DJSI Sustainability Assessment 2015 1.1.1 Board Structure · RobecoSAM - Corporate Sustainability Assessment DJSI Sustainability Assessment 2015

RobecoSAM - Corporate Sustainability Assessment DJSI Sustainability Assessment 2015Encana Corp

2 of 144, Copyright © RobecoSAM AG, 2001 - 2015

DJSI Sustainability Assessment 2015

1 Economic Dimension

1.1 Corporate Governance

Corporate governance systems ensure that a company is managed in the interests of shareholders (includingminority shareholders). On the one hand this includes checks and balances that enable the Board of Directors tohave 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 managementinterests are aligned with shareholder’s interests. RobecoSAM’ s questions focus on board structure, compositionof the board and relating committees, board effectiveness and measures to ensure the alignment with the long-term interest of shareholders, which includes transparency and structure of executive remuneration as well asshare ownership requirements.

1.1.1 Board Structure

Please indicate in the following table the number of executive and non-executive directors on the board ofdirectors/supervisory board of your company. Please find additional clarification on one-tier and two-tier systemsin 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.Number of members

Executive directors 1Non-executive directors (excl. independentdirectors)

0

Independent directors 10Total board size 11

❍ TWO-TIER SYSTEM. For companies with supervisory board.Number of members

SUPERVISORY BOARD Non-executive directors (excl.independent directors)

_ _ _ _ _ _ _ _ _ _

Independent directors _ _ _ _ _ _ _ _ _ _Employee representatives (if notapplicable, please leave the fieldempty)

_ _ _ _ _ _ _ _ _ _

MANAGEMENT BOARD/EXECUTIVE MANAGEMENT

Senior executives _ _ _ _ _ _ _ _ _ _



Number of members

TOTAL SIZE OF BOTH BOARDS _ _ _ _ _ _ _ _ _ _Board Independence Statement

Please indicate if your company has an independence statement for the board of directors in place. Pleaseprovide 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 themeaning of such term set forth in National Instrument 58-101.

❏ A target share of independent directors on the board. Please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ We do not have a public independence statement for the board of directors

❍ Not applicable. Please provide explanations in the comment box below.

❍ Not known

Comment :For the May 12, 2015 Annual and Special Meeting of Shareholders, the Board of Directors of the Corporation setthe number of directors to be elected at the meeting at 11. The shareholders elected as directors are the 11 listedin the Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, p. 8-14.

Encana's Board of Directors has appointed five committees: Audit; Corporate Responsibility, Environment, Healthand 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 GovernanceCommittee gives consideration to the appropriate size of the Board. Encana believes that the current size andcomposition 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'smanagement and is considered to be non-independent due to his position as President and CEO of theCorporation.

References :• Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, Notice of 2015 AGM

and Information Circular.pdf (Pages: 68)

1.1.2 Non-executive Chairman/Lead Director

Is the board of directors/supervisory board headed by a non-executive and independent chairman and/or anindependent lead director? If an independent lead director is appointed, please provide his / her name in thefollowing comment box:



_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _✓ 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 nowchairman

❍ 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 directoris 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 theprovided comment box at the top of the question.

❍ Role of chairman and CEO is joint or chairman is an executive director


❍ Not known

Comment :The chairman is non-executive and independent. This approach has been in place since the Corporation'sinception in 2002.

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 SpecialMeeting of Shareholders and Information Circular, p. 68.

References :• No references needed

1.1.3 Board Nomination Process

Please indicate whether diversity and the complementarity of skills are considered in your company's boardnomination process. Please also indicate whether or not this policy is publicly available and what criteria arecovered.

✓ 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 publicdomain:

❍ 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 skillsDiversity Criteria



Please state the three most important criteria related to board composition and board diversity that areincluded in your nomination policy and that aim to create variance in these criteria. Please provide supportingevidence 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'seleven directors are female. Two of the five committee chairs are female.

Diversity in Board Nomination ProcessPlease indicate which of the following aspects are formally part of the nomination process and provide a linkif this information is found in the public domain. If not publicly available, provide internal documents to supportyour answer.✓ A skill matrix of the current board (describing the current mix of skills represented by different board

members) is availableIn 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 servesas the basis for the review of candidates by the nomination committeeAn analysis of the current mix of skills and the target mix of skills is completed by the Nominating andCorporate Governance Committee on an annual basis and is a component of the Board effectivenessreview. In the Document Library, see the Notice of 2015 Annual Meeting of Shareholders and InformationCircular, p. 65, Corporate Governance Practices.

❏ The recommendations of the Nomination Committee explicitly address in which way the candidatesrecommended 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'ssector 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.

❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :



• Notice of 2015 Annual and Special Meeting of Shareholders and Information Circular, Notice of 2015 AGMand Information Circular.pdf (Pages: 65-72)

1.1.4 Gender Diversity

Please indicate the number of women on your company's board of directors/supervisory board?✓ 3


❍ Not known

Comment :There were three female directors nominated and elected as directors of the Corporation at the Annual andSpecial Meeting of Shareholders held on May 12, 2015.


1.1.5 Responsibilities and Committees

✓ Board Committees , p lease indicate in the table below the functions and associated committee names, forwhich the board of directors/supervisory board explicitly assumes formal responsibility:

Function Responsibilities Name of committeeAudit, accounting, riskmanagement

✓ All members are non-executivedirectors

Audit Committee (primarily financialrisks) - all risks fall under themandate of the Board of Directors

Selection and nomination of boardmembers and top management


Nominating and CorporateGovernance Committee

Remuneration of board membersand top management


Nominating and CorporateGovernance Committee (for Boardmembers) and Human Resourcesand Compensation Committee (forsenior management)

Board Level Responsibility for SustainabilityIs there a board committee formally responsible for sustainability?✓ 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



❍ No, we do not have a specific board committee formally responsible for sustainability but we have asustainability committee which includes at least one board member. Please specify the name of thecommittee and the board member:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ No, we do not have such a committee in placeSustainability Committee CompositionIf 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 SustainabilityPlease indicate the name, position and reporting line of the highest ranking individual responsible forsustainability (e.g. Head of Corporate Social Responsibility or similar) in the company (excluding CEO).Name Dave LyePosition Vice-President, Policy, Environment and

SustainabilityNumber of levels from CEO 2Reporting Line 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


❍ Not known

Comment :Encana also has a Reserves Committee appointed by the Board of Directors. All members of this committee areindependent directors. The mandate of the committee can be found at: http://www.encana.com/pdf/about/board-governance/mandate-reserves.pdf.


1.1.6 Board Effectiveness

How does your company ensure the effectiveness of your board of directors/supervisory board and the alignmentwith the (long-term) interests of shareholders?



✓ Indicators/measuresNumber of meetings attended in percentage lastbusiness / fiscal year

✓ Average board meeting attendance:96% of meetings of board of directors/supervisoryboard.

❏ Minimum of attendance for all members required,at least (in %)_ _ _ _ _ _ _ _ _ _

Number of other mandates of the board of directors /supervisory board members. This only applies to non-executive and independent directors, not executivedirectors or employee representatives.

✓ Number of non-executive/ independent directorswith 4 or less other mandates:10

❏ Number of other mandates for non-executive/independent directors restricted to:_ _ _ _ _ _ _ _ _ _

Performance assessment of board of directors/supervisory board members.

✓ Regular self-assessment of board performance.Please specify or provide documents:The Nominating and Corporate GovernanceCommittee is responsible for assessing theeffectiveness of the Board and Committees of theBoard.

✓ Regular independent assessment of boardperformance. Please specify or provide supportingdocuments:_ _ _ _ _ _ _ _ _ _

Election of board members ✓ Board members are elected and re-elected on anannual basis

✓ Board members are elected individually (asopposed to elected by slate)


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• 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, http://www.encana.com/pdf/investors/financial/annual-reports/2015/information-circular.pdf (Pages: 76 andAppendix E) p. 76 - Assessments of the Board; Appendix E - Board of Directors' Mandate



1.1.7 Executive Compensation - Success Metrics and Vesting

Please indicate your company's pre-defined corporate indicators relevant for the variable compensation of SeniorExecutives 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 ProductionMix, 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 stakeholderengagement), 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 predefinedtargets, either variable or absolute), covered in your executive compensation plan? Is there a clawback policyin place? Please note that compensation that only is time vested is not considered as performance basedcompensation 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 CompensationPlease indicate the timeframe for payout of variable CEO compensation. If payout depends on futureperformance please use target payouts to calculate the percentage.Timeframe for variable payout of CEO compensation % of total variable compensation0 - 3 years 100longer than 3 years _ _ _ _ _ _ _ _ _ _

Please indicate the longest time vesting period for variable CEO compensation:4 years

❍ We do not have a performance based incentive system


❍ Not known

Comment :For clarity, the answers provided refer to awards under Encana's Short-term Incentive (or "bonus") program andLong-term Incentive (LTI) program. Percentage amounts refer to compensation awarded in 2014 only. Answers



to the performance period and longest vesting period questions herein include a performance stock option grantmade to our CEO upon hire in 2013, which is eligible to vest in four years (2017) if certain Board-approvedperformance thresholds are achieved.

Approximately 90% of our CEO's 2014 annual compensation is based on annual bonus eligibility, determinedby the Board of Directors based on Encana's performance relative to the metrics and targets (approved by theBoard) 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 performanceand financial performance.

Approximately 64% of our CEO's 2014 compensation was comprised of LTI awards, for which 85% is subjectto a full deferral of vesting for three years. Compensation opportunity under these LTI grants is determinedby Encana's TSR performance (over three years) relative to a peer group of companies and Board approvedthresholds, as well as the absolute performance of our share price.


1.1.8 Transparency of Executive Compensation

✓ Does your company communicate the remuneration/compensation of your board of directors/supervisoryboard 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:http://www.encana.com/pdf/investors/financial/annual-reports/2015/information-circular.pdf

❍ 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 externallyDoes your company communicate what part of total compensation for senior executives consist of variablepay 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 indicateweblink:



http://www.encana.com/pdf/investors/financial/annual-reports/2015/information-circular.pdf

✓ Yes, we publically disclose what performance metrics are relevant for performance based variablecompensation. Please indicate weblink:http://www.encana.com/pdf/investors/financial/annual-reports/2015/information-circular.pdf

✓ Yes, we publically disclose the weightings between performance metrics for perfomance basedvariable compensation. Please indicate weblink:http://www.encana.com/pdf/investors/financial/annual-reports/2015/information-circular.pdf

✓ Yes, we publically disclose the performance targets that need to be met for performance basedvariable compensation. Please indicate weblink:http://www.encana.com/pdf/investors/financial/annual-reports/2015/information-circular.pdf

❍ No, we do not have performance based variable pay, but we disclose this publically. Please indicateweblink:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ No, we do not communicate this information externally


❍ Not known

Comment :The Statement of Executive Compensation, pp. 24-57, of the Notice of 2015 Annual Meeting of Shareholders andInformation Circular was made in compliance with the requirements of Form 51-102F6, Statement of ExecutiveCompensation.


1.1.9 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 annualcompensation of all other employees as well as the ratio between the two. If you are unable to provide themedian, please provide figures for total mean compensation and the ratio using the mean. The currency providedshould be consistent for all figures.

❍ CEO Compensation Total CEO CompensationEmployee Compensation Median Employee Compensation Mean Employee CompensationPlease indicate the total annualcompensation of the ChiefExecutive Officer, or anyequivalent position

_ _ _ _ _ _ _ _ _ _



CEO Compensation Total CEO CompensationEmployee Compensation Median Employee Compensation Mean Employee CompensationPlease indicate either medianor mean annual compensationof all employees, except theChief Executive Officer (or anyequivalent position)

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Please indicate the ratio of themean or median employeecompensation and the totalannual compensation of the ChiefExecutive Officer

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Please specify the currency usedin the table:

_ _ _ _ _ _ _ _ _ _

✓ We do not track the ratio of the median or mean employee compensation and the total annual compensationof the Chief Executive Officer

❍ We plan to start tracking these figures during 2015


❍ Not known

Comment :Encana does not disclose median compensation of employees relative to CEO compensation. The disclosuredescribed 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 andInformation Circular, was made in compliance with the requirements of Canadian Securities Administrators (CSA)Form 51-102F6, Statement of Executive Compensation.


1.1.10 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 shareownership requirements as a multiple of the annual base salary.

✓ The CEO has to build up a share ownership of5times the annual base salary

✓ Other executive managers (other than the CEO) have to build up a share ownership of3



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


❍ Not known

Comment :Since 2002, Encana has implemented Share Ownership Guidelines (the “Guidelines”) to align the long-terminterests 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 afive year period. In the event a participant is promoted and his or her target is increased, a further two-year periodis provided to meet the new share ownership target.

References :• 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

1.1.11 MSA Corporate Governance

In this section we include a performance score on the Corporate Sustainability Monitoring with the objectiveto verify the company's involvement and management of crisis situations that can have a damaging effect onreputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information isrequired from your company. Please disregard the comment box. _ _ _ _ _ _ _ _ _ _Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


1.2 Risk & Crisis Management

Effective risk and crisis management is vital for long-term financial planning and organizational flexibility. Ithas especially gained importance since the recent financial crisis. Companies need to implement internalcontrol 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 asgroup-wide uniformity, risk definition, risk visualization, and risk response strategies. Additionally, we perform areal-time check to assess the system works with our internal MSA (Media and Stakeholder Analysis).



1.2.1 Risk Governance

Please indicate which persons, departments and committees are responsible and accountable for enterprise riskmanagement in terms of risk appetite & tolerance as well as risk monitoring & reporting. Please also indicate theexpertise and training applicable to non-executive directors as well as the corporate structure of risk managementfunctions.

✓ Highest responsible person orcommittee:(please indicate name andposition)

Reporting Line:(please indicate who the person orcommittee reports to)

Risk appetite & tolerance Doug Suttles, President & ChiefExecutive Officer and ExecutiveLeadership Team [Corporate RiskMitigation Policy]

Board of Directors

Risk monitoring & reporting Darcy Collings, Vice-President,Financial Compliance, Governance& Risk

Sherri Brillon, Chief FinancialOfficer

✓ 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 eachhas 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 managementfunction. This position is corporate and reports to the Chief Financial Officer, independent of the businesslines.

❍ There are no such responsibilities in place

❍ Not applicable. Please provide an explanation in the comment box below.

❍ Not known.

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


1.2.2 Risks Correlation



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 risksare included in risk correlation analysis._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ We do not perform a correlation analysis


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• 2014 Annual Report, annual-report-2014-20150512-132608.pdf (Pages: 36-39) Management's Discussion

and Analysis, Risk Management Section

1.2.3 Sensitivity Analysis and Stress Testing (incl. Water and Climate)

Does your company perform sensitivity analysis and stress testing on a group level? Please attach supportingdocuments.

✓ ✓ 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). Pleasespecify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ No, we do not perform sensitivity analysis and stress testing at the group level


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• 2014 Annual Report, annual-report-2014-20150512-132608.pdf (Pages: 36-39) Management's Discussion

and Analysis, Risk Management Section



1.2.4 Emerging Risks

❍ Please indicate two important long-term (3-5 years+) emerging risks that your company identifies as havingthe most significant impact on the business in the future, and indicate any mitigating actions that yourcompany has taken in light of these risks. For each risk, please provide supporting evidence from the publicdomain where the risk, the business impact and any mitigating actions are described.

Description of risk,as reported in thepublic domain:

Potential businessimpact of the risk,as described in thepublic domain:

Mitigating actions,as described in thepublic domain:

Supporting evidencefrom the publicdomain on risk,business impact andmitigating actions

Emerging Risk 1 _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _

_ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _

_ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _

Emerging Risk 2 _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _

_ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _

_ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _

✓ No, we do not report on long-term, emerging risks


❍ Not known

Comment :We identify emerging risks internally and report to the Board and the Audit Committee. However, these are notprovided in the public domain.

References :No references attached

1.2.5 Risk Culture

What strategies does your company pursue in order to promote and enhance an effective risk culture throughoutthe organization? Please indicate the relevant options below and specify where prompted.

✓ ❏ Financial incentives which incorporate risk management metrics, please indicate for which employees thisapplies

❏ For senior executives, please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❏ For line managers, please specify:



_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _✓ 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 asa 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 theorganization, please specify:All staff have risk management responsibilities. The Corporate Risk Management Policy commits all staffto consistently apply risk assessment processes and to take professionally assessed risks based uponhigh-quality work. The company risk matrix tool should be considered when assessing, measuring andreporting risks. All risks are to be reported to the Director/Senior Manager level. Increasing levels of risksare 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 ofemployees in structured feedback process, please specify:The Risk Network group is comprised of subject matter experts in leadership roles who meet regularly andprovide 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 prioritizedareas for improvement. We have regular (at least quarterly) meetings with cross functional subject matterexpert 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


1.2.6 MSA Risk & Crisis Management


References :



• No references needed

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'sreputation, on staff morale and on business relationships). Internal controls appear to be inefficient whenlooking 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 legalrisks. Evidence of corrupt practices can result in exclusion from contracts financed by institutions that blacklistsuppliers of bribes (e.g. World Bank's list of debarred firms), potentially impacting future earnings as well ashigher risk premiums for debt or equity.The key focus of the criterion is on the Codes of Conduct, their implementation and the transparent reporting onbreaches.

