DJSI Sustainability Assessment 2015

Transcription

1 DJSI Sustainability Assessment Economic Dimension 1.1 Corporate Governance Corporate governance systems ensure that a company is managed in the interests of shareholders (including minority shareholders). On the one hand this includes checks and balances that enable the Board of Directors to have appropriate control and oversight responsibilities. Empirical evidence suggests that over a period of 5 years, the difference of return on equity between well-governed and badly-governed companies can be as much as 56% (source: GMI 2007). On the other hand management incentives have to be set in such way that management interests are aligned with shareholder s interests. RobecoSAM s questions focus on board structure, composition of the board and relating committees, board effectiveness and measures to ensure the alignment with the longterm interest of shareholders, which includes transparency and structure of executive remuneration as well as share ownership requirements Board Structure Please indicate in the following table the number of executive and non-executive directors on the board of directors/supervisory board of your company. Please find additional clarification on one-tier and two-tier systems in the information button. Board Type Please select whether your company has a one or two-tier board ONE-TIER SYSTEM. For companies with board of directors. Executive directors 1 Non-executive directors (excl. independent directors) Independent directors 10 Total board size 11 Number of members 0 TWO-TIER SYSTEM. For companies with supervisory board. SUPERVISORY BOARD Non-executive directors (excl. independent directors) Independent directors Employee representatives (if not applicable, please leave the field empty) Number of members MANAGEMENT BOARD/ EXECUTIVE MANAGEMENT Senior executives 2 of 144, Copyright RobecoSAM AG,

2 Board Independence Statement Number of members TOTAL SIZE OF BOTH BOARDS Please indicate if your company has an independence statement for the board of directors in place. Please provide a supporting public reference : Yes, we have a publically available independence statement and it includes the following: An explicit definition of what determines that a board member is independent. Please specify: The Board is responsible for determining whether or not each director is independent within the meaning of such term set forth in National Instrument A target share of independent directors on the board. Please specify: We do not have a public independence statement for the board of directors For the May 12, 2015 Annual and Special Meeting of Shareholders, the Board of Directors of the Corporation set the number of directors to be elected at the meeting at 11. The shareholders elected as directors are the 11 listed in the Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, p Encana's Board of Directors has appointed five committees: Audit; Corporate Responsibility, Environment, Health and Safety; Human Resources and Compensation; Nominating and Corporate Governance; and Reserves. The Reserves Committee is particular to the oil and gas industry. The Nominating and Corporate Governance Committee gives consideration to the appropriate size of the Board. Encana believes that the current size and composition of the Board is sufficient to provide a diversity of expertise necessary to organize all five committees, yet small enough to facilitate efficient meetings and decision making. Mr. Suttles, Encana's President & CEO, is the only board member that is a member of the Corporation's management and is considered to be non-independent due to his position as President and CEO of the Corporation. Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, Notice of 2015 AGM and Information Circular.pdf (Pages: 68) Non-executive Chairman/Lead Director Is the board of directors/supervisory board headed by a non-executive and independent chairman and/or an independent lead director? If an independent lead director is appointed, please provide his / her name in the following comment box: 3 of 144, Copyright RobecoSAM AG,

3 Chairman is non-executive and independent. Please specify for how many years this approach has been adopted: 13 Role of CEO and chairman is split and former CEO/chairman (presently in a non-executive position) is now chairman Role of CEO and chairman is split and chairman is non-executive but not independent Role of CEO and chairman is split and former CEO/chairman is now chairman, but independent lead director is appointed. Please indicate name in the provided comment box at the top of the question. Role of chairman and CEO is joint, but independent lead director is appointed. Please indicate name in the provided comment box at the top of the question. Role of chairman and CEO is joint or chairman is an executive director The chairman is non-executive and independent. This approach has been in place since the Corporation's inception in Pursuant to the Corporation's By-Law No. 1, the Chair and Chief Executive Officer shall not be the same person, except in very limited circumstances. In the Document Library, see the Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, p Board Nomination Process Please indicate whether diversity and the complementarity of skills are considered in your company's board nomination process. Please also indicate whether or not this policy is publicly available and what criteria are covered. Policy Please indicate if diversity and complementarity of skills are key criteria in your board nomination process. Please attach supporting documents and indicate whether these documents are available in the public domain: Yes, our policy is publicly available. Please provide weblink: Yes, our policy is internally available. Please provide supporting evidence: No, our board nomination process does not cover diversity or complementarity of skills Diversity Criteria 4 of 144, Copyright RobecoSAM AG,

4 Please state the three most important criteria related to board composition and board diversity that are included in your nomination policy and that aim to create variance in these criteria. Please provide supporting evidence for the options you have marked. Age Educational background Ethnicity Gender Level of independence Nationality Industry experience Tenure in the industry Other, please specify: The Nominating and Corporate Governance Committee does not have a formal policy on board diversity. The Committee takes into account various criteria in the nomination process. Three of the Corporation's eleven directors are female. Two of the five committee chairs are female. Diversity in Board Nomination Process Please indicate which of the following aspects are formally part of the nomination process and provide a link if this information is found in the public domain. If not publicly available, provide internal documents to support your answer. A skill matrix of the current board (describing the current mix of skills represented by different board members) is available In the Document Library, see the Notice of 2015 Annual Meeting of Shareholders and Information Circular, p. 72, director skills matrix. A gap analysis between the current mix of skills and the target mix of skills has been performed and serves as the basis for the review of candidates by the nomination committee An analysis of the current mix of skills and the target mix of skills is completed by the Nominating and Corporate Governance Committee on an annual basis and is a component of the Board effectiveness review. In the Document Library, see the Notice of 2015 Annual Meeting of Shareholders and Information Circular, p. 65, Corporate Governance Practices. The recommendations of the Nomination Committee explicitly address in which way the candidates recommended address the skills gap. Please indicate where this publicly available. Board Industry Experience Please indicate the number of board members that have relevant working experience in your company's sector according to GICS level 1 sector classification. See information button for additional information. 8 We do not consider these aspects in our board nomination process Not applicable. Please provide explanations in the comment box. 5 of 144, Copyright RobecoSAM AG,

5 Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, Notice of 2015 AGM and Information Circular.pdf (Pages: 65-72) Gender Diversity Please indicate the number of women on your company's board of directors/supervisory board? 3 There were three female directors nominated and elected as directors of the Corporation at the Annual and Special Meeting of Shareholders held on May 12, Responsibilities and Committees Board Committees, p lease indicate in the table below the functions and associated committee names, for which the board of directors/supervisory board explicitly assumes formal responsibility: Function Responsibilities Name of committee Audit, accounting, risk management Selection and nomination of board members and top management All members are non-executive directors All members are non-executive directors Audit Committee (primarily financial risks) - all risks fall under the mandate of the Board of Directors Nominating and Corporate Governance Committee Remuneration of board members and top management All members are non-executive directors Board Level Responsibility for Sustainability Is there a board committee formally responsible for sustainability? Nominating and Corporate Governance Committee (for Board members) and Human Resources and Compensation Committee (for senior management) Yes we have a board committee formally responsible for sustainability which consists only of board members. Please specify the name of the board committee: The Corporate Responsibility, Environment, Health & Safety Committee 6 of 144, Copyright RobecoSAM AG,

6 No, we do not have a specific board committee formally responsible for sustainability but we have a sustainability committee which includes at least one board member. Please specify the name of the committee and the board member: No, we do not have such a committee in place Sustainability Committee Composition If you do have a sustainability committee in place, please indicate which of the following senior executives (maximum one level away from the CEO) are on the committee: Chief Executive Officer Chief Financial Officer Other Senior Executive(s), please specify: Responsibility for Sustainability Please indicate the name, position and reporting line of the highest ranking individual responsible for sustainability (e.g. Head of Corporate Social Responsibility or similar) in the company (excluding CEO). Name Position Number of levels from CEO 2 Reporting Line Dave Lye Vice-President, Policy, Environment and Sustainability Reports to the Vice-President, Communications and Investor Relations, who reports to the CEO. We do not have any committees that assume responsibility for the functions descibed above Encana also has a Reserves Committee appointed by the Board of Directors. All members of this committee are independent directors. The mandate of the committee can be found at: Board Effectiveness How does your company ensure the effectiveness of your board of directors/supervisory board and the alignment with the (long-term) interests of shareholders? 7 of 144, Copyright RobecoSAM AG,

7 Number of meetings attended in percentage last business / fiscal year Number of other mandates of the board of directors / supervisory board members. This only applies to nonexecutive and independent directors, not executive directors or employee representatives. Performance assessment of board of directors/ supervisory board members. Election of board members Indicators/measures Average board meeting attendance: 96 % of meetings of board of directors/supervisory board. Minimum of attendance for all members required, at least (in %) Number of non-executive/ independent directors with 4 or less other mandates: 10 Number of other mandates for non-executive/ independent directors restricted to: Regular self-assessment of board performance. Please specify or provide documents: The Nominating and Corporate Governance Committee is responsible for assessing the effectiveness of the Board and Committees of the Board. Regular independent assessment of board performance. Please specify or provide supporting documents: Board members are elected and re-elected on an annual basis Board members are elected individually (as opposed to elected by slate) Nominating and Corporate Governance Committee Mandate, Mandate - Nominating and Corporate Governance.pdf (Pages: 1-4) Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, (Pages: 76 and Appendix E) p Assessments of the Board; Appendix E - Board of Directors' Mandate 8 of 144, Copyright RobecoSAM AG,

8 1.1.7 Executive Compensation - Success Metrics and Vesting Please indicate your company's pre-defined corporate indicators relevant for the variable compensation of Senior Executives as well as guidelines on time vesting and performance period for variable CEO compensation. Success Metrics for Variable Senior Executive Compensation Internal Financial Success Metrics (e.g. cashflow, EBIT, revenues), please specify: Total Capital, Liquids Production, Gas Production, Total Costs, Capital Allocation Focus, Exit Production Mix, Net Debt, Cash Flow Per Share Growth External Financial Success Metrics (e.g. share price, Tobins Q), please specify: Share price/relative Total Shareholder Return External Perception Metrics (e.g. reputational risks, customer satisfaction, feedback from stakeholder engagement), please specify: Reputational risks, feedback from stakeholder engagement Environmental metrics (e.g. corporate emission reduction indicators), please specify: environmental and regulatory performance Social figures (e.g. corporate health & safety indicators), please specify: safety performance Performance Period for Variable CEO Compensation What is the longest performance period applied to evaluate variable compensation (based on predefined targets, either variable or absolute), covered in your executive compensation plan? Is there a clawback policy in place? Please note that compensation that only is time vested is not considered as performance based compensation in this part of the question. Please indicate the longest performance period covered by your executive compensation plan: 4 years We have a clawback provision in place. Please specify: We have an incentive compensation clawback policy that applies to all executives. Time Vesting for Variable CEO Compensation Please indicate the timeframe for payout of variable CEO compensation. If payout depends on future performance please use target payouts to calculate the percentage. Timeframe for variable payout of CEO compensation 0-3 years 100 longer than 3 years % of total variable compensation Please indicate the longest time vesting period for variable CEO compensation: 4 years We do not have a performance based incentive system For clarity, the answers provided refer to awards under Encana's Short-term Incentive (or "bonus") program and Long-term Incentive (LTI) program. Percentage amounts refer to compensation awarded in 2014 only. Answers 9 of 144, Copyright RobecoSAM AG,

9 to the performance period and longest vesting period questions herein include a performance stock option grant made to our CEO upon hire in 2013, which is eligible to vest in four years (2017) if certain Board-approved performance thresholds are achieved. Approximately 90% of our CEO's 2014 annual compensation is based on annual bonus eligibility, determined by the Board of Directors based on Encana's performance relative to the metrics and targets (approved by the Board) contained in our annual Company Scorecard and our share price. For purposes of our bonus program, operational performance categories include: (i) Operating Performance; (ii) Portfolio Transition; and (iii) Balance Sheet strength, which are comprised of measures including annual production, capital efficiency, operating costs, exit production volumes, environmental and regulatory performance, annual safety performance and financial performance. Approximately 64% of our CEO's 2014 compensation was comprised of LTI awards, for which 85% is subject to a full deferral of vesting for three years. Compensation opportunity under these LTI grants is determined by Encana's TSR performance (over three years) relative to a peer group of companies and Board approved thresholds, as well as the absolute performance of our share price Transparency of Executive Compensation Does your company communicate the remuneration/compensation of your board of directors/supervisory board members and other highest paid directors / senior executives (e.g. CEO) externally? Yes, on an individual level for each board member and CEO and additional highest paid senior executives, please indicate weblink: Yes, on an individual level for each board member and CEO, please indicate weblink: Yes, on an aggregated level for non-executive directors AND on aggregated level for executive directors, please indicate weblink: Yes, on an aggregated level for the board/supervisory board, please indicate weblink: No, we do not communicate this information externally Does your company communicate what part of total compensation for senior executives consist of variable pay and under what conditions payments are received? Yes, we publically disclose the ratio between fixed and performance based compensation (i.e. a clear indication of the share of total compensation which is at risk and performance-based). Please indicate weblink: 10 of 144, Copyright RobecoSAM AG,

10 Yes, we publically disclose what performance metrics are relevant for performance based variable compensation. Please indicate weblink: Yes, we publically disclose the weightings between performance metrics for perfomance based variable compensation. Please indicate weblink: Yes, we publically disclose the performance targets that need to be met for performance based variable compensation. Please indicate weblink: No, we do not have performance based variable pay, but we disclose this publically. Please indicate weblink: No, we do not communicate this information externally The Statement of Executive Compensation, pp , of the Notice of 2015 Annual Meeting of Shareholders and Information Circular was made in compliance with the requirements of Form F6, Statement of Executive Compensation Disclosure of Median or Mean Compensation of all Employees & CEO Compensation Please provide the annual compensation for the Chief Executive Officer and the median of the annual compensation of all other employees as well as the ratio between the two. If you are unable to provide the median, please provide figures for total mean compensation and the ratio using the mean. The currency provided should be consistent for all figures. CEO Compensation Total CEO Compensation Employee Compensation Median Employee Compensation Mean Employee Compensation Please indicate the total annual compensation of the Chief Executive Officer, or any equivalent position 11 of 144, Copyright RobecoSAM AG,

11 CEO Compensation Total CEO Compensation Employee Compensation Median Employee Compensation Mean Employee Compensation Please indicate either median or mean annual compensation of all employees, except the Chief Executive Officer (or any equivalent position) Please indicate the ratio of the mean or median employee compensation and the total annual compensation of the Chief Executive Officer Please specify the currency used in the table: We do not track the ratio of the median or mean employee compensation and the total annual compensation of the Chief Executive Officer We plan to start tracking these figures during 2015 Encana does not disclose median compensation of employees relative to CEO compensation. The disclosure described in this question is not required disclosure under applicable Canadian securities laws and regulations. Encana's executive compensation disclosure, in the Notice of 2015 Annual Meeting of Shareholders and Information Circular, was made in compliance with the requirements of Canadian Securities Administrators (CSA) Form F6, Statement of Executive Compensation Management Ownership Requirements Please indicate if your company has specific stock ownership requirements for the CEO and other executives. Please attach supporting evidence for the selected option(s): Yes, there are specific requirements in place. Please indicate at which levels this exist and indicate the share ownership requirements as a multiple of the annual base salary. The CEO has to build up a share ownership of 5 times the annual base salary Other executive managers (other than the CEO) have to build up a share ownership of 3 12 of 144, Copyright RobecoSAM AG,

12 times the annual base salary No, there are no share ownership requirements but the CEO holds company shares corresponding to times the annual base salary No, there are no share ownership requirements and the CEO does not hold any company shares Since 2002, Encana has implemented Share Ownership Guidelines (the Guidelines ) to align the long-term interests of our executives with those of our shareholders. Under the Guidelines, executives and designated Vice- Presidents are required to meet minimum share ownership levels, calculated as a multiple of base salary, within a five year period. In the event a participant is promoted and his or her target is increased, a further two-year period is provided to meet the new share ownership target. Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, Notice of 2015 AGM and Information Circular.pdf (Pages: 44) Executive Share Ownership Guidelines MSA Corporate Governance In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 1.2 Risk & Crisis Management Effective risk and crisis management is vital for long-term financial planning and organizational flexibility. It has especially gained importance since the recent financial crisis. Companies need to implement internal control processes to comply with existing regulations and be proactive in developing the control mechanism. RobecoSAM's questions focus on some structural and key elements of the risk management system, such as group-wide uniformity, risk definition, risk visualization, and risk response strategies. Additionally, we perform a real-time check to assess the system works with our internal MSA (Media and Stakeholder Analysis). 13 of 144, Copyright RobecoSAM AG,

13 1.2.1 Risk Governance Please indicate which persons, departments and committees are responsible and accountable for enterprise risk management in terms of risk appetite & tolerance as well as risk monitoring & reporting. Please also indicate the expertise and training applicable to non-executive directors as well as the corporate structure of risk management functions. Risk appetite & tolerance Risk monitoring & reporting Highest responsible person or committee: (please indicate name and position) Doug Suttles, President & Chief Executive Officer and Executive Leadership Team [Corporate Risk Mitigation Policy] Darcy Collings, Vice-President, Financial Compliance, Governance & Risk Reporting Line: (please indicate who the person or committee reports to) Board of Directors Sherri Brillon, Chief Financial Officer Number of non-executive members of board of directors/supervisory board with expertise in (enterprise) risk management. Please specify number of non-executive directors: 2 Regular education for non-executive directors ensured. Please specify: We provide continuing education opportunities for all directors to enhance their skills and to ensure each has a current understanding of Encana's business environment. The risk management function is structurally independent of the business lines. Please specify: The Vice-President, Financial Compliance, Governance & Risk is responsible for the risk management function. This position is corporate and reports to the Chief Financial Officer, independent of the business lines. There are no such responsibilities in place Not applicable. Please provide an explanation in the comment box below Risks Correlation 14 of 144, Copyright RobecoSAM AG,

14 Do you perform a correlation analysis of the key risks identified? Please provide supporting documents. Yes, we perform a correlation analysis, only for financial risks. Yes, we perform a correlation analysis for financial and business risks. Please specify which business risks are included in risk correlation analysis. We do not perform a correlation analysis 2014 Annual Report, annual-report pdf (Pages: 36-39) Management's Discussion and Analysis, Risk Management Section Sensitivity Analysis and Stress Testing (incl. Water and Climate) Does your company perform sensitivity analysis and stress testing on a group level? Please attach supporting documents. Yes, on changes in financial risks, such as exchange and interest rates Yes, on changes in carbon pricing Yes, on changes in water availability or water quality Yes, on other risks (e.g. operational risks, market risks, strategic business risks, compliance risks). Please specify: No, we do not perform sensitivity analysis and stress testing at the group level 2014 Annual Report, annual-report pdf (Pages: 36-39) Management's Discussion and Analysis, Risk Management Section 15 of 144, Copyright RobecoSAM AG,

15 1.2.4 Emerging Risks Please indicate two important long-term (3-5 years+) emerging risks that your company identifies as having the most significant impact on the business in the future, and indicate any mitigating actions that your company has taken in light of these risks. For each risk, please provide supporting evidence from the public domain where the risk, the business impact and any mitigating actions are described. Emerging Risk 1 Emerging Risk 2 Description of risk, as reported in the public domain: No, we do not report on long-term, emerging risks Potential business impact of the risk, as described in the public domain: Mitigating actions, as described in the public domain: Supporting evidence from the public domain on risk, business impact and mitigating actions We identify emerging risks internally and report to the Board and the Audit Committee. However, these are not provided in the public domain. No references attached Risk Culture What strategies does your company pursue in order to promote and enhance an effective risk culture throughout the organization? Please indicate the relevant options below and specify where prompted. Financial incentives which incorporate risk management metrics, please indicate for which employees this applies For senior executives, please specify: For line managers, please specify: 16 of 144, Copyright RobecoSAM AG,

16 Focused training throughout the organization on risk management principles, please specify: Focused risk management training on high risk areas and general training are provided for the company as a whole. Inclusion of risk management criteria in the HR review process for employee evaluations Measures allowing individual employees proactively to identify and report potential risks throughout the organization, please specify: All staff have risk management responsibilities. The Corporate Risk Management Policy commits all staff to consistently apply risk assessment processes and to take professionally assessed risks based upon high-quality work. The company risk matrix tool should be considered when assessing, measuring and reporting risks. All risks are to be reported to the Director/Senior Manager level. Increasing levels of risks are reported higher in the organization as set out in the risk matrix "risk reporting" step. Measures allowing continuous improvement in risk management practices through involvement of employees in structured feedback process, please specify: The Risk Network group is comprised of subject matter experts in leadership roles who meet regularly and provide feedback for continuous improvement. Incorporating risk criteria in the product development or approval process Other means of measuring or innovating for an effective risk culture, please specify: We have assessed our company against industry's risk management best practices and have prioritized areas for improvement. We have regular (at least quarterly) meetings with cross functional subject matter expert senior leaders in the company to have risk management discussions. No, we do not have any strategies to promote and enhance an effective risk culture MSA Risk & Crisis Management In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 17 of 144, Copyright RobecoSAM AG,

