Our vision is to provide clean, secure and affordable energy to the world.
In living up to this vision, we are responding to the world’s shared energy challenges: increasing energy security and affordability, improving air quality and supporting the transition to a lower-carbon future.
We are committed to the responsible and proactive management of our environmental, social and governance (ESG) impacts, risks and opportunities. This includes a strategic focus on supporting the global energy transition and delivering value to all our stakeholders. These efforts are supported by regular stakeholder engagement to maintain the responsiveness of our approach, as well as close collaboration with our suppliers and customers.
In 2018, we first published our Climate and Sustainability Principles to provide the foundation for how we identify, understand and address our risks and opportunities related to ESG topics. These principles underpin our strategic, collaborative approach across both our own operations and our supply chain. They provide the “North Star” that guides our actions and helps us execute our strategies to the benefit of both internal and external stakeholders. The principles require us to ground our actions and decisions on science and data, and work to continuously improve our performance. Lastly, they set out our commitment to open, honest and proactive communication with all our stakeholders.
The Board of Directors provides oversight to Cheniere’s sustainability considerations, including the management of relevant ESG issues. The Governance and Nominating Committee of our Board is responsible for reviewing the company’s climate and sustainability strategies and policies.
While the Governance and Nominating Committee has primary responsibility for overseeing ESG topics, including related risks and opportunities, our entire Board is actively engaged in overseeing our ESG focus areas and performance. It receives regular updates on ESG-related issues such as environmental management, human capital, safety, community, governance and Cheniere’s broader sustainability performance. These updates enhance Board-level insight into company-specific climate-related risks and opportunities and build deeper awareness of their strategic implications for the business.
Executive-level managers oversee all of our major ESG focus areas, including climate, environment, human capital, safety, community and governance, and brief the Board on these topics regularly. Executive responsibility includes risk assessment and risk management for each business area governing our priority ESG risks. Key risks are incorporated into our Enterprise Risk Assessment procedure, overseen by the Chief Risk Officer, who is independent of the business line. The Board receives updates on climate and sustainability efforts at least quarterly, including climate risks and opportunities as well as regulatory and policy change, and progress on our diversity, equity & inclusion (DEI) strategy.
To help embed a culture of sustainability and integrate our approach across the organization, we have a cross-functional Corporate Responsibility (CR) program comprising leaders and subject matter experts covering a range of business units. This program is managed by our executive-level CR Steering Committee and management-level CR working group, which are collectively responsible for the development of our annual CR Report.
All executives and employees have the responsibility of implementing our ESG efforts. To further embed this responsibility, we updated our annual performance scorecard to include ESG-related metrics that account for 30% of the total scorecard value for all employees. These ESG metrics are based on advancing our climate and DEI initiatives as well as safety performance.