Message to

Our Stakeholders

At ARC, we
are innovators, technical experts and responsible members of the community.


President & Chief Executive Officer



At ARC, we are innovators, technical experts and responsible members of the community. We are always looking for the most efficient way to produce energy, create long-term value for our stakeholders and support the economic and social well-being of the communities, provinces and country that we work in. In what has been a challenging economic environment, our drive for continual improvement in all aspects of our business is important, including the areas of environmental, social and governance (ESG) performance and sustainable development.

We are pleased to share our 2016 Sustainability Report, which highlights the outstanding work of our team over the course of 2014 and 2015. This report is ARC’s fifth official corporate report focused on sustainability. In addition, we have voluntarily shared our ESG performance throughout our 20-year history through a variety of reporting mechanisms and ongoing engagement with stakeholders. At the root of our corporate strategy of risk-managed value creation is a long-term vision, and a deliberate and thoughtful approach to development of our world-class assets with a central focus on people and communities. As we celebrate our 20th anniversary in 2016, responsible development has shaped the company we are today and underpins our thinking for continued long-term success.


to the Report

About ARC

ARC Resources Ltd. (ARC) is a Canadian conventional oil and natural gas producer committed to delivering strong operational and financial performance and upholding values of operational excellence and responsible development. With operations across western Canada, ARC’s portfolio is made up of resource-rich properties that provide near and long-term investment opportunities. ARC was formed in 1996, and is headquartered in Calgary, Canada.

About This Report

ARC is committed to ensuring that our sustainability priorities match those that matter most to our stakeholders and that our reporting addresses those topics. To determine content for this report, we first developed a list of sustainability topics extracted from reporting guidance (e.g.,) GRI; Sustainability Accounting Standards Board, industry reporting requirements (i.e.,) Canadian Association of Petroleum Producers (CAPP), and peer reports. Topics were prioritized based on relevance to our stakeholders and to ARC. We considered insights from our daily interactions with stakeholders, during community outreach activities, through our employee survey, at meetings with government representatives and during investor briefings.

This report includes more coverage on the four topics most relevant for ARC and our stakeholders:

Employee and Contractor Safety

We undertake activities that involve moving equipment, working in challenging conditions, and handling hazardous substances. The safety of our employees, contractors and the residents near our operations is a top priority.

Climate Change

Responsible management of greenhouse gas emissions and risks associated with emissions is an important component of ARC’s financial and operational success.

Water Management

Water is a main input for ARC’s drilling and hydraulic fracturing activities, and is an output in cases when it cannot be recycled. Strong and innovative water management leads to optimal use of this valuable resource.

Hydraulic Fracturing Operations

ARC uses this technique on almost all of our wells. Stakeholders are concerned with water management practices, chemical use, induced seismicity and activity levels associated with hydraulic fracturing. ARC understands that best practices are important to apply this technology in a safe and effective manner.


of Sustainability

A sustainable company is built on strong foundations. Effective governance, ethical behaviour, targeted policies linked to our strategy, and comprehensive risk management set the foundation for our performance in all other areas. We believe that stakeholder engagement and transparency are essential for strong relations with shareholders, communities, regulators, and our business partners, and are necessary for maintaining our social license to operate.

Our strategy of

value creation

underpins all aspects of how
we operate our business

Corporate Governance

Strong governance starts at the highest level. Our Board of Directors provides oversight on a variety of issues, including financial, operational, social, health and safety and environmental. To ensure effective decision making for all aspects of our business, the board has six committees, four of which address ESG issues. Our senior management team works with the committees of the board to review and evaluate key performance indicators and initiatives.

Ethical Business Practices

ARC’s Board of Directors sets the tone and standards for the organization, but it is the responsibility of each and every employee to comply with corporate policies and to uphold standards. ARC’s executive team ensures performance expectations are aligned with governance commitments and that expectations are clearly communicated to all staff. ARC has numerous policies in place that clearly communicate our values and accepted practices. ARC’s policies are frequently reviewed and updated to meet our evolving business needs.

Stakeholder Engagement

Our relationships with stakeholders are not only critical to our ability to operate and develop our assets, but to help identify innovative and forward thinking solutions across our operations. We strive for two-way dialogue across a variety of communication channels, and address concerns in a timely and respectful manner. We engage with stakeholders throughout the planning, development, operations and reclamation stages. This report is one of the primary means of communications with stakeholders.

Risk Management

ARC’s corporate strategy of risk-managed value creation informs all aspects of how we operate our business. Through a rigorous internal process, we continually identify, assess, monitor and manage risk associated with our assets and operations. We engage in continual dialogue with stakeholders to ensure our business strategy and objectives are understood. By creating a culture of transparency where risks and opportunities are routinely considered and communicated, we create a strong, sustainable business that is focused and able to create value not just today, but over the long term.