17 1.3 Codes of Conduct/Compliance/Corruption&Bribery Economic crime is consistently harmful to a company's intangible assets (e.g. negative impact on the company's reputation, on staff morale and on business relationships). Internal controls appear to be inefficient when looking at how economic crimes are actually discovered, suggesting that internal systems are often co-opted, circumvented or overridden. Companies active in countries with weak anti-corruption laws are exposed to additional reputational and legal risks. Evidence of corrupt practices can result in exclusion from contracts financed by institutions that blacklist suppliers of bribes (e.g. World Bank's list of debarred firms), potentially impacting future earnings as well as higher risk premiums for debt or equity. The key focus of the criterion is on the Codes of Conduct, their implementation and the transparent reporting on breaches Codes of Conduct: Focus Please indicate for which areas corporate codes of conduct have been defined at a group level (including subsidiaries). Please attach supporting documents. Corruption and bribery Discrimination Confidentiality of information Antitrust/anticompetitive practices Money-laundering and/or insider trading/dealing Environment, health and safety Whistleblowing No group-wide code of conduct Encana regularly reviews its corporate governance model and creates and amends policies and practices to ensure that Encana s expectation for compliant and ethical behaviour is firmly supported by a strong ethics and compliance infrastructure. The Business Code of Conduct and supplemental policies can be found at Primary policies specific to these areas include: Business Code of Conduct, Corporate Responsibility Policy, Environment Policy, Health & Safety Policy, Integrity Hotline. The Business Code of Conduct establishes Encana's commitment to conducting business ethically and legally and addresses topics such as compliance with laws and regulations, conflict of interest, anti-fraud, disclosure, 18 of 144, Copyright RobecoSAM AG,

18 confidentiality, securities trading and insider reporting, accountability for adherence to the Code, reporting of violations of the Code and prevention of corruption. Acceptance of Gifts Practice, Acceptance of Gifts Practice.pdf (Pages: 1-2) Anti-fraud Policy, Policy - Anti-fraud.pdf (Pages: all) Business Code of Conduct, Business Code of Conduct.pdf (Pages: 1-7) Competition and Antitrust Laws Compliance Policy, Competition and Antitrust Laws Compliance Policy.pdf (Pages: 1-2) Confidentiality Policy, Confidentiality Policy.pdf (Pages: 1-3) Conflict of Interest Policy, Policy - Conflict of Interest.pdf (Pages: all) Corporate Responsibility Policy, Responsibility Policy March 2013.pdf (Pages: all) Environment Policy, Encana Environment Policy May 2013.pdf (Pages: 1) Health and Safety Policy, Health and Safety Policy.pdf (Pages: 1) Integrity Hotline, (Pages: 1) Policy and elearning Recommitment Schedule - Company Wide, Policy Recommitment Go-Forward Plan v2.xlsx (Pages: Section 1.3) Supplemental Political Contributions Policy, Political Contributions Policy.pdf (Pages: 1-2) Prevention of Corruption Policy, Prevention of Corruption Policy.pdf (Pages: 1-2) Respectful Workplace Practice, Encana Respectful Workplace Practice August 2014.pdf (Pages: 1-3) Discrimination Securities Trading and Insider Reporting Policy, Securities Trading and Insider Reporting Policy.pdf (Pages: 1-8) Codes of Conduct: Systems/ Procedures What mechanisms are in place to assure effective implementation of your company's codes of conduct (e.g. compliance system)? Responsibilities, accountabilities and reporting lines are systemically defined in all divisions and group companies Dedicated help desks, focal points, ombudsman, hot lines Compliance linked to employee remuneration Employee performance appraisal systems integrates compliance/codes of conduct Disciplinary actions in case of breach, i.e. warning, dismissal, zero tolerance policy Compliance system is certified/audited/verified by third party, please specify: PWC performs entity level controls on Encana's E&C and investigations procedures. No such systems/policies in place 19 of 144, Copyright RobecoSAM AG,

19 Encana has several mechanisms in place to ensure effective implementation of the Company's codes of conduct: (1) To ensure staff compliance with Encana s corporate governance framework, all Encana employees are required to formally confirm their commitment to the Business Code of Conduct and governance framework on an annual basis. Included in the commitment is an elearning training module which covers the Business Code of Conduct which includes the following policies and practices: Acceptable Use of Information Systems; Acceptance of Gifts; Business Conduct, Corporate Responsibility & Ethics; Competition and Antitrust Laws Compliance; Conflict of Interest; Confidentiality Policy; Political Contributions; Prevention of Corruption; Privacy; Anti- Fraud; Disclosure; Lobbying; and Securities Trading and Insider Reporting. Policy and practice recommitment and elearning modules are also regularly scheduled for additional policies and practices: Alcohol and Drug; Reasonable Suspicion; Information Management; Respectful Workplace; Corporate Responsibility; Environment; Health & Safety; Travel; IT Security; Mobile Device Acceptable Use; Driver Distraction; and Social Media. Employees are required to review and declare that they have no conflicts of interest, or alternatively formally declare any potential conflicts of interest annually, as they may arise throughout the year. (2) Encana provides an effective and consistent procedure to address potential violations of company policies, practices and other regulations. The Company has an established Investigations Team, which reviews all complaints brought forward. Some complaints are forwarded to the business units for resolution. Others, if appropriate, are investigated in a confidential and timely fashion. (3) An employee s yearly compensation (bonus) can be impacted negatively by non-compliant or unethical behaviour. (4) Encana engages NAVEX Global to operate its Integrity Hotline, which provides for anonymous reporting. Concerns can also be reported to the Investigations , which is a dedicated reporting line. Additional confidential reporting avenues regarding Encana s operations are available through the Ethics address and the Corporate Responsibility address Corruption&Bribery: Scope of Policy Please indicate which of the following aspects are covered by your anti-corruption and bribery policy at a group level (including subsidiaries). Please attach supporting documents. Please ensure that the marked options are both covered by your company's policy and are clearly disclosed in the attached documents. Bribes in any form (including kickbacks) on any portion of contract payments or soft dollar practices Direct or indirect political contributions Political contributions publicly disclosed. Please attach supporting documents and/or indicate web address: Government of Canada: 20 of 144, Copyright RobecoSAM AG,

20 Charitable contributions and sponsorship Charitable contributions and sponsorship publicly disclosed. Please attach supporting documents and/or indicate web address: Community Investment: No anti-corruption & bribery policy The Business Code of Conduct includes the areas of Competition and Antitrust, Privacy and Prevention of Corruption. With regard to direct or indirect political contributions: oration will make only those financial or in-kind contributions permitted by law to a recognized political party, candidate or campaign in the provinces and municipalities where the Company has business interests and in such manner as may be consistent with the Company's approved policy on the matter. Encana will fully comply with all legal requirements for public disclosure. Encana employees, contractors and directors may choose to become involved in political activities as long as they undertake these activities on their own behalf and may, on a personal level, give to any political party or candidate. Reimbursement by the Company is prohibited. Encana Cares provides employees in Canada and the U.S. with a convenient and confidential way to plan their charitable giving. Encana Cares allows each employee to decide how and where donations are directed. Encana matches employee donations dollar-for-dollar (up to $25,000 per employee), and covers all associated administration costs so that 100 percent of donations go directly to the charities that employees support. Business Code of Conduct, business-conduct.pdf (Pages: 1-7) - Corporate Responsibility Policy, Responsibility Policy March 2013.pdf (Pages: 1-3) DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 26) Political Contributions Policy, Policy - Political Contributions.pdf (Pages: 1-2) Codes of Conduct/Anti-Corruption&Bribery: Business Relationships Please indicate the percentage of coverage of your codes of conduct and anti-corruption and bribery policy relative to the total number of: Employees group-/worldwide: 100 Contractors/Suppliers/Service providers: 100 Subsidiaries: 100 Joint ventures (includes stakes below 51%) : 21 of 144, Copyright RobecoSAM AG,

21 None of the above are covered in our anti-corruption and bribery policy or codes of conduct Encana agreements require all Contractors, Suppliers, and Service Providers to be in compliance with all anticorruption and bribery legislation. In addition, Encana expects similar codes of conduct to be followed by the same group of companies Codes of Conduct/Corruption&Bribery: Reporting on breaches Does your company publicly report on breaches (e.g. number of breaches, cases etc.) against your codes of conduct/ethics and anti-corruption and bribery policy? Please attach documents and/or web address. If your company did not have any breaches of your codes of conduct during the last fiscal year, please indicate where this is publicly reported. Yes, please refer to the reference(s) provided: No, we do not publicly report on breaches Encana does not publicly disclose code and other breaches, although a reporting protocol that deals with specific legal violations does exist through our Corporate Responsibility reporting. No references attached MSA Codes of Conduct/Corruption In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 22 of 144, Copyright RobecoSAM AG,

22 1.4 Supply Chain Management In an increasingly globalized world, when a company outsources its production, services or business processes, it also outsources corporate responsibilities and corporate risks. This means that companies need to find new strategies to manage the associated risks and opportunities that differ from the traditional risk and opportunity management of when the company has its production or services in-house. In addition the company is confronted with the need to minimize costs and time of delivery to satisfy the demand of their suppliers and increase profitability without negatively impacting the quality of the product or at high environmental or social costs. Investors increasingly see the importance of supply chain risk management and the negative consequences if it is not managed effectively. This criterion aims to identify companies that have lower supply chain risk profiles, either through the characteristics of the supply chain or through appropriate management of existing risks. In addition, RobecoSAM seeks to identify companies that are using sustainable supply chain management as an opportunity to improve their long-term financial performance Awareness Please indicate if your company is undertaking a spend analysis of its supply chain as well as the scope of this analysis. Please also provide your definition of critical suppliers as well as the results of your mapping of these suppliers. Please provide supporting documents for each of the sections. Spend Analysis of the Supply Chain Does your company undertake a spend analysis of its supply chain? If yes, please provide a brief description and attach supporting documents: Encana's Supply Management extracts relevant accounting codes from the accounting system and then groups them into specific supply management categories. Multiple supplier names are rolled up to improve the quality of spend reports. A parent-child relationship is created for suppliers with complex ownership structures. Please indicate what percentage of your total procurement spend is covered in the spend analysis conducted within the last three years: 71 Critical Suppliers Has your company defined a formal process to identify critical suppliers (e.g. high volume suppliers, suppliers of critical components, non-substitutable suppliers)? If yes, please provide a brief description of the process, as well as your definition of critical suppliers, and attach supporting documents: Suppliers generating the top 80% of Encana's spend are considered critical. 23 of 144, Copyright RobecoSAM AG,

23 Please indicate, in percentage and absolute numbers, how many critical suppliers you have identified as part of your tier 1 suppliers within the scope of the current spend analysis: Type of supplier Absolute number of tier 1 suppliers Critical Suppliers Total % Share of total procurement spent (%) Please provide an estimate of the percentage of your critical tier 1 suppliers for which your company represents a major client (i.e. your procurement orders represent > 30 % of the suppliers' annual turnover): 82 We do not conduct any such analysis in place Critical Supplier 80% Spend, Copy of Spend Analysis #3 - Critical Suppliers top 80% spend do one for full ECA not canada us specific (3).xlsx (Pages: 1) Outlines of 80% spend with our critical suppliers MANAGED SPEND , Spend Coverage - s.ppt (Pages: 1) this graph shows our managed spend for YTD. the % has decrease as we are taking a more focused look on our highest value suppliers and have been in a phase of major contract renegotiations due to lower WTI prices Spend Database, SMS Database.ppt (Pages: 1) Example of how accounting codes are rolled up into Supply Management Categories so we are able to manage spend across categories Risk Exposure Please indicate if your company has a formalized process in place to identify risks in its supply chain as well as the scope and outcome of this process. Do you have a formalized process in place to identify sustainability risks in the supply chain? Please provide a brief description of the process and attach supporting documents: Encana has many processes to identify and mitigate sustainability risks as described in the attachments. Please indicate the scope of the sustainability risk identification analysis, i.e. share of the total number of tier 1 suppliers (both critical and non-critical) covered by the risk analysis (%): 100 Please indicate in the table below the share of your total number of tier 1 suppliers (both critical and non-critical) where a high level of sustainability risks has been identified in that particular category (economic, environmental and social risks respectively). Please also provide a definition or a description of what constitutes "high risk" for your company and indicate the nature of the most relevant risks identified in each category in the respective comment boxes. 24 of 144, Copyright RobecoSAM AG,

24 Economic risks Environmental risks Social risks High risk (%) Nature of risks identified We can only quantify the percentage of suppliers with high sustainability risk on a consolidated basis, i.e. we do not break it down into the three dimensions above. Please indicate the percentage of high risk suppliers: as well as the nature of the most important risks identified: We do not have a systematic process to identify sustainability risks in the supply chain Encana provides specific training for buyers that includes expectations for environment, health and safety performance of all service providers. Staff are required to take training in the Ethos environment, health and safety management system which applies to all aspects of the company. Vendor audits are conducted to ensure vendor practices meet or exceed Encana's EH&S standards. Contractor safety, (Pages: 1) A safe workplace mitigates social and economic risks. Safety is a core value at Encana and we are always striving to improve our safety performance this includes ensuring the safety of our contractors and service providers (Safety orienation links) Courtesy Matters program, courtesy-matters-overview.pdf (Pages: 1) Courtesy Matters is a company-wide program focused on being a good neighbour and demonstrating respect and courtesy in the communities where we operate. Web page: Courtesy Matters, (Pages: 1) The Courtesy Matters program has been an integral part of our stakeholder engagement efforts in establishing and clarifying employee, contractor and service provider expectations around courteous conduct since its launch in Risk Management Measures Please indicate which measures your company has taken in order to manage sustainability risks amongst your tier 1 suppliers. Please indicate the scope and attach supporting documents or specify where requested. REQUIREMENTS 25 of 144, Copyright RobecoSAM AG,

25 Standard/Policy/Code of Conduct for suppliers - please attach supporting documents and indicate in which of the following areas your company has established standards for suppliers across all countries of operations: Issues covered Environmental standards for supplier's processes, products or services Fundamental human rights (e.g. forced or child labor, freedom of association) (ILO conventions) Working conditions (e.g. working hours, lay-off practices, remuneration) Occupational health and safety Business ethics (e.g. corruption, anti-competitive practices) Quality of management systems Environmental management system certified to ISO 14001, EMAS or equivalent management system with external independent audits Environmental performance data available Social performance data available Guidance regarding sub-contracting (i.e. requiring to replicate own standards down the supply chain) Collaborative initiatives - working together with NGOs and/or other companies on supply chain issues. Please provide an example of an initiative that you are formally supporting, including a web link and a description of which suppliers are targeted, the focus of the initiative and how your company is contributing to it: Our Responsible Products Program works with suppliers and other peer companies around products (chemical sourcing) used in drilling and completions. ( fracturing/products.html) Encana developed the program and assessment tool and then shared with industry associations to disseminate to peers. Contract clauses - covering environmental, social and governance (ESG) factors. Please attach supporting documents and indicate the scope for 2014: 80 % of total procurement spent ONGOING MONITORING OF SUPPLIERS Third-party CSR management system assessment tool - Please specify and indicate the number of suppliers that have been assessed within the last fiscal year as well as which will be assessed next fiscal year: Specification of tool Number of companies assessed in FY 2014 Number of companies to be assessed in 2015 Audits - Please indicate the scope (percentage and absolute numbers) of your audits of tier 1 suppliers during Please also indicate which percentage of high risk tier 1 suppliers (as defined by your company in the previous question) this represents. Please consider all audits conducted by internal or external audit functions that are independent of the purchasing/supply chain function of the company as well as independent of the supplier: % audited of total number of tier 1 suppliers tier 1 suppliers audited (absolute number) 26 of 144, Copyright RobecoSAM AG,

26 % of high risk tier 1 suppliers Please indicate which of the items below are part of a standard audit procedure (i.e. how audits are typically conducted) and attach supporting documents: On-site visits (pre-announced) On-site visits (unannounced or semi-announced) Interviews with management Interviews with employees (on-site) Interviews with employees (off-site) Corrective action plans for suppliers - Please attach a sample as supporting document and indicate the percentage of assessed or audited suppliers for which corrective action plans have been developed. Further, please indicate what percentage of suppliers with a corrective action plan has improved their ESG performance since the action plan was launched: % of assessed or audited tier 1 suppliers have a corrective action plan % of suppliers with corrective action plans have improved their ESG performance since the plan was launched CAPACITY-BUILDING & INCENTIVES Capacity building - Please provide a brief description of your main capacity-building initiatives and provide examples of the key activities your company undertakes on its own or in collaboration with other companies and/or industry collaborations (e.g. training & development activities, supplier awards, conferences, forums etc.). Please also provide supporting documents and/or web links: April Encana participated in the Dawson Creek Open House. Incentives for suppliers - (e.g. sustainability training costs covered by company, longer-term contracts, agreement to fill up production volume at supplier s facility etc.). Please specify: We do not have any such measures in place Encana provides training for buyers, including expectations for service providers related to environment, health and safety performance. Vendors are pre-screened for EH&S qualifications. ISNetworld is used to evaluate potential service providers against Encana's EH&S practices. This pre-screening is the primary means of ensuring all contractors and service providers meet Encana's EH&S qualifications. Contractor Expectations set of policies, es.html (Pages: 1) Contractors and service providers are required to sign off their understanding and acceptance of our Policies and Practices (Addresses Environmental, Occupational H&S and Business Ethics requirements). 27 of 144, Copyright RobecoSAM AG,

27 Corporate Responsibility Policy, corp-responsibility-policy.pdf (Pages: 3) This Policy encompasses the areas of governance, people, the environment, safety, engagement and community involvement. It applies to Encana's employees, contractors and directors. MSSA Standard, MSSA Standard - 13 Nov Sample.pdf (Pages: 34 Schedule A) Contractor acknowledgement of Encana policies Vendor Audit List , Corp Audits Updated May xlsx (Pages: 1) Overview and update file of vendor audits from 2014 and 2015 where Internal audit works in conjuction with SMS to ensure compliance to audit findings ESG Integration in SCM Strategy Please indicate the main priorities of your company's general Supply Chain Management Strategy as well as the environmental, social and governance (ESG) objectives that have been identified in your company. Further, please indicate how ESG factors are integrated in your supplier selection decisions as well as the responsibilities for delivering on the ESG objectives and how the procurement staff is being incentivized to integrate ESG factors in everyday decisions. Supply Chain Strategy and Integration of ESG Objectives Please provide a brief description of the top five priorities of your company s general Supply Chain Management strategy and attach supporting documents. Please note that this should refer to the general approach that the company is taking in order to manage the supply chain with regards to aspects such as cost, time, quality and continuity of supply and not to a sustainable sourcing or a sustainable supply chain strategy. Please indicate which formalized environmental, social and governance ( ESG) objectives have been identified for your Supply Chain Management strategy. Further, indicate how these are connected to the overall Supply Chain Strategy by providing supporting documents. Please note that in this section you can refer to a sustainable sourcing strategy or a sustainable supply chain strategy as well as to objectives relating to ESG factors already integrated in the strategy above. Key ESG objective 1 Key ESG objective 2 Description of ESG objective Link to overall Supply Chain Strategy Integration of ESG Factors into Supplier Selection Please complete the table below, indicating how ESG factors impact your supplier selection and retention process. Please attach supporting documents and provide a brief description on the scale and approach for the minimum threshold. New & existing suppliers Minimum threshold required (i.e. qualitative or quantitative selection / retention criteria) Does your company use a % (weight) of ESG in overall assessment (compared to other factors such as price, quality and delivery time) when assessing suppliers, as a tool to ensure integration of sustainability 28 of 144, Copyright RobecoSAM AG,

28 into supplier selection and retention decisions? If so, please provide an estimate of the average weight across supplier categories: and indicate for which supplier categories this weight factor is being applied: Responsibilities Within the procurement function / department, who is the most senior person responsible for delivering on the ESG objectives identified in the strategy (specified above)? Who is responsible at the operational level for driving the implementation of the ESG objectives? There is a reporting line (direct or dotted) between these two responsible staff members Incentives for Staff How does your company incentivize their procurement staff (in both centralized and decentralized procurement functions) to integrate ESG factors in everyday decisions? Please indicate below what percentage of prime contact procurement staff have: Access to ESG Suppliers database: Training on ESG issues relevant to procurement processes and decisions: Team or individual ESG-related targets / KPIs reviewed in performance appraisal: ESG related targets / KPIs linked to remuneration: We do not have such strategy in place Not applicable. Please provide explanations in the comment box below. Including factors beyond price quality and delivery is a standard practice to ensure best value. As such, there is no specific training on ESG factors. No references attached Opportunities How is your company leveraging opportunities across its supply chain and how are these transferred into qualitative and quantitative business benefits? Please provide examples and supporting documents in the table below. 29 of 144, Copyright RobecoSAM AG,

29 Please provide two examples of sustainability initiatives in the supply chain that have delivered clear business benefits (in terms of either cost reduction, risks reduction or revenues growth) and indicate the benefits generated from these initiatives. Please attach supporting documents. Example 1 Example 2 Description of example Transferring and negotiating rig commitments We do not have such initiatives in place Implementation of Price Books for contract compliance Qualitative benefits, please specify: We ae mitigating our risk in a low WTI enviroment Provides Encana better insight to ensure we are receiveing the prices we negotiated Quantitative benefits, please indicate amount: 15 Monetary Units Please specify: 15 million 1 Monetary Units Please specify: We could see a millition dollars in avoided cost leakage in 2015 by ensuring invoices are compliant to contract rates before paying. See attached above 2012 Corporate Responsibility Report, cr-report-2012.pdf (Pages: 26-27) Corporate Responsibility Report, cr-report-2012.pdf (Pages: 46) - Pricebook Reference for Invoice Approvers, Encana PriceBook Overview.pdf (Pages: 1) This document outlines the training material available to Open Invoice users in Canada and the US to ensure invoices are compliant to contracted rates. Responsible Products program, rpp-fact-sheet.pdf (Pages: All) Transparency Which aspects of your supply chain management approach does your company publicly report on (on a consolidated basis)? Please attach supporting documents and/or website where the information can be found in the public domain. Standards for suppliers and/or sustainable purchasing policy Risk awareness (e.g. risk mapping) 30 of 144, Copyright RobecoSAM AG,

