Sustainability

With global energy demand projected by some to increase 50% by 2050, the world needs growth from all sources of energy, including affordable and reliable supplies of oil and natural gas. Devon is focused on remaining a leading independent oil and natural gas producer that contributes to long-term energy solutions in the right way: By driving down our emissions and operating safely and effectively, while also keeping an eye toward the future. The right way also means staying true to our values of integrity, relationships, courage and results, and creating long-term shareholder value.

At the same time, I’m keenly aware of the challenges ahead as we strive to meet growing energy demand, while minimizing our environmental footprint. There is a growing realization that the transition to a lowercarbon future will take many decades and cost trillions of dollars in investments to develop modern, resilient infrastructure. This infrastructure, which is required to achieve energy stability and reduce emissions, includes everything from pipelines and storage facilities to transmission lines and renewable energy systems. Transitioning to a lower-carbon economy, while meeting growing energy demand, will require an all-of-the-above approach to energy development and unprecedented collaboration among companies, industries and governments. Devon is preparing by making operational changes, deploying advanced technologies, investing strategically and engaging broadly. We’re ready to work with partners that share our focus on sustainable energy solutions for future generations.

Devon is committed to continuously improving our sustainability performance and reporting our progress transparently. I see the positive results of this emphasis every day in the way we’re working to keep our people safe, progressing toward our environmental targets and striving to have a positive impact on communities across our operating areas. We hold our employees to high standards of ethics and integrity to maintain the trust of regulators, policy makers, communities, shareholders and other stakeholders. I’m proud that because of our efforts, Devon is viewed by many as an industry leader in these areas.

Comprehensively addressing safety

Safety has been my top priority since I started in the oil business. Keeping our people safe is not only an imperative and the right thing to do, but it is the foundation of a sustainable business. We’re leading with and talking about safety from the field to the board of directors. Our operations team is active in efforts to tackle industry-wide safety issues, and we are engaging extensively with our peers to better understand common challenges and new ways to work safer. Devon is also developing advanced technology applications to elevate safety awareness, providing our safety culture program in Spanish and updating our workover rig process. To continue driving progress, our operations team is focused on Serious Incident and Fatality (SIF) reduction and our safety culture in 2024.

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Our balanced approach to delivering sustainable energy the world needs

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Reducing the carbon intensity of our operations

Devon set ambitious long-term environmental targets in 2021 to lower the carbon intensity of our operations. In 2023, we achieved a year-over-year 7% reduction in GHG emissions intensity and a 6% reduction in methane emissions intensity. We were able to achieve this progress in our emissions performance, while setting new company records for oil production. The positive results show that we can do the right thing for the environment and have a thriving business. However, we cannot do this alone. We need broad collaboration to continue developing pathways to produce these critical energy resources in an increasingly sustainable manner and to capture opportunities that an all-of-the above energy system presents.

A major accomplishment in 2023 was implementing our internally developed carbon accounting platform that improves our emissions data precision and reporting methodologies. Thanks to this priority project of our technology team and domain experts in environmental, health and safety (EHS) and ESG, Devon is better prepared for advanced emissions modeling and evolving voluntary and regulatory disclosure programs. After extensively testing and piloting multiple innovative methane detection technologies, we also deployed several detection systems throughout our operations to continue reducing our carbon footprint.

Strengthening our communities

Devon invests in preparing coming generations to apply and advance the complex technology solutions our industry requires. We’ve helped open 161 elementary and middle school science, technology, engineering and math (STEM) centers in underserved communities across our operating areas where children can develop the skills and knowledge essential for our future workforce. We’ll also continue to do the right things to help build strong communities where we operate. In 2023, this included awarding 28 DEI Community Grants to diverse community organizations in each of the five states that we operate.

Caring and connected culture

Devon strives to hire, develop and retain high performing people who will contribute to strong operational, financial and ESG results. We have a pipeline of exciting college talent, a foundation of experienced employees and low turnover. We have enhanced our benefits and increased our focus on well-being and access to mental health resources to enable employees to bring their best efforts to Devon every day. Every employee receives Devon stock to give them a stake in our success.

Aligned for sustainability

We take an aligned, values-based approach to public policy engagement, including addressing climate-related risks and opportunities. Internally, open communications and trust between our EHS, Sustainability and operations teams, with strong board oversight, helps ensure we’re making prudent decisions for our overall performance. Externally, we’re committed to staying at the table, making our voice heard and being part of the solution. I believe that having the courage to strike a balance and engage with a wide variety of stakeholders is good for our company, industry and country.

Devon is fortunate to have an engaged board that challenges us to take thoughtful risks and bold action. We provide opportunities for our board to get to know up-and-coming Devon leaders, open avenues of communication and build trust. The four women on our board are developing relationships with Devon’s women leaders. The board’s phenomenal feedback about the high quality of our team bodes well for our ability to create long-term shareholder value. I’m grateful to the board for their support for the Devon team.

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• Progressing all of our environmental targets and priorities for air emissions and recycled water use
• Achieving our standalone emissions reduction goal for 2023
  
• Receiving the “Gold Standard Pathway” within the Oil and Gas Methane Partnership 2.0 program for our implementation plan for methane emissions reporting
  
• Increasing recycled water usage to 83 million barrels in 2023, a 15% increase compared to 2022
  
• Integrating EHS lessons learned into our operational strategy
  
• Reclaiming 923 acres of well pad/access road locations with the goal of achieving the success criteria of our Reclamation Standard
  
• Comprehensively addressing safety challenges
  
• Applying advanced technologies to enhance environmental, safety and human resources performance
  
• Expanding mental health benefits and launching mental health awareness training for leaders
  
• Achieving the Top Performer designation in employee wellness on the JUST Jobs Scorecard
  
• Centralizing our public and government affairs, sustainability and climate-related strategy and external communications for even deeper internal alignment
  

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Reflecting on Devon’s 2023 ESG performance, I’m proud of what we accomplished. Thank you for your interest in our efforts to do the right things in the right way for our employees, contractors, communities, shareholders and the environment. We appreciate your feedback to help us improve our reporting in the future.