1.3.1 Codes of Conduct: Focus

Please indicate for which areas corporate codes of conduct have been defined at a group level (includingsubsidiaries). 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


❍ Not known

Comment :Encana regularly reviews its corporate governance model and creates and amends policies and practices toensure that Encana’s expectation for compliant and ethical behaviour is firmly supported by a strong ethics andcompliance infrastructure. The Business Code of Conduct and supplemental policies can be found at http://www.encana.com/about/board-governance/policies/. Primary policies specific to these areas include: BusinessCode 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 legallyand addresses topics such as compliance with laws and regulations, conflict of interest, anti-fraud, disclosure,



confidentiality, securities trading and insider reporting, accountability for adherence to the Code, reporting ofviolations of the Code and prevention of corruption.

References :• 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, Encana Corp 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, http://www.encana.com/sustainability/corporate/integrity-hotline.html (Pages: 1)

• Policy and eLearning Recommitment Schedule - Company Wide, Policy Recommitment Go-Forward Planv2.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)

1.3.2 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




❍ Not known

Comment :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 arerequired to formally confirm their commitment to the Business Code of Conduct and governance framework onan annual basis. Included in the commitment is an eLearning training module which covers the Business Code ofConduct which includes the following policies and practices: Acceptable Use of Information Systems; Acceptanceof 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 recommitmentand 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 formallydeclare 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 allcomplaints brought forward. Some complaints are forwarded to the business units for resolution. Others, ifappropriate, are investigated in a confidential and timely fashion.

(3) An employee’s yearly compensation (bonus) can be impacted negatively by non-compliant or unethicalbehaviour.

(4) Encana engages NAVEX Global to operate its Integrity Hotline, which provides for anonymous reporting.Concerns can also be reported to the Investigations email, which is a dedicated reporting line.

Additional confidential reporting avenues regarding Encana’s operations are available through the Ethics emailaddress and the Corporate Responsibility email address.


1.3.3 Corruption&Bribery: Scope of Policy

Please indicate which of the following aspects are covered by your anti-corruption and bribery policy at a grouplevel (including subsidiaries). Please attach supporting documents. Please ensure that the marked options areboth 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 webaddress: Government of Canada: http://www.canada.gc.ca/home.html



✓ Charitable contributions and sponsorship

✓ Charitable contributions and sponsorship publicly disclosed. Please attach supporting documents and/orindicate web address: Community Investment: http://www.encana.com/communities/investment/

❍ No anti-corruption & bribery policy


❍ Not known

Comment :The Business Code of Conduct includes the areas of Competition and Antitrust, Privacy and Prevention ofCorruption.

With regard to direct or indirect political contributions:

Encana Corporation will make only those financial or in-kind contributions permitted by law to a recognizedpolitical party, candidate or campaign in the provinces and municipalities where the Company has businessinterests 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 asthey undertake these activities on their own behalf and may, on a personal level, give to any political party orcandidate. Reimbursement by the Company is prohibited.

Encana Cares provides employees in Canada and the U.S. with a convenient and confidential way to plantheir 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 associatedadministration costs so that 100 percent of donations go directly to the charities that employees support.

References :• Business Code of Conduct, business-conduct.pdf (Pages: 1-7) -

• Corporate Responsibility Policy, Encana Corp Responsibility Policy March 2013.pdf (Pages: 1-3)

• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 26)

• Political Contributions Policy, Policy - Political Contributions.pdf (Pages: 1-2)

1.3.4 Codes of Conduct/Anti-Corruption&Bribery: Business Relationships

Please indicate the percentage of coverage of your codes of conduct and anti-corruption and bribery policyrelative to the total number of:✓ ✓ Employees group-/worldwide: 100

✓ Contractors/Suppliers/Service providers: 100

✓ Subsidiaries: 100

❏ Joint ventures (includes stakes below 51%) :



_ _ _ _ _ _ _ _ _ _❍ None of the above are covered in our anti-corruption and bribery policy or codes of conduct


❍ Not known

Comment :Encana agreements require all Contractors, Suppliers, and Service Providers to be in compliance with all anti-corruption and bribery legislation. In addition, Encana expects similar codes of conduct to be followed by thesame group of companies.


1.3.5 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 ofconduct/ethics and anti-corruption and bribery policy? Please attach documents and/or web address. If yourcompany did not have any breaches of your codes of conduct during the last fiscal year, please indicate wherethis is publicly reported.

❍ Yes, please refer to the reference(s) provided:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

✓ No, we do not publicly report on breaches


❍ Not known

Comment :Encana does not publicly disclose code and other breaches, although a reporting protocol that deals with specificlegal violations does exist through our Corporate Responsibility reporting.


1.3.6 MSA Codes of Conduct/Corruption

In this section we include a performance score on the Corporate Sustainability Monitoring with the objectiveto verify the company's involvement and management of crisis situations that can have a damaging effect onreputation. The evaluation will be filled in by the responsible analyst of your industry. No additional information isrequired from your company. Please disregard the comment box. _ _ _ _ _ _ _ _ _ _



Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


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 newstrategies to manage the associated risks and opportunities that differ from the traditional risk and opportunitymanagement of when the company has its production or services in-house. In addition the company is confrontedwith the need to minimize costs and time of delivery to satisfy the demand of their suppliers and increaseprofitability 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 isnot managed effectively.This criterion aims to identify companies that have lower supply chain risk profiles, either through thecharacteristics of the supply chain or through appropriate management of existing risks. In addition, RobecoSAMseeks to identify companies that are using sustainable supply chain management as an opportunity to improvetheir long-term financial performance.

1.4.1 Awareness

Please indicate if your company is undertaking a spend analysis of its supply chain as well as the scope of thisanalysis. Please also provide your definition of critical suppliers as well as the results of your mapping of thesesuppliers. 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 briefdescription and attach supporting documents:Encana's Supply Management extracts relevant accounting codes from the accounting system and thengroups them into specific supply management categories. Multiple supplier names are rolled up to improvethe quality of spend reports. A parent-child relationship is created for suppliers with complex ownershipstructures.

✓ Please indicate what percentage of your total procurement spend is covered in the spend analysisconducted within the last three years:71

✓ Critical SuppliersHas 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 ofthe 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.



Please indicate, in percentage and absolute numbers, how many critical suppliers you have identified aspart of your tier 1 suppliers within the scope of the current spend analysis:Type of supplier Absolute number of tier 1

suppliersShare of total procurement spent(%)

Critical Suppliers 354 80Total 4850 100 %

✓ Please provide an estimate of the percentage of your critical tier 1 suppliers for which your companyrepresents 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• 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 2014_2015, Spend Coverage - s.ppt (Pages: 1) this graph shows our managed spendfor 2014_2015 YTD. the % has decrease as we are taking a more focused look on our highest valuesuppliers 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 SupplyManagement Categories so we are able to manage spend across categories

1.4.2 Risk Exposure

Please indicate if your company has a formalized process in place to identify risks in its supply chain as well asthe scope and outcome of this process.

✓ ✓ Do you have a formalized process in place to identify sustainability risks in the supply chain? Pleaseprovide 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 oftier 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 andnon-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 adescription of what constitutes "high risk" for your company and indicate the nature of the most relevantrisks identified in each category in the respective comment boxes.



Economic risks Environmental risks Social risksHigh 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 highrisk 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


❍ Not known

Comment :Encana provides specific training for buyers that includes expectations for environment, health and safetyperformance of all service providers. Staff are required to take training in the Ethos environment, health andsafety management system which applies to all aspects of the company. Vendor audits are conducted to ensurevendor practices meet or exceed Encana's EH&S standards.

References :• Contractor safety, http://www.encana.com/business/contractors/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 safetyperformance – this includes ensuring the safety of our contractors and service providers (Safety orienationlinks)

• Courtesy Matters program, courtesy-matters-overview.pdf (Pages: 1) Courtesy Matters is a company-wideprogram focused on being a good neighbour and demonstrating respect and courtesy in the communitieswhere we operate.

• Web page: Courtesy Matters, http://www.encana.com/business/contractors/courtesy-matters.html (Pages:1) The Courtesy Matters program has been an integral part of our stakeholder engagement efforts inestablishing and clarifying employee, contractor and service provider expectations around courteous conductsince its launch in 2006.

1.4.3 Risk Management Measures

Please indicate which measures your company has taken in order to manage sustainability risks amongst yourtier 1 suppliers. Please indicate the scope and attach supporting documents or specify where requested.

✓ REQUIREMENTS



✓ Standard/Policy/Code of Conduct for suppliers - please attach supporting documents and indicate inwhich of the following areas your company has established standards for suppliers across all countries ofoperations:

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 adescription of which suppliers are targeted, the focus of the initiative and how your company is contributingto it:Our Responsible Products Program works with suppliers and other peer companies around products(chemical sourcing) used in drilling and completions. (http://www.encana.com/environment/water/fracturing/products.html) Encana developed the program and assessment tool and then shared withindustry associations to disseminate to peers.

✓ Contract clauses - covering environmental, social and governance (ESG) factors. Please attach supportingdocuments 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 fiscalyear:Specification of tool Number of companies assessed

in FY 2014Number of companies to beassessed in 2015

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _✓ Audits - Please indicate the scope (percentage and absolute numbers) of your audits of tier 1 suppliers

during 2014. Please also indicate which percentage of high risk tier 1 suppliers (as defined by yourcompany in the previous question) this represents. Please consider all audits conducted by internal orexternal audit functions that are independent of the purchasing/supply chain function of the company aswell as independent of the supplier:❏ _ _ _ _ _

% audited of total number of tier 1 suppliers

❏ _ _ _ _ _tier 1 suppliers audited (absolute number)



❏ _ _ _ _ _% of high risk tier 1 suppliers

Please indicate which of the items below are part of a standard audit procedure (i.e. how audits aretypically 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 thepercentage 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 ESGperformance 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 waslaunched

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 withother 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 2014 - 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


❍ Not known

Comment :Encana provides training for buyers, including expectations for service providers related to environment, healthand safety performance.

Vendors are pre-screened for EH&S qualifications. ISNetworld is used to evaluate potential service providersagainst Encana's EH&S practices. This pre-screening is the primary means of ensuring all contractors and serviceproviders meet Encana's EH&S qualifications.

References :• Contractor Expectations set of policies, http://www.encana.com/business/contractors/expectations-practic

es.html (Pages: 1) Contractors and service providers are required to sign off their understanding andacceptance of our Policies and Practices (Addresses Environmental, Occupational H&S and Business Ethicsrequirements).



• Corporate Responsibility Policy, corp-responsibility-policy.pdf (Pages: 3) This Policy encompasses the areasof governance, people, the environment, safety, engagement and community involvement. It applies toEncana's employees, contractors and directors.

• MSSA Standard, MSSA Standard - 13 Nov 2013 - Sample.pdf (Pages: 34 Schedule A) Contractoracknowledgement of Encana policies

• Vendor Audit List 2014_2015, Corp Audits Updated May 20 2015.xlsx (Pages: 1) Overview and update file ofvendor audits from 2014 and 2015 where Internal audit works in conjuction with SMS to ensure complianceto audit findings.

1.4.4 ESG Integration in SCM Strategy

Please indicate the main priorities of your company's general Supply Chain Management Strategy as well asthe 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 responsibilitiesfor delivering on the ESG objectives and how the procurement staff is being incentivized to integrate ESG factorsin 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 ChainManagement strategy and attach supporting documents. Please note that this should refer to the generalapproach that the company is taking in order to manage the supply chain with regards to aspects such ascost, time, quality and continuity of supply and not to a sustainable sourcing or a sustainable supply chainstrategy._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Please indicate which formalized environmental, social and governance ( ESG) objectives have beenidentified for your Supply Chain Management strategy. Further, indicate how these are connected to theoverall Supply Chain Strategy by providing supporting documents. Please note that in this section youcan refer to a sustainable sourcing strategy or a sustainable supply chain strategy as well as to objectivesrelating to ESG factors already integrated in the strategy above.

Description of ESG objective Link to overall Supply ChainStrategy

Key ESG objective 1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

Key ESG objective 2 _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

❏ Integration of ESG Factors into Supplier SelectionPlease complete the table below, indicating how ESG factors impact your supplier selection and retentionprocess. Please attach supporting documents and provide a brief description on the scale and approachfor the minimum threshold.

Minimum threshold required (i.e. qualitative orquantitative selection / retention criteria)

New & existing suppliers _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Does your company use a % (weight) of ESG in overall assessment (compared to other factors such asprice, quality and delivery time) when assessing suppliers, as a tool to ensure integration of sustainability



into supplier selection and retention decisions? If so, please provide an estimate of the average weightacross supplier categories:_ _ _ _ _and indicate for which supplier categories this weight factor is being applied:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❏ ResponsibilitiesWithin the procurement function / department, who is the most senior person responsible for delivering onthe 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 StaffHow does your company incentivize their procurement staff (in both centralized and decentralizedprocurement functions) to integrate ESG factors in everyday decisions? Please indicate below whatpercentage 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.

❍ Not known

Comment :Including factors beyond price quality and delivery is a standard practice to ensure best value. As such, there isno specific training on ESG factors.


1.4.5 Opportunities

How is your company leveraging opportunities across its supply chain and how are these transferred intoqualitative and quantitative business benefits? Please provide examples and supporting documents in the tablebelow.



✓ Please provide two examples of sustainability initiatives in the supply chain that have delivered clear businessbenefits (in terms of either cost reduction, risks reduction or revenues growth) and indicate the benefitsgenerated from these initiatives. Please attach supporting documents.

Description of example Qualitative benefits,please specify:

Quantitative benefits,please indicate amount:

Example 1 Transferring andnegotiating rigcommitments

We ae mitigating our riskin a low WTI enviroment

15 Monetary UnitsPlease specify:15 million

Example 2 Implementation of PriceBooks for contractcompliance

Provides Encana betterinsight to ensure we arereceiveing the prices wenegotiated

1 Monetary UnitsPlease specify:We could see a millitiondollars in avoided costleakage in 2015 byensuring invoices arecompliant to contractrates before paying. Seeattached above

❍ We do not have such initiatives in place


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• 2012 Corporate Responsibility Report, cr-report-2012.pdf (Pages: 26-27) -

• 2012 Corporate Responsibility Report, cr-report-2012.pdf (Pages: 46) -

• Pricebook Reference for Invoice Approvers, Encana PriceBook Overview.pdf (Pages: 1) This documentoutlines the training material available to Open Invoice users in Canada and the US to ensure invoices arecompliant to contracted rates.

• Responsible Products program, rpp-fact-sheet.pdf (Pages: All) -

1.4.6 Transparency

Which aspects of your supply chain management approach does your company publicly report on (on aconsolidated basis)? Please attach supporting documents and/or website where the information can be found inthe public domain.

❍ ❏ Standards for suppliers and/or sustainable purchasing policy_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❏ Risk awareness (e.g. risk mapping)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _



❏ 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, pleaserefer to the information button). Please indicate below which KPIs you are currently publically reporting onas well as where the information can be found:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _For the Supply Chain Management KPIs that your company is publically reporting on, please indicatebelow 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 reportingtargets and where the information can be found:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

✓ We do not publically report on any of the aspects above


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• 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.

1.4.7 MSA Supply Chain Management





1.5 Tax Strategy

Tax competition between tax territories (countries or regions within countries) has left room for companies tooptimize their tax spending. While tax optimization has a positive impact on profitability and hence companyvalue, a too-aggressive tax strategy might not be sustainable in the mid- to long-term and adds some risk to long-term profits. First, there is a reputational risk because of increased public and regulatory scrutiny which couldresult in lower brand value. Second, the relationship with the host country might be negatively impacted. Thiscould result in approval delays or rejection of expansion projects or, in the worst cases, companies risk losingtheir license to operate. Third, earnings might be impacted if the tax authorities decide to change tax regulationwhich leads to direct financial risks. Finally, economic development risk arises if governments receive inadequatetax receipts for funding local infrastructure or education.

1.5.1 Tax Strategy

Does your company have a tax policy/principles/strategy in place which indicates your approach towardstaxation? 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 supportingevidence.

❍ No, we do not have a formal tax policy in place


❍ Not known

Comment :Tax follows the policies, practices and guidelines as established by Encana's Corporate Vision and Values andthe Business Code of Conduct. Encana's specific tax strategy is not publicly available.