30 Risk management measures Key Performance Indicators (KPIs) for supply chain management (e.g. % of suppliers assessed or audited, scope 3 emissions, % of procurement with preferred suppliers etc. for more examples on KPIs, please refer to the information button). Please indicate below which KPIs you are currently publically reporting on as well as where the information can be found: For the Supply Chain Management KPIs that your company is publically reporting on, please indicate below the level of details that are available in the public reporting for these KPIs: Breakdown of KPIs by topic or region KPIs tracked over time Targets and progress on targets, please indicate below for which KPIs you are publically reporting targets and where the information can be found: We do not publically report on any of the aspects above Ethos program, ethos-overview.pdf (Pages: 3-5) This booklet provides an overview of Ethos Encana s integrated environment, health & safety (EH&S) management system MSA Supply Chain Management In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 31 of 144, Copyright RobecoSAM AG,

31 1.5 Tax Strategy Tax competition between tax territories (countries or regions within countries) has left room for companies to optimize their tax spending. While tax optimization has a positive impact on profitability and hence company value, a too-aggressive tax strategy might not be sustainable in the mid- to long-term and adds some risk to longterm profits. First, there is a reputational risk because of increased public and regulatory scrutiny which could result in lower brand value. Second, the relationship with the host country might be negatively impacted. This could result in approval delays or rejection of expansion projects or, in the worst cases, companies risk losing their license to operate. Third, earnings might be impacted if the tax authorities decide to change tax regulation which leads to direct financial risks. Finally, economic development risk arises if governments receive inadequate tax receipts for funding local infrastructure or education Tax Strategy Does your company have a tax policy/principles/strategy in place which indicates your approach towards taxation? Please indicate if this policy is publicly available and provide supporting evidence. Yes, we have a tax policy in place and it is publicly available. Please provide the relevant weblink: Yes, we have a tax policy in place but it is not publicly available. Please attach the policy as supporting evidence. No, we do not have a formal tax policy in place Tax follows the policies, practices and guidelines as established by Encana's Corporate Vision and Values and the Business Code of Conduct. Encana's specific tax strategy is not publicly available. No references attached Tax Reporting Does your company publicly report on key business, financial and tax information for regions or countries in which you operate? Please provide the weblink for where this information can be found: 2014 Annual Report - Notes 2 and 7 Yes, we publicly report on the following for our main geographic regions: Revenue Operating Profit 32 of 144, Copyright RobecoSAM AG,

32 Taxes Paid Yes, we publicly reporting on the following for our main countries: Revenue Operating Profit Taxes Paid We provide a public explanation of your effective tax rate which addresses why our tax rate may differ from the expected tax rate in the respective countries where we generate profits? Please provide supporting references: We do not report taxes on a regional or country by country basis See Note 7 of the 2014 Annual Report for the effective tax rate reconciliation. No references attached Taxation Risks Do you evaluate the risks of taxation on future company value creation? If you do risk evaluation, please indicate which risks you have identified as being material. Please provide examples of financial risks as well as business risks (e.g. reputation, license to operate, etc.). Taxation related risks Financial risk, please specify: See Risk section of AIF Business risk, please specify: Business risk, please specify: Business risk, please specify: We do not evaluate risks associated with taxation 33 of 144, Copyright RobecoSAM AG,

33 See Risk Section of the March 3, 2015 Annual Information Form and the Income Tax Section of the MD&A included in the 2014 Annual Report Annual Report, annual-report pdf (Pages: 36) Annual Information Form , ECA AIF 2014.pdf (Pages: 32) MSA Tax Strategy In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 1.6 Exploration & Production Oil & Gas reserves are the key drivers for future earnings and hence share price performance. RobecoSAM's questions focus on the Reserve Life Index (RLI), the ratio of total oil and gas reserves divided by current production volume, and the Reserves Replacement Ratio (RRR) which gives an indication on the company's ability to replace its reserves and hence generate future earnings. Given the ongoing internalization of external impacts, RobecoSAM's questions assess CO2 emissions associated with production as they might become a significant liability. CO2 taxes are already in place in some countries (e.g. Norway) Reserve Life Please report the proved Reserve Life Index (RLI) of oil equivalents as of 2014: 7.3 years We do not measure or track proved Reserve Life Index (RLI) of oil equivalents 34 of 144, Copyright RobecoSAM AG,

34 RLI of 7.3 years is based on 2014YE SEC proved reserves. RLI for forecast proved reserves, after royalties, is 7.3. Volumes have been converted using 6 Mcf to 1 bbl. In 2014, Encana's SEC proved natural gas reserves decreased primarily due to the sale of reserves in place resulting from the Company's strategic transition to a more balanced commodity portfolio. Encana's SEC proved oil and NGL reserves increased primarily due to the purchase of reserves in place, partially offset by the sale of reserves in place resulting from the Company's strategic transition to a more balanced commodity portfolio. * Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols Reserve Replacement Please provide average reserve replacement as well as average organic reserve replacement rate for the past three years, based on the SEC proved reserves definition. Please note that organic reserve replacement ratio should be adjusted for acquisitions and divestments only, but should include revisions due to price changes. Replacement Rate Measure Average Replacement Rate for last 3 years (%) Average reserve replacement rate (for past 3 years) -79 Average organic reserve replacement rate (for past three years) -4 We do not measure or track the average reserve replacement nor the average organic reserve replacement rate The three year reserves replacement numbers shown above were materially impacted by negative revisions to SEC proved gas reserves of: - approximately 4.6 Tcf in 2012 due to significantly lower 12-month average historical natural gas prices; and - approximately 3.5 Tcf in 2013 primarily due to changes in the Company's development plans and the resulting impact on proved undeveloped reserves bookings. 35 of 144, Copyright RobecoSAM AG,

35 The three year reserve replacement numbers shown above were also materially impacted by the Company's strategic transition to a more balanced commodity portfolio resulting in a net divestiture of 1.4 Tcfe of proved reserves in * Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols Finding and Development (F&D) Cost Please report the three year average (including last reported year) finding & development (F&D) costs incurred ( i.e. FAS69), divided by proved reserves added (revisions + extensions, discoveries + acquisitions) in USD / BoE. Disposed barrels (sale of mineral in place) should NOT be included in the denominator USD/BOE The three year FD&A costs shown above were materially impacted by negative revisions to SEC proved gas reserves of: - approximately 4.6 Tcf in 2012 due to significantly lower 12-month average historical natural gas prices; and - approximately 3.5 Tcf in 2013 primarily due to changes in the Company's development plans and the resulting impact on proved undeveloped reserves bookings. * Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols CO2 Emissions from Oil Production Please indicate CO2 emissions in kg per tonne of oil equivalent (oil and gas) production as of last fiscal year: kg/toe kg per tonne oil equivalent (oil and gas) production. 36 of 144, Copyright RobecoSAM AG,

36 We do not measure or track CO2 emissions per quantity of oil and gas produced The production emission intensity value above includes both direct and indirect greenhouse gas emissions. * Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols Renewable Energy Production What proportion of your company's energy production in the last financial year was accounted for by renewable energy for sale to third parties? % of total attributable share of energy production What Mid-Long Term Projections does your company have for renewable energy production? % of total barrels of oil equivalent by (year) No, we do not produce any renewable energy for sale to third parties and do also not project to do so in the mid-term future Encana is an energy producer that is focused on growing its portfolio of resource plays producing natural gas, oil and natural gas liquids. At this time we are not contemplating the inclusion of renewable energies in our portfolio. 1.7 Gas Portfolio 37 of 144, Copyright RobecoSAM AG,

37 In the Oil & Gas industry, the higher the natural gas content of the asset base, the stronger the business is geared for natural gas growth. Natural gas is a clearly-favored low-carbon source of fossil fuel energy compared to coal and oil, and there is a clear secular upward trend in natural gas demand globally as a consequence of international efforts to lower carbon emissions. We therefore see a stronger secular growth market in natural gas vs. oil, and the clear development of natural gas into a truly globally traded commodity. We believe that the corporate strategy oil and gas companies have adopted, of which a main pillar is the endeavor to position themselves in the natural gas value from upstream to downstream, will have a clear long-term competitive advantage. RobecoSAM's questions assess natural gas exposure on a relative basis by assessing production and reserves, and their focus on the LNG and downstream business Reserve Life Natural Gas Please report the proved Reserve Life Index (RLI) of of your company's natural gas reserves: 6.4 years We do not measure or track the proved Reserve Life Index (RLI) of our natural gas reserves RLI of 6.4 years is based on 2014YE SEC proved reserves. RLI for forecast proved reserves, after royalties, is 6.4. * Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols Natural Gas Bias Please indicate the percentage share of natural gas production in relation to total oil and gas production in % We do not measure or track the percentage share of natural gas production in relation to total oil and gas production 38 of 144, Copyright RobecoSAM AG,

38 Volumes have been converted using 6 Mcf to 1 bbl. * Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols Natural Gas Production Please indicate the volume of natural gas production for the years indicated below: Mid-long term projections. Please indicate for which year these figures are estimated: This is a 2015 guidance mid point estimate Volume of natural gas in billion cubic feet 1088 BCF 1014 BCF 858 BCF 602 BCF We do not measure or track the volume of natural gas production In the current price environment, the Company plans to continue focusing capital investment in oil and liquids-rich natural gas plays, minimizing investment in dry natural gas plays. The 2015 estimate is the mid-point of May 12, 2015 guidance (1,600-1,700 MMcf/d). * Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols LNG Production 39 of 144, Copyright RobecoSAM AG,

39 Please indicate the share of LNG production in total upstream oil and gas equity production in the last fiscal year. Please note that equity production in BoE equivalents should be converted from million tonnes as usually reported and exclude sales of 3rd party LNG. % of 2014 total hydrocarbon production We do not measure or track the share of LNG production in total upstream oil and gas equity production Not applicable. Please provide explanations in the comment box below. Encana's LNG production for 2014 was less than 1% of total production. * Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas Information Disclosure Protocols 1.8 Payment Transparency Despite the fact that some of the poorest countries own substantial amounts of the world's resources, citizens often do not benefit from the royalties and taxes collected by their governments. In order to make governments accountable for the use of these funds it is critical to inform the public on the revenues governments receive from companies. By reporting transparently on the royalties and taxes paid to the governments, companies will avoid being accused of collaborating with governments. RobecoSAM's questions focus on whether the companies endorse the 'Extractive Industries Transparency Initiatives' which requires companies to report on the royalties and taxes they pay to governments Public Endorsement Does your company publicly endorse the "Extractive Industries Transparency Initiative (EITI)" (or a similar initiative)? If your company does not generate any revenues from extractive industries, please mark "Not applicable" and provide explanations in the comment box. Please provide the weblink to the EITI (or similar initiative) website where your company's name is indicated: Please provide a weblink to your own website (or annual report) that publicly communicates and explains the rationale for endorsing the aforementioned organization: We are an extractions company but have not publicly endorsed the EITI 40 of 144, Copyright RobecoSAM AG,

40 Information on Encana's income tax expense can be found in Note 7 of the Notes to Consolidated Financial Statements (in the Document Library, see Annual Report 2014, pg ). Encana's 2014 production is disclosed on a before-royalties and after-royalties basis in the company's Annual Information Form (in the Document Library, see Annual Information Form, March 3, 2015, appendix pages A18 and D11) Reporting of Payments If your company is supporting EITI or a similar initative, i.e. if you answered 'yes' in the previous question, please indicate the extent to which payments are disclosed for different countries. If your company does not generate any revenues from extractive industries, please mark "Not applicable" and provide explanations in the comment box. Please indicate the page on your website (or annual report) where detailed information on payments to countries where you have extractive operations can be found: In the Document Library, see Annual Report 2014, pages Please indicate in the table below to what extent payments are disclosed in different countries your company operates in. The total number provided in the first row should be a sum of the figures provided in the remanining rows. Type of country Please indicate the number of ALL countries (including non-eiti) in which you have extractive operations Please indicate the number of ALL countries (including non-eiti) in which you have extractive operations for which you publish what you pay on your website or in your annual report Please indicate the number of ALL countries in which you have extractive operations, for which the country DOES NOT authorize you to publish what you pay Please indicate the number of ALL countries in which you have extractive operations, for which the country DOES authorize you to publish what you pay but you do not We do not disclose any such payments Number of countries 41 of 144, Copyright RobecoSAM AG,

41 2 Environmental Dimension 2.1 Environmental Reporting Environmental performance is becoming a material issue in all indsutries. Maintaining transparency through appropriate reporting, and monitoring it at board level, increases the trust of stakeholders and customers and positively influences the company's reputation and brand equity. While disclosure levels are increasing, quality of reporting varies significantly. RobecoSAM's questions focus on the relevance, scope and timeliness of the information contained in environmental reports, as well as external quality guarantees based on internationally acknowledged reporting standards Environmental Reporting - Materiality Please indicate if your company is publically reporting on the following aspects and attach supporting documents or weblinks. Materiality framework Is your company publically reporting on the processes and tools used to identify and prioritize critical environmental issues within the sustainability strategy, including a consideration of impact on the company s business performance (i.e. materiality analysis/matrix, portfolio matrix/analysis, company s definition of materiality, description of the analytical framework)? We report on this in the Corporate Sustainability report. Please provide supporting document or weblinks and indicate page: The 2014 Sustainability Report is based on our most material issues as determined by our materiality assessment. The process used for determining materiality in described in the Determining What Matters section of the report (pg. 4). We report on this in the main part of the Annual Report or equivalent financial reports (i.e. not in a separate CSR section of the Annual Report). Please provide supporting document or weblinks and indicate page: Top 3 Material Issues In order of importance, please select from the list below up to three environmental issues that have been identified in your public reporting as the most material for your company from a business and/or investors perspective. Please explain how these relate to your business activities and why they are considered material 42 of 144, Copyright RobecoSAM AG,

42 in terms of business impact(s). The drop down menu include a selected list of possible general issues that apply across industries. To indicate more specific (including industry-specific) issues, please select the option 'Other Issue' and provide details on what this entail in the comment box below. Please note that if you have identified less than three environmental issues to be material for your business, select 'Not Applicable' in the drop down menu and explain this in the the comment box below. For each issue indicated as material, a link to your public report where this is disclosed needs to be provided. First material issue: Operational Eco-Efficiency Not applicable Other Issue SCM Environmental Issues Environmental Product Innovation Issue not known Climate Strategy Product Stewardship If other, please specify: Water Management Business case for first material issue: Water is critical to our operations. Effective management of water sourcing, use, and disposal is essential to the successful execution of our business strategy. Please provide supporting public evidence (including page number): Second material issue: Operational Eco-Efficiency Issue not known Not applicable SCM Environmental Issues Environmental Product Innovation Climate Strategy Other Issue Product Stewardship If other, please specify: Managing and reporting our greenhouse gas (GHG) and other air emissions is an important part of our approach to responsible development. As concerns related to the pace of domestic energy production grow, it is critically important that we continue to refine our understanding of air emissions and limit them to the extent practicable. Business case for second material issue: Please provide supporting public evidence (including page number): Third material issue: Operational Eco-Efficiency Issue not known Not applicable 43 of 144, Copyright RobecoSAM AG,

43 Other Issue Product Stewardship Environmental Product Innovation Climate Strategy SCM Environmental Issues If other, please specify: Business case for third material issue: Please provide supporting public evidence (including page number): Example of cost-saving Is your company publically reporting on one or more concrete examples of how environmental initiatives have led to cost savings? Please indicate, if possible, both qualitative and quantitative examples. We report on this in the Corporate Sustainability report. Please provide supporting document or weblinks and indicate page: We report on this in the main part of the Annual Report or equivalent financial reports (i.e. not in a separate CSR section of the Annual Report). Please provide supporting document or weblinks and indicate page: Example of revenue generation Is your company publically reporting on one or more concrete examples of how environmental initiatives have generated additional revenues? Please indicate, if possible, both qualitative and quantitative examples. We report on this in the Corporate Sustainability report. Please provide supporting document or weblinks and indicate page: We report on this in the main part of the Annual Report or equivalent financial reports (i.e. not in a separate CSR section of the Annual Report). Please provide supporting document or weblinks and indicate page: No such reporting publically available DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 4) Environmental Reporting - Coverage 44 of 144, Copyright RobecoSAM AG,

44 Is the coverage of your company s publically available environmental reporting clearly indicated in the report or in the online domain? Please select the coverage of the company's publicly available environmental indicators from the dropdown list below (select ONLY if the coverage is the same for all environmental indicators your company reports on): 25-50% of revenues OR 25-50% of business operations >75% of revenues OR >75% of business operations <25% of revenues OR <25% of business operations 50-75% of revenues OR 50-75% of business operations Please indicate the weblink and the page number where the coverage for all environmental indicators is indicated (in the public domain): In Document Library, see draft 2014 Sustainability Report, pages We report on environmental issues, but only provide coverage for some environmental data / indicators in our public reporting. Please specify for the three environmental indicators where you have the highest available coverage (select ONLY if you report coverage for individual indicators but not for the full report): Environmental Indicator, please specify: Coverage of Indicator (% of revenues or business operations): Please indicate the weblink and page number where the coverage for the environmental indicator is publically reported: We report on environmental issues, but do not clearly indicate the coverage of the data in our public reporting We do not report on environmental issues Environmental Reporting - Assurance 45 of 144, Copyright RobecoSAM AG,

45 Please indicate below what type of external assurance your company has received in relation to your company's environmental reporting. Please attach a supporting reference, indicating where the assurance statement is available in the public domain. The assurance statement is an External Audit or External Assurance produced by assurance specialists (e.g. accountants, certification bodies, specialist consultancies) The assurance statement contains a declaration of independence which specifies that the assurance provider has no conflict of interest in relation to providing the assurance of environmental data for the company which has been assured The assurance statement is based on a recognized international or national standard (e.g. AA1000AS, ISAE 3000) The scope of the assurance statement is clearly indicated in the assurance statement. If the assurance statement only covers some KPIs (but not all) it is clearly indicated which data / KPIs disclosed in the report have been assured (e.g. each KPI assured is marked with an assurance symbol / flag) The assurance statement contains a conclusion, i.e. either reasonable assurance or limited assurance We do not have any external assurance on our environmental reporting 2014 Deloitte Assurance Report, 2014 Encana Assurance Report.pdf (Pages: 1) Environmental Reporting - Quantitative Data Please indicate below to what extent your company is reporting on environmental Key Performance Indicators (KPIs) as well as targets for such indicators. For the three most material environmental issues identified in question 2.1.1, please indicate one KPI that is used to measure your company s progress and communicated externally. If multiple indicators are reported for one material issue, you may provide these. If no material issues have been identified, you may provide KPIs for other environmental issues that you report on. Please provide a link to where this information is disclosed (in either Sustainability Report, Annual Report or on you company's website). If you have identified less than three environmental issues to be material for your business, then also select 'Not Applicable' for those options here and explain this in the comment box: 46 of 144, Copyright RobecoSAM AG,

46 Key Performance Indicator, please specify the KPI and the material environmental issue it is linked to: Water Management Please attach the public reference together with the page number where the environmental indicator is publically reported: Climate Strategy Please attach the public reference together with the page number where the environmental indicator is publically reported: Operational Efficiency Please attach the public reference together with the page number where the environmental indicator is publically reported: For the three most material environmental issues identified in question 2.1.1, please indicate whether your company has any externally communicated targets. If multiple targets are reported for the same material issues, you may provide these. Please provide a link to where this information is disclosed (in either Sustainability Report, Annual Report or on your company's website). If you have identified less than three environmental issues to be material for your business, then also select 'Not Applicable' for those options here and explain this in the comment box: Target for Key Performance Indicator, please specify the target, target year and the material environmental issue it is linked to: Please indicate the target of your environmental KPI: What is the target year for this target to be reached: Please attach the public reference together with the page number where the target of the environmental indicator is publically reported: Please indicate the target of your environmental KPI: What is the target year for this target to be reached: Please attach the public reference together with the page number where the target of the environmental indicator is publically reported: 47 of 144, Copyright RobecoSAM AG,

47 Target for Key Performance Indicator, please specify the target, target year and the material environmental issue it is linked to: Please indicate the target of your environmental KPI: What is the target year for this target to be reached: Please indicate the weblink and page number where the target of the environmental indicator is publically reported: We do not quantitatively report on our most material environmental issues OR we do not report on environmental issues DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 29) See AIR metrics DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 29-30) See AIR and ENERGY INNOVATION metrics DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 30) See WATER USE metrics 2.2 Environmental Policy/Management System Environmental Management System (EMS) refers to the management of an organization's environmental programs in a comprehensive, systematic, planned and documented manner. It includes the organizational structure, planning and resources to develop them, and the procedure for the implementation and management of the company's policy on environmental resource management. Companies that have adopted an EMS as a management tool are more likely to improve their environmental performance in a cost-effective way and to reduce the risk of incurring fines or penalties for not complying with environmental legislation Coverage of Corporate Requirements / Guidelines Is your company's environmental management policy publicly available? If so, please indicate which of the following options are covered by your policy and indicate and provide supporting references to where this is clearly stated in the public domain. All chosen options should be clearly defined in the publicly available policy. 48 of 144, Copyright RobecoSAM AG,

