Resources
Excellence. Trust. Respect. Responsibility. These four core values guide what we do and how we do it.
SDG Target
SDG 13
- SDG 13.1. Take urgent action to combat climate change and its impacts
SDG 16
- 16.1: Reduce all forms of violence
- 16.3: Promote the rule of law
- 16.4: Combat organized crime
- 16.5: Reduce corruption and bribery
- 16.6: Effective, accountable and transparent institutions
- 16.7: Responsive, inclusive, participatory and representative decision-making
- Effective Sep 1, 2022, Vermilion’s Board of Directors is comprised of 9 directors and 1 corporate secretary.
- Nine Directors (100%) are considered independent, and three (33%) are female. 102-22
Vermilion’s Contributions
This applies directly to Vermilion’s investments in environmental protection, disclosures of GHG emission and intensity data, internal carbon pricing and carbon liability analysis, and overall governance of climate risks and opportunities.
Internal policies on ethics, workplace violence, discrimination and/or harassment; whistleblower policies; human rights Audited annual reporting Anti-corruption policies Internal governance structures Compensation Board of Directors effectiveness disclosures
Our Approach To Governance
Strong governance is in the best interest of our shareholders and promotes effective decision-making at the Board level and throughout the company.
Ethics & Anti-corruption
Every member of Vermilion, from the Board to our staff, understands they have a fiduciary and ethical duty to the company and its stakeholders, including the obligation to act honestly and in good faith.
President Pay Ratio
We disclose the annual total compensation of our President (as our highest paid employee) compared to the median annual total compensation for employees. 102-38 Vermilion’s 2021 President-to-employee ratio of 29-1 is magnitudes lower than the 264-1 ratio for S&P 500 Index companies reported for 2019 by the American Federation of Labor-Congress of Industrial Organizations. 102-39
Diversity
We recognize the importance of gender diversity. In 2021, the Board Diversity Policy was amended to include a clear commitment to increase Board gender diversity to 30% by the 2024 annual general meeting. In support, our formal recruitment process for the Board and Executive Officer vacant positions includes a candidate screening step that includes reasonable efforts to secure at least 50% of qualified women applicants and the interview pool for every Board and Executive Officer position available.102-24
In 2022, Vermilion successfully became a member of the 30% Club, joining their campaign to increase gender diversity on boards.
We also plan to continue a mentoring program, focused on helping high-potential female employees develop their management skills and prepare for senior leadership roles. Given the positive feedback from mentors and mentees, this program will be expanded to additional participants in 2022.
2022 Target
- Conduct annual “say on pay” advisory vote at AGM
- Received 96.6% shareholder approval
- Review Vermilion’s updated emissions reduction strategy, including progress on mid- to long-term emissions-related reduction targets - On track
- Maintain Board gender diversity at least 30%, along with membership of the 30% club. - 100% Achieved
2021 Target
- Conduct annual “say on pay” advisory vote at AGM
- Received 42% shareholder approval the Board took the results of this vote into account, as appropriate, when considering future compensation policies, procedures and decisions.
- Review Vermilion’s updated sustainability strategy, including mid- to long-term emissions-related reduction targets - 100% achieved
- Increase Board gender diversity to 30% by the 2024 annual general meeting, and apply to become a member of the 30% club, joining their campaign to increase gender diversity on boards - 100% achieved
- Review sustainability-related information in regulatory filings in alignment with recommendations from the Task Force on Climate-related Financial Disclosures - 100% achieved
2020 Target
- Conduct annual "say on pay" advisory vote at AGM 102-37
- Received 65% shareholder approval
- Develop Sustainability Committee Terms of Reference and associated procedures - 100% achieved
- Conduct scenario analysis work at Board level - 100% achieved
- Incorporate sustainability-related information in regulatory filings in alignment with recommendations from the Task Force on Climate-related Financial Disclosures - 100% achieved
2021 Highlights:
The Board:
Reviewed the 10-year sustainability strategy for managing risks and opportunities identified through the Company’s energy transition scenario analysis, encompassing key commitments under each strategy pillar of carbon, conservation and community.
Reviewed sustainability-related risks and opportunities, and their integration into our enterprise risk management system.
Reviewed Vermilion’s sustainability performance relative to the Company’s peers based on key ESG rating agency scores.
Following the recommendation of the GHR Committee, reviewed and approved amendments to the Board Diversity Policy to Broaden definition of ‘Diversity’ to include, but not limited to, skills and experience, gender, age, ethnicity, national origin, sexual orientation, disability, Indigenous people, gender expression/identity, family status or religious beliefs; and commit to maintain a Board composition in which at least 30% of the Directors are women.
The Sustainability Committee:
Assessed Vermilion’s progress against its long-range strategic plan for sustainability, including approving the 10-year strategy for managing risks and opportunities identified through the Company’s energy transition scenario analysis, encompassing key commitments under each strategy pillar of carbon, conservation and community.
Monitored Vermilion’s performance via internal reporting and results from third-party ESG rating agencies
Analyzed Vermilion’s sustainability-related risks, correlated to those identified as material for our industry by the TCFD and SASB, along with emerging issues, and investor and financial sector ESG trending
Examined the carbon emissions profile of the Company, along with global carbon pricing regulatory changes, emissions intensity benchmarking, and peer comparisons, to ensure related risks and opportunities are identified and realized.
Approved the Company’s emission reduction targets, including the long-term aspirational goal of Net-Zero by 2050 for Scope 1 and 2 emissions, and the short-term target to reduce Scope 1 intensity by 15% – 20% by 2025.