Tidewater is committed to advancing a strong record of Environmental, Social and Governance ("ESG") performance. In February, 2020 Tidewater established an Environmental, Social and Governance ("ESG") committee comprised of Tidewater's Chief Executive Officer, Chief Financial Officer, Chief Legal Officer and Vice President, Health, Safety, Environment and Regulatory, among other Tidewater personnel (the "ESG Committee"), to guide Tidewater's efforts in measuring and reporting on the Corporation's ESG metrics. The ESG Committee operates under the valued direction of the Chair of Tidewater's Corporate Governance, Compensation, Nomination, Health, Safety and Environment Committee (“CGCNHSE”). With the guidance of Tidewater’s ESG committee, Tidewater has provided an overview of its recent ESG accomplishments, identified key relevant metrics to track, recognized improvement opportunities, and created goals to improve overall sustainability. Certain general highlights of Tidewater's recent ESG efforts are provided as follows:

Environmental

• The Prince George Refinery is one of the only assets in Western Canada that can utilize renewables such as canola oil, biodiesel and ethanol to help reduce the carbon footprint of its operations. Tidewater continues to assess other green initiatives for implementation at this facility.
• The Pipestone Sour Gas Plant was designed and constructed to process sour natural gas and natural gas liquids as efficiently as possible in an effort conserve a valuable resource. The design of this gas plant includes on-site power generation (low-NOx gas turbines), waste-heat recovery as well as acid gas injection for final disposal of waste gases, each of which has a more positive impact on the environment compared to more conventional processes.
• Tidewater built and operates the Pioneer Pipeline to distribute clean natural gas to TransAlta’s legacy coal fed Sundance and Keephills generating stations, reducing carbon emissions compared to the use of coal.

Safety

• Tidewater constructed its Pipestone Gas Complex utilizing over one and a half million hours of labour time with zero lost time injuries.
• In 2019, Tidewater completed 18 Operational ERP training exercises corporately in addition to regular project level muster and ERP exercises.
• Tidewater’s Total Recordable Injury Frequency Rate (TRIF) has seen a steady annual improvement to 0.69 recordable injuries per 200,000 hours despite significant growth and changes in business mix.

Governance

• Tidewater’s executive compensation plan is based on a lower salary component relative to its peers whereby the executive leadership team is heavily incentivized by financial performance and shareholder returns. Tidewater’s Chief Executive Officer has acquired a significant number of Common Shares in the open market since inception. Furthermore, in March 2020 Tidewater approved a minimum TWM holdings requirement for members of the Board which will further align interests with shareholders.
• In March 2020, Tidewater announced it intends to expand its Board of Directors with the addition of Mr. Michael J. Salamon and Mr. Neil McCarron of Birch Hill Equity Partners Management Inc. Mr. Salamon and Mr. McCarron, acting as representatives of Birch Hill, and one additional new independent nominee to be mutually agreed on by Tidewater and Birch Hill, will be included as proposed directors in Tidewater's management slate of directors to be put forth for appointment at the Corporation's next annual general meeting of shareholders expected to be held on or around June 29, 2020.

First Nations

• Tidewater is a large First Nations supporter with >25% of the $200m Pioneer Pipeline budget awarded to First Nation Affiliated partners.

ESG Metrics

Tidewater is committed to improving its ESG disclosure and as such provides the following ESG metrics. Since inception, Tidewater has achieved material growth through a combination of acquisitions and organic projects including the Pipestone Plant, Pioneer Pipeline, and acquisition of the Prince George Refinery. As a result, Tidewater expects certain metrics (such as emissions levels and waste) to naturally trend higher due to the significantly larger scale and change in overall business mix. One such example is Tidewater’s acquisition of the Ram River gas plant in December 2017 has resulted in higher corporate emissions due to the nature of operations in that region (sour gas processing and sulphur forming/remelting). Tidewater also expects emissions data to increase moving forward due to the Prince George Refinery acquisition in November 2019. Tidewater intends to manage these metrics on a relative basis while considering its size and business mix which continue to evolve. Several opportunities for improvement and targets to enhance overall sustainability are expanded upon in the section following the metrics below.

Tidewater ESG Targets for 2020

• In anticipation of increased compliance costs as a result of evolving GHG emissions and regulatory changes, Tidewater is developing a Corporate GHG and Carbon Strategy with industry leading professionals to reduce its carbon footprint, reduce GHG compliance costs and mitigate future increased financial risk. Tidewater has forecasted out several years of future compliance obligation costs which have been incorporated into its annual budgets.
• Tidewater remains focused on improving its corporate governance. As disclosed in March 2020, Tidewater plans to add two board members from Birch Hill and one additional new independent nominee to further enhance the breadth of its Board of Directors.
• The Prince George Refinery can process renewables such as canola oil to help reduce the carbon footprint of its operations. Tidewater continues to assess other green initiatives for implementation at this facility and is working with the BC government to further improve its carbon footprint.
• Tidewater is working closely on potential projects that could make significant mutually beneficially contributions to First Nations communities.