48 Yes, our environmental management policy is publicly available and includes the following items: Production operations / business facilities Selection / on-going evaluation of suppliers / service providers and contractors Development of new products and services Product distribution / logistics Management of waste Engineering / maintenance New projects Non-managed operations / licensees / third-party manufacturers / JV partners / outsourcing partners / contractors Due-diligence, mergers and acquisitions Other, please specify: No, we do not have an environmental policy publically available Environment Policy, Encana Environment Policy May 2013.pdf (Pages: 1) EMS: Certification / Audit / Verification Please indicate how your Environmental Management System (EMS) is verified/audited/certified. Please also indicate the coverage of this verification for the selected standard; please note that the total coverage for all three alternatives should not exceed 100 % - if parts of the operations have multiple types of certification / verification, indicate the highest available one only. Please indicate what the coverage figures below are based on (e.g. % of operations, revenues, employees, etc.): Operations Our EMS is verified through international standards (e.g. ISO JIS Q 14001, EMAS certification). Please specify and attach relevant examples of ceritification documents: To support the integrity of our audit systems, a third-party review of the Ethos Audit Program was conducted in The review, carried out by Deloitte, assessed the design of the Ethos Audit Program against ISO criteria and industry best practices. The Ethos Audit Program was found to be in strong alignment with ISO Coverage (%): 49 of 144, Copyright RobecoSAM AG,

49 Third party verification/audit/certification by specialized companies. Please specify and attach relevant examples of external verification documents: Coverage (%): Verification/audit/certification by company-own specialists from headquarters. Please specify: We conduct four internal EH&S management system audits each year. Additional inspections and verification activities exist to support our operations in ensuring compliance. Coverage (%): 50 Not verified/audited/certified Ethos program, ethos-overview.pdf (Pages: all) Return on Environmental Investments Do your environmental management systems (EMS) or other reporting capabilities allow you to track financial data related to environmental projects and programs at the corporate level for the entire enterprise or for any portion of your business? Please see the information section for important definitions. Yes, our EMS allows us to track capital investments, expenses, cost savings and avoidance from environmental investments for all or a part of our business. If reporting for the entire group, please enter 100% for the % of operations covered below. If reporting covers only a portion of the group s activities, please enter the % covered and indicate the basis for the calculation that is most relevant to your company (revenue, volume, employees, etc.). If this information is publicly reported, please provide supporting evidence or indicate weblink below. Please indicate currency used in the table: Capital Investments FY 2011 FY 2012 FY 2013 FY 2014 Operating Expenses 50 of 144, Copyright RobecoSAM AG,

50 Please indicate currency used in the table: Total Expenditures Savings, cost avoidance, income, tax incentives, etc. % of operations covered. Please indicate the basis for the coverage (revenue, production volume, employees, etc.): FY 2011 FY 2012 FY 2013 FY 2014 We track this type of information but are not able to report it in this format. Please briefly but comprehensively explain or demonstrate your approach. Please include such aspects as what types of investments are evaluated, responsible parties, and which metrics are used to approve and measure outcomes etc. Please attach public reference documents or weblinks if available. No, we do not track this type of information No references attached Environmental Violations Has your company violated any legal obligations or regulations and/or had fines or penalties related to the environment or ecology in the past four fiscal years? Please see the information button for important definitions. Yes, our company has violated legal obligations or regulations related to the environment or ecological issues in the last four fiscal years. Please indicate the corresponding figures in the table below for each of the four years and attach supporting evidence or weblink if these figures are publicly reported. Please note that if 51 of 144, Copyright RobecoSAM AG,

51 you did not have any violations, fines or accrued liability in an individual year, 0 should be indicated in the corresponding box in the table. Number of violations of legal obligations/ regulations Amount of fines/ penalties related to the above Environmental liability accrued at year end FY 2011 FY 2012 FY 2013 FY Monetary Units Monetary Units Monetary Units No, we have not violated any legal obligations/regulations related to the environment or ecological issues DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 30) See ENVIRONMENTAL FINES metrics Public availability of EIA / SIA results Is a formal system in place for ensuring that Environmental Impact Assessment/Social Impact Assessment recommendations are implemented, followed up on and reported on? If yes, please indicate what parties have access to the results of Environmental/Social Impact Assessments (EIAs/SIAs). Please attach supporting documents or provide a link to where this information can be found online. Accessible by affected parties/communities Available for interested parties. Please specify: Available on public company website. Please indicate: There is no formal system in place for ensuring that Environmental Impact Assessment/Social Impact Assessment recommendations are implemented, followed up on and reported on Not applicable. Please provide explanations in the comment box below. 52 of 144, Copyright RobecoSAM AG,

52 An EIA/SIA would be available to interested parties as per the application package through the regulator. No references attached MSA Environmental Management In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 2.3 Operational Eco-Efficiency Reducing the overall environmental footprint of companies in both the manufacturing and services sectors is crucial, as the risks of financial and reputational costs linked to environmental litigation increase. Producing more with less material is essential for many industries affected by the growing scarcity of natural resources. The financial industry has an important role to play in minimizing their environmental footprint and facilitating the transition to a low-carbon economy. For all industries, minimizing the consumption of natural resources and waste-generating activities can lead to lower costs and in some cases, new business opportunities. The key focus of this criterion is on the inputs and outputs of business operations. It assesses trends in the consumption of natural resources and the production of environmental waste products specific to each industry Denominator - Mmboe Please provide your company's total annual production volume for each financial year listed in the table below. Total annual production volume should include upstream production + (for companies with downstream operations) refining intake + natural gas processed in downstream operations. Please indicate this in million barrels of oil equivalents (mmboe). These figures are required by RobecoSAM to normalize quantitative data provided in other questions and criteria (e.g. Operational Eco-Efficiency). Please ensure that the figures provided in this question are consistent over four years as well as consistent with emission figures provided in the following questions. 53 of 144, Copyright RobecoSAM AG,

53 Denominator Unit of analysis Financial Year 2011 Annual production Financial Year 2012 Financial Year 2013 Financial Year 2014 mmboe 284 Mio. BOE 251 Mio. BOE 249 Mio. BOE 252 Mio. BOE Not applicable, please provide explanations in the comment box below. Encana uses cubic metres of oil equivalent as the unit of measure for reporting production. Conversion from cubic metres to mmboe was performed using a conversion factor of boe per cubic metre EP - Direct Greenhouse Gas Emissions (Scope 1) Please provide your company's total direct greenhouse gas emissions (DGHG SCOPE 1) for the part of your company's operations for which you have a reliable and auditable data acquisition and aggregation system. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. Direct GHG (Scope 1) Total direct GHG emissions (Scope 1) Data coverage (as % of denominator) Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? metric tonnes CO2 equivalents percentage of: Total corporate emissions consolidated using data from our Canadian and US operating areas. THIRD-PARTY VERIFICATION met. ton. CO2e met. ton. CO2e met. ton. CO2e met. ton. CO2e The above data has been verified by the following organization at least for the last fiscal year when data was collected: Deloitte DATA CONSISTENCY 54 of 144, Copyright RobecoSAM AG,

54 We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: Our 2013 direct CO2e value was retroactively revised in 2014 to reflect more accurate information for our U.S. assets resulting from ongoing refinements to our air emissions calculation methodologies, including refinements to our equipment inventory based on more accurate counts and reconciliations, improved analyses of methodologies and improved data QAQC processes. We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We only report combined on Scope 1 & Scope 2 emissions. Please provide the combined figures in the table above and mark "Not Applicable" in the next question (EP - Indirect Greenhouse Gas Emissions (Scope 2)). We do not track direct greenhouse gas emissions (Scope 1) EP - Indirect Greenhouse Gas Emissions (Scope 2) Please provide your company's indirect greenhouse gas emissions from energy purchased (purchased and consumed, i.e. without energy trading) (IGHG SCOPE 2) for the part of your company's operations for which you have a reliable and auditable data acquisition and aggregation system. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. 55 of 144, Copyright RobecoSAM AG,

55 IGHG SCOPE 2 Indirect greenhouse gas emissions from energy purchased and consumed (scope 2) Data coverage (as % of denominator) Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? metric tonnes of CO2 equivalents percentage of: Total corporate emissions as calculated using companywide purchased electricity consumption. THIRD-PARTY VERIFICATION met. ton. CO2e met. ton. CO2e met. ton. CO2e met. ton. CO2e The above data has been verified by the following organization at least for the last fiscal year when data was collected: DATA CONSISTENCY We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We measure our indirect greenhouse gas emissions according to the location-based method instead of the market-based method (see the information button for further details). We do not track indirect greenhouse gas emissions Scope 2 emissions include emissions from purchased electricity but do not include emissions from offices or fleet vehicles. 56 of 144, Copyright RobecoSAM AG,

56 2.3.4 EP - Energy Consumption Please complete the following table about total energy consumption. For each row in the table, it is mandatory that the values provided are in the same unit. Please see the Information Button for definitions of the cost options. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. Total energy consumption Total energy consumption Total costs of energy consumption Please select type of costs Costs Costs, net of income Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? MWh MWh Currency: MWh MWh MWh Costs and depreciation, net of income Data coverage (as % of denominator) percentage of: Companywide energy consumption THIRD-PARTY VERIFICATION The above data has been verified by the following organization at least for the last fiscal year when data was collected: DATA CONSISTENCY We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: 57 of 144, Copyright RobecoSAM AG,

57 We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We do not track energy consumption Energy consumed is comprised of fuel and electricity. Values prior to 2012 represent Canadian operations only. We are unable to provide total costs of energy consumption at this time EP - Electricity Purchased Please provide your company's electrical energy purchased (purchased and consumed, i.e. without energy trading) for the part of your company's operations for which you have a reliable and auditable data acquisition and aggregation system. In case you are reporting total consumption, indicate this in the comment box. Please refer to the information button for additional information. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. Electricity purchased Electricity purchased Data coverag e (as % of denominator) Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? megawatt hours (MWh) percentage of: Companywide purchased electricity THIRD-PARTY VERIFICATION MWh MWh MWh MWh The above data has been verified by the following organization at least for the last fiscal year when data was collected: DATA CONSISTENCY We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: 58 of 144, Copyright RobecoSAM AG,

58 We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We do not track purchased electricity EP - Water Withdrawal Please provide your company s total water withdrawal (GRI EN8) including a breakdown of the three subitems (salt/brackish water, municipal water, water from other sources), as well as the amount of water discharged at equivalent quality as the raw water extracted. Please refer to the information button for additional information. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. Water Consumption Total Water Withdrawal (GRI EN8, process and cooling water) (i.e. sum of 3 subitems below) > Subitem: Total salt / brackish water withdrawn Unit Million cubic meters Million cubic meters Financial Year 2011 Financial Year 2012 Financial Year 2013 Financial Year 2014 Please indicate what was your target for the FY Mio. m³ 6.67 Mio. m³ Mio. m³ Mio. m³ Mio. m³ Mio. m³ 59 of 144, Copyright RobecoSAM AG,

59 Water Consumption > Subitem: Total municipal water supplies (or from other water utilities) > Subitem: Total water from all other sources Water returned to the source of extraction at similar or higher quality as raw water extracted Data Coverage (as % of denominator) Unit Million cubic meters Million cubic meters Million cubic meters percentage of THIRD PARTY VERIFICATION Financial Year 2011 Financial Year 2012 Financial Year 2013 Financial Year Mio. m³ Mio. m³ Mio. m³ 5.46 Mio. m³ 6.90 Mio. m³ Mio. m³ Please indicate what was your target for the FY 2014 The above data has been verified by the following organization at least for the last fiscal year when data was collected: DATA CONSISTENCY We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: Encana reports its total water use in other publicly available documents. Encana defines 'total water use' as the sum of 'total fresh water use' and 'total alternative water use'. Alternative water includes water that is recycled and reused as part of our operations. The data included in this report is representative of Encana's calculated 'total water withdrawal', which does not include reused/recycled water data. We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We do not track water withdrawal 60 of 144, Copyright RobecoSAM AG,

60 Encana continues to improve processes and systems for tracking water use. Water use includes water used in drilling, completions, production, facilities, geophysics, road & lease construction, camps, and pipelines (hydrostatic testing). Since 2010, the Company has implemented corporate guidance around water tracking and reporting as part of its EH&S management system, Ethos. The guidance incorporated international reporting standards and industry best practices (Global Reporting Initiative G3 Guidance, IPIECA, The Canadian Association of Petroleum Producers Responsible Canadian Energy Water Management Practice and the Carbon Disclosure Water Project). The guidance sets company standards for collecting and maintaining water data, promotes the efficient use of surface and ground water, promotes the use of non-utilized water such as deep saline ground water and recycled water and encourages watershed planning in project development. As a result of this ongoing effort, Encana is improving its ability to report water usage across its operations, as processes and systems are implemented and improved. Please note, the 'total municipal water supplies' metric is for Canada only EP - Waste Generation Please provide your company's total waste generated (not reused or recycled) for the part of your company's operations for which you have a reliable and auditable data acquisition and aggregation system. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. Waste generation Total waste generated Data coverag e (as % of denominator) Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? metric tonnes THIRD-PARTY VERIFICATION percentage of: The above data has been verified by the following organization at least for the last fiscal year when data was collected: DATA CONSISTENCY 61 of 144, Copyright RobecoSAM AG,

61 We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. The data reported in the table above is NOT consistent with the definition provided by RobecoSAM (see information button for more detailed information) We do not track generated waste Not applicable. Please provide explanations in the comment box below. Encana is currently working on developing a system and methodology to consistently track and report waste EP - NOx Emissions Please provide your company's direct NOx emissions for the part of your company's operations for which you have a reliable and auditable data acquisition and aggregation system. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. Direct NOx emissions Direct NOx emissions Data coverag e (as % of denominator) Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? metric tonnes percentage of: Total companywide NOx emissions THIRD-PARTY VERIFICATION met. ton met. ton met. ton met. ton. The above data has been verified by the following organization at least for the last fiscal year when data was collected: 62 of 144, Copyright RobecoSAM AG,

62 DATA CONSISTENCY We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: Our 2013 NOx value was retroactively revised in 2014 to reflect more accurate information resulting from ongoing refinements to our air emissions and related metrics calculation methodologies that include refinements to our equipment inventory based on more accurate counts and reconciliations, improved analyses of methodologies and improved data QAQC processes. We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We do not track NOx emissions EP - SOx Emissions Please provide your company's direct SOx emissions for the part of your company's operations for which you have a reliable and auditable data acquisition and aggregation system. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. Direct SOx emissions Direct SOx emissions Data coverag e (as % of denominator) Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? metric tonnes percentage of: Total companywide SOx emissions 2751 met. ton met. ton met. ton met. ton of 144, Copyright RobecoSAM AG,

63 THIRD-PARTY VERIFICATION The above data has been verified by the following organization at least for the last fiscal year when data was collected: DATA CONSISTENCY We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We do not track direct SOx emissions The increase in our 2014 SO2 emissions is due to increased flaring of acid gas as a result of significantly increased production at Deep Panuke in in our Canadian operations, and to the addition of sour wells and associated equipment that were brought on-line in our U.S. operations in EP - Methane Emissions Please provide your company's direct Methane (CH4) emissions for the part of your company's operations for which you have a reliable and auditable data acquisition and aggregation system. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. CH4 Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? Direct CH4 emissions metric tonnes met. ton met. ton met. ton met. ton. 64 of 144, Copyright RobecoSAM AG,

64 CH4 Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? Data coverage (as % of denominator) percentage of: Companywide methane emissions THIRD-PARTY VERIFICATION The above data has been verified by the following organization at least for the last fiscal year when data was collected: DATA CONSISTENCY We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We do not track Methane (CH4) emissions EP - Volatile Organic Compounds Emissions Please provide your company's direct Volatile Organic Compounds (VOC) emissions for the part of your company's operations for which you have a reliable and auditable data acquisition and aggregation system. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that the coverage in the table below is based on the same denominator. 65 of 144, Copyright RobecoSAM AG,

65 Direct VOC emissions Direct VOC emissions Data coverage (as % of denominator) Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? metric tonnes percentage of: Total companywide VOC emissions THIRD-PARTY VERIFICATION 3754 met. ton met. ton met. ton met. ton The above data has been verified by the following organization at least for the last fiscal year when data was collected: DATA CONSISTENCY We report publically on this information, but the data in the table above differs from our publically reported figures. Please provide an explanation in the comment box for this difference: We have a temporary coverage reduction or target challenge due to corporate actions. Please briefly explain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to report optimal coverage or caused your target to appear abnormal: We are not able to report this information in absolute terms, the information provided in the table above is normalized data. For the purpose of this question, please always provide absolute figures if available. We do not track Volatile Organic Compounds (VOC) emissions The direct VOC emission value above reflects Encana's Canadian operations only. Our USA operations calculate and track VOC emissions data as required by state or local regulations, however, these data have not been included in this year's survey as reporting timing constraints prevented sufficient review of the data to include in this report. 2.4 Biodiversity Extractive industries and companies producing basic materials operate in areas where biodiversity is often rich or sensitive, but can be negatively impacted by their operations. If not managed properly, the impact on reputation 66 of 144, Copyright RobecoSAM AG,

66 and cash flow can be substantial and even threaten the license to operate. This also applies to a smaller extent to utilities and companies involved in large infrastructure or construction projects. The key focus of the criterion is to check whether companies are aware of their biodiversity related risks, whether they include stakeholders in the development and implementation of their biodiversity strategy and whether the implementation is included in an internal or external assurance process Approach Towards Biodiversity: Policy / Strategy Please indicate the strategy / policy your company has implemented with regards to biodiversity. If not stated otherwise, tick only if the statement is true for at least half of the sites owned or operated by your company. Please attach supporting documents. BIODIVERSITY STRATEGY/POLICY Business case for biodiversity developed, i.e. a line of argument on how biodiversity issues impact the financial bottom line (company performance) has been established Exposure to biodiversity related risks is known and these risks have been assessed at 100 % of sites owned or operated by our company and b iodiversity management plans have been implemented at 100 % of sites owned or operated by our company classified by the company as being exposed to biodiversity related risks Local stakeholders such as local communities or conservation organizations are involved in developing the company's site-specific biodiversity strategy Biodiversity base line surveys and protection measures are fully incorporated into the management and operating procedures for the exploration and site development & construction phase The company has a commitment not to operate/explore/mine/drill in World Heritage areas and IUCN Category I-IV protected areas The company ensures that its activities will not lead to the extinction of IUCN listed endangered species The company is aiming at a net positive impact on biodiversity Biodiversity related liabilities are adequately addressed when it comes to sale or closure of operating sites Risks from indirect impacts on biodiversity are (in many cases together with local governments and other third parties) addressed before starting new or changing existing operations None of the above statement is true for at least half of the sites (owned or operated) of our company Not applicable; we do not have any exposure to biodiversity related risks or opportunities. Please provide explanations in the comment box below. Encana's business policies and practices require conformance with Environment, Health & Safety (EH&S) guidelines, means to ensure respect for stakeholders and require compliance with applicable laws and appropriate industry standards. These expectations are met through documented practices for environmental 67 of 144, Copyright RobecoSAM AG,

67 protection, worker safety, security, health, regulatory permitting/approvals, inspections and audits which include biodiversity. Minimizing our impact to wildlife and habitat is not only regulated by law, but is an important consideration as we strive to conduct our business responsibly. We actively manage our development schedules and operational footprint to account for a wide range of wildlife and habitat pressures. In order to identify site-specific wildlife and habitat issues and minimize disturbance, we conduct environmental and wildlife assessments as part of the project planning process and continuously monitor our performance throughout the life cycle of our operations. All EH&S risks, including risks associated with biodiversity, must be identified and managed. Risk identification includes evaluating and prioritizing risks with the help of Encana s EH&S risk matrix and then eliminating or controlling the risks and communicating the methods for controlling the risks to those involved. We have implemented Wildlife and Habitat Practices that include comprehensive programs to identify, mitigate and monitor our potential impacts to wetlands, wildlife and wildlife habitat through the use of baseline assessments and environmental inspections. Corporate Responsibility Policy, Responsibility Policy March 2013.pdf (Pages: 1) Environment Policy, EnvironmentPolicy.pdf (Pages: All) - Ethos Overview, Ethos overview.pdf (Pages: All) - Ethos-Environmental Stewardship Standard, Ethos- EnvironmentalStewardship[standard].pdf (Pages: All) - Ethos-Verification and Audit Standard, Ethos-VerficationandAudit[standard].pdf (Pages: All) Approach Towards Biodiversity: Assurance Please indicate the assurance processes your company has implemented with regards to biodiversity. If not stated otherwise, tick only if the statement is true for at least half of the sites owned or operated by your company. Please attach supporting documents. ASSURANCE Biodiversity management (including all of risk evaluation, site selection, impact assessment, management and monitoring) implementation is included in internal or external assurance process Operations owned or operated by our company are assessed for their impact on biodiversity every time an event such as permit change or expansion project warrants a review of the operations' impact on biodiversity Stakeholders at the local level are involved in monitoring the business' significant risks/impacts on biodiversity The company tries to make sure that Joint Ventures implement the company's biodiversity management approach as a minimum standard None of the above statement is true for at least half of the sites (owned or operated) of our company 68 of 144, Copyright RobecoSAM AG,

68 Not applicable; we do not have any exposure to biodiversity related risks or opportunities. Please provide explanations in the comment box below. Corporate Responsibility Policy, Responsibility Policy March 2013.pdf (Pages: 1) Environment Policy, EnvironmentPolicy.pdf (Pages: All) - Ethos Overview, Ethos overview.pdf (Pages: All) - Ethos-Environmental Stewardship Standard, Ethos- EnvironmentalStewardship[standard].pdf (Pages: All) - Ethos-Verification and Audit Standard, Ethos-VerficationandAudit[standard].pdf (Pages: All) Approach Towards Biodiversity: Reporting Please indicate the level of reporting your company is doing with regards to biodiversity. Mark the option only if the statement is true for at least half of the sites owned or operated by your company. Please provide a web link indicating where the information can be found. REPORTING The company publicly reports on its biodiversity strategy, its biodiversity targets and its achievements with respect to these targets. Please indicate where this information is available: Material biodiversity risks are publicly reported. Please indicate where this information is available: All material risks, including those related to biodiversity (if any), are reported in the MD&A section of our Annual Report In the Document Library, see the draft 2014 Sustainability Report for further information on our management approach to wildlife and habitat. None of the above statements are true for at least half of the sites owned or operated by our company Not applicable; we do not have any exposure to biodiversity related risks or opportunities. Please provide explanations in the comment box below. 69 of 144, Copyright RobecoSAM AG,

