Sustainability

Devon needs both ESG and business progress to responsibly meet growing global demand for affordable, reliable and sustainable energy supplies. We need both to continue delivering oil and natural gas while protecting the environment, maintaining our nation’s energy security and improving the quality of human life. We need both to evolve and thrive during a decades-long, complicated and costly transition to a lowercarbon economy. And both are necessary to preserve and create value for our stakeholders, whether we’re investing in technology solutions to cut emissions, empowering our employees to balance their work and personal lives, enabling community organizations to meet fundamental local needs or delivering returns to our shareholders over the long-term.

__________________________________________________________________________

Our balanced approach to delivering sustainable energy the world needs

__________________________________________________________________________

We were able to perform at a high level and surpass many of our corporate goals in 2022 because our values guided our actions. Devon continued fostering trusting relationships based on integrity, having the courage to advance ambitious goals and challenging ourselves to do and be better.

Reducing our environmental footprint

Devon must balance the need to limit global warming with the need to supply affordable, accessible, reliable energy the world needs to improve the quality of human lives across the globe. We first set an ambitious target to reduce methane emissions in 2019 and we significantly increased our expectations in 2021 by setting more comprehensive and aggressive emissions targets, including our aim to reach net zero greenhouse gas emissions for Scopes 1 and 2 by 2050. As demonstrated through the recent acquisition of RimRock Oil and Validus Energy, progress to achieve our emissions reduction targets may not be linear over time as we onboard new assets and begin to structurally improve emissions performance to meet the Devon standard.

We have a dedicated, talented and engaged team leading our ESG and environmental, health and safety (EHS) efforts. They’re building our capabilities and reputation for constructive engagement and ESG leadership with our board of directors, industry and thought leaders from business, academia and nongovernmental organizations. With the team’s guidance, Devon was a foundational sponsor of GTI Energy’s Veritas and joined the Oil & Gas Methane Partnership (OGMP) 2.0, demonstrating our commitment to being an industry leader in the pursuit of transparent reporting and mitigation of methane emissions.

Devon’s track record of steadily increasing transparency on environmental performance goes back almost 20 years. Our 2023 Climate Change Assessment Report, our fourth in six years, details our most robust disclosures to date on assessing the resiliency of our portfolio to climate-related risks. It’s good business to enhance our disclosures to address stakeholder feedback and to inform our strategic planning.

Increasing board independence and diversity

The decisions we make and actions we take to deliver value are the result of good governance and input from our highly capable board of directors. In January 2023, we appointed Barbara Baumann, one of our independent directors, to be our board chair. It is unique in the oil and gas industry and with public companies in general to have a female board chair. This is a testament to Barbara’s strategic insight, financial acumen and operational knowledge. We also appointed two new directors to our board in January. Michael Mears and Gennifer Kelly are independent directors who bring impressive backgrounds and valuable strategic insights to the board. These board changes enhance the independence skills and competencies, and gender and age diversity of our board.

Empowering our employees and communities

In recent years, Devon employees have been deeply impacted by the upheaval and changes in our country. We heard their concerns and expanded our policies and programs in 2022 to help employees better balance their work and personal lives. Those changes have included enhanced benefits such as family and maternity leave and increased wellness resources. It’s been gratifying to hear from employees that the changes are making a meaningful difference in their lives.

Devon makes social investments that align with our business strategy, including STEM education, public safety and social services. I recently joined our STEM partner, Cal Ripken, Jr., at the opening of a new STEM center at an elementary school – one of 120 STEM centers we’ve installed in our local communities. I saw how excited the children were when they started working with their STEM kits and how quickly they gained confidence. I’m convinced that our efforts will create gamechangers with unlimited potential to shape our future. We’ll keep supporting the communities where we live and work and the many Devon employees who volunteer their time to help their neighbors.

__________________________________________________________________________

Just Capital ranked Devon the #1 oil and gas company on issues that matter most, based on polling of the American public. This recognition demonstrates what it means to support all of our stakeholders – workers, customers, communities and shareholders, as well as the environment.

__________________________________________________________________________

Meeting new challenges

Devon made great headway in our ESG efforts in 2022, but there is always more work to do. First and foremost, we will continue to deliver oil and natural gas in a safe, environmentally responsible and ethical way. Looking into the future, we see further consolidation within our industry as necessary and an opportunity for Devon. We are committed to finding new and innovative ways to produce energy in an increasingly clean and sustainable manner, while continuing to grow our core business. With the dedication of our employees, invaluable guidance and support of our board and ongoing engagements with our stakeholders, I’m confident we will continue to improve our ESG performance. Delivering results is a company value and a pillar of our sustainability.

__________________________________________________________________________

• Achieving our emissions reduction and other environmental targets.
• Improving our emissions data precision and reporting methodologies through development of a carbon accounting platform.
  
• Making strides in our workforce diversity programs.
  
• Evaluating on-site contractors’ ESG performance with an eye toward improvements across our value chain.
  
• Making plans to implement pending EPA methane regulations and the BLM Waste Prevention Rule. Both will place new, stringent requirements on our operations.
  
• Engaging constructively around the proposed SEC climate disclosure rule that could increase our climate-related reporting, costs and risks.
  

__________________________________________________________________________

Thank you for taking the time to learn what Devon is doing to be a safe, clean, responsible and ethical oil and natural gas producer. We welcome your feedback to help us continuously improve our ESG performance and reporting.