges, pump and compressor seals, and storage tanks. How to get information about Imperial Oil www.imperialoil.ca Full Corporate Annual Citizenship Report Report • How we did • Year in review • How we manage the business • Management’s discussion • Environmental performance and analysis • Workplace performance • Financial statements and notes • Community and social performance • Economic performance • Five-year performance data • Content index Community reports Other information (Cold Lake operation and refineries) on the website • Interview with site manager • Corporate governance • Local safety, health and • Community investment environment results • Safety, health and environment • Community investment • Products and services • Careers • Information for investors • The story of Imperial Imperial Oil Limited 237 Fourth Avenue S.W. P.O. Box 2480, Station M Calgary, Alberta T2P 3M9 This report presents the highlights of our 2007 Corporate Citizenship Report. The full report has been produced using the American Petroleum Institute/International Petroleum Industry Environmental Conservation Association (API/IPIECA) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting (April 2005). This report is printed on 100 percent post-consumer waste fibre that is certified by the Forest Stewardship Council.