1.5.2 Tax Reporting

Does your company publicly report on key business, financial and tax information for regions or countries in whichyou 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



❏ 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 fromthe expected tax rate in the respective countries where we generate profits? Please provide supportingreferences:

❍ We do not report taxes on a regional or country by country basis


❍ Not known

Comment :See Note 7 of the 2014 Annual Report for the effective tax rate reconciliation.


1.5.3 Taxation Risks

Do you evaluate the risks of taxation on future company value creation? If you do risk evaluation, please indicatewhich risks you have identified as being material. Please provide examples of financial risks as well as businessrisks (e.g. reputation, license to operate, etc.).

✓ Taxation related risksFinancial risk, please specify:See Risk section of AIFBusiness risk, please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Business risk, please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Business risk, please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ We do not evaluate risks associated with taxation


❍ Not known

Comment :



See Risk Section of the March 3, 2015 Annual Information Form and the Income Tax Section of the MD&Aincluded in the 2014 Annual Report.

References :• 2014 Annual Report, annual-report-2014-20150512-132608.pdf (Pages: 36)

• Annual Information Form 2015-03-03, ECA AIF 2014.pdf (Pages: 32)

1.5.4 MSA Tax Strategy



1.6 Exploration & Production

Oil & Gas reserves are the key drivers for future earnings and hence share price performance. RobecoSAM'squestions focus on the Reserve Life Index (RLI), the ratio of total oil and gas reserves divided by currentproduction volume, and the Reserves Replacement Ratio (RRR) which gives an indication on the company'sability to replace its reserves and hence generate future earnings. Given the ongoing internalization of externalimpacts, RobecoSAM's questions assess CO2 emissions associated with production as they might become asignificant liability. CO2 taxes are already in place in some countries (e.g. Norway).

1.6.1 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




❍ Not known

Comment :RLI of 7.3 years is based on 2014YE SEC proved reserves. RLI for forecast proved reserves, after royalties, is7.3. 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 placeresulting 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, partiallyoffset by the sale of reserves in place resulting from the Company's strategic transition to a more balancedcommodity portfolio.

* Please see Future Oriented Information and Advisory Regarding Reserves Data & Other Oil & Gas InformationDisclosure Protocols


1.6.2 Reserve Replacement

Please provide average reserve replacement as well as average organic reserve replacement rate for the pastthree years, based on the SEC proved reserves definition. Please note that organic reserve replacement ratioshould 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) -79Average organic reserve replacement rate (for pastthree years)

-4

❍ We do not measure or track the average reserve replacement nor the average organic reserve replacementrate


❍ Not known

Comment :The three year reserves replacement numbers shown above were materially impacted by negative revisions toSEC 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 resultingimpact on proved undeveloped reserves bookings.



The three year reserve replacement numbers shown above were also materially impacted by the Company'sstrategic transition to a more balanced commodity portfolio resulting in a net divestiture of 1.4 Tcfe of provedreserves in 2014.



1.6.3 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.

✓ 59.67 USD/BOE


❍ Not known

Comment :The three year FD&A costs shown above were materially impacted by negative revisions to SEC proved gasreserves 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 resultingimpact on proved undeveloped reserves bookings.



1.6.4 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:

✓ 139.4432 kg/toekg per tonne oil equivalent (oil and gas) production.



❍ We do not measure or track CO2 emissions per quantity of oil and gas produced


❍ Not known

Comment :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


1.6.5 Renewable Energy Production

❍ What proportion of your company's energy production in the last financial year was accounted for byrenewable energy for sale to third parties?_ _ _ _ _% of total attributable share of energy productionWhat 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 themid-term future


❍ Not known

Comment :Encana is an energy producer that is focused on growing its portfolio of resource plays producing natural gas, oiland natural gas liquids. At this time we are not contemplating the inclusion of renewable energies in our portfolio.


1.7 Gas Portfolio



In the Oil & Gas industry, the higher the natural gas content of the asset base, the stronger the business isgeared for natural gas growth. Natural gas is a clearly-favored low-carbon source of fossil fuel energy comparedto coal and oil, and there is a clear secular upward trend in natural gas demand globally as a consequence ofinternational efforts to lower carbon emissions. We therefore see a stronger secular growth market in naturalgas vs. oil, and the clear development of natural gas into a truly globally traded commodity. We believe thatthe corporate strategy oil and gas companies have adopted, of which a main pillar is the endeavor to positionthemselves in the natural gas value from upstream to downstream, will have a clear long-term competitiveadvantage. RobecoSAM's questions assess natural gas exposure on a relative basis by assessing production andreserves, and their focus on the LNG and downstream business.

1.7.1 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


❍ Not known

Comment :RLI of 6.4 years is based on 2014YE SEC proved reserves. RLI for forecast proved reserves, after royalties, is6.4.



1.7.2 Natural Gas Bias

Please indicate the percentage share of natural gas production in relation to total oil and gas production in 2014.

✓ 82%

❍ We do not measure or track the percentage share of natural gas production in relation to total oil and gasproduction


❍ Not known

Comment :



Volumes have been converted using 6 Mcf to 1 bbl.



1.7.3 Natural Gas Production

Please indicate the volume of natural gas production for the years indicated below:

✓ 2012 2013 2014 Mid-long termprojections. Pleaseindicate for whichyear these figuresare estimated:This is a 2015guidance mid pointestimate

Volume of naturalgas in billion cubicfeet

1088 BCF 1014 BCF 858 BCF 602 BCF

❍ We do not measure or track the volume of natural gas production


❍ Not known

Comment :In the current price environment, the Company plans to continue focusing capital investment in oil and liquids-richnatural 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).



1.7.4 LNG Production



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 reportedand 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 known

Comment :Encana's LNG production for 2014 was less than 1% of total production.



1.8 Payment Transparency

Despite the fact that some of the poorest countries own substantial amounts of the world's resources, citizensoften do not benefit from the royalties and taxes collected by their governments. In order to make governmentsaccountable for the use of these funds it is critical to inform the public on the revenues governments receive fromcompanies. By reporting transparently on the royalties and taxes paid to the governments, companies will avoidbeing accused of collaborating with governments. RobecoSAM's questions focus on whether the companiesendorse the 'Extractive Industries Transparency Initiatives' which requires companies to report on the royaltiesand taxes they pay to governments.

1.8.1 Public Endorsement

Does your company publicly endorse the "Extractive Industries Transparency Initiative (EITI)" (or a similarinitiative)? If your company does not generate any revenues from extractive industries, please mark "Notapplicable" 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 therationale for endorsing the aforementioned organization:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

✓ We are an extractions company but have not publicly endorsed the EITI




❍ Not known

Comment :Information on Encana's income tax expense can be found in Note 7 of the Notes to Consolidated FinancialStatements (in the Document Library, see Annual Report 2014, pg. 68-69).

Encana's 2014 production is disclosed on a before-royalties and after-royalties basis in the company's AnnualInformation Form (in the Document Library, see Annual Information Form, March 3, 2015, appendix pages A18and D11).


1.8.2 Reporting of Payments

If your company is supporting EITI or a similar initative, i.e. if you answered 'yes' in the previous question, pleaseindicate the extent to which payments are disclosed for different countries. If your company does not generate anyrevenues 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 tocountries where you have extractive operations can be found:In the Document Library, see Annual Report 2014, pages 68-70Please indicate in the table below to what extent payments are disclosed in different countries your companyoperates in. The total number provided in the first row should be a sum of the figures provided in theremanining rows.Type of country Number of countriesPlease indicate the number of ALL countries(including non-EITI) in which you have extractiveoperations

_ _ _ _ _

Please indicate the number of ALL countries(including non-EITI) in which you have extractiveoperations for which you publish what you pay onyour website or in your annual report

_ _ _ _ _

Please indicate the number of ALL countries in whichyou have extractive operations, for which the countryDOES NOT authorize you to publish what you pay

_ _ _ _ _

Please indicate the number of ALL countries in whichyou have extractive operations, for which the countryDOES authorize you to publish what you pay but youdo not

_ _ _ _ _

❍ We do not disclose any such payments




❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


2 Environmental Dimension

2.1 Environmental Reporting

Environmental performance is becoming a material issue in all indsutries. Maintaining transparency throughappropriate 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, qualityof reporting varies significantly. RobecoSAM's questions focus on the relevance, scope and timeliness of theinformation contained in environmental reports, as well as external quality guarantees based on internationallyacknowledged reporting standards.

2.1.1 Environmental Reporting - Materiality

Please indicate if your company is publically reporting on the following aspects and attach supporting documentsor weblinks.

✓ Materiality framework

Is your company publically reporting on the processes and tools used to identify and prioritize criticalenvironmental issues within the sustainability strategy, including a consideration of impact on the company’sbusiness 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 materialityassessment. 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 separateCSR section of the Annual Report). Please provide supporting document or weblinks and indicate page:_ _ _ _ _ _ _

Top 3 Material IssuesIn order of importance, please select from the list below up to three environmental issues that have beenidentified in your public reporting as the most material for your company from a business and/or investorsperspective. 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 thatapply 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 haveidentified less than three environmental issues to be material for your business, select 'Not Applicable' in thedrop down menu and explain this in the the comment box below. For each issue indicated as material, a link toyour 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 StewardshipIf other, please specify:Water ManagementBusiness case for first material issue:Water is critical to our operations. Effective management of water sourcing, use, and disposal is essentialto 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


✓ Climate Strategy

❍ Other Issue

❍ Product StewardshipIf other, please specify:Managing and reporting our greenhouse gas (GHG) and other air emissions is an important part of ourapproach to responsible development. As concerns related to the pace of domestic energy productiongrow, it is critically important that we continue to refine our understanding of air emissions and limit them tothe 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



❍ Other Issue

❍ Product Stewardship


❍ Climate Strategy

❍ SCM Environmental IssuesIf other, please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Business case for third material issue:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Please provide supporting public evidence (including page number):

Example of cost-savingIs your company publically reporting on one or more concrete examples of how environmental initiatives haveled 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:_ _ _ _ _ _ _


Example of revenue generationIs your company publically reporting on one or more concrete examples of how environmental initiatives havegenerated 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



❍ No such reporting publically available


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 4)

2.1.2 Environmental Reporting - Coverage



Is the coverage of your company’s publically available environmental reporting clearly indicated in the report or inthe online domain?

✓ Please select the coverage of the company's publicly available environmental indicators from the dropdownlist 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 operationsPlease indicate the weblink and the page number where the coverage for all environmental indicators isindicated (in the public domain):In Document Library, see draft 2014 Sustainability Report, pages 29-30.

❍ We report on environmental issues, but only provide coverage for some environmental data / indicators in ourpublic reporting. Please specify for the three environmental indicators where you have the highest availablecoverage (select ONLY if you report coverage for individual indicators but not for the full report):Environmental Indicator, pleasespecify:

Coverage of Indicator (% ofrevenues or business operations):

Please indicate the weblink andpage number where the coveragefor the environmental indicator ispublically 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


2.1.3 Environmental Reporting - Assurance



Please indicate below what type of external assurance your company has received in relation to your company'senvironmental reporting. Please attach a supporting reference, indicating where the assurance statement isavailable 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 assuranceprovider has no conflict of interest in relation to providing the assurance of environmental data for thecompany 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 assurancestatement only covers some KPIs (but not all) it is clearly indicated which data / KPIs disclosed in thereport 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• 2014 Deloitte Assurance Report, 2014 Encana Assurance Report.pdf (Pages: 1)

2.1.4 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 KPIthat is used to measure your company’s progress and communicated externally. If multiple indicators arereported for one material issue, you may provide these. If no material issues have been identified, youmay provide KPIs for other environmental issues that you report on. Please provide a link to where thisinformation is disclosed (in either Sustainability Report, Annual Report or on you company's website). Ifyou 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:



Key Performance Indicator, please specify the KPI and the material environmental issue it is linked to:

✓ Water ManagementPlease attach the public reference together with the page number where the environmental indicatoris publically reported:

❍ Not applicable. Please provide explanations in the comment box below._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

✓ Climate StrategyPlease attach the public reference together with the page number where the environmental indicatoris publically reported:


✓ Operational EfficiencyPlease attach the public reference together with the page number where the environmental indicatoris publically reported:


❏ For the three most material environmental issues identified in question 2.1.1 , please indicate whetheryour company has any externally communicated targets. If multiple targets are reported for the samematerial issues, you may provide these. Please provide a link to where this information is disclosed (ineither Sustainability Report, Annual Report or on your company's website). If you have identified less thanthree environmental issues to be material for your business, then also select 'Not Applicable' for thoseoptions here and explain this in the comment box:Target for Key Performance Indicator, please specify the target, target year and the materialenvironmental 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 theenvironmental 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 theenvironmental indicator is publically reported:




Target for Key Performance Indicator, please specify the target, target year and the materialenvironmental 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 ispublically reported:


❍ We do not quantitatively report on our most material environmental issues OR we do not report onenvironmental issues


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 29) See AIR metrics

• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 29-30) See AIR and ENERGYINNOVATION metrics

• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.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 environmentalprograms in a comprehensive, systematic, planned and documented manner. It includes the organizationalstructure, planning and resources to develop them, and the procedure for the implementation and managementof the company's policy on environmental resource management. Companies that have adopted an EMS asa management tool are more likely to improve their environmental performance in a cost-effective way and toreduce the risk of incurring fines or penalties for not complying with environmental legislation.

2.2.1 Coverage of Corporate Requirements / Guidelines

Is your company's environmental management policy publicly available? If so, please indicate which of thefollowing options are covered by your policy and indicate and provide supporting references to where this isclearly stated in the public domain. All chosen options should be clearly defined in the publicly available policy.



✓ 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• Environment Policy, Encana Environment Policy May 2013.pdf (Pages: 1)

2.2.2 EMS: Certification / Audit / Verification

Please indicate how your Environmental Management System (EMS) is verified/audited/certified. Please alsoindicate the coverage of this verification for the selected standard; please note that the total coverage for all threealternatives 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 14001 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 wasconducted in 2012. The review, carried out by Deloitte, assessed the design of the Ethos Audit Programagainst ISO 19011 criteria and industry best practices. The Ethos Audit Program was found to be in strongalignment with ISO 19011.Coverage (%):



_ _ _ _ _ _❏ 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 andverification activities exist to support our operations in ensuring compliance.Coverage (%):50

❍ Not verified/audited/certified


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• Ethos program, ethos-overview.pdf (Pages: all) -

2.2.3 Return on Environmental Investments

Do your environmental management systems (EMS) or other reporting capabilities allow you to track financialdata related to environmental projects and programs at the corporate level for the entire enterprise or for anyportion 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 fromenvironmental 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 enterthe % 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 orindicate weblink below.

Please indicatecurrency used in thetable:_ _ _ _ _

FY 2011 FY 2012 FY 2013 FY 2014

Capital Investments _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Operating Expenses _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __



Please indicatecurrency used in thetable:_ _ _ _ _

FY 2011 FY 2012 FY 2013 FY 2014

Total Expenditures _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Savings, costavoidance, income,tax incentives, etc.

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

% of operationscovered.Please indicatethe basis for thecoverage (revenue,production volume,employees, etc.):_ _ _ _ _ _ _ __ _

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

❍ We track this type of information but are not able to report it in this format. Please briefly but comprehensivelyexplain or demonstrate your approach. Please include such aspects as what types of investments areevaluated, responsible parties, and which metrics are used to approve and measure outcomes etc. Pleaseattach public reference documents or weblinks if available._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

✓ No, we do not track this type of information


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


2.2.4 Environmental Violations

Has your company violated any legal obligations or regulations and/or had fines or penalties related to theenvironment 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 issuesin the last four fiscal years. Please indicate the corresponding figures in the table below for each of the fouryears and attach supporting evidence or weblink if these figures are publicly reported . Please note that if



you did not have any violations, fines or accrued liability in an individual year, 0 should be indicated in thecorresponding box in the table.

FY 2011 FY 2012 FY 2013 FY 2014Number of violationsof legal obligations/regulations

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Amount of fines/penalties related tothe above

_ _ _ _ _ _ _ _ __

46971 MonetaryUnits

169954 MonetaryUnits

33735 MonetaryUnits

Environmentalliability accrued atyear end

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

❍ No, we have not violated any legal obligations/regulations related to the environment or ecological issues


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 30) See ENVIRONMENTAL

FINES metrics

2.2.5 Public availability of EIA / SIA results

Is a formal system in place for ensuring that Environmental Impact Assessment/Social Impact Assessmentrecommendations are implemented, followed up on and reported on? If yes, please indicate what parties haveaccess to the results of Environmental/Social Impact Assessments (EIAs/SIAs). Please attach supportingdocuments 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 known

Comment :



An EIA/SIA would be available to interested parties as per the application package through the regulator.