69 2.4.4 Responsibility Is a formal system in place ensuring that recommendations derived from biodiversity impact assessments are implemented and followed up during project construction and operation? If so, who is accountable for implementation and follow-up within your organization? Yes, a formal system is in place and the accountable persons for implementation/follow-up are: Encana has a comprehensive Environment, Health & Safety Management System (Ethos) that outlines accountability for assessments. No formal system in place Our EH&S Management System (Ethos) applies to all company locations, activities, processes, products and services. Ethos practices outline specific performance measures that are included on internal scorecards. This provides a strong link between performance and compensation Environmental and Social Impact Assessments Does your company conduct environmental impact assessments (EIAs) and/or social impact assessments (SIAs) for new operations or extensions of existing operations when such studies are NOT required by local legislation? Yes, EIA and SIA conducted Yes, EIA conducted Yes, SIA conducted No, EIAs and/or SIAs not conducted if not required by law Not applicable. EIAs and/or SIAs are required by law at all sites where operate. Please provide explanations in the comment box below. Environmental assessments are conducted internally as part of the project planning process. A formal EIA/ SIA is conducted when conditions warrant or as required by legislation. If the site for a proposed project is in an area deemed unique and sensitive, a site-specific environmental impact assessment is conducted to minimize disturbance and avoid ecologically sensitive areas. 70 of 144, Copyright RobecoSAM AG,

70 2.4.6 Public Availability of Results Are the results of EIAs and/or SIAs made publicly available? Please provide supporting documents and/or indicate website. Yes, both EIA and SIA results are publicly available. Please specify: Yes, EIA results are publicly available. Please specify: Yes, SIA results are publicly available. Please specify: No, the results of these assessments are not made publicly available Environmental and social impact assessments are one way in which Encana is able to ensure that it is operating in a transparent manner, in line with the industry-leading standards outlined in the practices listed above. Encana believes that its engagement efforts are industry leading and these efforts have been very well received by stakeholders. Encana utilizes open houses, community newsletters and other communications opportunities to present the findings to stakeholders and to solicit feedback on these efforts. In 2014, Encana did not conduct any EIAs or SIAs. No references attached MSA Biodiversity In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 71 of 144, Copyright RobecoSAM AG,

71 2.5 Climate Strategy Most industries are likely to be impacted by climate change, albeit to a varying degree; consequently, they face a need to design strategies which are commensurate to the scale of the challenge for their industry. While most focus on the risks associated with a changing climate, some seek to identify and seize the business opportunities linked to this global challenge. The questions in this criterion have been developed in alignment with the Carbon Disclosure Project (CDP) methodology as part of a collaboration between RobecoSAM and CDP ( Climate Strategy - CDP Alignment The following questions were developed in alignment with the Carbon Disclosure Project (CDP) methodology as part of a collaboration between RobecoSAM and CDP. If you have submitted a response to CDP for the most recent reporting year, please indicate this here and attach your CDP questionnaire. Please ensure that the responses provided to the following questions are aligned with your responses to the CDP questionnaire. Please note that this is for alignment purposes only and that this question will not be scored, hence the questions can be answered regardless of whether or not your company provides a submission to CDP. Please note that the questions are based on the CDP framework, but not go into the same level of detail and do not cover all CDP questions. In addition, some aspects of the criterion are based on the RobecoSAM methodology. This means that we ask you to answer the questions asked in the questionnaire and that the CDP submission can be used as a basis for this, but that we do not require all the comments and details which were provided to CDP. We have submitted a CDP response for the most recent reporting year We have not submitted a CDP response for the most recent reporting year Our 2015 CDP Survey response (for 2014 calendar year reporting) is still in process at the time of this DJSI response. Responses to questions in this section will be based on our 2014 CDP Survey response. Carbon Disclosure 2013 Submission, CDP 2013 Questionaire (final).doc (Pages: all) Climate Change Governance Where is the highest level of direct responsibility for climate change within your company? Individual / sub-set of the board of directors or other committee appointed by the board 72 of 144, Copyright RobecoSAM AG,

72 Senior manager / officer, i.e. the highest person in the organization with direct responsibility for climate change is on the senior management team, but not on the board Other manager/ officer No individual or committee with overall responsibility for climate change Climate change and greenhouse gas emissions issues are managed across Encana. At the Board of Directors level, matters relating to climate change and greenhouse gas emissions are overseen and reviewed by the Corporate Responsibility, Environment, Health & Safety (CREHS) Committee. The CREHS Committee is appointed by the Board of Directors to assist the board in fulfilling its role in oversight and governance. The CREHS Committee meetings are attended by the 5 board committee members as well as Encana s CEO, USA Division President, Canadian Division President and Executive Vice-President, Corporate Development, EH&S and Reserves. The CREHS Committee's primary duties and responsibilities are to: Review, report on and make recommendations to the Board on Encana's policies, standards and practices with respect to corporate responsibility including: o Environment o Occupational health o Safety o Security o Overall business conduct and ethics. As part of the CREHS Committee mandate, the committee reviews and recommends to the board for approval the committee mandate and fundamental policies pertaining to corporate responsibility, environment, health, safety, security and overall business conduct and ethics. The CREHS Committee reviews: annual corporate responsibility performance environment, occupational health, safety, security, business conduct or ethics issues, trends and events that could impact Encana, and its people or programs; action and initiatives undertaken to mitigate corporate responsibility risk and/or matters having the potential to affect Encana's activities, plans, strategies or reputation Corporate Environment, Health and safety performance quarterly compliance with the Business Conduct & Ethics Practice significant related contraventions of regulations or policies At a senior management level operational issues resulting from climate change policy and/or legislation are the responsibility of Executive Vice-President, Chief Operating Officer. The Chief Financial Officer must also conduct and communicate consolidated quarterly and annual risk reports that identify the principal risks (including 73 of 144, Copyright RobecoSAM AG,

73 climate change) to the Corporation and the mitigation strategies in place. These two positions report directly to the President and Chief Executive Officer of the Company. Accountability for the management of climate change risks, opportunities and reporting of our key performance indicators including air emissions and greenhouse gas (GHG) data is held by our Vice-President of Environment, Policy and Sustainability. Several teams across the Company share the responsibility of monitoring external developments relating to climate change regulations and emerging performance expectations, assessment of climate change risks and opportunities, synthesis of the emissions and business plans, the development of appropriate internal abatement strategies, as well as engagement with policy makers in the development and application of climate change policy and regulation. In addition, the Encana Risk Matrix provides detailed criteria to quantify risk potential and materiality based on probability and impact Climate Change Management Incentives Does your company provide incentives for the management of climate change issues, including attainment of targets? Yes, we provide monetary rewards, please specify: Environment/sustainability managers may have individual performance targets based on delivery of GHG reductions projects. Business unit managers may have individual performance targets linked to optimizing energy use. Process operation managers may have individual performance targets linked to optimizing energy use and prevention of venting/flaring incidents. Yes, we provide incentives in the form of recognition (non-monetary), please specify: Yes, we provide other non-monetary rewards. Please specify: No, we do not provide incentives for the management of climate change issues We have various roles across Encana that are committed to managing climate change and air emission strategies and solutions across our operations. 74 of 144, Copyright RobecoSAM AG,

74 2.5.4 Climate Change Strategy What best describes your risk management procedures with regard to climate change risks and opportunities? Please attach supporting documents. Integrated into multi-disciplinary company wide risk management processes, i.e. a documented process where climate change risks and opportunities are integrated into the company s centralized enterprise risk management program covering all types / sources of risks and opportunities A specific climate change risk management process, i.e. a documented process which considers climate change risks and opportunities separate from other business risks and opportunities There are no documented processes for assessing and managing risk and opportunities from climate change Please refer to our attached response to CDP 2014 question 2.1a for detailed information. No references attached Climate Change Products Does the use of your company's goods and / or services directly enable greenhouse gas (GHG) emissions to be avoided or reduced? Yes, our products enable GHG emissions to be avoided or reduced. Please briefly specify and indicate the share of revenues from such goods and services: Fuel switching in power applications from coal fired generation to natural gas results in GHG emission reductions. In North America, several jurisdictions are encouraging this switch. An example is our 30-year joint venture agreement with Northwest Natural Gas Company to provide natural gas to the Oregon utility, accounting for approximately 10 percent of their average annual requirements for utility customers. Share of revenues (% of total sales): No, the use of our products does not directly enable GHG emissions to be avoided or reduced Not applicable. Given the nature of our products, services and/or business model, this question is not applicable to our company. Please provide explanations in the comment box below. Please refer to our attached response to CDP 2014 question 3.2 for detailed information. 75 of 144, Copyright RobecoSAM AG,

75 2.5.6 Climate Strategy Impacts For your combined emissions reduction activities that were active in the latest reporting year, please provide the total amount of anticipated annual CO2 and cost savings from these initiatives. Please specify currency: USD($) Total estimated annual CO2 savings: met. ton. CO2e Total annual investment required: Monetary Units Total anticipated annual cost savings: Monetary Units Average pay-back period: 4.5 years We do not track this information or calculate these figures Please refer to our attached response to CDP 2014 question 3.3 for detailed information Financial Risks of Climate Change Have you identified any climate change risks (current or future) that have potential to generate a substantive change in your business operations, revenue or expenditures? Please indicate the currency used: USD($) Yes, we have identified climate change related risks with potential impact. Please estimate the financial impact for the most significant risk from each category: Risks driven by changes in regulation: 76 of 144, Copyright RobecoSAM AG,

76 Brief description of the most significant risk and methods used to manage this risk: Please refer to our attached response to CDP 2014 question 5.1 for detailed information. Estimated financial implications of the risk before taking action: Average estimated time frame (in how many years): Estimated costs of these actions: Risks driven by change in physical climate parameters or other climate-change related developments Brief description of the most significant risk and methods used to manage this risk: Please refer to our response to CDP 2014 question 5.1 for detailed information. Estimated financial implication of the risk before taking action: Average estimated time frame (in how many years): Estimated costs of these actions: We have conducted an analysis of our climate change risk, but our company is not exposed to climate change risks that have the potential to generate a substantive change in business operations, revenue, or expenditure. Please specify: We have not conducted an analysis related to climate change risks Please refer to our attached response to CDP 2014 question 5.1 for detailed information Financial Opportunities Arising from Climate Change Have you identified any climate change related opportunities (current or future) that have the potential to generate a substantive positive change in your business operations, revenue, expenditure (i.e. opportunities driven by changes in regulation, physical, or other climate-change related developments)? Please indicate the currency used: USD($) Yes, we have identified climate change related opportunities. Please briefly describe the most significant opportunity resulting from climate change on your business operations, revenue growth, or expenditures: Please refer to our attached response to CDP 2014 question 6.1 for detailed information. 77 of 144, Copyright RobecoSAM AG,

77 Please estimate the annual financial positive implications of this opportunity: Estimated time frame (in how many years): Please estimate the current annual costs associated with developing this opportunity: We do not consider climate change related opportunities (current or future) to be relevant to our business, please explain why: We have not conducted an analysis of our climate change opportunities Please refer to our attached response to CDP 2014 question 6.1 for detailed information Internal Carbon Pricing Please indicate if your company uses an internal price of carbon. If yes, please describe how this is being used within the organization and what the internal carbon price is. Yes, we use an internal price of carbon. Please provide details on how this price is calculated and examples of how it is being used within the organization. Encana monitors developments in emerging climate change policy and legislation, and considers the associated costs of carbon in its planning. The Corporate Responsibility, Environment, Health and Safety Committee of Encana s Board of Directors reviews the impact of a variety of carbon constrained scenarios on Encana s business plans with a current price range from approximately $20 to $125 per tonne of emissions, applied to a range of emissions coverage levels. Please specify the internal price of carbon (per metric tonne of CO2e): 125 Monetary Units Please specify the currency in which your internal price of carbon is reported: Canadian dollars No, we do not use an internal price of carbon Encana monitors developments in emerging climate change policy and legislation, and considers the associated costs of carbon in its strategic planning. Though the future cost of carbon is subject to uncertainty, the Corporate Responsibility, Environment, Health and Safety (CREHS) Committee of Encana s Board of Directors reviews 78 of 144, Copyright RobecoSAM AG,

78 potential compliance risks and liabilities associated with predicted carbon prices under various regulatory regimes and emission trading schemes. The CREHS Committee reviews the impact of a variety of carbon constrained scenarios on Encana s business strategy using a forecasted carbon cost range of CAD$20 to CAD$125 per tonne of emissions, applied to a range of emissions coverage levels across its North American operations. The scenarios used for analysis, ranging from low international focus and action on climate change to high prioritization and policy action, are status quo, business as usual and carbon bubble. Encana is confident that emerging climate change policy and regulations, as well as the associated cost of carbon at various price levels, are being adequately considered as part of its overall business planning and scenario analysis EXPOSURE: Carbon Targets Please indicate your company's corporate targets to reduce greenhouse gas emissions. Please provide either absolute or relative targets (or both if available). Absolute targets Relative targets Targets set No targets set Targets set No targets set Baseline Year Scope of the emissions for which the target is defined Emission of base line year in absolute tons of CO2e Value of intensity measure of the base line year (please use the comment box below to indicate the definition of the intensity measure used) Scope 1 Scope 2 Scope 1 and Scope 2 combined Scope 1 and Scope 2, but seperately Scope 1 Scope 2 Scope 1 and Scope 2 combined Scope 1 and Scope 2, but seperately Target year Reduction target as percentage of baseline value 79 of 144, Copyright RobecoSAM AG,

79 Absolute targets Relative targets Target was set in year We do not set any targets for GHG emissions A number of federal, provincial and state governments have announced intentions to regulate greenhouse gases ( GHG ) and certain other air emissions. While some jurisdictions have provided details on these regulations, it is anticipated that other jurisdictions will announce emission reduction plans in the future. As these federal and regional programs are under development, Encana is unable to predict the total impact of the potential regulations upon its business. Therefore, it is possible that the Company could face increases in operating and capital costs in order to comply with GHG emissions legislation. However, Encana will continue to work with governments to develop an approach to deal with climate change issues that protects the industry s competitiveness, limits the cost and administrative burden of compliance and supports continued investment in the sector. The Alberta Government has set targets for GHG emission reductions. In March 2007, regulations were amended to require facilities that emit more than 100,000 tonnes of GHG emissions per year to reduce their emissions intensity by 12 percent from a regulated baseline starting July 1, To comply, companies can make operating improvements, purchase carbon offsets or make a C$15 per tonne contribution to an Alberta Climate Change and Emissions Management Fund. Encana has one facility covered under the emissions regulations in Alberta. The forecast cost of carbon associated with the Alberta regulations is not material to Encana at this time and is being actively managed. Encana continues to strive to reduce emissions intensity and increase efficiencies in its operations EXPOSURE: Scope 3: GHG Upstream As part of Scope 3 in the GHG Protocol, please indicate how your company considers GHG emissions for your company's supply chain (upstream), customers (downstream) and support services. Please provide supporting documents for each of the three perspectives. 80 of 144, Copyright RobecoSAM AG,

80 Perspective Suppliers (emissions from purchased products and services, excluding energy purchased which falls under Scope 2). Customers (emissions incurred by the use of your company's products). Support services (emissions from e.g. business travel, external logistics). Yes, we qualitatively consider emissions Yes, we quantitatively consider emissions Yes, we qualitatively and quantitatively consider emissions No, we do not consider these emissions for suppliers Not applicable If yes, please specify and add supporting documents. If not applicable, please provide an explanation. Yes, we qualitatively consider emissions Yes, we quantitatively consider emissions Yes, we qualitatively and quantitatively consider emissions No, we do not consider these emissions for customers Not applicable If yes, please specify and add supporting documents. If not applicable, please provide an explanation. We engage with our employees and our stakeholders regarding the benefits of natural gas. We use multimedia, direct engagement, publications and have employee-specific programs such as use of natural gas vehicles or incentives to buy natural gas vehicles. Yes, we qualitatively consider emissions Yes, we quantitatively consider emissions Yes, we qualitatively and quantitatively consider emissions. No, we do not consider these emissions for support services Not applicable If yes, please specify and add supporting documents. If not applicable, please provide an explanation. Commercial air travel is required as part of our business. However, Encana encourages the use of videoconferencing whenever possible, and most of our office meeting rooms are equipped for videoconferencing. We do not consider Scope 3 emissions 81 of 144, Copyright RobecoSAM AG,

81 No references attached 2.6 Releases to the Environment Releases to the environment are a key aspect of assessing the operations of oil and gas companies. Releases to the environment can have direct financial and environmental consequences, as well as material brand consequences. This is also an issue heavily monitored by the public. Our most important rational for assessing releases to the environment is to monitor any structural weaknesses among the companies, i.e. do we see a structural patterns (different from one time accidents) in behavior? Can this be associated with wider lack of control, risk management or policies? Oil and Chemical Spills Please indicate the normalized volume of oil and chemical spills due to leakage, accidents and/or sabotage. Please indicate the oil and chemical spills as barrels / denominator (for more specific guidance on which denominator to use, please refer to the information button). If not possible to report in the preferred unit, please indicate which unit has been used instead in the comment box. If absolute figures are available, these can also be provided in the comment box and will be used to verify the normalized values. Oil and chemical spills Volume of oil and chemicals lost Unit FY 2011 FY 2012 FY 2013 FY 2014 Barrels / denominator (see information button). Please specify if other unit is used: BBL/ Denominator Encana reports spill volumes based on total volume of reportable spills as outlined in our annual sustainability report. Data is reported as volume of total reportable bbls per denominator. 82 of 144, Copyright RobecoSAM AG,

82 Encana's company-wide focus on improving spill prevention contributed to a year-over-year decrease in 'Total Reportable Spills'; however, our total spill volume increased in 2014 due in part to two produced water spills in one of our operating areas. The two larger spills include: 629 bbl of produced water which was released within secondary containment on an Encana location. This spill did not impact the surrounding soil and was cleaned up immediately. 818 bbl of produced water which was released on an Encana location as a result of an equipment failure. Automatic controls alerted Encana staff who immediately responded. The site had initial response and cleanup completed within 3 days of the incident. Both incidents demonstrate Encana s systematic approach to dealing with spills in order to respond as quickly as possible and avoid similar incidents in the future Natural Gas Leakage and Flaring Please indicate the normalized volume of methane emitted due to leakage, venting and flaring, accident and/ or sabotage. Please indicate the natural gas leakage and flaring as nominator / denominator (for more specific guidance on which denominator to use, please refer to the information button). Please indicate which ratio has been used in the comment box. If absolute figures are available, these can also be provided in the comment box and will be used to verify the normalized values. Please also indicate if unintentional methane leakage in hydraulic fracturing process is included in the figures. Natural gas leakage and flaring Volume of methane emitted Unit FY 2011 FY 2012 FY 2013 FY 2014 Refer to the information button for additional information. Please specify unit used: e^3 m Provided figures include unintentional methane leakage in the hydraulic fracturing process, please explain: Fugitive methane releases are included in our vented volumes. We do not currently track methane volumes emitted through accident and sabotage. 83 of 144, Copyright RobecoSAM AG,

83 Reported values represent total volumes of natural gas vented and flared. Fugitive methane releases are included in our vented volumes. We do not currently track methane volumes emitted through accident and sabotage. Our 2013 flaring and venting values were retroactively recalculated in 2014 to reflect more accurate information resulting from ongoing refinements to our air emissions and related metrics calculation methodologies that include refinements to our equipment inventory based on more accurate counts and reconciliations, improved analyses of methodologies and improved data QAQC processes Oil Sands Please indicate the percentage (%) of your production from oil sands (BoE oil sands divided by BOE Upstream production, please include both mining and in-situ operations). Please also indicate the energy intensity of your production from oil sands over the last 5 years (in gigajouls/tonne or gigajouls/barrel; or CO2/tonne or CO2/ barrel or CO2/m3, please note that data should be reported in such a way that increasing efficiency leads to a decreasing ratio). Production from oil sands (%) Energy intensity of your production from oil sands, please specify unit: FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Not applicable. Please provide explanations in the comment box below. We do not have oil sands assets 2.7 Water Related Risks 84 of 144, Copyright RobecoSAM AG,

84 The availability of water and its qualitative properties are fundamental aspects of high-water consuming industries. Water is used in vast amounts for cooling processes in power generation and in fiber production. For mining companies and the beverage industry, water is indispensable. High demand for water competes with water consumption for agriculture and municipal use in areas where it is a scarce resource, having financial consequences for high-consumption industries. The situation may exacerbate in the future due to the increasing global population, and the consequences of climate change. The water-related risk criterion identifies companies with high exposure, tests their managerial capabilities in water management and evaluates their performance in water consumption Exposure by Water Stressed Areas When considering physical water scarcity issues at a local level, please indicate what percentage of your company s production plants / sites are located in water-stressed area and what percentage of cost of goods sold (COGS) these amounted to in the last fiscal year. If COGS is not a relevant metric for company, please leave that information blank. NB: This question will not be assessed in isolation, but in combination with other questions in Water-Related Risks. in water-stressed areas (<1700 m3/(person*year)) % of production plants in last FY (mandatory) % of Cost of goods sold (COGS) in last FY (if applicable) Amongst the production plants / sites currently located in water-stressed areas, please indicate your company s top fresh water consumers (in this case, fresh water consumption = fresh water withdrawn (surface water + ground water + municipal supply) minus water discharged and returned to its source at similar or higher quality than it has been withdrawn) in last FY: Plant / Site #1 Plant / Site #2 Plant / Site #3 Plant Name Location (area, country) Water Use (m3/y) Water intensity (m3/ COGS USD) (see info box) Not applicable. According to our assessment and the above definition of water-stressed area, we currently have no productions plants / sites located in water-stressed areas. Please provide explanations in the comment box below. As part of the Company's operational development plans, Encana assesses the risk to development including environmental risks related to water. Alternative water sources are considered whenever possible. Alternative 85 of 144, Copyright RobecoSAM AG,

