Climate

Cheniere is helping to meet the world’s most pressing shared energy challenges, today and tomorrow. LNG produced by Cheniere is meeting the demand for clean, secure and affordable energy, improving air quality and supporting the transition to a lower-carbon future. Natural gas generates lower emissions than other fossil energy sources such as coal and oil. LNG has the ability to directly support the cost-effective decarbonization of global economies by displacing such higher-emitting energy sources, complementing renewables and adding reliability and flexibility to the international energy system.

We recognize the importance of identifying, understanding and managing climate-related risks and opportunities, and we are focused on integrating climate action into our core functions.

Climate strategy

Our climate strategy focuses on science and transparent collaboration along our supply chain to measure our GHG emissions and to identify strategic and cost-effective opportunities to mitigate GHG emissions. Measuring and mitigating our emissions can maximize the climate benefits of Cheniere’s LNG and continue to demonstrate its role as a reliable and flexible form of energy that supports a lower-carbon future. We believe it is important to develop future climate goals and strategies based on an accurate and holistic assessment of the emissions profile of our LNG, accounting for all steps in the supply chain. Cheniere’s approach is to be actionable, not aspirational.

Beginning in 2022, Cheniere will provide our customers with Cargo Emissions Tags (CE Tags) showing the estimated GHG emissions associated with each cargo we deliver. Our CE Tags are calculated from our LCA model, which uses supplier-specific GHG information. To further enhance the transparency of our approach, we chose to have our LCA modeling methods reviewed and published through the scientific community’s peer-review process.

Cheniere’s QMRV program aims to verify and more accurately measure our supply chain GHG emissions. This will help to inform our climate strategies and mitigation programs, as well as those of our supply chain partners and other stakeholders. Our QMRV program develops and employs multi-scale, multi-technology measurement methodologies including ground, drone, aerial and satellite, along with robust assessments of operational and maintenance practices, to develop dynamic, measurement-informed inventories of facilities. Read more in A Closer Look at QMRV.

We incorporate climate-related risks and opportunities into our annual enterprise risk assessment (ERA) process, which is overseen by our chief risk officer and reviewed by the Board of Directors. Our ERA process focuses on identifying short- and medium-term risks within a five-year time horizon. We analyze these risks based on their potential financial or reputational impact on the organization. We consider both physical risks — those associated with physical impacts from climate change, such as increases in severe weather events or changes in weather patterns — and transition risks — those that stem from regulatory, economic, market, technological and other societal changes associated with the transition to a lower-carbon economy. Read more in our Climate Scenario Analysis and Managing climate risks and opportunities.

Cheniere’s Board of Directors oversees the development and execution of our climate strategy and regularly reviews progress. Although the full Board is actively engaged on climate issues, the governance and nominating committee has formal responsibility for reviewing climate strategy, performance and progress. Subject to the formal oversight of our Board of Directors, our executive leaders are directly responsible for identifying, assessing and managing climate-related risks and opportunities, and implementing our climate strategy. The senior vice president (SVP) of corporate development and strategy and SVP of policy, government and public affairs (PGPA) lead the development and execution of our climate strategy. Executives across our business functions, including Finance, Commercial, Trading, Gas Supply, Operations and Shared Services help guide this effort. Our executive leadership reports directly to our CEO on climate strategy and planning on a regular basis.