2.2.6 MSA Environmental Management



2.3 Operational Eco-Efficiency

Reducing the overall environmental footprint of companies in both the manufacturing and services sectors iscrucial, as the risks of financial and reputational costs linked to environmental litigation increase. Producingmore 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 facilitatingthe transition to a low-carbon economy. For all industries, minimizing the consumption of natural resources andwaste-generating activities can lead to lower costs and in some cases, new business opportunities. The key focusof this criterion is on the inputs and outputs of business operations. It assesses trends in the consumption ofnatural resources and the production of environmental waste products specific to each industry.

2.3.1 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 downstreamoperations) refining intake + natural gas processed in downstream operations . Please indicate this in millionbarrels of oil equivalents (mmboe). These figures are required by RobecoSAM to normalize quantitative dataprovided in other questions and criteria (e.g. Operational Eco-Efficiency). Please ensure that the figures providedin this question are consistent over four years as well as consistent with emission figures provided in the followingquestions.



✓ Denominator Unit of analysis Financial Year2011

Financial Year2012

Financial Year2013

Financial Year2014

Annualproduction

mmboe 284 Mio. BOE 251 Mio. BOE 249 Mio. BOE 252 Mio. BOE

❍ Not applicable, please provide explanations in the comment box below.

❍ Not known

Comment :Encana uses cubic metres of oil equivalent as the unit of measure for reporting production. Conversion from cubicmetres to mmboe was performed using a conversion factor of 6.2898108 boe per cubic metre.


2.3.2 EP - Direct Greenhouse Gas Emissions (Scope 1)

Please provide your company's total direct greenhouse gas emissions (DGHG SCOPE 1) for the part of yourcompany'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 thatthe values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion hasbeen correctly filled in, and that the coverage in the table below is based on the same denominator.

✓ Direct GHG(Scope 1)

Unit FY 2011 FY 2012 FY 2013 FY 2014 What wasyour target forFY 2014?

Total directGHGemissions(Scope 1)

metrictonnes CO2equivalents

5447265 met.ton. CO2e




_ _ _ _ _ __ _ _ _

Datacoverage(as % ofdenominator)

percentage of:Totalcorporateemissionsconsolidatedusing datafrom ourCanadian andUS operatingareas.

100 100 100 100

THIRD-PARTY VERIFICATION✓ The above data has been verified by the following organization at least for the last fiscal year when data

was collected:Deloitte

DATA CONSISTENCY



✓ We report publically on this information, but the data in the table above differs from our publically reportedfigures. 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 ourU.S. assets resulting from ongoing refinements to our air emissions calculation methodologies, includingrefinements to our equipment inventory based on more accurate counts and reconciliations, improvedanalyses of methodologies and improved data QAQC processes.

❏ We have a temporary coverage reduction or target challenge due to corporate actions. Please brieflyexplain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to reportoptimal 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 isnormalized 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 thetable 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)


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


2.3.3 EP - Indirect Greenhouse Gas Emissions (Scope 2)

Please provide your company's indirect greenhouse gas emissions from energy purchased (purchased andconsumed, i.e. without energy trading) (IGHG SCOPE 2) for the part of your company's operations for which youhave a reliable and auditable data acquisition and aggregation system. Please refer to the information buttonfor additional clarifications. For each row in the table, it is mandatory that the values provided are in the sameunit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that thecoverage in the table below is based on the same denominator.



✓ IGHG SCOPE2


Indirectgreenhousegas emissionsfrom energypurchasedandconsumed(scope 2)

metric tonnesof CO2equivalents





_ _ _ _ _ __ _ _ _


percentage of:Totalcorporateemissions ascalculatedusingcompany-widepurchasedelectricityconsumption.

100 100 100 100

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 measure our indirect greenhouse gas emissions according to the location-based method instead of themarket-based method (see the information button for further details).

❍ We do not track indirect greenhouse gas emissions


❍ Not known

Comment :Scope 2 emissions include emissions from purchased electricity but do not include emissions from offices or fleetvehicles.

References :




2.3.4 EP - Energy Consumption

Please complete the following table about total energy consumption. For each row in the table, it is mandatorythat the values provided are in the same unit. Please see the Information Button for definitions of the costoptions. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and thatthe coverage in the table below is based on the same denominator .

✓ Total energyconsumption


Total energyconsumption

MWh 10156111MWh

10110278MWh

10967488MWh

11983224MWh

_ _ _ _ _ __ _ _ _

Total costsof energyconsumption

Please selecttype of costs❍ Costs

❍ Costs, netof income

❍ Costs anddepreciation,net ofincome

Currency:_ _ _ _ _ __ _

_ _ _ _ _ __ _ _ _ _ _

_ _ _ _ _ __ _ _ _ _ _

_ _ _ _ _ __ _ _ _ _ _

_ _ _ _ _ __ _ _ _ _ _


percentage of:Company-wide energyconsumption

50 100 100 100


was collected:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _







❍ We do not track energy consumption


❍ Not known

Comment :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.


2.3.5 EP - Electricity Purchased

Please provide your company's electrical energy purchased (purchased and consumed, i.e. without energytrading) for the part of your company's operations for which you have a reliable and auditable data acquisition andaggregation system. In case you are reporting total consumption, indicate this in the comment box. Please refer tothe information button for additional information. For each row in the table, it is mandatory that the values providedare in the same unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filledin, and that the coverage in the table below is based on the same denominator.

✓ Electricitypurchased


Electricitypurchased

megawatthours (MWh)

870942 MWh 1046480MWh

735437 MWh 739352 MWh _ _ _ _ _ __ _ _ _

Data coverag e (as % of denominator)

percentage of:Company-widepurchasedelectricity

100 100 100 100


was collected:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _



❏ We have a temporary coverage reduction or target challenge due to corporate actions. Please brieflyexplain if a merger, acquisition, divestment, etc. has temporarily caused a reduction in your ability to reportoptimal 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 purchased electricity


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


2.3.6 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 atequivalent quality as the raw water extracted. Please refer to the information button for additional information. Foreach 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 isbased on the same denominator.

✓ WaterConsumption

Unit Financial Year2011

Financial Year2012

Financial Year2013

Financial Year2014

Pleaseindicate whatwas yourtarget for theFY 2014

Total WaterWithdrawal(GRI EN8,process andcooling water)(i.e. sum of3 subitemsbelow)

Million cubicmeters

_ _ _ _ _ __ _ _ _

5.74 Mio. m³ 6.67 Mio. m³ 35.80 Mio. m³ _ _ _ _ _ __ _ _ _

> Subitem:Total salt /brackishwaterwithdrawn

Million cubicmeters

_ _ _ _ _ __ _ _ _

0.008 Mio. m³ 0.012 Mio. m³ 14.065 Mio.m³



WaterConsumption

Unit Financial Year2011

Financial Year2012

Financial Year2013

Financial Year2014

Pleaseindicate whatwas yourtarget for theFY 2014

> Subitem:Totalmunicipalwater supplies(or from otherwater utilities)

Million cubicmeters

_ _ _ _ _ __ _ _ _

0.270 Mio. m³ 0.226 Mio. m³ 0.136 Mio. m³

> Subitem:Total waterfrom all othersources

Million cubicmeters

_ _ _ _ _ __ _ _ _

5.46 Mio. m³ 6.90 Mio. m³ 21.56 Mio. m³

Waterreturned tothe sourceof extractionat similar orhigher qualityas raw waterextracted

Million cubicmeters

_ _ _ _ _ __ _ _ _

_ _ _ _ _ __ _ _ _

_ _ _ _ _ __ _ _ _

_ _ _ _ _ __ _ _ _

DataCoverage(as % ofdenominator)

percentage of_ _ _ _ _ __ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

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 reportedfigures. 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 waterthat is recycled and reused as part of our operations. The data included in this report is representative ofEncana's calculated 'total water withdrawal', which does not include reused/recycled water data.



❍ We do not track water withdrawal




❍ Not known

Comment :Encana continues to improve processes and systems for tracking water use. Water use includes water usedin 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 itsEH&S management system, Ethos. The guidance incorporated international reporting standards and industry bestpractices (Global Reporting Initiative G3 Guidance, IPIECA, The Canadian Association of Petroleum ProducersResponsible Canadian Energy Water Management Practice and the Carbon Disclosure Water Project). Theguidance sets company standards for collecting and maintaining water data, promotes the efficient use of surfaceand ground water, promotes the use of non-utilized water such as deep saline ground water and recycled waterand 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, asprocesses and systems are implemented and improved.

Please note, the 'total municipal water supplies' metric is for Canada only.


2.3.7 EP - Waste Generation

Please provide your company's total waste generated (not reused or recycled) for the part of your company'soperations for which you have a reliable and auditable data acquisition and aggregation system. Please referto the information button for additional clarifications. For each row in the table, it is mandatory that the valuesprovided are in the same unit. Also, please ensure that the "Denominator" question in this criterion has beencorrectly filled in, and that the coverage in the table below is based on the same denominator.

❍ Wastegeneration


Total wastegenerated

metric tonnes _ _ _ _ _ __ _ _ _

_ _ _ _ _ __ _ _ _

_ _ _ _ _ __ _ _ _

_ _ _ _ _ __ _ _ _

_ _ _ _ _ __ _ _ _

Data coverag e (as % ofdenominator)

percentage of:_ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


was collected:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

DATA CONSISTENCY



❏ We report publically on this information, but the data in the table above differs from our publically reportedfigures. Please provide an explanation in the comment box for this difference:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _



❏ The data reported in the table above is NOT consistent with the definition provided by RobecoSAM (seeinformation button for more detailed information)

❍ We do not track generated waste


❍ Not known

Comment :Encana is currently working on developing a system and methodology to consistently track and report waste.


2.3.8 EP - NOx Emissions

Please provide your company's direct NOx emissions for the part of your company's operations for which youhave a reliable and auditable data acquisition and aggregation system. Please refer to the information buttonfor additional clarifications. For each row in the table, it is mandatory that the values provided are in the sameunit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that thecoverage in the table below is based on the same denominator.

✓ Direct NOxemissions


Direct NOxemissions

metric tonnes 19672 met.ton.

12846 met.ton.

10997 met.ton.

9520 met. ton. _ _ _ _ _ __ _ _ _


percentage of:Totalcompany-wide NOxemissions

100 100 100 100


was collected:



_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _DATA CONSISTENCY

✓ We report publically on this information, but the data in the table above differs from our publically reportedfigures. 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 resultingfrom ongoing refinements to our air emissions and related metrics calculation methodologies that includerefinements to our equipment inventory based on more accurate counts and reconciliations, improvedanalyses of methodologies and improved data QAQC processes.



❍ We do not track NOx emissions


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


2.3.9 EP - SOx Emissions

Please provide your company's direct SOx emissions for the part of your company's operations for which youhave a reliable and auditable data acquisition and aggregation system. Please refer to the information buttonfor additional clarifications. For each row in the table, it is mandatory that the values provided are in the sameunit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, and that thecoverage in the table below is based on the same denominator.

✓ Direct SOxemissions


Direct SOxemissions

metric tonnes 2751 met. ton. 2478 met. ton. 3584 met. ton. 8243 met. ton. _ _ _ _ _ __ _ _ _


percentage of:Totalcompany-wide SOxemissions

100 100 100 100




was collected:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _





❍ We do not track direct SOx emissions


❍ Not known

Comment :The increase in our 2014 SO2 emissions is due to increased flaring of acid gas as a result of significantlyincreased production at Deep Panuke in in our Canadian operations, and to the addition of sour wells andassociated equipment that were brought on-line in our U.S. operations in 2014.


2.3.10 EP - Methane Emissions

Please provide your company's direct Methane (CH4) emissions for the part of your company's operations forwhich you have a reliable and auditable data acquisition and aggregation system. Please refer to the informationbutton for additional clarifications. For each row in the table, it is mandatory that the values provided are in thesame unit. Also, please ensure that the "Denominator" question in this criterion has been correctly filled in, andthat the coverage in the table below is based on the same denominator.

✓ CH4 Unit FY 2011 FY 2012 FY 2013 FY 2014 What wasyour target forFY 2014?

Direct CH4emissions

metric tonnes 84530 met.ton.

86201 met.ton.

79133 met.ton.

80395 met.ton.

_ _ _ _ _ __ _ _ _



CH4 Unit FY 2011 FY 2012 FY 2013 FY 2014 What wasyour target forFY 2014?


percentage of:Company-wide methaneemissions

100 100 100 100


was collected:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _





❍ We do not track Methane (CH4) emissions


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


2.3.11 EP - Volatile Organic Compounds Emissions

Please provide your company's direct Volatile Organic Compounds (VOC) emissions for the part of yourcompany'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 thatthe values provided are in the same unit. Also, please ensure that the "Denominator" question in this criterion hasbeen correctly filled in, and that the coverage in the table below is based on the same denominator.



✓ Direct VOCemissions


Direct VOCemissions

metric tonnes 3754 met. ton. 3345 met. ton. 2991 met. ton. 3234 met. ton. _ _ _ _ _ __ _ _ _


percentage of:Totalcompany-wide VOCemissions

50 50 50 50


was collected:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _





❍ We do not track Volatile Organic Compounds (VOC) emissions


❍ Not known

Comment :The direct VOC emission value above reflects Encana's Canadian operations only. Our USA operations calculateand track VOC emissions data as required by state or local regulations, however, these data have not beenincluded in this year's survey as reporting timing constraints prevented sufficient review of the data to include inthis report.


2.4 Biodiversity

Extractive industries and companies producing basic materials operate in areas where biodiversity is often rich orsensitive, but can be negatively impacted by their operations. If not managed properly, the impact on reputation



and cash flow can be substantial and even threaten the license to operate. This also applies to a smaller extent toutilities 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, whetherthey include stakeholders in the development and implementation of their biodiversity strategy and whether theimplementation is included in an internal or external assurance process.

2.4.1 Approach Towards Biodiversity: Policy / Strategy

Please indicate the strategy / policy your company has implemented with regards to biodiversity. If not statedotherwise, 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 thefinancial bottom line (company performance) has been established

✓ Exposure to biodiversity related risks is known and these risks have been assessed at100% of sites owned or operated by our company and b iodiversity management plans have beenimplemented at100% of sites owned or operated by our company classified by the company as being exposed to biodiversityrelated risks

✓ Local stakeholders such as local communities or conservation organizations are involved in developing thecompany's site-specific biodiversity strategy

✓ Biodiversity base line surveys and protection measures are fully incorporated into the management andoperating 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 IUCNCategory 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 otherthird 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 provideexplanations in the comment box below.

❍ Not known

Comment :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 andappropriate industry standards. These expectations are met through documented practices for environmental



protection, worker safety, security, health, regulatory permitting/approvals, inspections and audits which includebiodiversity.

Minimizing our impact to wildlife and habitat is not only regulated by law, but is an important consideration aswe strive to conduct our business responsibly. We actively manage our development schedules and operationalfootprint to account for a wide range of wildlife and habitat pressures. In order to identify site-specific wildlifeand habitat issues and minimize disturbance, we conduct environmental and wildlife assessments as part of theproject 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 identificationincludes evaluating and prioritizing risks with the help of Encana’s EH&S risk matrix and then eliminating orcontrolling 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 baselineassessments and environmental inspections.

References :• Corporate Responsibility Policy, Encana Corp Responsibility Policy March 2013.pdf (Pages: 1)

• Environment Policy, Environment_Policy.pdf (Pages: All) -

• Ethos Overview, Ethos overview.pdf (Pages: All) -

• Ethos-Environmental Stewardship Standard, Ethos- Environmental_Stewardship[standard].pdf (Pages: All) -

• Ethos-Verification and Audit Standard, Ethos-Verfication_and_Audit[standard].pdf (Pages: All) -

2.4.2 Approach Towards Biodiversity: Assurance

Please indicate the assurance processes your company has implemented with regards to biodiversity. If notstated 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, managementand 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 timean event such as permit change or expansion project warrants a review of the operations' impact onbiodiversity

✓ Stakeholders at the local level are involved in monitoring the business' significant risks/impacts onbiodiversity

✓ The company tries to make sure that Joint Ventures implement the company's biodiversity managementapproach as a minimum standard

❍ None of the above statement is true for at least half of the sites (owned or operated) of our company




❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• Corporate Responsibility Policy, Encana Corp Responsibility Policy March 2013.pdf (Pages: 1)

• Environment Policy, Environment_Policy.pdf (Pages: All) -

• Ethos Overview, Ethos overview.pdf (Pages: All) -

• Ethos-Environmental Stewardship Standard, Ethos- Environmental_Stewardship[standard].pdf (Pages: All) -

• Ethos-Verification and Audit Standard, Ethos-Verfication_and_Audit[standard].pdf (Pages: All) -

2.4.3 Approach Towards Biodiversity: Reporting

Please indicate the level of reporting your company is doing with regards to biodiversity. Mark the option only ifthe statement is true for at least half of the sites owned or operated by your company. Please provide a web linkindicating where the information can be found.

