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.

Board oversight and executive management of ESG issues

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 Board is actively engaged in overseeing our ESG focus areas and performance (see p. 7). 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. Our recently added Board members, Patricia K. Collawn and Lorraine Mitchelmore, bring demonstrated expertise in driving improvement in environmental and sustainability performance. They are key assets that will further enhance our ESG programs and integration of our climate strategies and strengthen our competitive advantages as we continue to position Cheniere as a reliable, growing liquefaction operator that is taking a leadership position in the global transition to cleaner energy. The Board also approves the content of our Corporate Responsibility (CR) Report.

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. The Board receives updates from Cheniere management on climate and sustainability efforts at least quarterly, including climate risks and opportunities as well as regulatory and policy change, and on the company’s progress on our diversity, equity & inclusion (DEI) strategy.

Cross-functional sustainability management

To help embed a culture of sustainability and integrate our approach across the organization, we have a cross-functional 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.

Compensation linked to ESG performance

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 in 2022. These ESG metrics are based on advancing our climate and DEI initiatives as well as safety performance.