85 sources of water include saline and brackish water, recycled/reused produced water, and recycled/reused flowback water. Asset area-specific operating practices provide guidance on the use of non-potable water, reusing water and water storage and handling. These practices consider conditions and regulations in the respective area. Flowback water is re-used as much as is practicable or allowed by regulation. Excess or unusable flowback water and produced water is disposed in compliance with regulations Tools / Processes / Systems / Standards / Frameworks used Please indicate the tools / processes / management systems / standards / frameworks used by your company to achieve the following objectives. If your company's final product is water (e.g. water utilities), please mark "Not applicable" in this question. Objective Name of tools / management systems / standards / frameworks Report and aggregation at corporate level: Manage water risk in the supply chain: Track and calculate plant / site water intensity: Determine virtual water content of products: Determine virtual water exchange mapping: Systematically track and map plant water usage: (e.g. WBCSD Water Tool) Define water stress: Map water stress: Project future water stress: Provide external data verification: Contribute to collaborative initiatives: (e.g. signatory of the CEO Water Mandate) Ethos, Wellview, Siteview Ethos, Wellview, Siteview n/a n/a Ethos; GRI; as defined by Regulators Ethos; GRI; as defined by Regulators As part of Encana's operational plans and EH&S Management System, environmental risks related to water are assessed. Encana's community involvement group participates in collaborative environmental initatives including water management initiatives. 86 of 144, Copyright RobecoSAM AG,

86 Objective Name of tools / management systems / standards / frameworks Other objectives related to water risks, please describe: We plan to start using some tools / management systems in 2015 We do not use any particular tools / management systems / standards / frameworks to reach any of the above objectives Corporate guidance and expectations for water use are included in our EH&S Management System, which considers various frameworks related to water management (GRI, IPIECA, the Canadian Association of Petroleum Producers (CAPP) Canadian Energy Water Management Practice, CDP Water). Expectations include promoting the efficient use of surface and ground water, using alternative water such as deep saline ground water and recycled/reused water, and watershed planning in project development. Encana is continuing to improve our processes and systems for tracking water use Risk Management - Quantity & Quality How does your company manage risks with regard to the available quantity and quality of water relevant for your operations? At corporate level, we have the overview of the following measures (please tick only if the statement is valid for the majority of your production plants / sites located in water-stressed areas and provide supporting documents). If you do not have any production plants in water-stressed areas, please indicate which type of risk management measures have generally been taken with regards to water related risks at your company. Corporate water management policy and plan in place, please specify: Water is addressed in our Corporate Responsibility Policy and our Ethos Environmental Stewardship Standard. Systematic tracking and monitoring of availability at local level, please specify: Estimates of future changes in water availability on a local level, please specify: Each of our operations assesses water needs according to the development plan. Scenario analysis with potential impact on operations, please specify: Each of our operations assesses water needs according to the development plan. We have already taken some measures but for less than majority of our productions plants / sites in waterstressed areas 87 of 144, Copyright RobecoSAM AG,

87 We do not manage this at group level Water plays an important role in all facets of oil and gas development. There is no one-size-fits-all water management solution, and in each operating area Encana works to ensure sound operating practices are in place. Some of Encana's water management initiatives are: 1. Water sourcing and volumes - Encana uses a tailored approach when sourcing water and evaluates many different available options once a resource has been proven prior to beginning operations. Encana has also developed corporate guidance on water tracking and reporting as part of Ethos. 2. Wellbore construction - during operations, groundwater-bearing rock formations are protected from the contents of the well by layers of steel casing and cement. Before Encana begins completion operations, the Company pressure-tests the casing to ensure integrity and monitor pressures within the well during each fracturing operation. 3. Additive selection - Encana has implemented a company-wide program to manage the chemical products used in hydraulic fracturing. The Responsible Products Program assesses hydraulic fracturing fluids for potential health, safety and environmental impacts. 4. Additive disclosure - in order to reassure stakeholders about its operations, Encana supports the disclosure of fracturing fluid additives and is an active participant in FracFocus. 5. Fracturing fluid transport, handling, storage - Encana is committed to reducing the risk of potential spills of fracturing fluids, produced water, flowback water and wastes associated with hydraulic fracturing by adhering to government regulations, ensuring proper storage and secondary containment and maintaining spill response plans. 6. Flowback fluid reuse, recycling and disposal - where practical, Encana reuses flowback water and seeks opportunities to use other unutilized sources of water in its operations. This could be water located far deeper than typical drinking water aquifers or water that is of too poor quality for household or agricultural use. Where the company is unable to reuse produced water or flowback fluids, Encana disposes of these substances in licensed disposal wells. 7. Voluntary baseline groundwater testing - Encana is committed to protecting fresh groundwater sources and routinely test domestic water wells in the area of oil and natural gas wells being drilled. Encana also participates in longer term regional groundwater monitoring programs. 8. Water resource hub model - At the end of 2014, Encana marked a major milestone initiating full operation of a water resource hub in the Montney (northern British Columbia). This centralized hub facility is expected to meet up to 75 percent of our water requirements for hydraulic fracturing operations near Dawson Creek, resulting in the conservation of nearly 2.6 million cubic metres (687 million gallons) of fresh water over the next five years. Corporate Responsibility Policy, corp-responsibility-policy.pdf (Pages: all) - Environment Policy, Encana Environment Policy May 2013.pdf (Pages: 1) 88 of 144, Copyright RobecoSAM AG,

88 2.7.4 Risk Management - Regulatory Changes and Pricing Structure How does your company manage water-related risks in terms of regulatory changes and potential changes in price structure (e.g. water tariffs, withdrawal restrictions, discharge standards and discharge tariffs)? At the corporate level, we track and monitor the following (please tick only if the statement is valid for the majority of your production plants / sites located in water-stressed areas and provide supporting documents). If you do not have any production plants in water-stressed areas, please indicate which type of risk management measures have generally been taken with regards to water related risks at your company. Regulatory changes at the local level, please specify: Encana has teams dedicated to assessing regulatory requirements and potential changes to regulation that may have an impact. Estimates of future potential regulatory changes on a local level, please specify: We do not anticipate changes in regulations with respect to water that would impact our operations. Scenario analysis with potential impact of regulatory or tariff changes on operations at local level, please specify: Each of our operations assess water needs according to the development plan. We have already taken some measures but for less than majority of our production plants / sites in waterstressed areas We do not manage this at group level The Company s business is subject to all of the operating risks normally associated with the exploration for, development of and production of natural gas, oil and natural gas liquids. When assessing the materiality of the environmental risk factors, Encana takes into account a number of qualitative and quantitative factors, including, but not limited to, financial, operational, reputational and regulatory aspects of the identified risk factor. These risks are managed by executing policies and standards that are designed to comply with or exceed government regulations and industry standards. In addition, Encana maintains a system that identifies, assesses and controls safety, security and environmental risk and requires regular reporting to senior management and the Board of Directors Annual Report, annual-report pdf (Pages: 38) Risk Management - Stakeholder Conflicts How does your company manage stakeholder conflicts concerning water resources? Please tick only if the statement is valid for the majority of your production plants / sites located in water-stressed areas and provide supporting documents. 89 of 144, Copyright RobecoSAM AG,

89 If you do not have any production plants in water-stressed areas, please indicate which type of risk management measures have generally been taken with regards to water related risks at your company. Systematic tracking and monitoring of existing stakeholder conflicts, please specify: We have a system to track stakeholder concerns to ensure they are addressed. Estimates of future potential stakeholder conflicts, please specify: We have regular interaction with our stakeholders across our operations through open houses, stakeholder surveys, community BBQs, etc. On an annual basis, or as operational plans develop or change, we assess potential conflicts to ensure we have mitigation strategies in place. Scenario analysis with potential impact of stakeholder conflicts on operations, please specify: We have regular interaction with our stakeholders across our operations through open houses, stakeholder surveys, community BBQs, etc. On an annual basis, or as operational plans develop or change, we assess potential conflicts to ensure we have mitigation strategies in place. Active engagement with key stakeholders (local communities, NGOs, government bodies, large water users, etc.), please specify: We actively engage with our stakeholders across our operations. See our Stakeholder Engagement Guide and draft 2014 Sustainability Report for details about our engagement activities. Participation in integrated watershed management initiative in locations with key operations, please specify: We participate in watershed initiatives through our industry associations. We have already taken some measures but not for the majority of our production plants / sites in waterstressed areas We do not manage this at group level Water is essential in developing Encana's oil and natural gas resources. Community engagement plans are created for each of Encana's operating areas and are reviewed annually. Stakeholder surveys are conducted to obtain an understanding of stakeholder issues. The Company has methods for tracking and addressing concerns including an Integrity Hotline, commitment tracker and a dedicated sustainability address. DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 14) Target and Progress For the top 3 water-consuming plants currently located in water-stressed areas, what water-related targets have been established at plant level and what measures are being taken to achieve these targets? Please see the information button for the definition of fresh water consumption. If your company's final product is water (e.g. water utilities), please mark "Not applicable" in this question. 90 of 144, Copyright RobecoSAM AG,

90 Unit of data Plant #1 Plant #2 Plant #3 Base line year Year (YYYY) Fresh water consumption of baseline line m3 Target year Year (YYYY) Reduction Target % of baseline value Fresh water consumption in last FY Measures taken Other target(s) We plan to start in 2015 m3 We do not set targets for any of our top 3 water-consuming plants currently located in water-stressed areas, and we do not plan to start in 2015 Not applicable. Please provide explanations in the comment box below. Encana does not own or operate any plants in a water stressed area. However, it actively manages water across its operations and strives to use its water resources responsibly. Encana considers recycling and using non-potable water whenever possible in its operations. This is done through the use of area-specific operating practices, which provide guidance regarding the use of non-potable water, water recycling and water storage and handling. These practices take into account location-specific conditions and regulations. 3 Social Dimension 3.1 Social Reporting Social performance is becoming a material issue to all industries, and is an aspect that is directly linked to the companies' reputation and brand equity. Maintaining transparency through appropriate reporting and board- 91 of 144, Copyright RobecoSAM AG,

91 level monitoring increases stakeholders and customers trust. While disclosure levels are increasing, the quality of reporting varies significantly and thus RobecoSAM's questions focus on the relevance and scope of the information contained in social reports, as well as external assurance based on internationally acknowledged reporting standards Social Reporting - Materiality Please indicate if your company is publically reporting on the following aspects and attach supporting documents or weblinks. Materiality framework Is your company publically reporting on the processes and tools used to identify and prioritize critical social issues within the sustainability strategy, including a consideration of impact on the company s business performance (i.e. materiality analysis/matrix, portfolio matrix/analysis, company s definition of materiality, description of the analytical framework)? We report on this in the Corporate Sustainability report. Please provide supporting document or weblinks and indicate page: We report on this in the main part of the Annual Report or equivalent financial reports (i.e. not in a separate CSR section of the Annual Report). Please provide supporting document or weblinks and indicate page: Top 3 Material Issues I In order of importance, please select from the list below up to three social issues that have been identified in your public reporting as the most material for your company from a business and/or investors perspective. Please explain how these relate to your business activities and why they are considered material in terms of business impact(s). The drop down menu include a selected list of possible general issues that apply across industries. To indicate more specific (including industry-specific) issues, please select the option 'Other Issue' and provide details on what this entail in the comment box below. Please note that if you have identified less than three social issues to be material for your business, select 'Not Applicable' in the drop down menu and explain this in the the comment box below. For each issue indicated as material, a link to your public report where this is disclosed needs to be provided. First material issue: Occupational Health & Safety Issue not known Not Applicable (please specify below) Other Issue Human Capital Management Supply Chain Management - Social Issues Labor Practices and Human Rights Business Ethics Stakeholder Engagement If other, please specify: 92 of 144, Copyright RobecoSAM AG,

92 Business case for first material issue: Creating opportunities for both socioeconomic development and collaborative community engagement within our operating areas is an important area of our focus. Informing our local stakeholders about development plans, engaging them in dialogue related to potentially contentious issues and seeking opportunities to create shared value between Encana and communities helps to avoid unnecessary delays in the development process and mitigates reputational risk. Similarly, identifying opportunities to create value for Encana s operating communities and local economies through local hiring, capacity development and community investment supports the company s social license to operate and reinforces Encana s position as a community partner of choice. Please provide supporting public evidence (including page number): Second material issue: Occupational Health & Safety Not Applicable (please specify below) Other Issue Labor Practices and Human Rights Human Capital Management Supply Chain Management - Social Issues Issue not known Business Ethics Stakeholder Engagement If other, please specify: Business case for second material issue: Please provide supporting public evidence (including page number): Third material issue: Occupational Health & Safety Not Applicable (please specify below) Labor Practices and Human Rights Supply Chain Management - Social Issues Business Ethics Issue not known Human Capital Management Other Issue Stakeholder Engagement If other, please specify: Business case for third material issue: Strong corporate governance plays a critical role in our ability to execute on our business strategy. Beyond simply a mechanism to ensure that Encana meets or exceeds applicable laws and regulations, it promotes accountability and transparency throughout the company. Link to public report (including page number): 93 of 144, Copyright RobecoSAM AG,

93 Example of cost-saving Is your company publically reporting on one or more concrete examples of how social initiatives have led to cost savings? Please indicate, if possible, both qualitative and quantitative examples. We report on this in the Corporate Sustainability report. Please provide supporting document or weblinks and indicate page: The examples listed throughout our Sustainability Report are qualitative. It is difficult to assess the value of reputational risk management. We strive to be accepted in the communities we operate through strong stakeholder engagement and proactive risk mitigation around potential community concerns. We see cost savings in the form of reduced time for regulatory approvals. We report on this in the main part of the Annual Report or equivalent financial reports (i.e. not in a separate CSR section of the Annual Report). Please provide supporting document or weblinks and indicate page: Example of revenue generation Is your company publically reporting on one or more concrete examples of how social initiatives have generated attitional revenues? Please indicate, if possible, both qualitative and quantitative examples. We report on this in the Corporate Sustainability report. Please provide supporting document or weblinks and indicate page: We report on this in the main part of the Annual Report or equivalent financial reports (i.e. not in a separate CSR section of the Annual Report). Please provide supporting document or weblinks and indicate page: No such reporting publically available 2014 Annual Report, annual-report pdf (Pages: 38-39) See ENVIRONMENTAL, REGULATORY, REPUTATIONAL AND SAFETY RISKS DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 4) See DETERMINING WHAT MATTERS section DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: throughout) Social Reporting - Coverage Is the coverage of your company s publically available social reporting clearly indicated in the report or in the online domain? Please select the coverage of the company's publicly available social indicators from the dropdown list below (select ONLY if the coverage is the same for all social indicators your company reports on): 94 of 144, Copyright RobecoSAM AG,

94 25-50% of revenues OR 25-50% of business operations >75% of revenues OR >75% of business operations <25% of revenues OR <25% of business operations 50-75% of revenues OR 50-75% of business operations Please indicate the weblink and the page number where the coverage for all social indicators is indicated (in the public domain): In the Document Library, see the DRAFT 2014 Sustainability Report, pages We report on social issues, but only provide coverage for some social data / indicators in our public reporting. Please specify for the three social indicators where you have the highest available coverage (select ONLY if you report coverage for individual indicators but not for the full report): Social indicator, please specify: Coverage of Indicator (% of revenues or business operations): Please indicate the weblink and page number where the coverage for the social indicator is publically reported: We report on social issues, but do not clearly indicate the coverage of the data in our public reporting We do not report on social issues Social Reporting - Assurance Please indicate below what type of external assurance your company has received in relation to your company's social reporting. Please attach a supporting reference, indicating where the assurance statement is available in the public domain. The assurance statement is an "External Audit" or "External Assurance" produced by assurance specialists (e.g. accountants, certification bodies, specialist consultancies) 95 of 144, Copyright RobecoSAM AG,

95 The assurance statement contains a declaration of independence which specifies that the assurance provider has no conflict of interest in relation to providing the assurance of social data for the company which has been assured The assurance statement is based on a recognized international or national standard (e.g. AA1000AS, ISAE 3000) The scope of the assurance is clearly indicated in the assurance statement. If the assurance statement only covers some KPIs (but not all) it is clearly indicated which data / KPIs disclosed in the report have been assured (e.g. each KPI assured is marked with an assurance symbol / flag). The assurance statement contains a conclusion, i.e. either "reasonable assurance" or "limited assurance" We do not have any external assurance on our social reporting 2014 Deloitte Assurance Report, 2014 Encana Assurance Report.pdf (Pages: 1) Social Reporting - Quantitative Data Please indicate below to what extent your company is reporting on social Key Performance Indicators (KPIs) as well as targets for such indicators. For the three most material social issues identified in question 3.1.1, please indicate one KPI that is used to measure your company s progress and communicated externally. If multiple indicators are reported for one material issue, you may provide these. If no material issues have been identified, you may provide KPIs for other social issues that you report on. Please provide a link to where this information is disclosed (in either Sustainability Report, Annual Report or on your company's website). If you have identified less than three social issues to be material for your business, then also select 'Not Applicable' for those options here and explain this in the comment box: Key Performance Indicator, please specify the KPI and the material social issue it is linked to: Community Engagement Please attach the public reference together with the page number where the environmental indicator is publically reported: 96 of 144, Copyright RobecoSAM AG,

96 Key Performance Indicator, please specify the KPI and the material social issue it is linked to: Human Capital Please indicate the weblink and page number where the social indicator is publically reported: Business Ethics Please indicate the weblink and page number where the social indicator is publically reported: For the three most material social issues identified in question 3.1.1, please indicate whether your company has any externally communicated targets. If multiple targets are reported for the same material issues, you may provide these. Please provide a link to where this information is disclosed (in either Sustainability Report, Annual Report or on your company's website). If you have identified less than three social issues to be material for your business, then also select 'Not Applicable' for those options here and explain this in the comment box: Target for Key Performance Indicator, please specify the target, target year and the material social issue it is linked to: Please indicate the target of your social KPI: What is the target year for this target to be reached: Please attach the public reference together with the page number where the target of the environmental indicator is publically reported: Please indicate the target of your social KPI: What is the target year for this target to be reached: Please attach the public reference together with the page number where the target of the environmental indicator is publically reported: Please indicate the target of your social KPI: What is the target year for this target to be reached: Please indicate the weblink and page number where the target of the social indicator is publically reported: 97 of 144, Copyright RobecoSAM AG,

97 We do not quantitatively report on our most material social issues OR we do not report on social issues DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 30) See COMMUNITY INVOLVEMENT and ABORIGINAL ENGAGEMENT metrics DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 30) See GOVERNANCE metrics DRAFT Sustainability Report 2014, 2014 SR DRAFT pdf (Pages: 31) See PEOPLE metrics 3.2 Labor Practice Indicators and Human Rights Employees represent one of a company's most important assets. Maintaining good relations with employees is essential for the success of businesses operations, particularly in industries characterized by organized labor. Beyond providing a safe and healthy working environment, companies should support fair treatment practices such as guaranteeing diversity, ensuring equal remuneration and supporting freedom of association. Effective grievance resolution procedures reduce the risk of lost working days, and companies benefit from higher productivity through a satisfied and dedicated workforce. In accordance with international standards on labor and human rights, companies are increasingly expected to adhere to and apply these standards equally across all operations within the organization. Further, growing customer awareness leads to higher expectations from companies in their role as global corporate citizens and their ability to drive sustainable business practices and human rights issues forward. The key focus of the criterion is on companies' policies to manage labor relations, related KPIs, equal employment and development opportunities, human rights and freedom of organization Labor KPIs - Diversity Please complete the table and indicate which of the following performance/management indicators your company uses regarding the following diversity related issues? Please provide figures covering the entire scope of the company and attach supporting documents where indicated. 98 of 144, Copyright RobecoSAM AG,

98 Issue Management / performance indicators Non-Discrimination / Diversity (ILO convention No. 111) Female share of total workforce (%) 37 Females in management positions (% of total management workforce): 29 Females in junior management positions, i.e. first line management (as % of total junior management positions): 31 Females in top management positions, i.e. maximum two levels away from the CEO (or comparable position) (as % of total top management positions): 9 Breakdown of workforce based on minority, culture or similar. Please attach supporting documents: We do not use such diversity indicators Encana's compensation structure, guidelines and market-based pay scales apply equally to males and females, i.e. they are gender neutral. The only differentiation is based on incumbent performance - regardless of gender. Encana's human resources programs and practices are designed to meet or exceed applicable employment legislation in all jurisdictions in which it operates. The profitability, responsible growth and the business success of Encana, as well as the personal growth of its employees, result from recognizing and utilizing the abilities of all individuals to the fullest extent practical within the framework of the business environment. This is achieved by hiring, compensating, training, promoting and providing consistent treatment to employees on the basis of performance. Encana's commitment to a diverse workforce is also evidenced in the creation of the Encana Women's Network. The objective of this group is to support the development of women in leadership roles and raise the profile of women as integral members of Encana's workforce. In 2014 Encana replaced our Non-Harassment Practice with a Respectful Workplace Practice, to include language that will provide greater clarity around issues of diversity, discrimination and to further articulate our stance on appropriate workplace behaviors. Encana is also committed to the development of our young professionals through our New Grad program. No references attached 99 of 144, Copyright RobecoSAM AG,