✓ REPORTING

✓ The company publicly reports on its biodiversity strategy, its biodiversity targets and its achievements withrespect to these targets. Please indicate where this information is available:www.encana.com/sustainability

✓ 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 ofour Annual Report 2014. In the Document Library, see the draft 2014 Sustainability Report for furtherinformation 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 known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _




2.4.4 Responsibility

Is a formal system in place ensuring that recommendations derived from biodiversity impact assessmentsare implemented and followed up during project construction and operation? If so, who is accountable forimplementation 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 outlinesaccountability for assessments.

❍ No formal system in place


❍ Not known

Comment :Our EH&S Management System (Ethos) applies to all company locations, activities, processes,products and services. Ethos practices outline specific performance measures that are includedon internal scorecards. This provides a strong link between performance and compensation.


2.4.5 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 inthe comment box below.

❍ Not known

Comment :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 anarea deemed unique and sensitive, a site-specific environmental impact assessment is conducted to minimizedisturbance and avoid ecologically sensitive areas.

References :




2.4.6 Public Availability of Results

Are the results of EIAs and/or SIAs made publicly available? Please provide supporting documents and/orindicate 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


❍ Not known

Comment :Environmental and social impact assessments are one way in which Encana is able to ensure that it is operatingin 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 receivedby stakeholders. Encana utilizes open houses, community newsletters and other communications opportunities topresent the findings to stakeholders and to solicit feedback on these efforts. In 2014, Encana did not conduct anyEIAs or SIAs.


2.4.7 MSA Biodiversity


References :




2.5 Climate Strategy

Most industries are likely to be impacted by climate change, albeit to a varying degree; consequently, they facea need to design strategies which are commensurate to the scale of the challenge for their industry. While mostfocus on the risks associated with a changing climate, some seek to identify and seize the business opportunitieslinked to this global challenge. The questions in this criterion have been developed in alignment with the CarbonDisclosure Project (CDP) methodology as part of a collaboration between RobecoSAM and CDP (https://www.cdproject.net).

2.5.1 Climate Strategy - CDP Alignment

The following questions were developed in alignment with the Carbon Disclosure Project (CDP) methodologyas part of a collaboration between RobecoSAM and CDP. If you have submitted a response to CDP for themost recent reporting year, please indicate this here and attach your CDP questionnaire. Please ensure that theresponses provided to the following questions are aligned with your responses to the CDP questionnaire. Pleasenote that this is for alignment purposes only and that this question will not be scored, hence the questions can beanswered 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 detailand do not cover all CDP questions. In addition, some aspects of the criterion are based on the RobecoSAMmethodology. This means that we ask you to answer the questions asked in the questionnaire and that the CDPsubmission can be used as a basis for this, but that we do not require all the comments and details which wereprovided 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

Comment :Our 2015 CDP Survey response (for 2014 calendar year reporting) is still in process at the time of this DJSIresponse. Responses to questions in this section will be based on our 2014 CDP Survey response.

References :• Carbon Disclosure 2013 Submission, CDP 2013 Questionaire (final).doc (Pages: all) -

2.5.2 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



❍ Senior manager / officer, i.e. the highest person in the organization with direct responsibility for climate changeis on the senior management team, but not on the board

❍ Other manager/ officer

❍ No individual or committee with overall responsibility for climate change


❍ Not known

Comment :Climate change and greenhouse gas emissions issues are managed across Encana. At the Board of Directorslevel, matters relating to climate change and greenhouse gas emissions are overseen and reviewed by theCorporate Responsibility, Environment, Health & Safety (CREHS) Committee. The CREHS Committee isappointed by the Board of Directors to assist the board in fulfilling its role in oversight and governance. TheCREHS Committee meetings are attended by the 5 board committee members as well as Encana’s CEO, USADivision President, Canadian Division President and Executive Vice-President, Corporate Development, EH&Sand 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 withrespect 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 thecommittee 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 thatcould impact Encana, and its people or programs;

· action and initiatives undertaken to mitigate corporate responsibility risk and/or matters having the potential toaffect 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 arethe responsibility of Executive Vice-President, Chief Operating Officer. The Chief Financial Officer must alsoconduct and communicate consolidated quarterly and annual risk reports that identify the principal risks (including



climate change) to the Corporation and the mitigation strategies in place. These two positions report directly tothe President and Chief Executive Officer of the Company. Accountability for the management of climate changerisks, 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 toclimate change regulations and emerging performance expectations, assessment of climate change risks andopportunities, synthesis of the emissions and business plans, the development of appropriate internal abatementstrategies, as well as engagement with policy makers in the development and application of climate changepolicy and regulation. In addition, the Encana Risk Matrix provides detailed criteria to quantify risk potential andmateriality based on probability and impact.


2.5.3 Climate Change Management Incentives

Does your company provide incentives for the management of climate change issues, including attainment oftargets?

✓ Yes, we provide monetary rewards , please specify:Environment/sustainability managers may have individual performance targets based on delivery of GHGreductions projects. Business unit managers may have individual performance targets linked to optimizingenergy use. Process operation managers may have individual performance targets linked to optimizing energyuse 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


❍ Not known

Comment :We have various roles across Encana that are committed to managing climate change and air emission strategiesand solutions across our operations.




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 processwhere climate change risks and opportunities are integrated into the company’s centralized enterprise riskmanagement program covering all types / sources of risks and opportunities

❍ A specific climate change risk management process, i.e. a documented process which considers climatechange 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


❍ Not known

Comment :Please refer to our attached response to CDP 2014 question 2.1a for detailed information.


2.5.5 Climate Change Products

Does the use of your company's goods and / or services directly enable greenhouse gas (GHG) emissions to beavoided or reduced?

✓ Yes, our products enable GHG emissions to be avoided or reduced. Please briefly specify and indicate theshare of revenues from such goods and services:Fuel switching in power applications from coal fired generation to natural gas results in GHG emissionreductions. In North America, several jurisdictions are encouraging this switch. An example is our 30-yearjoint 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 notapplicable to our company. Please provide explanations in the comment box below.

❍ Not known

Comment :Please refer to our attached response to CDP 2014 question 3.2 for detailed information.

References :




2.5.6 Climate Strategy Impacts

For your combined emissions reduction activities that were active in the latest reporting year, please provide thetotal amount of anticipated annual CO2 and cost savings from these initiatives.

Please specify currency:USD($)✓ ✓ Total estimated annual CO2 savings:

90000 met. ton. CO2e

✓ Total annual investment required:4530000 Monetary Units

✓ Total anticipated annual cost savings:2055000 Monetary Units

✓ Average pay-back period:4.5 years

❍ We do not track this information or calculate these figures


❍ Not known



2.5.7 Financial Risks of Climate Change

Have you identified any climate change risks (current or future) that have potential to generate a substantivechange 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:



✓ 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 climatechange risks that have the potential to generate a substantive change in business operations, revenue, orexpenditure. Please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ We have not conducted an analysis related to climate change risks


❍ Not known



2.5.8 Financial Opportunities Arising from Climate Change

Have you identified any climate change related opportunities (current or future) that have the potential to generatea substantive positive change in your business operations, revenue, expenditure (i.e. opportunities driven bychanges 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.



❏ 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


❍ Not known



2.5.9 Internal Carbon Pricing

Please indicate if your company uses an internal price of carbon. If yes, please describe how this is being usedwithin 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 ofhow it is being used within the organization.Encana monitors developments in emerging climate change policy and legislation, and considers theassociated costs of carbon in its planning. The Corporate Responsibility, Environment, Health and SafetyCommittee of Encana’s Board of Directors reviews the impact of a variety of carbon constrained scenarios onEncana’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 UnitsPlease specify the currency in which your internal price of carbon is reported:Canadian dollars

❍ No, we do not use an internal price of carbon


❍ Not known

Comment :Encana monitors developments in emerging climate change policy and legislation, and considers the associatedcosts of carbon in its strategic planning. Though the future cost of carbon is subject to uncertainty, the CorporateResponsibility, Environment, Health and Safety (CREHS) Committee of Encana’s Board of Directors reviews



potential compliance risks and liabilities associated with predicted carbon prices under various regulatory regimesand emission trading schemes. The CREHS Committee reviews the impact of a variety of carbon constrainedscenarios on Encana’s business strategy using a forecasted carbon cost range of CAD$20 to CAD$125 pertonne 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 highprioritization and policy action, are status quo, business as usual and carbon bubble. Encana is confident thatemerging 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.


2.5.10 EXPOSURE: Carbon Targets

Please indicate your company's corporate targets to reduce greenhouse gas emissions. Please provide eitherabsolute or relative targets (or both if available).❍ Absolute targets Relative targets

❍ Targets set

❍ No targets set

❍ Not known

❍ Targets set

❍ No targets set

❍ Not known

Baseline Year _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Scope of the emissions for whichthe target is defined

❍ Scope 1

❍ Scope 2

❍ Scope 1 and Scope 2combined

❍ Scope 1 and Scope 2, butseperately

❍ Not known

❍ Scope 1

❍ Scope 2

❍ Scope 1 and Scope 2combined

❍ Scope 1 and Scope 2, butseperately

❍ Not known

Emission of base line year inabsolute tons of CO2e

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Value of intensity measure of thebase line year(please use the comment boxbelow to indicate the definition ofthe intensity measure used)_ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _

Target year _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Reduction target as percentage ofbaseline value

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _



Absolute targets Relative targetsTarget was set in year _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

✓ We do not set any targets for GHG emissions


❍ Not known

Comment :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, itis anticipated that other jurisdictions will announce emission reduction plans in the future. As these federal andregional programs are under development, Encana is unable to predict the total impact of the potential regulationsupon its business. Therefore, it is possible that the Company could face increases in operating and capital costsin order to comply with GHG emissions legislation. However, Encana will continue to work with governments todevelop an approach to deal with climate change issues that protects the industry’s competitiveness, limits thecost 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 amendedto require facilities that emit more than 100,000 tonnes of GHG emissions per year to reduce their emissionsintensity by 12 percent from a regulated baseline starting July 1, 2007. To comply, companies can make operatingimprovements, purchase carbon offsets or make a C$15 per tonne contribution to an Alberta Climate Change andEmissions Management Fund. Encana has one facility covered under the emissions regulations in Alberta. Theforecast cost of carbon associated with the Alberta regulations is not material to Encana at this time and is beingactively managed.

Encana continues to strive to reduce emissions intensity and increase efficiencies in its operations.


2.5.11 EXPOSURE: Scope 3: GHG Upstream

As part of Scope 3 in the GHG Protocol, please indicate how your company considers GHG emissions for yourcompany's supply chain (upstream), customers (downstream) and support services. Please provide supportingdocuments for each of the three perspectives.



✓ PerspectiveSuppliers (emissions from purchased products andservices, excluding energy purchased which fallsunder Scope 2).

❍ Yes, we qualitatively consider emissions

❍ Yes, we quantitatively consider emissions

❍ Yes, we qualitatively and quantitatively consideremissions

✓ No, we do not consider these emissions

❍ Not known for suppliers

❍ Not applicableIf yes, please specify and add supporting documents.If not applicable, please provide an explanation._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Customers (emissions incurred by the use of yourcompany's products).

✓ Yes, we qualitatively consider emissions


❍ Yes, we qualitatively and quantitatively consideremissions

❍ No, we do not consider these emissions

❍ Not known for customers

❍ Not applicableIf yes, please specify and add supporting documents.If not applicable, please provide an explanation.We engage with our employees and our stakeholdersregarding the benefits of natural gas. We use multi-media, direct engagement, publications and haveemployee-specific programs such as use of naturalgas vehicles or incentives to buy natural gas vehicles.

Support services (emissions from e.g. businesstravel, external logistics).

✓ Yes, we qualitatively consider emissions


❍ Yes, we qualitatively and quantitatively consideremissions.

❍ No, we do not consider these emissions

❍ Not known for support services

❍ Not applicableIf yes, please specify and add supporting documents.If not applicable, please provide an explanation.Commercial air travel is required as part of ourbusiness. However, Encana encourages the useof videoconferencing whenever possible, andmost of our office meeting rooms are equipped forvideoconferencing.

❍ We do not consider Scope 3 emissions




❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


2.6 Releases to the Environment

Releases to the environment are a key aspect of assessing the operations of oil and gas companies. Releasesto the environment can have direct financial and environmental consequences, as well as material brandconsequences. This is also an issue heavily monitored by the public. Our most important rational for assessingreleases to the environment is to monitor any structural weaknesses among the companies, i.e. do we see astructural patterns (different from one time accidents) in behavior? Can this be associated with wider lack ofcontrol, risk management or policies?

2.6.1 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 whichdenominator to use, please refer to the information button). If not possible to report in the preferred unit, pleaseindicate which unit has been used instead in the comment box. If absolute figures are available, these can also beprovided in the comment box and will be used to verify the normalized values.

✓ Oil and chemicalspills

Unit FY 2011 FY 2012 FY 2013 FY 2014

Volume of oiland chemicalslost

Barrels /denominator(see informationbutton). Pleasespecify if otherunit is used:BBL/Denominator

43.98 16.25 15.52 18.78


❍ Not known

Comment :Encana reports spill volumes based on total volume of reportable spills as outlined in our annual sustainabilityreport. Data is reported as volume of total reportable bbls per denominator.



Encana's company-wide focus on improving spill prevention contributed to a year-over-year decrease in 'TotalReportable Spills'; however, our total spill volume increased in 2014 due in part to two produced water spills inone 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 didnot 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 cleanupcompleted within 3 days of the incident.

Both incidents demonstrate Encana’s systematic approach to dealing with spills in order to respond as quickly aspossible and avoid similar incidents in the future.


2.6.2 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 specificguidance on which denominator to use, please refer to the information button). Please indicate which ratio hasbeen used in the comment box. If absolute figures are available, these can also be provided in the comment boxand will be used to verify the normalized values. Please also indicate if unintentional methane leakage in hydraulicfracturing process is included in the figures.✓ Natural gas

leakage andflaring

Unit FY 2011 FY 2012 FY 2013 FY 2014

Volume ofmethane emitted

Refer to theinformationbutton foradditionalinformation.Please specifyunit used:e^3 m3

166734 138392 212512 198458

✓ 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 volumesemitted through accident and sabotage.


❍ Not known



Comment :Reported values represent total volumes of natural gas vented and flared. Fugitive methane releases are includedin 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 informationresulting from ongoing refinements to our air emissions and related metrics calculation methodologies that includerefinements to our equipment inventory based on more accurate counts and reconciliations, improved analyses ofmethodologies and improved data QAQC processes.


2.6.3 Oil Sands

Please indicate the percentage (%) of your production from oil sands (BoE oil sands divided by BOE Upstreamproduction, please include both mining and in-situ operations). Please also indicate the energy intensity of yourproduction 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 adecreasing ratio).❍ Production from oil sands (%)

_ _ _ _ _FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Energyintensity of yourproduction fromoil sands,please specifyunit:_ _ _ _ _ _ __ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


❍ Not known

Comment :We do not have oil sands assets


2.7 Water Related Risks



The availability of water and its qualitative properties are fundamental aspects of high-water consumingindustries. Water is used in vast amounts for cooling processes in power generation and in fiber production. Formining companies and the beverage industry, water is indispensable. High demand for water competes withwater consumption for agriculture and municipal use in areas where it is a scarce resource, having financialconsequences for high-consumption industries. The situation may exacerbate in the future due to the increasingglobal population, and the consequences of climate change. The water-related risk criterion identifies companieswith high exposure, tests their managerial capabilities in water management and evaluates their performance inwater consumption.

2.7.1 Exposure by Water Stressed Areas

When considering physical water scarcity issues at a local level, please indicate what percentage of yourcompany’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 thatinformation blank. NB: This question will not be assessed in isolation, but in combination with other questions inWater-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 (ifapplicable)

_ _ _ _ _ _ _ _ _ _

Amongst the production plants / sites currently located in water-stressed areas, please indicate yourcompany’s top fresh water consumers (in this case, fresh water consumption = fresh water withdrawn (surfacewater + ground water + municipal supply) minus water discharged and returned to its source at similar orhigher quality than it has been withdrawn) in last FY:

Plant Name Location(area, country)

Water Use(m3/y)

Water intensity (m3/COGS USD)(see info box)

Plant / Site #1 _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Plant / Site #2 _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Plant / Site #3 _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

✓ Not applicable. According to our assessment and the above definition of water-stressed area, we currentlyhave no productions plants / sites located in water-stressed areas. Please provide explanations in thecomment box below.

