Our Approach to Communities

Our Approach to Communities

We steward our operations and relationships to demonstrate our commitment to being a responsible producer and a valued and trusted neighbour and business partner. This includes: 

Why This Matters – Contributing to Local Prosperity

Our communities comprise a wide diversity of people and organizations, but they have one key thing in common: they care deeply about the safety, environmental stewardship and corporate citizenship that we bring to our local operations. At the same time, our people care deeply about their communities – whether we work or live there, these are the places we call home. We identify areas where the needs of our communities, our business and our people intersect, providing opportunities to offer support where it builds well-being for all. 

Our Management

At Vermilion, our impact is greater than the products and services we provide. We actively support the communities we serve through strategic investment in people and resources.

Our community contributions go beyond charitable and philanthropic efforts. We believe that local employment and local procurement in the countries and regions where we operate play an important role in building good relationships and contributing to the local economy and community. We seek to procure goods and services from local suppliers who meet the health, safety and environmental standards under which we operate. We also require that our suppliers comply with our core values with respect to human rights, labour standards, and business integrity.

Our Ways of Caring Program

Through our Vermilion Ways of Caring program, we give back, we give time and we give together. This strategic approach to community investment exemplifies “The Vermilion Way” of getting things done – demonstrating leadership, embracing responsibility and achieving excellence. The program provides a global framework, with clearly identified priorities and activities, that can be customized for local needs within our business units.

Give Back

This represents our strategic funding initiatives, focused in four key investment areas: 

Give Time

We support the wide variety of not-for-profit and charitable organizations that our staff and their immediate families volunteer at outside of working hours, using a tiered volunteer grant approach: the greater the volunteer hours, the greater the donation to the organization. This allows us to directly support the causes and community organizations that mean the most to our people. 

Give Together

We encourage our people to spend up to two days per year volunteering on company time as part of a team or larger Day of Caring project. These hands-on opportunities help us to put caring into action, building collaborative, trusted and genuine relationships between our people, our company and our communities. 

Municipal Linkage Program

Vermilion’s Netherlands Business Unit launched its Municipality Linkage Program (MLP) in 2016, to help us visibly support the communities where we are active. We have identified 12 municipalities that are priorities, based on our operational activities. Within these locations, we connect with key stakeholders such as residents, community organizations and municipalities to help identify strategic community investment that we could consider funding: a community need and a local solution that helps to address it. Projects supported by the MLP touch all pillars of Vermilion’s community investment priorities, with the majority of funds spent in the area of environmental stewardship, specifically supporting the energy transition. In the time we have been supporting the MLP we have seen tremendous growth in community and employee engagement. 

The success of the MLP was seen in 2021: supporting 22 projects, organizations in 7 municipalities, and providing €116,000 in support. Since its inception in 2016, we have invested more than €976,668 in municipalities in and around our operations, with our partners magnifying the funding effect significantly.


Funding Metrics

Vermilion has developed a funding model that links our community investment budget to key business performance metrics over a rolling average of the past three years. This is applied globally to the entire budget, and then by business unit to establish local budgets. This helps to provide stable funding for community investment over time by levelling out one-time changes in annual revenue and production, and directly linking company activities with investment in our communities.

In addition, we use anonymous staff surveys to develop community investment activities (such as proposing and choosing organizations for our Days of Caring and activities for our Ways of Caring annual fundraising campaign) and to assess their success and potential for continuous improvement. 

People Metrics

We connect our community investment work directly with our staff satisfaction metrics through our confidential, third-party-conducted Great Place to Work® people survey. This is carried out through quantitative responses to the specific question “I feel good about the ways we contribute to the community” and through qualitative comments received in the open-ended survey questions. 

In addition, we use anonymous staff surveys to develop community investment activities (such as proposing and choosing organizations for our Days of Caring and activities for our Ways of Caring annual fundraising campaign) and to assess their success and potential for continuous improvement. 

Performance Metrics

We use various metrics on the spectrum between Inputs, Outputs and Outcomes to measure the results of our strategic community investment funding, with an increasing emphasis on working with our community partners to establish the means and support to measure outcomes: 

As an example of outcomes measurement, our flagship partnership with the YW of Calgary (the Skills Training Centre project that provided 20-week construction training courses for women facing barriers to achieving viable employment) included a study into its Social Return on Investment. Our external consultant found that an SROI ratio of $4.65 of value created per $1 invested was a conservative estimate of the ongoing future value of the Centre’s services. 

In addition to the Great Place to Work® survey metrics, we report the value of our community investments following the London Benchmarking Group’s standard “circles” of investment to reflect our total contribution: 

Evaluation and Adjustment

We use these metrics with additional information on our community investment program and activities as part  of Vermilion’s senior management team reviews and subsequent reports to the Board of Directors. 

We adjust our funding and activities as needed, but on an annual basis at minimum. We identify and contribute to best practices as they develop, increase communication to staff to promote specific initiatives, and respond to changing needs within specific business units.