99 3.2.2 Labor KPIs - Equal Remuneration Please provide information on the following indicators relating to equal remuneration. Equal Remuneration female/male (ILO convention No. 100) Please specify currency: USD Executive level: Average female salary (base salary only): Average male salary (base salary only) : Management level: Average female salary (base salary only): Monetary Units Average male salary (base salary only): Monetary Units Average female remuneration (base salary + other cash incentives such as bonus): Average male remuneration (base salary + other cash incentives such as bonus): Non-management level: Average female salary (base salary only) : Average male salary (base salary only) : We do not use such equal remuneration indicators Encana's compensation structure, guidelines and market-based pay scales apply equally to males and females, i.e. they are gender neutral. The only differentiation is based on incumbent performance - regardless of gender. Encana's human resources programs and practices are designed to meet or exceed applicable employment legislation in all jurisdictions in which it operates. The profitability, responsible growth and the business success of Encana, as well as the personal growth of its employees, result from recognizing and utilizing the abilities of all individuals to the fullest extent practical within the framework of the business environment. This is achieved by hiring, compensating, training, promoting and providing consistent treatment to employees on the basis of performance. Encana's commitment to a diverse workforce is also evidenced in the creation of the Encana Women's Network. The objective of this group is to support the development of women in leadership roles and raise the profile of women as integral members of Encana's workforce. 100 of 144, Copyright RobecoSAM AG,

100 In 2014 Encana replaced our Non-Harassment Practice with a Respectful Workplace Practice, to include language that will provide greater clarity around issues of diversity, discrimination and to further articulate our stance on appropriate workplace behaviors Labor KPIs - Freedom of Association Please provide information relating to freedom of association and union representation for the last fiscal year. Issue Management / performance indicators Freedom of Association (ILO convention No. 87; No. 98) Employees represented by an independent trade union or covered by collective bargaining agreements (%): 0 Number of consultations/negotiations with trade unions over organizational changes (e.g. restructuring, outsourcing): We do not track freedom of association and union negotiation metrics Labor KPIs - Layoffs Please provide information on the number of layoffs and employee consultations in in the past fiscal year. 101 of 144, Copyright RobecoSAM AG,

101 Issue Management / performance indicators Layoffs (based on ILO's A GuideTo Worker Displacement) Number of employees laid off in the last fiscal year: Number of consultations/negotiations with employees over organizational changes (e.g. restructuring, outsourcing): We do not track layoffs and employee consultations Public Commitment to Human Rights Please indicate in the question below if your company has publicly committed to supporting the Universal Declarations of Human Rights. Our company has publicly committed to support the Universal Declarations of Human Rights. Please provide a weblink: See the Corporate Responsibility Policy at We have not publicly committed to support the Universal Declaration of Human Rights Encana's labour and environmental standards are aligned with regulations and practices which prevail in North America. With respect to labour practice, Encana has a strong focus on work life balance for employees. The introduction in 2007 of a practice which allows staff every first and third Friday off, accompanied by a significant increase in annual vacation eligibility puts Encana among industry leaders in this regard. The company's benefit package and the allocation of flexible credits for Canadian employees to pay for a variety of health care, insurance and investment options is also an industry leading practice. With respect to working conditions, the health and safety of staff and communities in which we operate is paramount. The Investigations Practice and Encana's Integrity Hotline help ensure that there is an appropriate channel for complaints with respect to workplace practices and equity. Remuneration and working conditions are among the highest for any industry. Encana believes that industry leading practices regarding employee benefits, 102 of 144, Copyright RobecoSAM AG,

102 remuneration and creation of opportunities for career development demonstrate adherence to the spirit and intent of existing charters for labour practices. In 2012 Encana introduced language to the Corporate Responsibility Policy that publically declares our support of and adherence to the Universal Declaration of Human Rights. Encana is committed to operating in a transparent manner, meeting all regulatory requirements where it operates, including those associated with human rights. Encana operates under very stringent North American regulatory requirements, and works to meet all applicable federal, provincial or state human rights legislation. With respect to Encana's Canadian operations, this legislation includes: Human Rights, Citizenship and Multicultural Act (Alberta); Human Rights Code (British Columbia); Human Rights Act (Nova Scotia). In the United States, there are a number of federal human rights acts: Title VII of the Civil Rights Act of 1964; Equal Pay Act of 1963; Age Discrimination in Employment Act of 1967; Title I and Title V of the Americans with Disabilities Act of 1990; Sections 501 and 505 of the Rehabilitation Act of 1973; Civil Rights Act of 1991; and Lily Ledbetter Fair Pay Act of The human rights commitment made in Encana's Corporate Responsibility Policy is informed by attention to a wide variety of existing and emerging international standards and conventions with respect to human rights. These include the UN Declaration, the UN Norms with Respect to Business and Human Rights and the US-UK Voluntary Principles on Security and Human Rights, among others. Encana believes its Corporate Responsibility Policy reflects the spirit and intent of these international charters in a framework that is appropriate to employees and others Business and Human Rights Please indicate if your company is familiar with the UN Framework and Guiding Principles on Business and Human Rights (the Ruggie Framework) and its potential implications for your business. Please provide supporting documents where relevant. Our company is aware of the UN Framework and Guiding Principles on Business and Human Rights (the Ruggie Framework). Please describe: An assessment of the implications of the UN Framework and Guiding Principles on Business and Human Rights (the Ruggie framework) on our company's business has been made, please provide supporting documents: Based on this assessment, which of your business activities could be in need of additional due dilligence regarding Human Rights? Please specify: Based on this assessment, which Human Rights are in need of additional due dilligence within the sphere of influence of your business activities? Please specify: We are not aware of the UN Framework and Guiding Principles on Business and Human Rights 103 of 144, Copyright RobecoSAM AG,

103 Encana's labour and environmental standards are aligned with regulations and practices which prevail in North America. With respect to labour practice, Encana has a strong focus on work life balance for employees. The introduction in 2007 of a practice which allows staff every first and third Friday off, accompanied by a significant increase in annual vacation eligibility puts Encana among industry leaders in this regard. The company's benefit package and the allocation of flexible credits for Canadian employees to pay for a variety of health care, insurance and investment options is also an industry leading practice. With respect to working conditions, the health and safety of staff and communities in which we operate is paramount. The Investigations Practice and Encana's Integrity Hotline help ensure that there is an appropriate channel for complaints with respect to workplace practices and equity. Remuneration and working conditions are among the highest for any industry. Encana believes that industry leading practices regarding employee benefits, remuneration and creation of opportunities for career development demonstrate adherence to the spirit and intent of existing charters for labour practices. In 2012 Encana introduced language to the Corporate Responsibility Policy that publically declares our support of and adherence to the Universal Declaration of Human Rights. Encana is committed to operating in a transparent manner, meeting all regulatory requirements where it operates, including those associated with human rights. Encana operates under very stringent North American regulatory requirements, and works to meet all applicable federal, provincial or state human rights legislation. With respect to Encana's Canadian operations, this legislation includes: Human Rights, Citizenship and Multicultural Act (Alberta); Human Rights Code (British Columbia); Human Rights Act (Nova Scotia). In the United States, there are a number of federal human rights acts: Title VII of the Civil Rights Act of 1964; Equal Pay Act of 1963; Age Discrimination in Employment Act of 1967; Title I and Title V of the Americans with Disabilities Act of 1990; Sections 501 and 505 of the Rehabilitation Act of 1973; Civil Rights Act of 1991; and Lily Ledbetter Fair Pay Act of The human rights commitment made in Encana's Corporate Responsibility Policy is informed by attention to a wide variety of existing and emerging international standards and conventions with respect to human rights. These include the UN Declaration, the UN Norms with Respect to Business and Human Rights and the US-UK Voluntary Principles on Security and Human Rights, among others. Encana believes its Corporate Responsibility Policy reflects the spirit and intent of these international charters in a framework that is appropriate to employees and others. No references attached MSA Labor Practices Indicators In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 104 of 144, Copyright RobecoSAM AG,

104 3.3 Human Capital Development Human capital development not only ensures that the company has the appropriate skill set in order to execute the business strategy, but also improves talent attraction and retention, and employee motivation; and, as a result, productivity and the potential for innovation. In increasingly knowledge-based industries, intellectual capital is also an important part of a company's intangible assets. Human and intellectual capital is maintained and improved by integrating knowledge management systems and implementing procedures for organizational learning. RobecoSAM's questions assess whether the company has a comprehensive approach to identifying skill gaps, measuring human capital management, and developing systems to share knowledge across the company Human Capital Performance Indicators Please indicate which performance indicators your company uses to measure the execution of your skill mapping and developing strategy. Please specify your answers. Non-financial indicators/ratios (e.g. number of hours spent in trainings, company-specific skills categorization), please specify: Cost-based indicators/ratios (e.g. training cost per employee), please specify: Training days and hours are tracked by team. Value-based human resource indicators (e.g. ROI - Return on investment per employee, EVA - Economic value added per employee), please specify: In Encana's strategic workforce planning process, production per employee is tracked over time. Other HR performance indicators, p lease specify: High Performance Contracts - see comments We do not use performance indicators to measure the execution of our company's skill mapping and developing strategy The objectives-setting process is completed annually through the High Performance Contract. Discussions between employees and supervisors throughout the year determine if objectives have been met successfully, and whether the employee has exceeded expectations. The employee's performance is measured annually against these objectives. 105 of 144, Copyright RobecoSAM AG,

105 3.3.2 Training & Development Inputs Please indicate the following metrics related to training, development and internal mobility for the last fiscal year in the table below. Please note that training hours and training costs include activities related to further development of employee skills but does not include e.g. basic compliance training. FY 2014 Average hours per FTE of training and development Average amount spent per FTE on training and development, please specify currency: USD Percentage of open positions filled by internal candidates 23.3 hours 1940 Monetary Units 35 We do not track these metrics related to employee traning and development We use an integrated Talent Management System, called Talent Hub, which included modules for Learning & Development. Our reporting abilities will be enhanced when more modules are added to the system in future years Employee Development Programs Please provide an explanation of two programs that exist in your company for employee development to upgrade and improve employee skills. Provide a brief description of the business benefits for each program and, where possible, provide a quantitative measure of the positive impact that these programs have had on your business (e.g. increase in employee engagement, productivity, cost reduction or revenue generation). 106 of 144, Copyright RobecoSAM AG,

106 Employee Development Program, please specify two different examples: Description of business benefits Quantitative impact of business benefits (monetary or nonmonetary) % of FTEs that participated in this program New Grad Program Encana s New Graduate Development Program helps ensure our young professionals in engineering, geology and geophysics develop a broad range of skills, knowledge, experience to understand our business strategy, execute with excellence and grow into future organizational and technical leaders. The New Graduate Program is supported by Encana s leaders as many of them benefited from similar experiences early in their careers. We recognize our responsibility to develop young professionals and acknowledge we can learn from them as they learn from us of 144, Copyright RobecoSAM AG,

107 Employee Development Program, please specify two different examples: Leadership Essentials Description of business benefits A 7-day leadership development program focused on teaching leaders the tactical and strategic skills required to improve team effectiveness. The program introduces the process of management model, describes the skills needed to optimize the performance of a team, and provides time to practice these skills with respect to the challenges participants are currently encountering. Participants complete assessment tools, which enhance self-awareness and serve as the basis for the development throughout the program. Quantitative impact of business benefits (monetary or nonmonetary) % of FTEs that participated in this program 1.6 We do not offer any employee development programs See attached New Grad Program Overview in document library for more details Human Capital Return Metrics Does your company have a global metric to quantitatively measure the benefits from your investments in human resource programs (e.g. employee development, education, training, incentive programs, etc. compared to economic value added or increases in sales or profits)? If possible, provide a metric which demonstrates a link between human capital investments (i.e. training and investments in employee skills) and its overall economic benefits. 108 of 144, Copyright RobecoSAM AG,

108 Yes, we are using the following global metric for calculating the business benefits of our investments in human capital factors, Please specify: Provide a summary of your progress on this metric over time, indicating the quantitative financial benefit of your human capital investments over time (provide data for any years available): FY 2011 FY 2012 FY 2013 FY 2014 We do not have a global metric, but we provide the following metric for calculating the business benefits of specific programs and/or investments in human capital factors, please specify and indicate coverage: Provide a summary of your progress on this metric over time, indicating the quantitative financial benefit of your human capital investments over time (provide data for any years available): FY 2011 FY 2012 FY 2013 FY 2014 No, but we are currently developing such a means of measuring the economic and/or business benefits of employee development programs, please briefly specify: No, we do not have or are currently developing such a human capital return metric Human Capital Return on Investment Please indicate the following information on a standard Human Capital Return on Investment metric, serving as a global measure of the return on your Human Capital programs. FY 2011 FY 2012 FY 2013 FY 2014 a) Total Revenue, please specify currency: USD Monetary Units Monetary Units 109 of 144, Copyright RobecoSAM AG,

109 b) Total Operating Expenses, please specify currency: USD c) Total employeerelated expenses (salaries + benefits), please specify currency: USD Resulting HC ROI (a - (b-c)) / c Total FTEs FY 2011 FY 2012 FY 2013 FY 2014 We do not track any of the above metrics Monetary Units Monetary Units Monetary Units Monetary Units 1.25 Monetary Units 5.86 Monetary Units Talent Attraction & Retention Successful Talent Attraction & Retention management enables companies to maintain their competitive advantage and to execute their corporate strategies. Companies should develop and implement an appropriate and well-balanced compensation framework for all employee categories, adopting compensation plans that incorporate both fixed and variable components. Furthermore, the variable compensation should be balanced with respect to time horizon on all employee levels. RobecoSAM's questions assess whether the company has a comprehensive approach and system to reward employees across all categories on the basis of company-wide and individual performance metrics Type of Individual Performance Appraisal Please indicate the type and employee coverage of individual performance appraisals, which are used for individual performance-related compensation. 110 of 144, Copyright RobecoSAM AG,

110 Type of performance appraisal % of all employees Management by Objectives: Systematic use of agreed measurable targets by line superior Multidimensional performance appraisal (e.g. 360 degree feedback) Formal comparative ranking of employees within one employee category We do not have any of these types of performance appraisals in place All employees are required to develop a High Performance Contract (HPC). The HPC is Encana's objectivessetting process between employees and their supervisors. Employee HPCs form the framework for measuring employee contribution to the company's success. All employees have the potential to earn a discretionary Annual Bonus Award based on the combined results of their Individual performance, as measured through the HPC, and Company performance as determined by the Board of Directors. Encana s High Performance Achievement program focuses on aligning goals with Encana s strategy and ensuring results are achieved using our Values Framework. The program includes the HPC, mid-year review, Third Party Feedback and the High Performance Assessment (HPA). Employees are required to gather formal third party feedback from peers, direct reports and internal clients for consideration during their annual performance assessment Long-term Incentives Does your company provide long-term incentives (beyond one year performance period) for employees below the senior management level (i.e. maximum two levels away from the CEO or any equivalent position)? 111 of 144, Copyright RobecoSAM AG,

111 Please briefly describe the nature of the longterm incentives for employees below senior management level (e.g. stock option, restricted stock units, cash incentive etc.): Our long-term incentives for employees below the senior management level are on average paid out after: To what percentage of employees below senior management do these incentives apply? Do the long-term incentives include targets associated with sustainability performance? Please explain in the comment box below: Restricted Share Units 2 years 3 years 80 % of our employees no Longer than 3 years No, we do not offer long-term incentive programs for employees below the senior management level Employee Turnover Rate Please indicate your company's total and voluntary turnover rates for the last four years as a percentage of total number of employees in the table below. Please also indicate the average hiring cost / FTE for the last fiscal year. FY 2011 FY 2012 FY 2013 FY 2014 Total employee turnover rate Voluntary employee turnover rate Please indicate your company's average hiring cost / FTE in the last fiscal year. This should specifically relate to the number of employees hired last year, not average cost for all employees. and specify currency: We do not track employee turnover and hiring costs Not applicable, please provide explanations in the comment box below. 112 of 144, Copyright RobecoSAM AG,

112 Encana completed two major acquisitions and 9 smaller divestitures in A total 276 employees were impacted by the divestitures and 137 employees were brought in through acquisitions. Corporate strategy and organizational changes are communicated to impacted employees directly and to other employees through the intranet, or at a town hall meeting. Employees impacted by a divesture are treated with dignity and respect Trend of Employee Satisfaction Please indicate in the following table the satisfaction level of your employees based on your company's employee satisfaction surveys. Please also indicate the coverage of these surveys and if this measurement can be broken down according to gender. For each row in the table, it is mandatory that the values provided are in the same unit. Employee satisfaction Employee satisfaction Data coverage Unit FY 2011 FY 2012 FY 2013 FY 2014 What was your target for FY 2014? % of satisfied employees % of total employees We are able break down the results of the employee satisfaction surveys based on gender. Please attach supporting documents. We do not track employee satisfaction The most recent employee survey was conducted in Employee participation was 89%, representing the majority of employee perceptions. The 2013 Employee Survey indicated: overall employee engagement was 74% positive (above the North American (66%) and energy sector (65%) norms) overall employee enablement was 73% positive (above the North American (65%) and energy sector (66%) norms) positive results in the areas of working conditions, supervision, health and safety, and work life balance 113 of 144, Copyright RobecoSAM AG,

113 No references attached MSA Talent Attraction & Retention In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 3.5 Corporate Citizenship and Philanthropy In order to be a catalyst for development, corporate philanthropy programs need to be well managed. Creating value for both beneficiaries and shareholders requires companies to have a clear direction and focus for guiding their philanthropic activities as well as for measuring their effectiveness from a cost / benefit perspective. The key focus of the criterion is on how companies assess the value of their corporate citizenship and philanthropy programs Group-wide Strategy Does your company have a group-wide strategy that provides guidance to your corporate citizenship / philanthropic activities? Yes, please specify and provide supporting documents: Community Involvement Framework Please indicate the three main priorities as outlined in your group-wide corporate citizenship / philanthropy strategy specified above. For each priority, please provide a short description of how the priority is aligned with your business drivers and attach supporting references. 114 of 144, Copyright RobecoSAM AG,

114 Priorities Priority 1 Supports and enables access and/ or operational excellence Priority 2 Supports employer of choice Priority 3 Aligns with our business values, supports our brand Description of alignment between priority and your business drivers Supports local landowners, First Nations and land managers who can influence Encana s access to land and community support Supports relationships with local government, community and thought leaders who can influence Encana s social license Supports regional, state/provincial and national policy makers, organizations & thought leaders who can influence Encana s ability to operate Supports and demonstrates responsible development, sustainability (CSR) and operational excellence Supports employee engagement and/or retention Supports the development and recruitment of a skilled workforce Builds and supports Encana s brand, visibility and community presence Organization/initiative aligns with Encana s culture and values and they have the capacity, business practices and governance to be successful Reference We plan to develop a group-wide strategy in 2015 We do not have a group-wide strategy for our corporate citizenship activities CI Framework , CI Framework - Question pptx (Pages: 1) Type of Philanthropic Activities For the last fiscal year, please indicate on a consolidated group-wide basis what percentage of your corporate citizenship / philanthropic contributions falls within each category. Please refer to the information button for definitions and explanations on the categories. 115 of 144, Copyright RobecoSAM AG,

115 Category Percentage of Total Costs Charitable Donations Community Investments Commercial Initiatives Total must equal 100% We plan to start reporting our philanthropic activities according to these categories in 2015 We do not report our philanthropic activities according to these categories Encana encourages its employees to make a difference in their communities. Encana respects that employee charitable giving and volunteerism are personal decisions; Encana employees can invest their time and money to support a wide variety of organizations of their choosing through Encana Cares, Encana Matches and Encana Volunteers. In 2014, the Encana Cares campaign supported more than 1325 charities on a local, national and international level. With Encana Matches, Encana supports employee donations by matching contributions dollar for dollar up to $25,000 per employee per year. Under Encana Volunteers, employees can apply for an annual grant of up to $1,000 for 60 hours of volunteer service to their favorite charity. For further information regarding Encana's Community Investment spend, please see the draft 2014 Sustainability Report in the document library Input For the last fiscal year, please estimate the total monetary value (at cost) of your company s corporate citizenship / philanthropic contributions for each of the following categories. Please note that marketing and advertising budgets should be excluded from the calculation. Please refer to the information button for further guidance and definitions. Please specify currency: Type of Contribution Cash contributions Time: employee volunteering during paid working hours In-kind giving: product or services donations, projects/ partnerships or similar Total amount (in local currency) 116 of 144, Copyright RobecoSAM AG,

116 Type of Contribution Management overheads Total amount (in local currency) There are no corporate citizenship/philanthropic contributions Not applicable. Please provide explanations in the comment box below. Monetary amounts will not be submitted Measuring Benefits Does your company measure the benefits of your company s voluntary contributions in order to assess whether you have met your objectives for your corporate citizenship / philanthropic activities? If so, please indicate which KPIs your company uses to measure the benefits of your contributions and provide supporting documents. The KPIs need to be measurable, you do not need to provide quantitative results. Further, the KPIs can refer to individual projects or programs as well as apply on a more global level. Please refer to the information button for more information and examples of KPIs. Please note that the business and social/environmental KPIs on each row do not need to be linked to the same corporate citizenship activity. Please clearly describe the benefit KPIs as well as the activity in the provided text boxes. Business Benefit KPIs Social / Environmental Benefit KPIs We plan to develop KPIs to measure the benefits of our corporate citizenship/ philanthropic activities by the end of 2015 We do not have a group-wide system in place to systematically measure the benefits of the company s voluntary contributions Not applicable. Please provide explanations in the comment box below. Evaluating return on investments are completed during the term of the agreement or when first evaluating the opportunity. The review process speaks to the ROI from both the recipient and Encana's point of view. 117 of 144, Copyright RobecoSAM AG,

