Implementing a plan to provide the world with clean and affordable natural gas.
We believe that natural gas is a foundational fuel with an important role to play in the low-carbon transition. We recognize that significant efforts will have to be made to respond to the energy challenges and opportunities of the future, and have developed our climate and sustainability strategy to strengthen Cheniere’s business model in this transition.
Our climate and sustainability strategy
Our climate and sustainability strategy builds on our Climate and Sustainability Principles and supports Cheniere’s vision and purpose to provide clean, secure and affordable energy to the world. And beyond simply being economically competitive, we want to remain environmentally competitive compared to other global suppliers.
We work with our partners to reduce environmental impacts throughout our supply chain.
Our supply chain and operations are subject to regulatory and voluntary measures that promote responsible operations. In fact, approximately 70% of the gas we purchased from producers in 2019 came from companies committed to a methane-reduction target. Beyond these efforts, engagement with our major gas suppliers is a core pillar of our strategy. Through proactive engagement, data sharing and a joint commitment to emissions mitigation, we believe we can further improve the carbon intensity of Cheniere-delivered LNG. This can potentially help mitigate future regulatory risks and lead to the development of new business opportunities. In 2019, we began such engagements at our first supplier sustainability workshop.
We design and operate our facilities to reduce environmental impacts.
We employ environmental prudence, scientific research and technological advancements to ensure disciplined operations. In 2019, we raised our run rate production guidance based on production optimization, maintenance optimization and efficiency projects, which will help improve operational efficiency. We also implement best practices for emissions monitoring and management across our operations.
We promote and follow peer-reviewed science to assess our impacts, anchor our engagements and determine our actions.
We support climate science and research through engagements with research entities and think tanks to inform our decision-making. In 2018, we co-founded the Collaboratory to Advance Methane Science (CAMS)5. In 2019, CAMS issued its first grant to a consortia of researchers led by the University of Texas to develop an open-access model to simulate methane emissions from any oil and gas production basin. We have supported other scientific studies to assess our lifecycle emissions and will continue to engage with the research community.
We communicate openly and proactively with our stakeholders
This report highlights our first step toward enhancing transparency and disclosure. In addition to TCFD, our external stakeholders identified SASB as an important growing reference. That’s why we incorporated several SASB disclosures relevant to our business in our inaugural report. In 2019, we also enhanced communication internally. We created an internal sustainability blog and hosted lunch-and-learns to educate employees and help foster a culture of sustainability within our organization.
Potential climate-related risks and opportunities
As recommended by the TCFD, we identified potential climate-related transition and physical risks and opportunities for our business. For details, download the full CR report.
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