An anonymous director reports

COMPETITION ACT AMENDMENTS SILENCE CANADIAN BUSINESSES TAKING CLIMATE ACTION

Cenovus Energy Inc., as a member of Pathways Alliance, today issued a statement with respect to the Canadian government's Bill C-59.

As one of the largest oil sands companies in Canada, and a member of the Pathways Alliance, the company is steadfast in its commitment to environmental performance and operational emissions reduction. To support its commitment, the company has strived to be transparent about its actions and plans, which the believes is critical to building trust and driving improvement.

However, Cenovus's ability to remain transparent has been significantly compromised as a result of Bill C-59, which was recently passed and includes amendments to the Competition Act related to environmental and climate disclosure. With these changes, it is possible that certain public representations by a business about the benefits of the work it is doing to protect or restore the environment or address climate change will violate the Competition Act and subject it to significant financial penalties unless the business can adequately and properly substantiate their claims according to "internationally recognized methodology," which may or may not exist.

Creating a public disclosure standard that is so vague as to lack meaning and that relies on undefined internationally recognized methodology opens the door for frivolous litigation, particularly by private entities who will now be empowered to directly enforce this new provision of the Competition Act. This represents a serious threat to freedom of communication.

These amendments create significant uncertainty and risk for all Canadian companies regardless of sector, that communicate publicly about environmental performance, including actions to address climate change. As a result, the company has been forced to remove information on environmental and climate performance, progress, and plans from its website, social media platforms and other communications channels at this time. These actions are a direct consequence of this legislation and are not related to the company's commitments or belief in the accuracy of its environmental communications.

The result of this legislation, which has been quickly put in place with little or no consultation, is to silence Canadian businesses taking climate action. The company will continue to impress on the federal government the need for clarity regarding these new amendments so that the company and all other industries can share the important work they are doing to preserve and restore the environment and address climate change.

About Cenovus Energy Inc.

Cenovus Energy is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is focused on managing its assets in a safe, innovative and cost-efficient manner, integrating environmental, social and governance considerations into its business plans.