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Overall Management Approach to Corporate Responsibility

With over 5,000 employees and contractors across our operations, Encana plays a role in helping to meet North America’s growing demand for responsible energy. We are committed to increasing value for our shareholders by mitigating our environmental impact and measuring and improving our performance. We are accountable to all stakeholders and remain steadfast in our role as an industry leader in workplace safety, environmental stewardship and social responsibility.

We take a proactive approach to the identification and management of issues that affect the Company’s reputation and have established consistent and clear policies, procedures, guidelines and responsibilities for identifying and managing these issues.

Our Corporate Responsibility Policy articulates our commitment to conducting our business ethically, legally and in a manner that is fiscally, environmentally and socially responsible, while delivering strong financial performance. Our Corporate Responsibility Policy has specific requirements in areas related to (i) governance; (ii) people; (iii) environment; (iv) health and safety; (v) engagement and (vi) community involvement. Our policy is embedded throughout the organization.

We began voluntarily reporting our environmental, health, safety, governance and social performance in 2005. In doing so, we integrate environmental, social and economic considerations to help reduce risks and create opportunities. Our goal is to support the long-term success of our business.

Environment

Our commitment to environmental stewardship is guided by our Corporate Responsibility and Environment policies. The Corporate Responsibility, Environment, Health and Safety Committee of our Board of Directors reviews and recommends fundamental policies to corporate responsibility, environment, heath and safety policy to the Board of Directors for approval and oversees compliance with government laws and regulations. The Chair of our Board of Directors is a non-executive and independent.

Climate change

We monitor developments in emerging climate change policy and legislation and consider the associated costs of carbon in our strategic planning. The Corporate Responsibility, Environment, Health and Safety Committee of our Board of Directors reviews the impact of a variety of carbon constrained scenarios on our strategy with a current price range from approximately $10 to $50 per tonne of emissions, applied to a range of emissions coverage levels.

We intend to continue our activity to reduce our emissions intensity and improve our energy efficiency. Our efforts with respect to emissions management are founded on the following key elements:

• significant production weighting in natural gas
• focus on energy efficiency and the development of technology to reduce greenhouse gas emissions
• involvement in the creation of industry best practices

Health and safety

We are committed to maintaining and promoting a healthy workforce and are focused on achieving an injury-free workplace. Furthermore, we believe that all occupational injuries and illnesses are preventable.

Stakeholder engagement

Ensuring our stakeholders know who we are and what to expect from us is crucial to our success. We work with stakeholders in a transparent, honest and respectful manner by listening to their concerns and working with them to find solutions to meet their needs. Open dialogue with stakeholders enables good decision making, helps identify and resolve issues, builds strong communities and supports shared learning before, during and after our operating activities. We employ a variety of methods to receive feedback and assess the effectiveness of our programs.

Human rights

We are committed to operating in a transparent manner, meeting all regulatory requirements where we operate, including those associated with human rights. Our labour standards are aligned with applicable regulations and practices in the areas where we operate. We have a strong focus on work/life balance for employees including a practice which allows staff every first and third Friday off, accompanied by annual vacation eligibility based on life experience, not length of employment.

The health and safety of our staff and communities is paramount to us. Our Investigations Practice and our Integrity Hotline help ensure that there is an appropriate channel for complaints with respect to workplace practices and equity.