The ConocoPhillips Board of Directors oversees our SD positions and related strategic planning and risk management programs. The board delegates certain elements of its oversight functions to one or more of its five standing committees: Directors’ Affairs, Public Policy and Sustainability, Audit and Finance, Human Resources and Compensation, and Executive. Each committee, other than the Executive Committee, convenes at least quarterly. 

The Committee on Directors’ Affairs regularly evaluates the size and composition of the board. They continually assess whether the composition appropriately relates to ConocoPhillips’ strategic needs, which change as the business environment evolves. The company seeks director candidates who possess the highest personal and professional ethics, integrity and values and who are committed to representing the long-term interests of all ConocoPhillips stakeholders. This committee also considers background and diversity (including gender, ethnicity, race, national origin and geographic background). Additionally, they seek to ensure that the board reflects a range of talents, ages, skills, personal attributes and expertise.

The Public Policy and Sustainability Committee (PPSC) is responsible for identifying, evaluating and monitoring SD and climate-related trends and risks that could affect business activities and performance. The PPSC makes recommendations to the board and monitors compliance with the company’s policies, programs and practices regarding: 

  • Health, safety, security (excluding cybersecurity).
  • Environmental protection.
  • Climate change.
  • Nature, including water and biodiversity.
  • Human rights and social issues.
  • Business operations in sensitive countries. 
  • Government relations.
  • Political/regulatory risk management and political contributions.
  • Corporate philanthropy and corporate reputation. 

SD is a standing agenda item at PPSC meetings to discuss the SD risk management process, including the implementation of our net-zero ambition and Paris-aligned emissions reduction targets, and the use of reporting and disclosure frameworks. The Vice President, Sustainable Development, facilitates the discussion of this agenda item for the PPSC. In 2022, items discussed included: 

  • Plan for the Net-Zero Energy Transition.
  • E&P Net Zero Principles from Ceres-led roundtable.
  • Methane initiatives and commitments.
  • SD reporting approach and reporting landscape.
  • Climate Risk Strategy update — recent trends, strategic engagement options and targets.
  • ESG assurance evolution.
  • ESG trends in the financial sector.
  • SD strategic priorities and annual review.

Issues considered by the PPSC are reported to the full board as appropriate. Other board committees also address sustainability issues.

  • The Audit and Finance Committee (AFC) oversees enterprise risk management (ERM) and cybersecurity. The AFC facilitates appropriate coordination among the board committees to ensure that our risk management processes are in place with necessary steps taken to foster a culture of prudent decision making throughout the company. The AFC receives regular updates on how enterprise risk is being addressed, mitigated and managed across the company, including SD considerations that influence capital markets, public perception, HSE, operations and drilling, production facilities and political risks within the ERM system. 
  • The Human Resources and Compensation Committee oversees executive compensation and the performance-based components of the company’s incentive programs, including ESG metrics, targets and performance, as well as human capital management and diversity, equity and inclusion. Annual incentive programs promote achievement of strategic milestones and objectives that address stakeholder issues essential to sustaining excellence in environmental and social performance.