❍ Not known

Comment :As part of the Company's operational development plans, Encana assesses the risk to development includingenvironmental risks related to water. Alternative water sources are considered whenever possible. Alternative



sources of water include saline and brackish water, recycled/reused produced water, and recycled/reusedflowback water.

Asset area-specific operating practices provide guidance on the use of non-potable water, reusing water andwater storage and handling. These practices consider conditions and regulations in the respective area. Flowbackwater is re-used as much as is practicable or allowed by regulation. Excess or unusable flowback water andproduced water is disposed in compliance with regulations.


2.7.2 Tools / Processes / Systems / Standards / Frameworks used

Please indicate the tools / processes / management systems / standards / frameworks used by your company toachieve the following objectives. If your company's final product is water (e.g. water utilities), please mark "Notapplicable" in this question.

✓ Objective Name of tools / management systems / standards /frameworks

✓ Report and aggregation at corporate level: Ethos, Wellview, Siteview

❏ Manage water risk in the supply chain: _ _ _ _ _ _ _ _ _ _

✓ Track and calculate plant / site water intensity: Ethos, Wellview, Siteview

❏ Determine virtual water content of products: n/a

❏ Determine virtual water exchange mapping: _ _ _ _ _ _ _ _ _ _

❏ Systematically track and map plant water usage:(e.g. WBCSD Water Tool)

n/a

✓ Define water stress: Ethos; GRI; as defined by Regulators

✓ Map water stress: Ethos; GRI; as defined by Regulators

✓ Project future water stress: As part of Encana's operational plans and EH&SManagement System, environmental risks related towater are assessed.

❏ Provide external data verification: _ _ _ _ _ _ _ _ _ _

✓ Contribute to collaborative initiatives:(e.g. signatory of the CEO Water Mandate)

Encana's community involvement group participatesin collaborative environmental initatives includingwater management initiatives.



Objective Name of tools / management systems / standards /frameworks

❏ Other objectives related to water risks, pleasedescribe:

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _❍ 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 aboveobjectives


❍ Not known

Comment :Corporate guidance and expectations for water use are included in our EH&S Management System, whichconsiders various frameworks related to water management (GRI, IPIECA, the Canadian Association ofPetroleum Producers (CAPP) Canadian Energy Water Management Practice, CDP Water). Expectationsinclude promoting the efficient use of surface and ground water, using alternative water such as deep salineground water and recycled/reused water, and watershed planning in project development.

Encana is continuing to improve our processes and systems for tracking water use.


2.7.3 Risk Management - Quantity & Quality

How does your company manage risks with regard to the available quantity and quality of water relevant for youroperations? At corporate level, we have the overview of the following measures (please tick only if the statementis valid for the majority of your production plants / sites located in water-stressed areas and provide supportingdocuments).If you do not have any production plants in water-stressed areas, please indicate which type of risk managementmeasures 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 StewardshipStandard.

✓ 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 water-stressed areas



❍ We do not manage this at group level


❍ Not known

Comment :Water plays an important role in all facets of oil and gas development. There is no one-size-fits-all watermanagement solution, and in each operating area Encana works to ensure sound operating practices are inplace. Some of Encana's water management initiatives are:

1. Water sourcing and volumes - Encana uses a tailored approach when sourcing water and evaluates manydifferent available options once a resource has been proven prior to beginning operations. Encana has alsodeveloped corporate guidance on water tracking and reporting as part of Ethos.

2. Wellbore construction - during operations, groundwater-bearing rock formations are protected from the contentsof the well by layers of steel casing and cement. Before Encana begins completion operations, the Companypressure-tests the casing to ensure integrity and monitor pressures within the well during each fracturingoperation.

3. Additive selection - Encana has implemented a company-wide program to manage the chemical productsused in hydraulic fracturing. The Responsible Products Program assesses hydraulic fracturing fluids for potentialhealth, safety and environmental impacts.

4. Additive disclosure - in order to reassure stakeholders about its operations, Encana supports the disclosure offracturing 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 offracturing fluids, produced water, flowback water and wastes associated with hydraulic fracturing by adheringto government regulations, ensuring proper storage and secondary containment and maintaining spill responseplans.

6. Flowback fluid reuse, recycling and disposal - where practical, Encana reuses flowback water and seeksopportunities to use other unutilized sources of water in its operations. This could be water located far deeperthan typical drinking water aquifers or water that is of too poor quality for household or agricultural use. Where thecompany is unable to reuse produced water or flowback fluids, Encana disposes of these substances in licenseddisposal wells.

7. Voluntary baseline groundwater testing - Encana is committed to protecting fresh groundwater sources androutinely test domestic water wells in the area of oil and natural gas wells being drilled. Encana also participates inlonger term regional groundwater monitoring programs.

8. Water resource hub model - At the end of 2014, Encana marked a major milestone initiating full operation of awater resource hub in the Montney (northern British Columbia). This centralized hub facility is expected to meetup to 75 percent of our water requirements for hydraulic fracturing operations near Dawson Creek, resulting in theconservation of nearly 2.6 million cubic metres (687 million gallons) of fresh water over the next five years.

References :• Corporate Responsibility Policy, corp-responsibility-policy.pdf (Pages: all) -

• Environment Policy, Encana Environment Policy May 2013.pdf (Pages: 1)



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 changesin price structure (e.g. water tariffs, withdrawal restrictions, discharge standards and discharge tariffs)? At thecorporate level, we track and monitor the following (please tick only if the statement is valid for the majority of yourproduction 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 managementmeasures 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 regulationthat 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, pleasespecify: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 water-stressed areas



❍ Not known

Comment :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 theenvironmental 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 exceedgovernment regulations and industry standards. In addition, Encana maintains a system that identifies, assessesand controls safety, security and environmental risk and requires regular reporting to senior management and theBoard of Directors.

References :• 2014 Annual Report, annual-report-2014-20150512-132608.pdf (Pages: 38)

2.7.5 Risk Management - Stakeholder Conflicts

How does your company manage stakeholder conflicts concerning water resources? Please tick only if thestatement is valid for the majority of your production plants / sites located in water-stressed areas and providesupporting documents.



If you do not have any production plants in water-stressed areas, please indicate which type of risk managementmeasures 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, stakeholdersurveys, community BBQs, etc. On an annual basis, or as operational plans develop or change, we assesspotential 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, stakeholdersurveys, community BBQs, etc. On an annual basis, or as operational plans develop or change, we assesspotential conflicts to ensure we have mitigation strategies in place.

✓ Active engagement with key stakeholders (local communities, NGOs, government bodies, large waterusers, etc.), please specify:We actively engage with our stakeholders across our operations. See our Stakeholder Engagement Guideand draft 2014 Sustainability Report for details about our engagement activities.

✓ Participation in integrated watershed management initiative in locations with key operations, pleasespecify: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 water-stressed areas



❍ Not known

Comment :Water is essential in developing Encana's oil and natural gas resources. Community engagement plans arecreated for each of Encana's operating areas and are reviewed annually. Stakeholder surveys are conducted toobtain an understanding of stakeholder issues. The Company has methods for tracking and addressing concernsincluding an Integrity Hotline, commitment tracker and a dedicated sustainability email address.

References :• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 14)

2.7.6 Target and Progress

For the top 3 water-consuming plants currently located in water-stressed areas, what water-related targets havebeen established at plant level and what measures are being taken to achieve these targets? Please see theinformation 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.



❍ Unit of data Plant #1 Plant #2 Plant #3Base line year Year (YYYY) _ _ _ _ _ _ _ _ _

__ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Fresh waterconsumption ofbaseline line

m3 _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Target year Year (YYYY) _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Reduction Target % of baseline value _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Fresh waterconsumption in lastFY

m3 _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Measures taken _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

Other target(s) _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

❍ We plan to start in 2015

❍ 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 known

Comment :Encana does not own or operate any plants in a water stressed area. However, it actively manages wateracross its operations and strives to use its water resources responsibly. Encana considers recycling and usingnon-potable water whenever possible in its operations. This is done through the use of area-specific operatingpractices, which provide guidance regarding the use of non-potable water, water recycling and water storage andhandling. 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 thecompanies' reputation and brand equity. Maintaining transparency through appropriate reporting and board-



level monitoring increases stakeholders’ and customers’ trust. While disclosure levels are increasing, the qualityof reporting varies significantly and thus RobecoSAM's questions focus on the relevance and scope of theinformation contained in social reports, as well as external assurance based on internationally acknowledgedreporting standards.

3.1.1 Social Reporting - Materiality

Please indicate if your company is publically reporting on the following aspects and attach supporting documentsor weblinks.

✓ Materiality framework

Is your company publically reporting on the processes and tools used to identify and prioritize critical socialissues within the sustainability strategy, including a consideration of impact on the company’s businessperformance (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


✓ We report on this in the main part of the Annual Report or equivalent financial reports (i.e. not in a separateCSR section of the Annual Report). Please provide supporting document or weblinks and indicate page:_ _ _ _ _ _ _

Top 3 Material IssuesI In order of importance, please select from the list below up to three social issues that have been identifiedin 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 ofbusiness impact(s). The drop down menu include a selected list of possible general issues that apply acrossindustries. 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 lessthan three social issues to be material for your business, select 'Not Applicable' in the drop down menu andexplain this in the the comment box below. For each issue indicated as material, a link to your public reportwhere 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 EngagementIf other, please specify:



_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Business case for first material issue:Creating opportunities for both socioeconomic development and collaborative community engagementwithin our operating areas is an important area of our focus. Informing our local stakeholders aboutdevelopment plans, engaging them in dialogue related to potentially contentious issues and seekingopportunities to create shared value between Encana and communities helps to avoid unnecessary delaysin the development process and mitigates reputational risk. Similarly, identifying opportunities to createvalue for Encana’s operating communities and local economies through local hiring, capacity developmentand community investment supports the company’s social license to operate and reinforces Encana’sposition as a community partner of choice.Please provide supporting public evidence (including page number):

✓ Second material issue:❍ Occupational Health & Safety


❍ Other Issue


✓ Human Capital Management


❍ Issue not known

❍ Business Ethics

❍ Stakeholder EngagementIf other, please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Business case for second material issue:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Please provide supporting public evidence (including page number):

✓ Third material issue:❍ Occupational Health & Safety




✓ Business Ethics

❍ Issue not known

❍ Human Capital Management

❍ Other Issue

❍ Stakeholder EngagementIf 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. Beyondsimply a mechanism to ensure that Encana meets or exceeds applicable laws and regulations, it promotesaccountability and transparency throughout the company.Link to public report (including page number):



Example of cost-savingIs your company publically reporting on one or more concrete examples of how social initiatives have led tocost 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 valueof reputational risk management. We strive to be accepted in the communities we operate through strongstakeholder engagement and proactive risk mitigation around potential community concerns. We see costsavings in the form of reduced time for regulatory approvals.


Example of revenue generationIs your company publically reporting on one or more concrete examples of how social initiatives havegenerated 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



❍ No such reporting publically available


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• 2014 Annual Report, annual-report-2014-20150512-132608.pdf (Pages: 38-39) See ENVIRONMENTAL,

REGULATORY, REPUTATIONAL AND SAFETY RISKS

• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 4) See DETERMINING WHATMATTERS section

• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: throughout)

3.1.2 Social Reporting - Coverage

Is the coverage of your company’s publically available social reporting clearly indicated in the report or in theonline 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):



❍ 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 operationsPlease indicate the weblink and the page number where the coverage for all social indicators is indicated (inthe public domain):In the Document Library, see the DRAFT 2014 Sustainability Report, pages 30-31

❍ 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 ifyou 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 andpage number where the coveragefor the social indicator is publicallyreported:

_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

❍ 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.1.3 Social Reporting - Assurance

Please indicate below what type of external assurance your company has received in relation to your company'ssocial reporting. Please attach a supporting reference, indicating where the assurance statement is available inthe 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 assuranceprovider has no conflict of interest in relation to providing the assurance of social data for the companywhich 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 statementonly covers some KPIs (but not all) it is clearly indicated which data / KPIs disclosed in the report havebeen 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.1.4 Social Reporting - Quantitative Data

Please indicate below to what extent your company is reporting on social Key Performance Indicators (KPIs) aswell as targets for such indicators.

✓ ✓ For the three most material social issues identified in question 3.1.1 , please indicate one KPI that is usedto measure your company’s progress and communicated externally. If multiple indicators are reported forone material issue, you may provide these. If no material issues have been identified, you may provideKPIs 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 lessthan three social issues to be material for your business, then also select 'Not Applicable' for those optionshere and explain this in the comment box:

Key Performance Indicator, please specify the KPI and the material social issue it is linked to:

✓ Community EngagementPlease attach the public reference together with the page number where the environmental indicatoris publically reported:




Key Performance Indicator, please specify the KPI and the material social issue it is linked to:

✓ Human CapitalPlease indicate the weblink and page number where the social indicator is publically reported:


✓ Business EthicsPlease 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 yourcompany has any externally communicated targets. If multiple targets are reported for the same materialissues, you may provide these. Please provide a link to where this information is disclosed (in eitherSustainability Report, Annual Report or on your company's website). If you have identified less than threesocial issues to be material for your business, then also select 'Not Applicable' for those options here andexplain this in the comment box:Target for Key Performance Indicator, please specify the target, target year and the material social issueit 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 theenvironmental 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 theenvironmental 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 publicallyreported:




❍ We do not quantitatively report on our most material social issues OR we do not report on social issues


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 30) See COMMUNITY

INVOLVEMENT and ABORIGINAL ENGAGEMENT metrics

• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.pdf (Pages: 30) See GOVERNANCEmetrics

• DRAFT Sustainability Report 2014, 2014 SR DRAFT 2015-05-26.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 employeesis essential for the success of businesses’ operations, particularly in industries characterized by organizedlabor. Beyond providing a safe and healthy working environment, companies should support fair treatmentpractices 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 higherproductivity through a satisfied and dedicated workforce. In accordance with international standards on laborand human rights, companies are increasingly expected to adhere to and apply these standards equally acrossall operations within the organization. Further, growing customer awareness leads to higher expectations fromcompanies in their role as global corporate citizens and their ability to drive sustainable business practices andhuman rights issues forward.The key focus of the criterion is on companies' policies to manage labor relations, related KPIs, equalemployment and development opportunities, human rights and freedom of organization.

3.2.1 Labor KPIs - Diversity

Please complete the table and indicate which of the following performance/management indicators your companyuses regarding the following diversity related issues? Please provide figures covering the entire scope of thecompany and attach supporting documents where indicated.



✓ Issue Management / performance indicatorsNon-Discrimination / Diversity (ILO convention No.111)

Female share of total workforce (%)37Females in management positions (% of totalmanagement workforce):29✓ Females in junior management positions, i.e.

first line management (as % of total juniormanagement positions):31

✓ Females in top management positions, i.e.maximum two levels away from the CEO(or comparable position) (as % of total topmanagement positions):9

❏ Breakdown of workforce based on minority,culture or similar. Please attach supportingdocuments:

❍ We do not use such diversity indicators


❍ Not known

Comment :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 employmentlegislation in all jurisdictions in which it operates. The profitability, responsible growth and the business successof Encana, as well as the personal growth of its employees, result from recognizing and utilizing the abilities ofall individuals to the fullest extent practical within the framework of the business environment. This is achievedby hiring, compensating, training, promoting and providing consistent treatment to employees on the basis ofperformance.

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 ofwomen as integral members of Encana's workforce.

In 2014 Encana replaced our Non-Harassment Practice with a Respectful Workplace Practice, to includelanguage that will provide greater clarity around issues of diversity, discrimination and to further articulate ourstance on appropriate workplace behaviors.

Encana is also committed to the development of our young professionals through our New Grad program.




3.2.2 Labor KPIs - Equal Remuneration

Please provide information on the following indicators relating to equal remuneration.

✓ Please specify currency:USD

Equal Remuneration female/male (ILO conventionNo. 100)

Executive level:Average female salary (base salary only):_ _ _ _ _ _ _ _ _ _Average male salary (base salary only) :_ _ _ _ _ _ _ _ _ _Management level:Average female salary (base salary only):336427 Monetary UnitsAverage male salary (base salary only):330601 Monetary UnitsAverage female remuneration (base salary + othercash incentives such as bonus):_ _ _ _ _ _ _ _ _ _Average male remuneration (base salary + othercash 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


❍ Not known

Comment :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 employmentlegislation in all jurisdictions in which it operates. The profitability, responsible growth and the business successof Encana, as well as the personal growth of its employees, result from recognizing and utilizing the abilities ofall individuals to the fullest extent practical within the framework of the business environment. This is achievedby hiring, compensating, training, promoting and providing consistent treatment to employees on the basis ofperformance.

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 ofwomen as integral members of Encana's workforce.



