The Executive Leadership Team (ELT) manages climate-related risks and opportunities and assists the businesses in implementing climate-related plans. This includes:
- Reviewing and approving greenhouse gas (GHG) pricing forecasts for inclusion in our long-range planning and project authorization reviews.
- Approving climate-related Variable Compensation Incentive Plan milestones.
- Reviewing the GHG emissions long-range plan and peer analysis.
Responsibility for managing climate-related issues rests with the chief operating officer (COO) and the senior vice president (SVP), Government Affairs, who report directly to the chief executive officer. The COO serves as the ELT’s climate change champion, with overall accountability for corporate planning and development, including corporate strategy and long-range planning. The SVP, Government Affairs, is responsible for public policy positions and engagement with government on climate-related public policy. These executives are briefed quarterly on emerging climate-related issues, strategic priorities and the Climate Change Action Plan in order to understand their implications and represent them to the ELT on an as-needed basis. The briefings also include three regional presidents, who oversee our global operations and environmental performance, including setting business unit goals for GHG emissions, implementing action plans and reporting GHG emissions. Examples of issues reviewed by these executives during 2019 include:
- GHG emissions intensity target implementation plan and progress.
- GHG emissions intensity target metrics for use in decision support.
- Marginal Abatement Cost Curve opportunities review and project approval.
- Marginal Abatement Cost Curve funding mechanism review and approval.
- Internal climate-related education and communications.
- Internal business unit GHG emissions targets review and approval.
- Climate risk strategy review and focus areas for 2020 update.
Climate-related risks are communicated and integrated into strategy through the SD risk management process and Enterprise Risk Management 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.
Read how climate-related performance is a component of executive compensation.