The ConocoPhillips Board of Directors oversees our position on climate change and related strategic planning and risk management policies and procedures, including those for managing climate-related risks and opportunities. In particular, the board reviews:
- Climate change position statements.
- Sustainable development risk management processes.
- Enterprise risk management policy and output.
- Corporate strategy and climate-related risk strategy.
- Climate-related risk scenarios.
- GHG emissions intensity target and progress.
The board delegates certain elements of climate oversight functions to one or more of the five standing committees: Executive, Audit and Finance, Human Resources and Compensation, Directors’ Affairs, and Public Policy. Each committee, other than the Executive Committee, is made up of independent directors and convenes at least quarterly. Issues considered by the committees are, as appropriate, regularly reported to the full board.
The Audit and Finance Committee (AFC) mandate includes enterprise risk management (ERM). The AFC facilitates appropriate coordination among the committees to ensure that our risk management processes, including those related to climate change, are functioning properly with necessary steps taken to foster a culture of prudent decision-making throughout the company. The AFC receives annual updates on how enterprise risk is being addressed, mitigated and managed across the company, including climate-related considerations that influence market, reputational, operational and political risks within the ERM system. With oversight of the company’s internal audit function, the AFC also receives summaries of internal audit results, which in 2019 included a review of the company’s ESG and climate processes and reporting.
The Public Policy Committee (PPC) is responsible for identifying, evaluating and monitoring climate-related trends and risks that could affect business activities and performance. During 2019, the PPC met 5 times. Topics on the agenda included:
- Progress of the climate-related risk strategy.
- ConocoPhillips participation on the Climate Leadership Council.
- External engagement on climate-related risks.
- Progress on our GHG emissions intensity reduction target.
- Marginal Abatement Cost Curve projects.
- Updates to the risk management process including assurance.
- Progress on risk management priorities.
Other board committees also address climate-related issues. The Human Resources and Compensation Committee oversees executive compensation and performance-based components, including sustainability performance. Annual incentive programs promote achievement of strategic milestones and objectives that address stakeholder issues essential to sustaining excellence in environmental and social performance.
Read more about the skills and qualifications of our board members.