In 2014 Encana replaced our Non-Harassment Practice with a Respectful Workplace Practice, to includelanguage that will provide greater clarity around issues of diversity, discrimination and to further articulate ourstance on appropriate workplace behaviors.


3.2.3 Labor KPIs - Freedom of Association

Please provide information relating to freedom of association and union representation for the last fiscal year.

✓ Issue Management / performance indicatorsFreedom of Association (ILO convention No. 87; No.98)

✓ Employees represented by an independenttrade union or covered by collective bargainingagreements (%):0

❏ Number of consultations/negotiations withtrade unions over organizational changes (e.g.restructuring, outsourcing):_ _ _ _ _ _ _ _ _ _

❍ We do not track freedom of association and union negotiation metrics


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.2.4 Labor KPIs - Layoffs

Please provide information on the number of layoffs and employee consultations in in the past fiscal year.



✓ Issue Management / performance indicatorsLayoffs (based on ILO's A GuideTo WorkerDisplacement)

❏ Number of employees laid off in the last fiscalyear: _ _ _ _ _ _ _ _ _ _

❏ Number of consultations/negotiations withemployees over organizational changes (e.g.restructuring, outsourcing):_ _ _ _ _ _ _ _ _ _

❍ We do not track layoffs and employee consultations


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.2.5 Public Commitment to Human Rights

Please indicate in the question below if your company has publicly committed to supporting the UniversalDeclarations of Human Rights.

✓ Our company has publicly committed to support the Universal Declarations of Human Rights. Please provide aweblink:See the Corporate Responsibility Policy at http://www.encana.com/about/board-governance/policies/

❍ We have not publicly committed to support the Universal Declaration of Human Rights


❍ Not known

Comment :Encana's labour and environmental standards are aligned with regulations and practices which prevail in NorthAmerica. With respect to labour practice, Encana has a strong focus on work life balance for employees. Theintroduction in 2007 of a practice which allows staff every first and third Friday off, accompanied by a significantincrease in annual vacation eligibility puts Encana among industry leaders in this regard. The company'sbenefit 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 isparamount. The Investigations Practice and Encana's Integrity Hotline help ensure that there is an appropriatechannel for complaints with respect to workplace practices and equity. Remuneration and working conditions areamong 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 intentof existing charters for labour practices.

In 2012 Encana introduced language to the Corporate Responsibility Policy that publically declares our support ofand adherence to the Universal Declaration of Human Rights. Encana is committed to operating in a transparentmanner, 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 applicablefederal, provincial or state human rights legislation. With respect to Encana's Canadian operations, this legislationincludes: 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 VIIof the Civil Rights Act of 1964; Equal Pay Act of 1963; Age Discrimination in Employment Act of 1967; Title I andTitle V of the Americans with Disabilities Act of 1990; Sections 501 and 505 of the Rehabilitation Act of 1973; CivilRights Act of 1991; and Lily Ledbetter Fair Pay Act of 2009.

The human rights commitment made in Encana's Corporate Responsibility Policy is informed by attention toa 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-UKVoluntary Principles on Security and Human Rights, among others. Encana believes its Corporate ResponsibilityPolicy reflects the spirit and intent of these international charters in a framework that is appropriate to employeesand others.


3.2.6 Business and Human Rights

Please indicate if your company is familiar with the UN Framework and Guiding Principles on Business andHuman Rights (the Ruggie Framework) and its potential implications for your business. Please provide supportingdocuments where relevant.

✓ Our company is aware of the UN Framework and Guiding Principles on Business and Human Rights (theRuggie 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 supportingdocuments:Based on this assessment, which of your business activities could be in need of additional due dilligenceregarding Human Rights? Please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Based on this assessment, which Human Rights are in need of additional due dilligence within the sphereof influence of your business activities? Please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ We are not aware of the UN Framework and Guiding Principles on Business and Human Rights


❍ Not known

Comment :



Encana's labour and environmental standards are aligned with regulations and practices which prevail in NorthAmerica. With respect to labour practice, Encana has a strong focus on work life balance for employees. Theintroduction in 2007 of a practice which allows staff every first and third Friday off, accompanied by a significantincrease in annual vacation eligibility puts Encana among industry leaders in this regard. The company'sbenefit 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 isparamount. The Investigations Practice and Encana's Integrity Hotline help ensure that there is an appropriatechannel for complaints with respect to workplace practices and equity. Remuneration and working conditions areamong 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 intentof existing charters for labour practices.

In 2012 Encana introduced language to the Corporate Responsibility Policy that publically declares our support ofand adherence to the Universal Declaration of Human Rights. Encana is committed to operating in a transparentmanner, 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 applicablefederal, provincial or state human rights legislation. With respect to Encana's Canadian operations, this legislationincludes: 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 VIIof the Civil Rights Act of 1964; Equal Pay Act of 1963; Age Discrimination in Employment Act of 1967; Title I andTitle V of the Americans with Disabilities Act of 1990; Sections 501 and 505 of the Rehabilitation Act of 1973; CivilRights Act of 1991; and Lily Ledbetter Fair Pay Act of 2009.

The human rights commitment made in Encana's Corporate Responsibility Policy is informed by attention toa 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-UKVoluntary Principles on Security and Human Rights, among others. Encana believes its Corporate ResponsibilityPolicy reflects the spirit and intent of these international charters in a framework that is appropriate to employeesand others.


3.2.7 MSA Labor Practices Indicators





3.3 Human Capital Development

Human capital development not only ensures that the company has the appropriate skill set in order to executethe business strategy, but also improves talent attraction and retention, and employee motivation; and, as aresult, productivity and the potential for innovation. In increasingly knowledge-based industries, intellectualcapital is also an important part of a company's intangible assets. Human and intellectual capital is maintainedand improved by integrating knowledge management systems and implementing procedures for organizationallearning. RobecoSAM's questions assess whether the company has a comprehensive approach to identifying skillgaps, measuring human capital management, and developing systems to share knowledge across the company.

3.3.1 Human Capital Performance Indicators

Please indicate which performance indicators your company uses to measure the execution of your skill mappingand developing strategy. Please specify your answers.

✓ ❏ Non-financial indicators/ratios (e.g. number of hours spent in trainings, company-specific skillscategorization), 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 - Economicvalue 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 anddeveloping strategy


❍ Not known

Comment :The objectives-setting process is completed annually through the High Performance Contract. Discussionsbetween employees and supervisors throughout the year determine if objectives have been met successfully, andwhether the employee has exceeded expectations. The employee's performance is measured annually againstthese objectives.




3.3.2 Training & Development Inputs

Please indicate the following metrics related to training, development and internal mobility for the last fiscal year inthe table below. Please note that training hours and training costs include activities related to further developmentof employee skills but does not include e.g. basic compliance training.

✓ FY 2014Average hours per FTE of training and development 23.3 hoursAverage amount spent per FTE on training anddevelopment, please specify currency:USD

1940 Monetary Units

Percentage of open positions filled by internalcandidates

35

❍ We do not track these metrics related to employee traning and development


❍ Not known

Comment :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 futureyears.


3.3.3 Employee Development Programs

Please provide an explanation of two programs that exist in your company for employee development to upgradeand improve employee skills. Provide a brief description of the business benefits for each program and, wherepossible, 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).



✓ Employee DevelopmentProgram, please specifytwo different examples:

Description of businessbenefits

Quantitative impactof business benefits(monetary or non-monetary)

% of FTEs thatparticipated in thisprogram

New Grad Program Encana’s New GraduateDevelopment Programhelps ensure ouryoung professionals inengineering, geologyand geophysics developa broad range of skills,knowledge, experience tounderstand our businessstrategy, execute withexcellence and growinto future organizationaland technical leaders.The New GraduateProgram is supportedby Encana’s leaders asmany of them benefitedfrom similar experiencesearly in their careers.We recognize ourresponsibility to developyoung professionals andacknowledge we canlearn from them as theylearn from us.

_ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _

6.4



Employee DevelopmentProgram, please specifytwo different examples:

Description of businessbenefits

Quantitative impactof business benefits(monetary or non-monetary)

% of FTEs thatparticipated in thisprogram

Leadership Essentials A 7-day leadershipdevelopment programfocused on teachingleaders the tacticaland strategic skillsrequired to improveteam effectiveness. Theprogram introduces theprocess of managementmodel, describes theskills needed to optimizethe performance of ateam, and providestime to practice theseskills with respectto the challengesparticipants are currentlyencountering. Participantscomplete assessmenttools, which enhanceself-awareness andserve as the basis for thedevelopment throughoutthe program.

_ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _

1.6

❍ We do not offer any employee development programs


❍ Not known

Comment :See attached New Grad Program Overview in document library for more details.


3.3.4 Human Capital Return Metrics

Does your company have a global metric to quantitatively measure the benefits from your investments in humanresource programs (e.g. employee development, education, training, incentive programs, etc. compared toeconomic value added or increases in sales or profits)? If possible, provide a metric which demonstrates a linkbetween human capital investments (i.e. training and investments in employee skills) and its overall economicbenefits.



❍ ❍ Yes, we are using the following global metric for calculating the business benefits of our investments inhuman capital factors, Please specify:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Provide a summary of your progress on this metric over time, indicating the quantitative financial benefit ofyour 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 ofyour 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.3.5 Human Capital Return on Investment

Please indicate the following information on a standard Human Capital Return on Investment metric, serving as aglobal measure of the return on your Human Capital programs.

✓ FY 2011 FY 2012 FY 2013 FY 2014a) Total Revenue,please specifycurrency:USD

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

5858000000Monetary Units




FY 2011 FY 2012 FY 2013 FY 2014b) Total OperatingExpenses, pleasespecify currency:USD

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __



c) Total employee-related expenses(salaries + benefits),please specifycurrency:USD

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __



Resulting HC ROI (a- (b-c)) / c

_ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

1.25 Monetary Units 5.86 Monetary Units

Total FTEs _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ __

3296 3129

❍ We do not track any of the above metrics


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.4 Talent Attraction & Retention

Successful Talent Attraction & Retention management enables companies to maintain their competitiveadvantage and to execute their corporate strategies. Companies should develop and implement an appropriateand well-balanced compensation framework for all employee categories, adopting compensation plans thatincorporate both fixed and variable components. Furthermore, the variable compensation should be balancedwith respect to time horizon on all employee levels. RobecoSAM's questions assess whether the company has acomprehensive approach and system to reward employees across all categories on the basis of company-wideand individual performance metrics.

3.4.1 Type of Individual Performance Appraisal

Please indicate the type and employee coverage of individual performance appraisals, which are used forindividual performance-related compensation.



✓ Type of performance appraisal % of all employeesManagement by Objectives: Systematic use ofagreed measurable targets by line superior

100

Multidimensional performance appraisal (e.g. 360degree feedback)

100

Formal comparative ranking of employees within oneemployee category

100

❍ We do not have any of these types of performance appraisals in place


❍ Not known

Comment :All employees are required to develop a High Performance Contract (HPC). The HPC is Encana's objectives-setting process between employees and their supervisors. Employee HPCs form the framework for measuringemployee contribution to the company's success.

All employees have the potential to earn a discretionary Annual Bonus Award based on the combined results oftheir Individual performance, as measured through the HPC, and Company performance as determined by theBoard of Directors.

Encana’s High Performance Achievement program focuses on aligning goals with Encana’s strategy and ensuringresults are achieved using our Values Framework. The program includes the HPC, mid-year review, Third PartyFeedback and the High Performance Assessment (HPA).

Employees are required to gather formal third party feedback from peers, direct reports and internal clients forconsideration during their annual performance assessment.


3.4.2 Long-term Incentives

Does your company provide long-term incentives (beyond one year performance period) for employees below thesenior management level (i.e. maximum two levels away from the CEO or any equivalent position)?



✓ Please briefly describethe nature of the long-term incentives foremployees below seniormanagement level (e.g.stock option, restrictedstock units, cash incentiveetc.):

Our long-term incentivesfor employees below thesenior management levelare on average paid outafter:

To what percentage ofemployees below seniormanagement do theseincentives apply?

Do the long-termincentives includetargets associatedwith sustainabilityperformance? Pleaseexplain in the commentbox below:

Restricted Share Units ❍ 2 years

✓ 3 years

❍ Longer than 3 years

80% of our employees

no

❍ No, we do not offer long-term incentive programs for employees below the senior management level


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.4.3 Employee Turnover Rate

Please indicate your company's total and voluntary turnover rates for the last four years as a percentage of totalnumber 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 2014Total employeeturnover rate

12.9 11.3 37.1 22.4

Voluntary employeeturnover rate

7.2 7.1 9.3 7.9

Please indicate your company's average hiring cost / FTE in the last fiscal year. This should specifically relateto 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.

❍ Not known

Comment :



Encana completed two major acquisitions and 9 smaller divestitures in 2014. A total 276 employees wereimpacted by the divestitures and 137 employees were brought in through acquisitions.

Corporate strategy and organizational changes are communicated to impacted employees directly and to otheremployees through the intranet, or at a town hall meeting. Employees impacted by a divesture are treated withdignity and respect.


3.4.4 Trend of Employee Satisfaction

Please indicate in the following table the satisfaction level of your employees based on your company's employeesatisfaction surveys. Please also indicate the coverage of these surveys and if this measurement can be brokendown according to gender. For each row in the table, it is mandatory that the values provided are in the same unit.

✓ Employeesatisfaction


Employeesatisfaction

% of satisfiedemployees

_ _ _ _ _ _ _ _ _ _ _ _ 74 _ _ _ _ _ _ _ _ _ _ _ _

Datacoverage

% of totalemployees

_ _ _ _ _ _ _ _ _ _ _ _ 89 _ _ _ _ _ _

❏ We are able break down the results of the employee satisfaction surveys based on gender. Please attachsupporting documents.

❍ We do not track employee satisfaction


❍ Not known

Comment :The most recent employee survey was conducted in 2013. Employee participation was 89%, representing themajority 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

References :



No references attached

3.4.5 MSA Talent Attraction & Retention



3.5 Corporate Citizenship and Philanthropy

In order to be a catalyst for development, corporate philanthropy programs need to be well managed. Creatingvalue for both beneficiaries and shareholders requires companies to have a clear direction and focus for guidingtheir philanthropic activities as well as for measuring their effectiveness from a cost / benefit perspective. Thekey focus of the criterion is on how companies assess the value of their corporate citizenship and philanthropyprograms.

3.5.1 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 FrameworkPlease indicate the three main priorities as outlined in your group-wide corporate citizenship / philanthropystrategy specified above. For each priority, please provide a short description of how the priority is aligned withyour business drivers and attach supporting references.



Priorities Description of alignment betweenpriority and your business drivers

Reference

Priority 1Supports and enables access and/or operational excellence

• Supports local landowners, FirstNations and land managers whocan influence Encana’s accessto land and community support• Supports relationships withlocal government, communityand thought leaders who caninfluence Encana’s social license •Supports regional, state/provincialand national policy makers,organizations & thought leaderswho can influence Encana’sability to operate • Supportsand demonstrates responsibledevelopment, sustainability (CSR)and operational excellence

Priority 2Supports employer of choice

• Supports employee engagementand/or retention • Supports thedevelopment and recruitment of askilled workforce

Priority 3Aligns with our business values,supports our brand

• Builds and supports Encana’sbrand, visibility and communitypresence • Organization/initiativealigns with Encana’s culture andvalues and they have the capacity,business practices and governanceto be successful

❍ We plan to develop a group-wide strategy in 2015

❍ We do not have a group-wide strategy for our corporate citizenship activities


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• CI Framework - 3.5.1, CI Framework - Question 3.5.1.pptx (Pages: 1)

3.5.2 Type of Philanthropic Activities

For the last fiscal year, please indicate on a consolidated group-wide basis what percentage of your corporatecitizenship / philanthropic contributions falls within each category. Please refer to the information button fordefinitions and explanations on the categories.



❍ Category Percentage of Total CostsCharitable 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


❍ Not known

Comment :Encana encourages its employees to make a difference in their communities. Encana respects that employeecharitable giving and volunteerism are personal decisions; Encana employees can invest their time and moneyto support a wide variety of organizations of their choosing through Encana Cares, Encana Matches and EncanaVolunteers. In 2014, the Encana Cares campaign supported more than 1325 charities on a local, national andinternational level. With Encana Matches, Encana supports employee donations by matching contributions dollarfor dollar up to $25,000 per employee per year. Under Encana Volunteers, employees can apply for an annualgrant 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 SustainabilityReport in the document library.


