Message from our CEO
I am pleased to share our 2023 Sustainability Report during an exciting time for our company and the nuclear industry. Each year, we take the opportunity to reflect on our activities and communicate our forward-looking targets. I hope you learn more about Cameco and our people as you read these pages.
Looking back, the defining theme of the year 2023 was momentum. The combination of societal commitments around climate change and energy security concerns driven by geopolitics created a resurgence of positive support for nuclear energy as zero-carbon baseload power. Twenty-two countries committed to tripling their nuclear energy capacity by 2050 during the United Nations Climate Change Conference (COP28) as part of their plans to decarbonize their economies. Today, there are more than 30 countries committed to tripling nuclear energy and about 60 reactors are being constructed across the world, with a further 110 planned. At Cameco, we firmly believe nuclear energy must be part of the solution to meet growing energy demand while achieving climate and energy security goals. To show our strong support, we joined others in the Net Zero Nuclear initiative to advocate for the critical role nuclear must play in achieving net zero.
As part of our efforts to capitalize on this positive momentum, we continue to explore new opportunities to expand our presence and increase our uranium production. In November 2023, we completed the acquisition of Westinghouse, a global provider of specialized technologies, products, and services across most phases of the nuclear power sector. We now own a 49% interest in Westinghouse and Brookfield owns the remaining 51%, which augments our core business and expands our reach across the nuclear fuel cycle. Since first announcing this deal over a year ago, I believe the prospects for Westinghouse have significantly improved.
We also continued to ramp up production at our McArthur River mine and Key Lake mill and we aim to produce 18 million pounds in 2024. Finally, among several long-term uranium contracts, I am proud to share that we signed a deal to supply Ukraine with uranium for nuclear fuel until 2035. For Ukraine, this contract will help them gain energy independence in extraordinarily challenging times, and for us, it has the potential to be the single largest supply contract in Cameco’s history. These announcements position us as a major player in our industry as the global demand for nuclear energy and the fuel products and services needed to operate reactors increases.
As the world seeks to decarbonize, we also want to do our part and be an active partner in the fight against climate change. We have set a target to reduce our Scope 1 and 2 GHG emissions by 30 per cent by 2030, compared to our 2015 baseline. At Cameco, we know it’s not enough to set a target: we need an actionable plan to achieve our goal. This year we completed tailored decarbonization pathways for all operationally controlled sites. To develop those pathways, we reviewed more than 160 decarbonization project ideas from employees. This is a sample of the talent and engagement we have across our company.
We continue to foster talent and build connections outside of our company as well. Having worked at Cameco for almost 20 years, I am humbled by the community support and positive relationships we have built with Indigenous and local communities. We have been able to maintain these relationships through challenging and prosperous times. Our focus has always been in creating opportunities and building capacity in Indigenous and local communities.
At the end of 2023, in our northern Saskatchewan operations, 50% of our workforce were Indigenous individuals, and 74% of services were procured from northern-owned local businesses. To help create capacity, we provided 18 three-month paid work experience placements for Indigenous individuals (13 were women). Additionally, to provide cultural supports while employees are working in our mines and away from home, we renewed our Elder Advisor/Knowledge Keeper program. I am proud of the steps we have taken to make our workplace more supportive and reflective of the communities where we live and work.
Just as we reflect on the year’s highlights, I believe we need to take stock and share with you the areas where we fell short of our own expectations. In 2023, we missed our total recordable injury rate safety target for a second year in a row. I am deeply disappointed by this result. Since nearly half of all injuries were related to sprains and strains, we hired an expert to conduct 100 ergonomic assessments to identify ergonomic risks and potential workplace improvements to reduce injuries. We also recognize that front-line supervisors play a key role in verifying that new or experienced workers are working safely, so we required supervisors to perform job task observations. At the end of the year, they had completed more than 4,600 observations. I know we need to do more, so in late 2023, we developed a safety improvement plan focused on training and coaching for supervisors and developed a safety campaign that we have rolled out in 2024.
Looking forward, I am highly optimistic because I know Cameco is well-positioned to supply the nuclear fuel the world needs. I am excited about the momentum lifting the whole nuclear industry, and looking forward to seeing even more global cooperation and technology developments that will make meeting the goals of the Paris Agreement possible.
In closing, I want to thank our employees, who have been with us through ups and downs. In addition, more than 200 new employees opted to join us in 2023, and I want to extend a heartfelt welcome to these new additions to our team. I’m grateful for their choice to grow their careers at Cameco. I am also appreciative of the support of my fellow executives as we make decisions for the future of the company and for the benefit of our stakeholders. Finally, I want to thank Catherine Gignac who was appointed chair of our board in late 2023, and the entire board, as well as welcome our two new directors. I am more confident than ever about our ability to work together towards our vision of energizing a clean-air world.
Tim Gitzel
President and Chief Executive Officer