At ARC, we are committed to the responsible development of Canada’s resources and are continuously looking for better, more efficient ways to produce energy. Responsible development means reducing our resource consumption, and minimizing our impacts on air, land and water. Regulatory compliance should not be the purpose, but the result of responsible operations.

gas intensity
by almost


since 2011

spills by


since 2011


sites in

Climate Change

At ARC, we proactively focus our efforts on reducing greenhouse gas emissions intensity (amount emitted per amount of production), which encourages continual improvements to operational efficiencies. We have set an emissions intensity target to operate at or below our 2010 baseline year intensity. Our main emission sources are natural gas processing plants, and the drilling and completion processes.

Water Management

Responsible water use and disposal is a key component of our commitment to operational excellence. We aim to optimize all aspects of water management throughout all of our operations. In 2015, ARC introduced corporate-wide water management guiding principles and advanced our water management plan.

Hydraulic Fracturing

In 2015, we used hydraulic fracturing on 96 per cent of the wells we completed. Hydraulic fracturing technology has allowed industry to unlock production of previously inaccessible reserves. However, it requires our continued careful management to minimize environmental impacts. We believe that hydraulic fracturing can be conducted in a responsible manner and have invested in making improvements throughout the entire process.

Land Management

As land is a valued resource, we are committed to returning it to our stakeholders in a responsible manner. At ARC, we prioritize the reclamation of sites with higher environmental risks, though it is our goal to obtain a reclamation certificate for a well within five years of abandonment regardless of its risk level. At new development areas, we employ a lifecycle approach, incorporating end-of-life considerations at the design stage.



At ARC, we are committed to an injury-free workplace where safety is a top priority. The safety of our employees, contractors and the residents near our operations is an essential part of our values and culture. To achieve an injury-free workplace, we need everyone to take responsibility for his or her actions and ensure work is done in the safest way possible.

Achieved zero

lost-time injuries for our employees in 2015


the number of safety inspections
and audits from 2014

Employee and Contractor Safety

To ensure we continually improve our safety performance we have recently focused on: tracking leading indicators; training; and selecting and working with premium contractors to improve their performance. Because contractors perform the majority of our work related to capital activity in the field we have focused on their performance through workshops, by conducting spot audits, and holding meetings.

Asset Integrity

By considering asset integrity throughout the lifecycle of our operations (i.e., design, build, operate, decommission) , we believe we can reduce the risk of our operations, be a better operator, and build credibility with our neighbours and stakeholders as a trusted partner. ARC’s asset integrity programs address all of our facilities, pipelines and pressure equipment.

Culture of Safety

In 2015, ARC launched the ‘Why I Work Safe’ campaign to increase safety awareness throughout the company. To demonstrate the importance of working safely we released a video of our CEO Myron Stadnyk and other executives sharing the reasons why safety is essential to them. As part of the campaign, we held a contest encouraging employees and contractors to share their reasons for working safely. We received 70 submissions and selected the most powerful five.




ARC fosters a work environment where employees can be their best. We are focused on creating an environment where our people are motivated, engaged and excited to come to work at ARC.



engagement score

voluntary turnover
rate in 2015

Promoting Mental Health

A core commitment for ARC is to provide a healthy work environment where employees can be their best. To support this commitment, ARC partnered with the national charity, Partners for Mental Health, and developed a campaign to educate employees on mental health and mental health related issues. The main goal of the Not Myself Today campaign was to educate employees on mental health, reduce the stigma associated with mental illness and encourage dialogue around mental illnesses the same way we would discuss any other illness.

Watch ARC’s Not Myself Today video, where employees across the company share why this issue is important to them.

ARC's Culture

At ARC, we believe that having the right people, combined with our high-performance culture, is the key to ARC’s long-term success. Since inception, ARC has been deliberate in communicating a clear vision and living by strong values. In everything we do, we emphasize our core values of respect, integrity, trust and accountability. Our culture is based on leadership, performance, learning and doing. Our workplace practices centre on achieving high levels of employee engagement that drive superior results.



We live, work and play where we operate, and as such, we care about the safety and prosperity of all our communities. ARC’s success as a profitable oil and gas producer reaches beyond our organization, contributing to the creation of vibrant and prosperous communities and touching thousands of lives every day.

Paid wages of


million to support



Community Investment

A strong spirit of giving is an important part of ARC’s culture. From the corporate level to employee initiatives, a culture of giving back to communities through financial support and volunteerism is embraced. We believe we can contribute to the wellbeing of the communities where we operate by supporting programs in education, health and wellness, arts and culture, and other civic pursuits. ARC aims to enter into multi-year commitments with select community partners. By engaging in longer commitments, organizations can effectively budget and optimize the reach of their services and programs, and move towards financially viable operating models.

Impact on Communities and Landowners

In all interactions with community stakeholders and landowners, ARC’s employees are expected to abide by our core values of respect, integrity, trust and accountability. In our daily operations and the development of our assets, we interact directly with many stakeholders. It is always our goal to maintain positive relationships based on trust and honesty.

Economic Contribution

ARC supports the creation of strong communities through economic activity. We generate and distribute wealth with a variety of stakeholders. ARC contributes to provincial and national economies by creating employment, both permanent and temporary, enabling the growth of our suppliers and contractors, and paying taxes and royalties to governments. The following is a snapshot of some of our economic contributions in 2015:



million to


and non-profit groups in 2015