Canada Tops Environmental Index Among Top 10 Oil Exporters

Did you know that Canada is one of the world’s top 10 exporters of crude oil (4th) and ranks number one on the Environmental Performance Index (EPI) versus the other top 10 exporting nations?!

First published in 2002 by Yale University and Columbia University in collaboration with the World Economic Forum and Joint Research Centre of the European Commission, the EPI measures 180 countries on several indicators across two main categories: Environmental Health and Ecosystem Vitality.

Overall, Canada ranks 25th on the EPI 2018, far above all other top 10 oil exporting countries of the world save the United States who came in at a close 27th.

EPI 2018 Index Rankings - MAP

EPI Score Map - Courtesy of EPI

Top 10 Oil Exporters / EPI Rankings

The current top 10 oil exporting nations of the world (left) with their respective EPI 2018 rankings (right):

#1 – Saudi Arabia - 86th

#2 – Russia - 52nd

#3 – Iraq - 152nd

#4 – Canada – 25th

#5 - United Arab Emirates - 77th

#6 – Kuwait - 61st

#7 – Iran – 80th

#8 – United States - 27th

#9 – Nigeria - 100th

#10 – Kazakhstan - 101st

EPI Methodology – Examples & Metrics Used

EPI Framework 2018 Chart

EPI Framework - Courtesy of EPI

How does the EPI work? Each category in the chart above is given a score out of a 100 using a unique metric. Two examples of subcategories and metrics used:

Ex.1 - PM2.5 exposure is a measure of chronic exposure to particulate matter (PM) with a size of 2.5 microns (2.5) or less. At this size PM2.5 is small enough to lodge itself into the lungs of a human and can potentially cause serious lung and heart disease. The more exposure, the higher chance of disease.

Canada ranked number one (the lowest amount of PM2.5) in this subcategory.

Ex.2 - CO2 emissions - power, which measures the carbon intensity from the power sector in terms of metric tonnes of CO2 per kilowatt-hour (kWh) of electricity / heat produced. The lower the CO2 emissions per kilowatt-hour, the better power generation in a given country is for the global atmosphere.

Canada gets 82% of its electricity from non-emission sources, and ranked 20th (best) overall out of 180 countries for this subcategory.

In total, Environmental Health accounts for 40% of a nation’s total score and Ecosystem Vitality 60%. Below are all the sub-categories for both main groups and their respective weights:

EPI 2018 Categories & Rankings Chart

EPI Categories & Weight 2018 - Courtesy of EPI

Environmental Health (0.4):

  • Air quality (0.65)
    • Household solid fuels (0.4)
    • PM2.5 exposure (0.3)
    • PM2.5 exceedance (0.3)
  • Water quality (0.30)
    • Sanitation (0.5)
    • Drinking water (0.5)
  • Heavy metals (0.05)
    • Lead exposure (1.0)

Ecosystem Vitality (0.6):

  • Biodiversity & habitat (0.25)
    • Marine protected areas (0.2)
    • Biome protection-global (0.2)
    • Biome protection-national (0.2)
    • Species protection index (0.2)
    • Representativeness index (0.1)
    • Species habitat (0.1)
  • Forests (0.10)
    • Tree cover loss (1.0)
  • Fisheries (0.1)
    • Fish stock status (0.5)
    • Regional marine trophic index (0.5)
  • Climate & Energy (0.30)
    • CO2 emissions – total (0.5)
    • CO2 emissions – power (0.2)
    • Methane emissions (0.2)
    • N2O emissions (0.05)
    • Black carbon emissions (0.05)
  • Air pollution (0.10)
    • SO2 emissions (0.5)
    • NOx emissions (0.5)
  • Water Resources (0.10)
    • Wastewater treatment (1.0)
  • Agriculture (0.05)
    • Sustainable nitrogen management (1.0)

Why is the EPI Index Important?Canada Action - Resources are Good for Canada and the Global Environment

In recent years, investors are increasingly looking towards environmental, social and governance (ESG) criteria to help direct them on where to invest their money. If you aren’t too sure what ESG is, learn more here before reading further:

The EPI clearly indicates that Canada is a leader among the world’s top oil 10 oil exporters when it comes to ESG criteria. With global oil demand predicted to grow in the IEA’s World Energy Outlook 2019, Canada should be a choice supplier for as much of the world’s demand as possible.

The World Needs More Canadian Oil & Gas

Canadian oil and gas companies are world leaders when it comes to reducing emissions intensities, investing in clean technology and spurring innovation which leads to more efficient energy extraction and production processes.

As the #1 top 10 oil exporting nation on the Environmental Performance Index 2018, it's time that:

     > Canada starts being recognized as the world leader it is

     > Canadians realize how important our natural resource sector is to our country

     > All levels of government put full support behind an industry that creates prosperity country-wide

If our country can accomplish these three things, investor capital and confidence will start returning to our natural resource sectors, something that benefits all Canadians from coast-to-coast-to-coast.

More Canada ESG Rankings

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