I N D I G E N O U S COMMUNITY R E L AT I O N S B R I E F

Industry is committed to partnering with Indigenous communities to ensure shared benefits of the oil sands industry, including economic growth, procurement, employment and training opportunities. Through enhanced relationships with Indigenous communities we will continue to collaboratively identify and advance key opportunities that achieve shared success.

The stories and case studies below reflect the oil sands industry’s focused efforts on strengthening relationships with Indigenous Peoples and communities in Alberta; industry believes this is the strongest contribution and best path forward, and will ultimately help build a better Canada.

OSCA: INDIGENOUS RELATIONS BRIEF PARTNERING WITH INDIGENOUS COMMUNITIES IS FOUNDATIONAL TO SUCCESSFUL ENERGY DEVELOPMENT.

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WORKFORCE The oil sands industry has a goal to achieve a workforce diversity that is representative of the people and communities where we operate. Oil sands companies are working with communities to advance participation of Indigenous peoples in energy development.

Indigenous Peoples face unique barriers that have affected their full participation in the energy industry. These include how they look for work, skills gaps, remoteness of Indigenous communities and the corresponding lack of access to internet, education and training opportunities and the intergenerational effects of the residential school system.

As Indigenous businesses grow their participation in resource development, Indigenous people are a growing proportion of oil and natural gas employment, making up 7.4 per cent of the industry’s workforce in 2019 (up from 4.8 per cent in 2018). The top oil and gas occupation for Indigenous workers in 2019 was oil and gas well drillers, servicers, testers and related workers (4,000) and the highest share of employment was power engineers and power systems operators (36%).

Source: Petro LMI

Indigenous people are a growing proportion of oil and gas employment

7.4%in 2019

4.8%in 2018

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CENOVUS HOUSING INITIATIVE Cenovus launched its Indigenous Housing Initiative in early 2020, which committed $10 million per year for five years to build much-needed new homes in six First Nations and Métis communities closest to its oil sands operations in northern Alberta.

“What I am taking away from Cenovus’s announcement about the new housing initiative – it’s absolutely amazing and groundbreaking, and I hope it sets a precedent for the rest of the industry to follow the lead of Cenovus. We are excited and honoured to be part of this housing initiative.” Justin Herman, CEO, Chard Métis (Local 218)

Cenovus will be collaborating with Portage College to support the Housing Initiative with the 24-week Construction and Trades Readiness Program. In addition to the construction of new homes and the training program, Cenovus also aims to work with communities to raise awareness about the Indigenous housing shortage and help advocate for solutions.

“Training local residents so they have the skills to participate in building and maintaining their homes is crucial to the success of our Indigenous Housing Initiative. We worked with the communities and Portage College to design a tailor-made training program that we’re confident will provide the foundation for valuable education and employment opportunities for local residents in the long term.” Rhona DelFrari, Cenovus Vice-President, Sustainability & Engagement

Source: Cenovus Energy

SUNCOR’S GRIP PROGRAM Generated from the idea of combining resources to facilitate and advance Indigenous workforce participation, the GRIP Program will provide training opportunities to support CEDA, Ledcor and Primoris’s demand for Indigenous employees over the next 1-5 years in the Wood Buffalo Region.

Source: Suncor Energy

EMPLOYMENT AND TRAINING Communities, oil sands companies, and Indigenous skills and employment training agencies share a common goal – to increase skills, education, training, and employment outcomes in all Indigenous communities in the Athabasca oil sands region. Through the Oil Sands Community Alliance (OSCA), companies want to add to individual efforts and take a strategic regional approach to achieve their common goal. Going forward the collaboration between industry, communities, governments and other stakeholders will be key in continuing and growing the employment and training opportunities for Indigenous communities.

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IMPERIAL’S COLD LAKE INDIGENOUS INTERNSHIP PROGRAMImperial supports educational development and recruiting practices that facilitate employment of Indigenous peoples. Examples include a dedicated Indigenous recruitment advisor and Indigenous internship programs like the Norman Wells Development Program and the Indigenous Internship Program at Cold Lake.

Since 1990, Imperial has supported on-the-job learning and development through a variety of programs including the Northern Development Program (NWT), Indigenous Internship Program (Cold Lake) and Summer Internship Program (corporate).

The Cold Lake Indigenous internship program, for example, started more than 20 years ago, and to date has had roughly 83 participants in the program. Another example is the Norman Wells Northern Development Program, a two-year internship program that started in 1990. The internship provides training, mentorship and support — with the ultimate goal of transitioning successful students to full-time employees once their education is complete.

"I wanted to be a role model to the young people in my community. At first I had mixed emotions about working in energy as my reserve (Aamjiwnaang First Nation) is closely located to several oil and gas operations. My Chief had worked at Imperial and he brought back the message to our community that we can build these positive relationships that will impact future generations. That message told me that it is possible and it started with me working here. Through Imperial’s Indigenous student employee program, I have finally found my path and have had my voice heard." Karlee Jackson — former recruitment analyst student and current Human Resources Advisor, Nanticoke Refinery

Source: Imperial Energy

PARTNERING WITH INDIGENOUS YOUTH Young Indigenous Peoples are among the fastest-growing demographic in Canada. Between 2006 and 2016, the Indigenous population grew at four times the rate of the non-Indigenous population, meaning that in less than five years 350,000 Indigenous youth will be part of the workforce (Source Petro LMI). It is imperative that we continue to invest in Indigenous youth to build the capacity of the workforce long term.

