About Our Report
Devon Energy is proud to present our 2020 Sustainability Report highlighting our environmental, social and governance (ESG) performance. Our efforts to improve our ESG and business performance are driven by our commitment to deliver industry-leading results and to be a good neighbor, valued community partner, caring environmental steward and model employer.
We’re proud to be a leader in the energy industry, producing energy that’s essential to lives and livelihoods around the world. We produce valuable commodities that are fundamental to society, and we do so in a safe, environmentally responsible and ethical way, while striving to deliver strong returns to shareholders.
Based in Oklahoma City, Devon employs about 1,600 people operating under the motto: Commitment Runs Deep. We take this to heart and apply it to everyone who has a stake in our success – investors, employees and neighbors alike.
This report reflects our ongoing commitment to accountability and transparency in reporting our ESG performance. It covers the most material policies, programs and performance related to our ESG efforts, as determined in a thorough materiality assessment described in the section that follows.
Unless otherwise noted, the information reported applies to our operated assets in the U.S. in 2019, and excludes assets in Canada, sold effective Jan. 1, 2019.
The contents of this report were determined through a professional materiality assessment to identify the most relevant and impactful performance areas for Devon and our key stakeholders. Facilitated by a third-party sustainability consultant, the assessment followed a process recommended by the Oil and Gas Industry Guidance on Voluntary Sustainability Reporting, published jointly by the International Petroleum Industry Environmental Conservation Association (IPIECA), the American Petroleum Institute (API) and the International Association of Oil & Gas Producers (IOGP). The process included in-depth, one-on-one interviews with Devon’s chief executive officer and other executive committee members, and an in-person workshop with leaders of Devon’s operations, environmental, safety, corporate governance, investor relations, human resources, supply chain, legal, government affairs, corporate communications and community relations departments. Leaders identified key stakeholders and material areas for reporting and mapped them on a materiality matrix.
Devon also has evaluated common reporting frameworks, including those of IPIECA, the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). Based on our most recent evaluation, the contents of this report are mapped and indexed to IPIECA, TCFD and SASB, which we believe track the most relevant indicators for Devon and our stakeholders.
Since conducting our initial materiality assessment in 2018 as described above, Devon has reviewed material areas periodically to ensure they remain relevant and meaningful for our stakeholders. As part of the planning process for this report, discussions were held with Devon executive committee members, our Environmental, Social and Governance (ESG) Steering Committee and internal subject-matter experts to evaluate current material areas. External stakeholder materials such as assessments from Sustainalytics, MSCI, Institutional Shareholder Services and JUST Capital, as well as stakeholder engagements, also were reviewed.
As a result, this report focuses on the following top material areas of our ESG performance identified during this ongoing assessment process.
- Greenhouse gas emissions
- Land conservation
- Water use and recycling
- Shareholder engagement
- Political activity
- Climate change
- Employee wellness
- Inclusion and diversity
- Community engagement
WHAT IS A MATERIAL ISSUE?
A material issue is any topic that – in the view of management or stakeholders – affects a company’s performance significantly and informs external opinion. They tend to be issues that most affect value creation and the economic and reputational resilience of a company in a positive or negative way.
Source: IPIECA/API/IOGP Sustainability reporting guidance for the oil and gas industry, 4th edition 2020.
Prioritizing material issues
Note that the concept of materiality used in the preparation of this report is not meant to correspond with the concept of materiality associated with disclosures required by the U.S. Securities and Exchange Commission.
We’re committed to continuously improving our ESG performance and communicating it transparently. We invite your feedback on how we’re doing by using our stakeholder contact portal.