Organizational management

Within our governance process, the role of BU management is to review and evaluate sustainability risks, priorities, strategy, development and processes. The management review hierarchy includes:

  • The Sustainable Development Leadership Team (SDLT) which is comprised of global business unit presidents and functional department heads and is supported by the SD and LCT teams. Chaired by the Vice President, Sustainable Development and the Vice President of Low Carbon Technologies, the SDLT provides consultation for SD focus areas, goals, priorities, action plans and results. Strategic planning, goal setting, implementation, performance and reporting for climate-related risk are reviewed by the SDLT.
  • The Environment & Sustainable Development Steering Committee (E&SD SC) which enables the organization to lead on environmental and social performance and risk management through global collaboration, functional excellence, and assured management of environmental and social-related risks. The global group meets monthly including in person once per year.  The leadership team consists of participants representing BUs and functions (Low Carbon Technologies, stakeholder engagement, finance, etc.)

Operations and leadership teams within our BUs and across functions are responsible for integrating sustainability into their day-to-day operations, project development and decision making. To support consistency across our global operations, subject matter experts collaborate in issues working groups (IWGs) focused on climate, water, biodiversity and social issues to leverage global cross-functional expertise from each BU. They meet quarterly to discuss risks, risk mitigation challenges and best practices, and to align on consistent practices.

Within the Commercial, Strategy, Sustainability and Technology organization, the Sustainable Development (SD) team supports the business in developing and tracking metrics for annual reporting and forecasting for the Long-Range Plan. Team members are responsible for key topics, including:

The SD team coordinates sustainability-related efforts across the business. Working with the Strategy, Planning and Portfolio Management group, the team is responsible for informing the ELT and board of directors of risks to, and opportunities for, our business and integration of sustainability-related risks into strategic decisions.

The SD team works closely with the Environmental Assurance group as it relates to our Health, Safety and Environment (HSE) policy, standards and practices to ensure environmental risks are identified and monitored by our BUs and metrics are tracked and publicly reported aiming for completeness, accuracy and consistency. The groups collaborate to develop and integrate environmental risk tools, processes, standards, practices, guidelines and procedures into the company’s HSE Management System. Read more about our HSE Management System.

The SD team also routinely collaborates with the Low Carbon Technologies organization on reducing Scope 1 and Scope 2 emissions, pilots for newly emerging competitive opportunities, and implementation of the Climate Risk Strategy.

Linking compensation to sustainability performance

Executive and employee compensation is linked to sustainability performance through our annual Variable Cash Incentive Program (VCIP). This annual cash incentive is based on company success on critical performance metrics, including Energy Transition Milestones and Strategic Milestones that are aligned with SD priorities and, combined, are weighted to account for 20% of the total potential VCIP payout. We have also linked broader employee compensation to sustainability performance. In 2024, the VCIP included the following Energy Transition Milestones: Demonstrating progress toward our Plan for the Net-Zero Energy Transition, achieving an annual greenhouse gas (GHG) emissions intensity aligned with our 2030 target trajectory range (including any updates to the 2030 target), advancing two or more accretive low carbon business opportunities covering hydrogen and carbon capture and storage (CCS) investments. In addition, our 2024 VCIP Strategic Milestones included implementing action plans for priority environmental and social risks and tracking progress against mitigations.

Beginning with the VCIP commencing in 2025, the Energy Transition Milestones metric is consolidated into the Strategic Milestones metric, which will be weighted to account for 20% of the total potential VCIP payout. With sustainability and emissions intensity targets firmly ingrained into how we operate and evaluate new opportunities, these milestones will now be evaluated alongside other strategic priorities set by the company.  Read more about how compensation is linked to sustainability performance in our Proxy Statement.

We engage with our stockholders regularly on SD priorities, and this feedback is reviewed with the Human Resources and Compensation Committee of the board when considering executive compensation programs.

In support of addressing our Scope 1 and Scope 2 emissions, we have made recent progress in several key areas.

  • Completed our 2024 Scope 1 and Scope 2 emissions reduction projects within the allotted capital and cost budget. These projects will support our GHG emissions intensity reduction target of 50-60% by 2030 from a 2016 baseline for both gross operated and net equity emissions.
  • Achieved the Gold Standard Reporting for emissions reporting in the Oil and Gas Methane Partnership 2.0 Initiative, one of only three U.S. companies to earn this distinction.
  • Remained on schedule to meet a target of zero routine flaring by the end of 2025 for heritage ConocoPhillips assets.

Our policy