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WEB BASED TRAININGSuncor has developed an in-house training “Canada’s history with Indigenous People” which features Indigenous employees as well as representatives from community partners such as Reconciliation Canada. This is available to the public.

In addition to training, Suncor’s employees have embraced various learning and cultural opportunities, including the creation of a virtual Indigenous Learning space on their company intranet and the Kairos Blanket Exercise. In 2019, Suncor established procedures to enable smudging for meetings and special events at the Calgary Suncor Energy Centre.

Source: Suncor Energy

VALUING INDIGENOUS WORLDVIEWS The success of the oil sands industry is more than just metrics; our commitment is to regularly reflect on whether our efforts are leading to cultural shifts and behavioural changes in how we work with and learn from Indigenous Peoples and communities.

Incorporating Traditional Knowledge in our Practices

Canadian Natural incorporates traditional knowledge into reclamation and closure plans for oil sands mining and upgrading operations. Together with the Fort McKay Community Advisory Group, Canadian Natural developed and implemented traditional protocols for tree planting, which include private Smudge Ceremonies and the teachings of Tobacco Blessings with Fort McKay Elders prior to tree planting on the Albian and Horizon sites.

Source: Canadian Natural

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INDIGENOUS BUSINESS AND PROCUREMENT Indigenous-owned businesses have become an integral part of our industry over the past four decades. The oil sands industry is committed to supporting Indigenous communities and contractors in their competitive, technically competent and safe participation in sustainable business opportunities.

ALBERTA Indigenous Supply Chain Spending in Alberta has been increasing since 2017. Between 2017 and 2019, oil sands operators procured goods and services valued at a total of $5.9 billion (an average of about $1.97 billion per year) from Indigenous businesses.

INDIGENOUS SUPPLIERS IN ALBERTA

ON THE RISE – 2019

481 SUPPLIERS IN 2019

+82+82SINCESINCE20162016

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FORT MCMURRAY WOOD BUFFALO The oil sands industry recognizes the importance of ensuring Indigenous businesses are considered for, and awarded, procurement opportunities, so communities can grow their business, grow their competitive capacity, and improve economic sovereignty. Procuring goods and services locally helps achieve that goal by providing income and keeping talent in the community. Procurement presents a significant mutual benefit opportunity with Indigenous communities and Indigenous businesses.

SYNCRUDE BISON RANCH The Beaver Creek Wood Bison Ranch is a joint-venture between Syncrude and Fort McKay First Nation in pioneering bison conservation on reclaimed lands. For over 28 years, the oil sands company has partnered with their Indigenous neighbours to introduce and ensure the safety and survival of this culturally significant animal back to the region. The ranch, located on 450 hectares of reclaimed land and home to 300 wood bison, is operated by Fort McKay Environment LP and offers employment opportunities for the nation.

“Our people have a longstanding relationship with the bison, which is why one of our most important spiritual lakes is called Buffalo Lake. Our people have eaten meat from bison in that herd – we have an affinity for it because it is a good, lean, healthy meat. Many of our people, including my brother Ricky Boucher and Harvey Roland, have worked in the operations and management of the ranch. We see it as a significant entity for the future,” Fort McKay First Nation.

Source: Syncrude Canada

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Indigenous business spend in the Wood Buffalo region has been on the rise, in a period of time when overall oil sands capital spending has been declining. In 2019, Indigenous companies in the Wood Buffalo region had direct business valued at $1.7B with oil sands operators (73% of the total Indigenous procurement spend by oil sands companies).

Indigenous supply chain businesses contribute to oil sands operations in a variety of areas including construction, camps and catering, equipment services, transportation, environmental, drilling, engineering services, and retail among others. Companies actively work to engage Indigenous businesses in the areas of operation – In Wood Buffalo, the top 3 categories continue to be camps and catering, construction and equipment services.

TOTAL RMWB INDIGENOUS SPEND (2017-2019)

63%

70%

73%

56%

58%

60%

62%

64%

66%

68%

70%

72%

74%

$ –

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2017 2018 2019

Perc

enta

ge

Mill

ions

Total RMWB Indigenous Spend RMWB Share of Total Indigenous Spend

C O N S T R U C T I O N

$595 MILLION

CAMPS AND CATERING

$329MILLION

Highest categories of Indigenous spend in the Wood Buffalo region in 2019

Source: CAPP

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COMMUNITY INVESTMENT IN INDIGENOUS COMMUNITIES Oil sands companies proudly contribute time, skills and financial support to enhance communities where they work and operate. Community investment and engagement activities create lasting relationships to foster strong and healthy communities. The total for community investment activities in Indigenous communities reached $32 million in 2019, compared to $21 million in 2017.

COMMUNITY INVESTMENT

$ –

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

2017 2018 2019

Community investment can include things such as education initiatives for Indigenous communities, training programs, physical infrastructure and cultural program funding specific to local communities. Consultation funding applies to ongoing operations in an Indigenous community to support activities such as agreement negotiations, project specific consultation, site visits, technical reviews, and funding for community-led studies.

Source: CAPP

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CONCLUSION The oil sands sector is committed to engaging and working with Indigenous peoples and communities, finding mutually beneficial solutions and strategies on important issues. The Oil Sands Community Alliance will continue looking for innovative opportunities and solutions to advance a region wide collaborative approach.

RELATED OSCA works closely with the following stakeholders: • Northeastern Alberta Aboriginal Business Association (NAABA)• Region One Aboriginal Business Association (ROABA)• Athabasca Tribal Council (ATC)

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