Independent Limited Assurance Report to Husky Energy Inc.
We have been engaged by the management of Husky Energy Inc. (Husky Energy) to undertake a limited assurance engagement, in respect of the year ended December 31, 2016, on certain quantitative performance information disclosed in Husky Energy’s 2016 Community Report (the Report) as described below.
Selected Indicators and Applicable Criteria
The scope of our limited assurance engagement, as agreed with management, comprises the following performance information (the Selected Indicators):
- Total Energy Use (gigajoules)
- Scope 1 GHG Emissions (tonnes of CO2e)
- Scope 2 GHG Emissions (tonnes of CO2e)
- Fresh Water Withdrawal (millions of cubic metres)
The Selected Indicators, contained within the Report in the Key Numbers section, have been determined by management on the basis of Husky Energy’s assessment of the material issues contributing to Husky Energy’s sustainability performance and most relevant to their stakeholders.
There are no mandatory requirements for the preparation, publication or review of sustainability performance metrics. As such, Husky Energy applies its own internal reporting guidelines and definitions for sustainability reporting in preparing the Selected Indicators which can be found in the About this Report section and relevant footnotes in the Report.
Management is responsible for the preparation and presentation of the Selected Indicators in accordance with Husky Energy’s internal reporting guidelines and definitions
for sustainability reporting, current as at the date of our report. Management is also responsible for determining Husky Energy’s objectives in respect of sustainable development performance and reporting, including the identification of stakeholders and material issues, and for establishing and maintaining appropriate performance management and internal control systems from which the reported performance information is derived.
Our responsibility in relation to the Selected Indicators is to perform a limited assurance engagement and to express a conclusion based on the work performed. We conducted our engagement in accordance with International Standard on Assurance Engagements 3000 (Revised) Assurance Engagements other than Audits or Reviews of Historical Financial Information (ISAE 3000 Revised) and International Standard on Assurance Engagements 3410 Assurance Engagements on Greenhouse Gas Statements (ISAE 3410), issued by the International Auditing and Assurance Standards Board. ISAE 3000 and ISAE 3410 require that we comply with applicable professional standards, including International Standard on Quality Control 1.
We have not been engaged in respect of, and our conclusion does not cover, any periods prior to the year ended December 31, 2016.
We planned and performed our work to obtain all of the evidence, information and explanations we considered necessary in order to form our conclusion as set out below. A limited assurance engagement consists of making inquiries, primarily of persons responsible for the preparation of the Selected Indicators, and applying analytical and other evidence gathering procedures to the Selected Indicators, as appropriate. Our procedures included:
- Inquiries of management to gain an understanding of Husky Energy’s processes for determining the material issues for Husky Energy’s key stakeholder groups;
- Inquiries with relevant staff at the corporate and business unit level to understand the data collection and reporting processes for the Selected Indicators;
- Where relevant, performing walkthroughs of data collection and reporting processes for the Selected Indicators;
- Comparing the reported data for the Selected Indicators to underlying data sources;
- Inquiries of management regarding key assumptions and, where relevant, the re-performance of calculations; and,
- Reviewing the Selected Indicators presented in the Report to determine whether they are consistent with our overall knowledge of, and experience with, the sustainability performance of Husky Energy.
The extent of evidence gathering procedures performed in a limited assurance engagement is less than that for a reasonable assurance engagement, and therefore a lower level of assurance is obtained.
Our assurance report is provided solely to Husky Energy in accordance with the terms of our engagement. Our work has been undertaken so that we might report to Husky Energy on those matters we have been engaged to report upon in this assurance report, and for no other purpose. We do not accept or assume responsibility to anyone other than Husky Energy for our work, for this assurance report, or for the conclusions we have reached.
Non-financial information, such as that supporting the Selected Indicators, is subject to more inherent limitations than financial information, given the more qualitative characteristics of the subject matter and the methods used for determining such information. The absence of a significant body of established practice on which to draw allows for the selection of different but acceptable measurement techniques which can result in materially different measurements and can impact comparability. The nature and methods used to determine such information, as well as the measurement criteria may change over time.
Independence and Competence
In conducting our engagement we have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants. The engagement was conducted by a multidisciplinary team which included professionals with suitable skills and experience in both assurance and in the applicable subject matter including environmental and greenhouse gas accounting.
Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that for the year ended December 31, 2016, the Selected Indicators, as described above and disclosed in the Report, have not been prepared and presented, in all material respects, in accordance with Husky Energy’s internal reporting guidelines and definitions for sustainability reporting as at the date of our report.
Chartered Professional Accountants,
Licensed Public Accountants
August 2, 2017