Chesapeake Energy Corporation took another step toward improvement of hits environmental, social and governance efforts.
The Oklahoma City company announced the launch of its environmental, social and governance (ESG) microsite — a site dedicated to the company’s ESG reporting and progress toward its climate-related targets. In addition to providing performance data and program updates, the ESG site outlines a path for achieving the company’s ambitious ESG goals including net zero direct greenhouse gas (GHG) emissions by 2035.
“Operating responsibly and firmly embracing a lower carbon future are critically important to Chesapeake’s sustainable success,” said Nick Dell’Osso, Chesapeake’s President and Chief Executive Officer.
“With a dedicated ESG microsite, Chesapeake’s commitment and path to delivering meaningful ESG improvements across our business are fully transparent. We encourage our stakeholders to use the metrics, targets and strategies defined throughout the site to review our current status and understand the steps we are taking to responsibly meet today’s energy needs.”
The newly released microsite showcases Chesapeake’s commitment to ESG excellence and reducing its environmental impact while meeting lower carbon energy demand. Content highlights include:
- Detail on the Board of Directors’ new Environmental and Social Governance Committee, including how this committee engages with senior leadership and employee-led ESG committees.
- A page dedicated to Chesapeake’s industry-leading adoption of Responsibly Sourced Gas (RSG).
- A Climate section that fully aligns with the Task Force on Climate-Related Financial Disclosures (TCFD)’s disclosure guidance and includes reporting on Scope 1, Scope 2 and Scope 3 emissions.
- A renewed commitment to diversity, equity and inclusion (DEI) showcasing an action plan for increasing both workforce and supplier diversity.
- A new human rights policy and its application across the business.
- A section dedicated to the company’s revised executive compensation program that caps Annual Incentive Plan payout at target for all metrics regardless of results if Chesapeake fails to meet threshold levels of environmental and safety performance.
Chesapeake’s ESG site builds upon the company’s 10-year reporting history by offering enhanced transparency and greater stakeholder accountability, including:
- A Content Indices section that guides readers to disclosures as recommended by four different standards setting organizations.
- Alignment with Value Reporting Foundation’s SASB Standards for the first time.
- A performance metrics section that includes new data points, a four-year data comparison history and a new data table in line with the American Exploration and Production Council (AXPC)’s industry template.
- Third-party verification of certain company performance metrics, including GHG emissions.
Future updates to the site will include progress highlights, updated disclosures consistent with evolving standards and new program highlights based on stakeholder relevancy.
Source: press release