Executive management
The Executive Leadership Team (ELT) manages climate-related risks and opportunities and drives the business in implementing climate-related plans, including:
- Reviewing and approving carbon pricing forecasts for inclusion in our long-range planning and project authorization reviews.
- Supporting climate-related Variable Compensation Incentive Plan (VCIP) milestones.
- Reviewing the greenhouse gas (GHG) emissions expected to result from our Long-Range Plan and an analysis of peer emissions.
- Approving plans for advancing low-carbon technologies and transition opportunities.
The senior vice president (SVP), Commercial, Strategy, Sustainability and Technology, who reports to the chief executive officer, has overall accountability for corporate planning and development, including corporate strategy and long-range planning. This includes responsibility for climate risk management and the implementation of our net-zero ambition. The SVP, Government Affairs is responsible for government engagement and advocacy on climate-related public policy. In addition, the Sustainability and Public Policy Executive Council (SPEC), a subcommittee of the ELT, leads global oversight of existing and emerging sustainable development and public policy risks including climate-related risk.
Members of the SPEC met five times during the year for detailed briefings and discussion on emerging climate-related issues, strategic priorities and the Climate Risk Strategy. Examples of climate-related issues reviewed by the SPEC during 2023 include:
- Lower 48 methane abatement scenarios, implementation plan for OGMP 2.0, and advocacy strategy for methane regulations.
- Lower 48 flaring and total flaring intensity target development.
- 2024 marginal abatement cost curve (MACC) strategic objectives and 2023 MACC program update.
- Strategy updates: Progress report on our Plan for the Energy Transition, Climate Risk Strategy, Low Carbon Technology Plan, Net-Zero Corporate Roadmap, and shareholder engagement.
- Supplier sustainability update.
- 28th meeting of the Conference of the Parties (COP28) outcomes.
The SPEC meets prior to the scheduled PPSC and board meetings, at which time they may review and endorse an agenda and content for the PPSC and recommend issues that may warrant additional board engagement. The SPEC also plays a critical role linking the board of directors and the business on public policy and SD risks and trends that could affect business activities and performance. The scope of the SPEC is aligned with the scope of oversight of the PPSC, with the exception of health, safety and security.
Climate-related risks are communicated and integrated into strategy through the SD risk management process and ERM system. Climate-related risks from the corporate SD Risk Register are mapped to relevant enterprise risks. Owners of these enterprise risks, who are ELT members or senior managers, are briefed on the risks and our mitigation activities. Enterprise risks are then presented to the Audit and Finance Committee of the board. The climate-related risk category is managed by the SD team; the SVP, Commercial, Strategy, Sustainability and Technology, and the SVP, Government Affairs are jointly accountable for this risk category.