Upholding the highest business standards, and applying them rigorously.
To guide our disclosures for this report and prioritize the ESG issues most relevant to our business and of most interest to our stakeholders, we conducted an analysis of relevant ESG issues — a first for U.S. LNG.
We use the term “relevant” instead of the commonly employed term “material” used by Global Reporting Initiative (GRI) and others to avoid the confusion with the term “material” as used to assess disclosures governed by U.S. securities laws more generally. GRI defines material topics as those that reflect significant economic, environmental and social impacts or substantively influence stakeholders’ assessments of the organization’s ESG performance in the reporting period.
During our analysis, we reviewed qualitative and quantitative disclosures requested by leading ESG rating agencies, as well as major sustainability and industry-specific reporting guidelines relevant to our business model. These reporting guidelines included IPIECA, GRI, SASB and TCFD. Since SASB does not have an existing LNG industry reporting standard, we considered relevant disclosures from SASB’s Oil & Gas Refining & Marketing Standard, Midstream Standard and Exploration & Production Standard.
To further identify relevant ESG topics, we benchmarked ESG reporting practices of our proxy peers and several additional companies that operate a liquefaction business segment. We combined our benchmarking results with the disclosures recommended by reporting frameworks and rating agencies, and then engaged with internal and external stakeholders for feedback. Internal subject matter experts, as well as external investors, financial institutions and non-profits provided input.
This process resulted in a decision to include approximately 75 metrics and disclosures in our inaugural CR report across six key themes: climate, environment, team, health and safety, community and governance. These themes align with our business strategy and Climate and Sustainability Principles.