In line with our First and Forward theme, our vision is fixed on the road ahead. As we progress in our sustainability journey, we are developing efforts to identify, assess and manage climate-related risks and integrate these into our overall risk management approach.
Risk assessment model
We conduct an ERA to identify short- and medium-term risks within a five-year time horizon. We analyze these risks in terms of their potential financial or reputational impact on the organization. Our CRO is responsible for overseeing the ERA process, and our SVP of PGPA reviews and reports the climate-related transition and physical risks identified for our annual ERA to the CRO.
Identifying and managing climate-related risks and opportunities
To identify climate-related policy risks and opportunities, we assess domestic and international climate policies through proprietary third-party and public information. We analyze how climate and energy policies in key destination markets can affect our business and communicate findings with management. These assessments are ongoing and supported by collaboration with internal subject matter experts as needed.
Our Climate and Sustainability Principles inform our approach to managing climate-related risks and opportunities. Consistent with our transparency principle, we manage climate-related reputational risks via engagements with key stakeholders, including investors, banks and financiers, ESG rating agencies, customers and local communities. To address opportunities related to supply chain emissions improvements, we engage our major natural gas suppliers.
According to the U.S. Global Change Research Program, U.S. energy and transportation systems are expected to be increasingly disrupted by climate change and extreme weather events. Such impacts could have an adverse effect on our operations. To help address these risks, our LNG facilities are designed, constructed and operated to withstand a variety of extreme weather conditions, incorporating design features that meet stringent regulatory requirements.
Our emergency response plans — developed and implemented at every asset and facility — help us prepare for and minimize potential impacts from emergency situations, including extreme weather events. We identify crisis management scenarios and conduct drills across various business functions to simulate hurricanes, power loss and other emergency situations.
A more precise understanding of climate-related issues requires that we assess a range of metrics, including Scope 1 and Scope 2 GHG emissions, methane intensity and GHG emissions intensity. Between 2016 and 2019, new liquefaction trains came online at Sabine Pass and commissioning exports from our Corpus Christi LNG facility began. As expected, our total Scope 1 GHG emissions increased during this period. However, we are proud to report that our GHG intensity has decreased over the past four years. As we grow LNG production to meet global natural gas demand, we will focus on monitoring our GHG emissions intensity, as opposed to absolute emissions.
|Total LNG trains||#||2||4||4||7|
|Methane emissions intesity||%||0.022%||0.009%||0.008%||0.008%|