117 Through the assessment process, each opportunity must meet Encana's Community Involvement priorities and demonstrate that it will advance our business strategy and/or align with Encana's values. No references attached 3.6 Occupational Health and Safety Poor occupational health and safety (OHS) performance has a direct negative impact on labor costs through lower productivity. Moreover, it can also affect a company s reputation, impact staff morale or increase its operating costs through fines and other contingent liabilities. RobecoSAM's key questions focus on Key Performance Indicators (KPIs) for a company s own operations, and for its suppliers and their performance against industry benchmarks. Industry specific questions additionally focus on training, audits and transparency. Industries operating in areas where HIV/AIDS is widespread are also expected to support their employees and minimize the risks of disruption to their business activities Lost-Time Injuries Frequency Rate (LTIFR) - Contractors Please provide your company's lost-time injuries frequency rate (per 1 million hours worked) for contractors and provide supporting documents if this data is third party verified. For each row in the table, it is mandatory that the values provided are in the same unit. If you only track LTIFR on a consolidated basis, without distingushing between contractors and employees, please use the employee question to report the consolidated number. LTIFR Unit FY 2011 FY 2012 FY 2013 FY 2014 Contractors n/million work h Data coverage (e.g. as % of revenues, employees, etc.) percentage of: 100 THIRD-PARTY VERIFICATION The above data has been verified by the following organization: Deloitte Not verified We do not track LTIFR for contractors of 144, Copyright RobecoSAM AG,

118 2014 Deloitte Assurance Report, 2014 Encana Assurance Report.pdf (Pages: 1) Lost-Time Injuries Frequency Rate(LTIFR) - Employees Please provide your company's lost-time injuries frequency rate (per 1 million hours worked) for employees and indicate if the data is verified by a third party. If so, please provide supporting documents for the external verification. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the same unit. If you only track LTIFR on a consolidated basis, without distingushing between contractors and employees, please use this question to report the consolidated number. LTIFR Unit FY 2011 FY 2012 FY 2013 FY 2014 Employees Data coverage (e.g. as % of revenues, employees, etc.) n/million hours worked percentage of: revenues THIRD-PARTY VERIFICATION The above data has been verified by the following organization, please also attach evidence of the verification: Deloitte Not verified We do not track LTIFR for employees Encana had a higher LTIF for employees in Part of this was due to a re-organization in late 2013 and contributed to loss of staff for This increased the LTIF because of low working exposure hours Deloitte Assurance Report, 2014 Encana Assurance Report.pdf (Pages: 1) Occupational Illness Frequency Rate (OIFR) - Employees Please indicate your company's occupational illness frequency rate (OIFR) for employees for the past four years as well as indicate if this data is verified by a third party. If so, please provide supporting documents for the external verification. Please refer to the information button for additional clarifications. For each row in the table, it is mandatory that the values provided are in the unit indicated. 119 of 144, Copyright RobecoSAM AG,

119 OIFR Unit FY 2011 FY 2012 FY 2013 FY 2014 Employees n/million work h Data coverage (e.g. as % of revenues, employees, etc.) percentage of: THIRD-PARTY VERIFICATION The above data has been verified by the following organization: Not verified We do not track OIFR for employees No references attached Fatalities (total no) Employees & Contractors Please complete the following table with the number of fatalities for employees and contractors. Fatalities FY 2011 FY 2012 FY 2013 FY 2014 Please explain trend Employees (work-related fatalities) Contractors (work-related fatalities) After two contractor fatalities in 2012, Encana undertook a company-wide initiative to examine and improve safety practices. We do not track employee and contractor fatalities 120 of 144, Copyright RobecoSAM AG,

120 With two fatalities in 2012, Encana undertook a company-wide initiative to examine and improve safety practices. Leaders reviewed incidents, audit results, and staff observations to identify common contributing factors to incidents. Improvement opportunities were identified and efforts to address deficiencies are ongoing. In 2013 we had one contractor fatality. Root cause and risk assessments were conducted to assign corrective actions before project work was permitted to continue. No fatalities in HIV / Aids, Malaria, Tuberculosis, Treatment Please answer the following questions regarding prevention, treatment and community initiatives considering all sites owned or operated by your company. If your company does not have any initiatives because the number of at risk-people with regards to HIV/AIDS, malaria or tuberculosis is very low, please tick the answer option at the end. What proportion of at-risk employees with regards to HIV/AIDS and/or malaria and/or tuberculosis are currently eligible to receive free of charge or easily affordable preventative initiatives and treatment? Please answer the following questions regarding prevention, treatment and community initiatives. Percentage figure: We can not provide a percentage figure because: number of at-risk employees unknown number of employees eligible to receive free of charge preventative initiatives and treatment unknown What proportion of affected employees (with HIV/AIDS and/or malaria and/or tuberculosis) are receiving free of charge or easily affordable treatment? Percentage figure: We can not provide a percentage figure because: number of affected employees unknown number of employees receiving free of charge or easily affordable treatment unknown What community initiative s are in place to address HIV, malaria and TB in affected or higher risk regions? Please briefly describe your company's approach. We do not have a strategy regarding prevention, treatment and community initiatives 121 of 144, Copyright RobecoSAM AG,

121 Not applicable. Number of at risk-people very low with regards to HIV/AIDS, malaria or tuberculosis, therefore no corresponding programs implemented. Please provide an explanation in the comment box below. Encana's production and reserves are located in North America where the Company's workforce is not at risk for these illnesses MSA OHS In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 3.7 Social Impacts on Communities Extractive industries (e.g. mining, oil & gas) and companies producing basic materials (e.g. steel, aluminum) operate plants and facilities that are potentially hazardous to neighboring areas, negatively impacting the environment and the health of local people. In some cases, such projects might even require the relocation of local communities. To avoid the possibility of conflict, protest, or the cancellation of companies operating licenses, it is critical to engage with communities at an early stage of the site s activities. RobecoSAM's questions focus on the extent of environmental and social impact assessments conducted by companies for new operations or the extensions of existing operations, their relocation programs and their efforts to prevent social hazards such as alcohol abuse or violence Active Community Engagement 122 of 144, Copyright RobecoSAM AG,

122 How many current production assets have required community consultation? If these figures are publically reported, please provide supporting evidence or weblink. number of current production assets % of current production assets How many development projects are in the process of community consultation? If these figures are publically reported, please provide supporting evidence or weblink. number of development projects % of development programs Our company does not hold any community consultations Not known Encana has dedicated Community Relations personal that work with communities across our operating areas. As part of our ongoing Community Relations efforts, our teams provide ongoing updates to the community, municipal government and the regulator. These updates include holding open houses/information sessions, presentations, tours and special events in the community. Our teams are also always available to work with community members. No references attached Community Consultation Framework and Implementation Do you have a company-wide consultation policy or framework approach with regards to community consultation? Yes, and it covers the following aspects (where appropriate). Please attach supporting evidence. Identifying local affected communities Identifying, predicting & analysing impacts on affected communities Disclosure to local communities of Environmental & Social Impact Assessments and other relevant information Focused inclusive engagement on the directly affected communities Heightened focus on disadvantaged & vulnerable groups Informed consultation and participation The principle of free prior and informed consent for all affected communities Prospects for local community employment and economic participation 123 of 144, Copyright RobecoSAM AG,

123 No, we do not have a company-wide consultation framework. Please provide a comment in the box below. Is community consultation fully integrated into your operating management system? Yes, and (where appropriate) it covers the following aspects. Please attach supporting evidence. The requirement to follow EIA and SIA recommendations The activities of contractors Ongoing contact with communities such as through a social liaison officer network or grievance mechanism Audit and assessment of community consultation activities No, it is not fully integrated in our operating management system. Please explain in the box below. Our company does not have a company-wide consultation policy or framework approach with regards to community consultation Stakeholder Relations Guide, stakeholderrelationsguide.pdf (Pages: throughout) Relocation Programs Please indicate the aspects considered in the majority of cases when relocations/resettlements are required due to your company's activities. Please attach/provide supporting documents or indicate website Information on affected people about their options and rights pertaining to resettlement as early as possible Offering consultation and participation opportunities in planning, implementing and monitoring resettlement Assistance of displaced persons to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to project implementation, whichever is higher Providing prompt and effective compensation at the full replacement cost for lost assets Informal land users (people having no formal legal rights to land but have a claim to such land) are compensated on the same premises as land users having formal legal rights New agricultural sites are at least equivalent to the old agricultural sites with regard to productive potential, locational advantages and other factors Offering assistance during relocation Offering support after displacement for a transition period 124 of 144, Copyright RobecoSAM AG,

124 Providing development assistance such as credit facilities, training, or job opportunities Indentifying and engaging with particularly vulnerable groups such as the poor, the landless, the elderly, women, indigenous peoples or ethnic minorities We do not take any of the aspects above into consideration when relocations/resettlements are required due to our company's activities Not applicable; none of our projects have required relocation. Please provide explanations in the comment box below. Encana negotiates mineral and land access with the rights holders. Encana adjusts its operations to minimize disturbance and compensates for any loss of use according to negotiated contracts. Because we operate only in North America, relocation is not typical and, if done, is voluntary and temporary. In certain situations, Encana has offered temporary hotel accommodations for residents who have been disturbed by drilling activity. No references attached Indigenous Peoples In case your company's stakeholders include Indigenous Peoples, please indicate what is included in your engagement process with them. Presenting information openly and in a form that is accessible to these populations Beginning engagement at the earliest possible stage of potential mining activities, prior to substantive onthe-ground exploration Undertaking engagement through traditional authorities within communities and with respect for traditional decision-making structures and processes wherever possible (e.g. if not required otherwise by law) Developing an understanding of Indigenous Peoples culture, values and aspirations amongst the company personnel Developing an understanding of the company s principles, objectives, operations and practices amongst Indigenous Peoples We do not engage specifically with Indigenous Peoples Not applicable. There are no Indigenous Peoples in the regions where we operate. Please provide an explanation in the comment box below. We have an Aboriginal Relations Guideline within the organization. 125 of 144, Copyright RobecoSAM AG,

125 We strive for positive relationships with Aboriginal communities near our operations by respecting cultural values and, where appropriate, collaborating on community investment, educational and economic development opportunities. Recognizing the unique interests and rights of Aboriginal peoples, we work to ensure that appropriate and meaningful engagement activities are incorporated into our project planning. We keep potentially impacted communities informed of our development plans and provide updates as those plans evolve. This early and ongoing engagement helps build our understanding of matters of importance and helps provide a framework for open dialogue and collaboration Involvement of Security Forces Please indicate which statements hold true for all sites owned or operated where security forces are engaged. Our company tracks the human rights record of any party (public security forces, paramilitaries, local and national law enforcement, private security) that it is intending to work with Our operations consult regularly with host governments and local communities about the impact of their security arrangements on affected communities Our company consults with other companies, host country officials, and civil society regarding experiences with private security Our rules of conduct for security personnel (both employees and contractors) support human rights principles. Please add supporting documents: Our company monitors private security providers to ensure they fulfill their obligation to provide security in a manner consistent with the rules of conduct outlined by our company None of the options are true for all sites owned or operated by our company where security forces are engaged Not applicable. None of our owned or operated sites have security forces employed. Please provide explanations in the comment box below. Our operated assets are only in North America where security forces are not typically required. No references attached 126 of 144, Copyright RobecoSAM AG,

126 3.7.6 Local Employment Please indicate which of the business practices on employment of local people at operating sites hold true for at least 80% of your owned or operated sites. We have implemented a policy on employing local people. Please provide a brief description and a reference: We reinforce the importance of using local contractors, employment opportunities made accessible to local companies and businesses, and have incorporated relevant language in our contract documents. We offer training for local unemployed people in order to make them fit for work at our operations. Please provide a short comment on these training programs. We report on the employment of local people at the operating site level We report on the share of local people in senior management positions at the operating site level We do not have business practices on employment of local people at operating sites for at least 80% of the company's owned or operated sites Not applicable. Please provide an explanation in the comment box below. No references attached MSA Social Impact on Communities In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 127 of 144, Copyright RobecoSAM AG,

127 3.8 Stakeholder Engagement The rise of civil society, and the resulting greater availability of and access to information, has increased the awareness of the impact corporate activities can have on societies at large. New communication technologies and social media have enabled stakeholders to better connect and coordinate, thus multiplying the impact of stakeholders on companies. These circumstances call for the implementation of adequate management strategies with a particular focus upon the identification and management of relationships with stakeholders beyond the traditional boundaries of shareholders, employees and customers. By engaging with the relevant stakeholders, companies can minimize reputational risks (e.g. being the target of a high-profile activist campaign), improve operational efficiency via smooth collaboration with local communities and authorities, and strengthen their social license to operate by gaining greater respectability and credibility. RobecoSAM's questions assess whether companies governance of Stakeholder Engagement activities occurs at the corporate level and if the strategy is executed in an efficient and balanced manner at the local level by carefully planning and implementing a systematic Stakeholder Engagement approach complemented by a review of the outcomes. Please note that the Stakeholder Engagement criterion focuses on local stakeholder groups such as communities, authorities, media, associations and NGOs which are not covered in other general or industry-specific parts of the questionnaire, such as investors (covered in the Corporate Governance criterion), employees (covered in Talent Attraction & Retention and Human Capital Development ) and customers (covered in Customer Relationship Management ) Stakeholder Engagement - Governance Please indicate for the Policy/Procedure, Ownership and Accountability sections below the structures in place to govern Stakeholder Engagement at group level. Please see the information button for an overview of the stakeholders that are accepted in this criterion. POLICY / PROCEDURE Do you have a policy or procedure to ensure that the corporate Stakeholder Engagement strategy is applied consistently across all operations? Please attach supporting documents or provide weblinks if information is publically available. No, we do not have a policy or procedure for Stakeholder Engagement Yes, the Stakeholder Engagement policy/procedure is applied at SOME local operations but not available in the public domain. Please attach internal policy/procedure document. Yes, the Stakeholder Engagement policy/procedure is applied at ALL local operations but not available in the public domain. Please attach internal policy/procedure document. Yes, the Stakeholder Engagement policy/procedure is applied at SOME local operations and publicly disclosed. Please provide a web link: Encana has a strong integrated stakeholder engagement program. Yes, the Stakeholder Engagement policy/procedure is applied at ALL local operations and publicly disclosed. Please provide a web link: If you have such a policy/procedure in place, please indicate which of the following aspects are covered: Scope of policy/procedure 128 of 144, Copyright RobecoSAM AG,

128 Objective of Stakeholder Engagement Guidance for identifying stakeholders Guidance for prioritizing stakeholders Guidance for deciding on the method of engagement (e.g. dialogue, consultation, interactive website, etc.) Guidance for ensuring the stakeholders have sufficient capacity to engage with you (e.g. when and how to introduce capacity building measures) Guidance for handling Stakeholder Engagement risks (e.g. disruptive stakeholders, participation fatigue, etc.) Guidance for communicating the results of your Stakeholder Engagement OWNERSHIP Indicate the name and the number of levels separating the person ultimately responsible for Stakeholder Engagement at group level from the CEO. Name: Mike McAllister; Ryder McRitchie Number of levels from the CEO: 1 Please indicate the frequency of briefings on Stakeholder Engagement to the Board of Directors At least quarterly At least semi-annually At least annually On an ad-hoc basis Never ACCOUNTABILITY Do you provide a grievance mechanism for local stakeholders to directly report to the department responsible for Stakeholder Engagement at group level in case the local communication channels do not function (e.g. hotline, dedicated )? Please provide a web link: We do not have any group-wide stakeholder engagement governance structure in place Not applicable. Please provide explanations in the comment box. Corporate Responsibility Policy, corp-responsibility-policy.pdf (Pages: 1-2) - Stakeholder Engagement Guide, Stakeholder Engagement Guide - FINAL.pdf (Pages: all) of 144, Copyright RobecoSAM AG,

129 3.8.2 Stakeholder Engagement - Implementation Please indicate the operational responsibilities as well as some examples of how your company's stakeholder engagement strategy is executed in the respective sections below. Please see the information button for an overview of the stakeholders that are accepted in this criterion. OPERATIONAL RESPONSIBILITY & CAPACITY Which function is typically responsible for overseeing Stakeholder Engagement at your local operations? Stakeholder engagement is implemented in Operations under the COO; local Community Relations Officers are placed in strategic field locations to deliver and monitor community relations/community involvement programs and stakeholder engagement. Local implementation of the group-wide Stakeholder Engagement policy/procedure is part of the annual performance review of the local operations top managers, please specify: Each employee of Encana must complete a "high performance contract" that outlines their work plan and objectives of the year. It is reviewed twice a year. The contract helps determine part of the staff's compensation, which in the case of community relations staff, a large portion on the performance review would be around stakeholder engagement and ensuring the CR policy and stakeholder engagement guide are followed. Top local managers receive training on capacity building and methods of engagement as specified in the Stakeholder Engagement policy/procedure. Please specify: Courtesy Matters, Conflict Management EXECUTION (Can be filled out even if first section has not been completed) Stakeholder profiles and a stakeholder maps are used as tools on the local level. Please provide examples of both profiles and maps from a representative local operation. At the representative local operation indicated above, please describe the process for categorizing stakeholders and identifying high-priority stakeholders: On an annual basis, the community relations teams across our operations develop an engagement plan based on a comprehensive assessment of operational priorities and risk & reputational management and opportunities. Internal tools used to develop the engagement plan include community impact assessment tool, risk matrix, operational maps and development plans. The CR team works closely with the Surface Land staff to ensure plans incorporate those stakeholders most impacted by our development plans. Based on your categorization of stakeholders as explained above, please provide two examples of stakeholders determined to be high-priority: Local government, landowners and synergy groups Please briefly describe an interactive engagement (e.g. dialogue, partnership) with one of the high-priority stakeholders indicated above. Attach supporting reference (e.g. notes of town hall meeting): Community information sessions where our development plans and approach to responsible development are shared with area residents; annual local government outreach where we meet with local leaders and present an overview of development plans for the area. We do not have a function responsible for stakeholder engagement and do not use tools to categorize stakeholders at the local level Not applicable. Please provide explanations in the comment box. 130 of 144, Copyright RobecoSAM AG,

130 We have hosted a number of stakeholder events that target area residents most impacted by our activity, including an annual BBQ for landowners and community partners as well as annual local government outreach, to keep community leaders informed of our activity and reinforce strong working relationships. This engagement also helps us understand the challenges and opportunities that community leaders must address, and when possible we can support and collaborate on community initiatives. No references attached Stakeholder Engagement - Review Please indicate in the Measuring and Lessons Learnt sections below how your company is measuring the outcome of your stakeholder engagement activities as well as how lessons learnt are incorporated into business processes. Please see the information button for an overview of the stakeholders that are accepted in this criterion. MEASURING Please indicate performance indicators (quantitative or qualitative) which are typically used to measure and report the success of your local Stakeholder Engagement activities back to the department responsible for Stakeholder Engagement at group level. Please attach supporting documents if available and provide a detailed description of the KPIs used. Key Performance Indicator 1, please specify: Community Involvement - Our community involvement programs are strategically aligned to promote environmental stewardship, enhance the skill sets of the next generation of industry leaders and support the needs of our communities. We track not only the dollars spent but also the "value/impact" of the dollars on the communities and our company. Key Performance Indicator 2, please specify: Courtesy Matters is part of our approach to stakeholder engagement. It offers staff a benchmark for courteous and respectful behaviour and reinforces our expectations regarding courteous conduct through all stages of development. We track the number of concerns, training for staff, and communications with all communities across our operations. In 2014, we piloted a Courtesy Matter Spot Check in areas with high levels of activity. This is similar to an audit, conducted by major projects as part of the onboarding program; other disciplines will incorporate at key stages (safety meetings/kick-off meetings). Media coverage is another measurement, of both positive/negative and neutral perceptions related to community sentiment regarding industry. We work with our Communications group to monitor and gauge media coverage. LESSONS LEARNT Please briefly describe a concrete example where local Stakeholder Engagement has not been successful or has lead to a negative outcome: 131 of 144, Copyright RobecoSAM AG,

131 How are lessons learnt from good and bad Stakeholder Engagement experiences systematically disseminated across the group? Dedicated interactive intranet site Standardized debriefing process Development of training modules Internal conference where local plant managers meet and share best practices Road shows to local operating units to share best practices from other operating units Other, please specify: Internal feedback from staff post info sessions; results circulated; feedback form at info sessions for attendees to fill out. Quarterly review of our CR Action Plans to ensure alignment with business priorities and support community/stakeholder relations objectives. We do not measure the outcome of our stakeholder engagement activities Courtesy Matters training; establishing e-learning module to roll out in Q4 2015; as well as review/refresh Courtesy Matters messaging to ensure principles of the respectful program stay top-of-mind and operational. Courtesy Matters messaging also delivered at field/safety meetings and at new hire/orientation sessions to introduce workers and contractors to program elements and Encana's expectations for courteous conduct during all stages of our development and operations. No references attached MSA External Engagement In this section we include a performance score on the Corporate Sustainability Monitoring with the objective to verify the company's involvement and management of crisis situations that can have a damaging effect on reputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information is required from your company. Please disregard the comment box. 132 of 144, Copyright RobecoSAM AG,