3.5.3 Input

For the last fiscal year, please estimate the total monetary value (at cost) of your company’s corporatecitizenship / philanthropic contributions for each of the following categories. Please note that marketing andadvertising budgets should be excluded from the calculation. Please refer to the information button for furtherguidance and definitions.❍ Please specify currency:

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Type of Contribution Total amount (in local currency)Cash contributions _ _ _ _ _ _ _ _ _ _Time: employee volunteering during paid workinghours

_ _ _ _ _ _ _ _ _ _

In-kind giving: product or services donations, projects/partnerships or similar

_ _ _ _ _ _ _ _ _ _



Type of Contribution Total amount (in local currency)Management overheads _ _ _ _ _ _ _ _ _ _

❍ There are no corporate citizenship/philanthropic contributions


❍ Not known

Comment :Monetary amounts will not be submitted.


3.5.4 Measuring Benefits

Does your company measure the benefits of your company’s voluntary contributions in order to assess whetheryou have met your objectives for your corporate citizenship / philanthropic activities? If so, please indicate whichKPIs your company uses to measure the benefits of your contributions and provide supporting documents. TheKPIs need to be measurable, you do not need to provide quantitative results. Further, the KPIs can refer toindividual projects or programs as well as apply on a more global level. Please refer to the information button formore 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 samecorporate citizenship activity. Please clearly describe the benefit KPIs as well as the activity in the provided textboxes.❍ Business Benefit KPIs Social / Environmental Benefit KPIs

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

❍ We plan to develop KPIs to measure the benefits of our corporate citizenship/ philanthropic activities by theend of 2015

❍ We do not have a group-wide system in place to systematically measure the benefits of the company’svoluntary contributions


❍ Not known

Comment :Evaluating return on investments are completed during the term of the agreement or when first evaluatingthe opportunity. The review process speaks to the ROI from both the recipient and Encana's point of view.



Through the assessment process, each opportunity must meet Encana's Community Involvement priorities anddemonstrate that it will advance our business strategy and/or align with Encana's values.


3.6 Occupational Health and Safety

Poor occupational health and safety (OHS) performance has a direct negative impact on labor costs throughlower productivity. Moreover, it can also affect a company’s reputation, impact staff morale or increase itsoperating costs through fines and other contingent liabilities. RobecoSAM's key questions focus on KeyPerformance Indicators (KPIs) for a company’s own operations, and for its suppliers and their performanceagainst 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 andminimize the risks of disruption to their business activities.

3.6.1 Lost-Time Injuries Frequency Rate (LTIFR) - Contractors

Please provide your company's lost-time injuries frequency rate (per 1 million hours worked) for contractors andprovide supporting documents if this data is third party verified. For each row in the table, it is mandatory thatthe values provided are in the same unit. If you only track LTIFR on a consolidated basis, without distingushingbetween contractors and employees, please use the employee question to report the consolidated number.

✓ LTIFR Unit FY 2011 FY 2012 FY 2013 FY 2014Contractors n/million work h 0.57 0.41 0.64 0.42Data coverage(e.g. as %of revenues,employees, etc.)

percentage of:100

100 100 100 100

THIRD-PARTY VERIFICATION✓ The above data has been verified by the following organization:

Deloitte

❍ Not verified

❍ We do not track LTIFR for contractors


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _




3.6.2 Lost-Time Injuries Frequency Rate(LTIFR) - Employees

Please provide your company's lost-time injuries frequency rate (per 1 million hours worked) for employeesand indicate if the data is verified by a third party. If so, please provide supporting documents for the externalverification. Please refer to the information button for additional clarifications. For each row in the table, it ismandatory that the values provided are in the same unit. If you only track LTIFR on a consolidated basis, withoutdistingushing between contractors and employees, please use this question to report the consolidated number.

✓ LTIFR Unit FY 2011 FY 2012 FY 2013 FY 2014Employees n/million hours

worked0.23 0.48 0.43 1.27

Data coverage(e.g. as %of revenues,employees, etc.)

percentage of:revenues

100 100 100 100

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


❍ Not known

Comment :Encana had a higher LTIF for employees in 2014. Part of this was due to a re-organization in late 2013 andcontributed to loss of staff for 2014. This increased the LTIF because of low working exposure hours.


3.6.3 Occupational Illness Frequency Rate (OIFR) - Employees

Please indicate your company's occupational illness frequency rate (OIFR) for employees for the past four yearsas well as indicate if this data is verified by a third party. If so, please provide supporting documents for theexternal verification. Please refer to the information button for additional clarifications. For each row in the table, itis mandatory that the values provided are in the unit indicated.



❍ OIFR Unit FY 2011 FY 2012 FY 2013 FY 2014Employees 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


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.6.4 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

trendEmployees(work-relatedfatalities)

0 0 0 0 _ _ _ _ _ _ __ _ _

Contractors(work-relatedfatalities)

0 2 1 0 After twocontractorfatalities in2012, Encanaundertook acompany-wideinitiative toexamine andimprove safetypractices.

❍ We do not track employee and contractor fatalities




❍ Not known

Comment :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 toincidents. 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 correctiveactions before project work was permitted to continue.

No fatalities in 2014.


3.6.5 HIV / Aids, Malaria, Tuberculosis, Treatment

Please answer the following questions regarding prevention, treatment and community initiatives considering allsites owned or operated by your company. If your company does not have any initiatives because the number ofat risk-people with regards to HIV/AIDS, malaria or tuberculosis is very low, please tick the answer option at theend.

❍ What proportion of at-risk employees with regards to HIV/AIDS and/or malaria and/or tuberculosis arecurrently eligible to receive free of charge or easily affordable preventative initiatives and treatment? Pleaseanswer 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 freeof 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



✓ Not applicable. Number of at risk-people very low with regards to HIV/AIDS, malaria or tuberculosis, thereforeno corresponding programs implemented. Please provide an explanation in the comment box below.

❍ Not known

Comment :Encana's production and reserves are located in North America where the Company's workforce is not at risk forthese illnesses.


3.6.6 MSA OHS



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 theenvironment and the health of local people. In some cases, such projects might even require the relocationof local communities. To avoid the possibility of conflict, protest, or the cancellation of companies’ operatinglicenses, it is critical to engage with communities at an early stage of the site’s activities. RobecoSAM's questionsfocus on the extent of environmental and social impact assessments conducted by companies for new operationsor the extensions of existing operations, their relocation programs and their efforts to prevent social hazards suchas alcohol abuse or violence.

3.7.1 Active Community Engagement



❍ How many current production assets have required community consultation? If these figures are publicallyreported, please provide supporting evidence or weblink._ _ _ _ _number of current production assets_ _ _ _ _% of current production assetsHow many development projects are in the process of community consultation? If these figures are publicallyreported, please provide supporting evidence or weblink._ _ _ _ _number of development projects_ _ _ _ _% of development programs

❍ Our company does not hold any community consultations


✓ Not known

Comment :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 withcommunity members.


3.7.2 Community Consultation Framework and Implementation

✓ Do you have a company-wide consultation policy or framework approach with regards to communityconsultation?

✓ 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 relevantinformation

✓ 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



❍ 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 grievancemechanism

✓ 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 tocommunity consultation


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• Stakeholder Relations Guide, stakeholder_relations_guide.pdf (Pages: throughout)

3.7.3 Relocation Programs

Please indicate the aspects considered in the majority of cases when relocations/resettlements are required dueto 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 aspossible

❏ 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 restorethem, 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) arecompensated 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



❏ 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 dueto our company's activities

✓ Not applicable; none of our projects have required relocation. Please provide explanations in the comment boxbelow.

❍ Not known

Comment :Encana negotiates mineral and land access with the rights holders. Encana adjusts its operations to minimizedisturbance and compensates for any loss of use according to negotiated contracts. Because we operate only inNorth America, relocation is not typical and, if done, is voluntary and temporary. In certain situations, Encana hasoffered temporary hotel accommodations for residents who have been disturbed by drilling activity.


3.7.4 Indigenous Peoples

In case your company's stakeholders include Indigenous Peoples, please indicate what is included in yourengagement 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 on-the-ground exploration

✓ Undertaking engagement through traditional authorities within communities and with respect for traditionaldecision-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 thecompany personnel

✓ Developing an understanding of the company’s principles, objectives, operations and practices amongstIndigenous Peoples

❍ We do not engage specifically with Indigenous Peoples

❍ Not applicable. There are no Indigenous Peoples in the regions where we operate. Please provide anexplanation in the comment box below.

❍ Not known

Comment :We have an Aboriginal Relations Guideline within the organization.



We strive for positive relationships with Aboriginal communities near our operations by respecting culturalvalues and, where appropriate, collaborating on community investment, educational and economic developmentopportunities.

Recognizing the unique interests and rights of Aboriginal peoples, we work to ensure that appropriate andmeaningful engagement activities are incorporated into our project planning. We keep potentially impactedcommunities informed of our development plans and provide updates as those plans evolve. This early andongoing engagement helps build our understanding of matters of importance and helps provide a framework foropen dialogue and collaboration.


3.7.5 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 andnational 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 theirsecurity arrangements on affected communities

❏ Our company consults with other companies, host country officials, and civil society regarding experienceswith private security

❏ Our rules of conduct for security personnel (both employees and contractors) support human rightsprinciples. Please add supporting documents:

❏ Our company monitors private security providers to ensure they fulfill their obligation to provide security ina 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 areengaged

✓ Not applicable. None of our owned or operated sites have security forces employed. Please provideexplanations in the comment box below.

❍ Not known

Comment :Our operated assets are only in North America where security forces are not typically required.




3.7.6 Local Employment

Please indicate which of the business practices on employment of local people at operating sites hold true for atleast 80% of your owned or operated sites.

✓ ✓ We have implemented a policy on employing local people. Please provide a brief description and areference:We reinforce the importance of using local contractors, employment opportunities made accessible tolocal 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. Pleaseprovide 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 thecompany's owned or operated sites

❍ Not applicable. Please provide an explanation in the comment box below.

❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


3.7.7 MSA Social Impact on Communities





3.8 Stakeholder Engagement

The rise of civil society, and the resulting greater availability of and access to information, has increased theawareness of the impact corporate activities can have on societies at large. New communication technologiesand social media have enabled stakeholders to better connect and coordinate, thus multiplying the impact ofstakeholders on companies. These circumstances call for the implementation of adequate management strategieswith a particular focus upon the identification and management of relationships with stakeholders beyond thetraditional 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), improveoperational efficiency via smooth collaboration with local communities and authorities, and strengthen their sociallicense to operate by gaining greater respectability and credibility.RobecoSAM's questions assess whether companies’ governance of Stakeholder Engagement activities occursat the corporate level and if the strategy is executed in an efficient and balanced manner at the local level bycarefully planning and implementing a systematic Stakeholder Engagement approach complemented by a reviewof 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 ofthe questionnaire, such as investors (covered in the “Corporate Governance” criterion), employees (coveredin “Talent Attraction & Retention” and “Human Capital Development”) and customers (covered in “CustomerRelationship Management”).

3.8.1 Stakeholder Engagement - Governance

Please indicate for the Policy/Procedure, Ownership and Accountability sections below the structures in placeto govern Stakeholder Engagement at group level. Please see the information button for an overview of thestakeholders that are accepted in this criterion.

✓ POLICY / PROCEDURE

Do you have a policy or procedure to ensure that the corporate Stakeholder Engagement strategy is appliedconsistently across all operations? Please attach supporting documents or provide weblinks if information ispublically 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 availablein the public domain. Please attach internal policy/procedure document.

❍ Yes, the Stakeholder Engagement policy/procedure is applied at ALL local operations but not available inthe public domain. Please attach internal policy/procedure document.

✓ Yes, the Stakeholder Engagement policy/procedure is applied at SOME local operations and publiclydisclosed. Please provide a web link:Encana has a strong integrated stakeholder engagement program. http://www.encana.com/communities/

❍ Yes, the Stakeholder Engagement policy/procedure is applied at ALL local operations and publiclydisclosed. 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



✓ 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 tointroduce capacity building measures)

✓ Guidance for handling Stakeholder Engagement risks (e.g. disruptive stakeholders, participation fatigue,etc.)

✓ Guidance for communicating the results of your Stakeholder EngagementOWNERSHIP

Indicate the name and the number of levels separating the person ultimately responsible for StakeholderEngagement at group level from the CEO.

Name:Mike McAllister; Ryder McRitchieNumber of levels from the CEO:1Please 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

❍ NeverACCOUNTABILITY

Do you provide a grievance mechanism for local stakeholders to directly report to the department responsiblefor Stakeholder Engagement at group level in case the local communication channels do not function (e.g.hotline, dedicated email)? Please provide a web link:https://secure.ethicspoint.com/domain/media/en/gui/37435/index.html

❍ We do not have any group-wide stakeholder engagement governance structure in place


❍ Not known

Comment :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

References :• Corporate Responsibility Policy, corp-responsibility-policy.pdf (Pages: 1-2) -

• Stakeholder Engagement Guide, Stakeholder Engagement Guide - FINAL.pdf (Pages: all) -



3.8.2 Stakeholder Engagement - Implementation

Please indicate the operational responsibilities as well as some examples of how your company's stakeholderengagement strategy is executed in the respective sections below. Please see the information button for anoverview 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 RelationsOfficers are placed in strategic field locations to deliver and monitor community relations/communityinvolvement programs and stakeholder engagement.

✓ Local implementation of the group-wide Stakeholder Engagement policy/procedure is part of the annualperformance review of the local operations’ top managers, please specify:Each employee of Encana must complete a "high performance contract" that outlines their work planand objectives of the year. It is reviewed twice a year. The contract helps determine part of the staff'scompensation, which in the case of community relations staff, a large portion on the performance reviewwould be around stakeholder engagement and ensuring the CR policy and stakeholder engagement guideare followed.

✓ Top local managers receive training on capacity building and methods of engagement as specified in theStakeholder 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 examplesof both profiles and maps from a representative local operation.

✓ At the representative local operation indicated above, please describe the process for categorizingstakeholders and identifying high-priority stakeholders:On an annual basis, the community relations teams across our operations develop an engagement planbased on a comprehensive assessment of operational priorities and risk & reputational management andopportunities. Internal tools used to develop the engagement plan include community impact assessmenttool, risk matrix, operational maps and development plans. The CR team works closely with the SurfaceLand 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 ofstakeholders 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-prioritystakeholders indicated above. Attach supporting reference (e.g. notes of town hall meeting):Community information sessions where our development plans and approach to responsible developmentare shared with area residents; annual local government outreach where we meet with local leaders andpresent an overview of development plans for the area.

❍ We do not have a function responsible for stakeholder engagement and do not use tools to categorizestakeholders at the local level




❍ Not known

Comment :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, tokeep community leaders informed of our activity and reinforce strong working relationships. This engagement alsohelps us understand the challenges and opportunities that community leaders must address, and when possiblewe can support and collaborate on community initiatives.


3.8.3 Stakeholder Engagement - Review

Please indicate in the Measuring and Lessons Learnt sections below how your company is measuring theoutcome of your stakeholder engagement activities as well as how lessons learnt are incorporated into businessprocesses. Please see the information button for an overview of the stakeholders that are accepted in thiscriterion.

✓ MEASURING

Please indicate performance indicators (quantitative or qualitative) which are typically used to measure andreport the success of your local Stakeholder Engagement activities back to the department responsible forStakeholder Engagement at group level. Please attach supporting documents if available and provide adetailed description of the KPIs used.

✓ Key Performance Indicator 1, please specify:Community Involvement - Our community involvement programs are strategically aligned to promoteenvironmental stewardship, enhance the skill sets of the next generation of industry leaders and supportthe needs of our communities. We track not only the dollars spent but also the "value/impact" of the dollarson 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 forcourteous and respectful behaviour and reinforces our expectations regarding courteous conduct throughall stages of development. We track the number of concerns, training for staff, and communications withall communities across our operations. In 2014, we piloted a Courtesy Matter Spot Check in areas withhigh levels of activity. This is similar to an audit, conducted by major projects as part of the onboardingprogram; other disciplines will incorporate at key stages (safety meetings/kick-off meetings). Mediacoverage is another measurement, of both positive/negative and neutral perceptions related to communitysentiment regarding industry. We work with our Communications group to monitor and gauge mediacoverage.

LESSONS LEARNT

❏ Please briefly describe a concrete example where local Stakeholder Engagement has not been successfulor has lead to a negative outcome:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _



✓ How are lessons learnt from good and bad Stakeholder Engagement experiences systematicallydisseminated 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 sessionsfor attendees to fill out. Quarterly review of our CR Action Plans to ensure alignment with businesspriorities and support community/stakeholder relations objectives.

❍ We do not measure the outcome of our stakeholder engagement activities


❍ Not known

Comment :Courtesy Matters training; establishing e-Learning module to roll out in Q4 2015; as well as review/refreshCourtesy 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 tointroduce workers and contractors to program elements and Encana's expectations for courteous conduct duringall stages of our development and operations.


3.8.4 MSA External Engagement



Documents

DJSI Sustainability Assessment 2015 1.1.1 Board Structure · RobecoSAM - Corporate Sustainability Assessment DJSI Sustainability Assessment 2015