Cheniere Energy Inc. (LNG) 2023年CSR報告「AMEX」.pdf

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1、ENERGY SECURED BENEFITS DELIVERED 2023 CORPORATE RESPONSIBILITY REPORT INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAMDIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIXABOUT THIS REPORT This Corporate Responsibility report provides an overview of Chenieres approach and progr

2、ess in relation to environmental,social and governance(ESG)topics for calendar year 2023,unless noted.The scope of this report covers Cheniere Energy,Inc.(Cheniere),its subsidiaries,and joint ventures operated by Cheniere.Our approach to ESG reporting and disclosure is guided by the recommendations

3、of the International Financial Reporting Standards(IFRS)Sustainability Disclosure Standards S1 and S2,the Global Reporting Initiative(GRI)Standards,Ipiecas sustainability reporting guidance for the oil and gas industry,and relevant standards of the Sustainability Accounting Standards Board(SASB).Sel

4、ected metrics were subject to limited assurance by KPMG LLP and Darlene Walker and Associates.The Cheniere ESG reporting suite is available online and provides detailed information on our ESG approach and progress.Chenieres ESG reporting suite 2023 Corporate Responsibility Report(this report)Reporti

5、ng Frameworks Indices(TCFD,SASB,GRI,Ipieca)Performance Data Table(ESG performance metrics)Management Assertion and Schedule of Environmental and Social Performance(With Independent Accountants Review Report Thereon)External Assurance(select DEI metrics)Our Responsibility website(more detailed inform

6、ation on how we manage ESG topics,our responses to frequently asked questions,analyst criteria and supporting case studies)ESG-related policies and programs INTRODUCTION 3 Letter from the Chairman of our Board and theCEO 3 About our business 4 Energy for a growing world 5 Chenieres LNG:Benefiting th

7、e U.S.and beyond 6 2023 Highlights 8 OUR APPROACH TO CORPORATE RESPONSIBILITY 9 Climate and sustainability principles 10 Recognition for our performance 10 Responsibility across the value chain 11 Understanding ESG impacts,risks andopportunities 12 CLIMATE 14 Our climate strategy 15 Measurement 16 C

8、henieres climate strategy timeline 18 Mitigation 19 Managing our climate risk 22 Metrics and targets 23 ENVIRONMENT 24 Environmental management 25 Air quality 25 Biodiversity 26Water,effluents and waste 27 COMMUNITIES 28Social performance framework 29Community engagement and impact mitigation 30Comm

9、unity development initiatives 32Community investments 33HEALTH&SAFETY 35Occupational health and safety 36Process safety 38Incident management and emergency response 39TEAM 40Attracting,developing,engaging and retainingtalent 41Employee engagement and inclusion 43DIVERSITY,EQUITY&INCLUSION 44Our appr

10、oach to DEI 45Workforce diversity metrics 46GOVERNANCE 47Corporate governance 48Business ethics and compliance 49Political engagement 50Enterprise risk assessment 50Respecting human rights 51Supply chain 52Managing cybersecurity 55APPENDIX 56Assurance 56Key performance data 57Forward-looking stateme

11、nts legend/legal disclaimer 61 CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 2 LETTER FROM THE CHAIRMAN OF OUR BOARD AND THE CEO After more than eight years of operations through multiple geopolitical crises,the benefits of U.S.LNG exports to our local communities,to the United States,to our friends

12、 and allies,and to the global effort to improve air quality and reduce GHG emissions are real and verifiable.It is a privilege to share Chenieres 2023 Corporate Responsibility Report,which highlights our accomplishments and commitment to responsibly meet the worlds demand for reliable and affordable

13、 energy,enhancing energy security and delivering benefits to the United States and the world.In 2023,Cheniere produced approximately 50%of US LNG and 11%of global LNG,making us the largest producer of LNG in the United States and the second largest globally.We marked a significant milestone with the

14、 export of our 3000th cargo and reached top-decile safety performance,achievements that reflect our unwavering commitment to safety and operational excellence.Our dedication to making a positive impact starts at home with the benefits we delivered in the communities where we live and work.Our invest

15、ments including our Corpus Christi expansion project currently under construction have created tens of thousands of jobs by spurring economic activity that supports small businesses,local supply chains,new workforce development programs,and community investments in the Gulf Coast and across the Unit

16、ed States.In 2023,Cheniere contributed$5.6 million in direct giving and volunteered over 13,000 hours to various causes,a reflection of the Companys and our employees commitment to social responsibility and community engagement.Globally,the importance of LNG in addressing the worlds energy challenge

17、s cannot be overstated.In 2023,the United States was the largest supplier of LNG to Europe,a testament to the critical role that the country plays in ensuring energy security and stability across the globe.Indeed,since the beginning of the war in Ukraine,more than 1,000 cargoes of Cheniere-produced

18、LNG have landed in Europe,representing over 70%of Chenieres cargoes in both 2022 and 2023.During these times of continued geopolitical volatility and ever-increasing energy demands,the supply of a reliable,flexible energy source which can be quickly deployed to the regions that need it most has neve

19、r been more important.And as energy demands increase,natural gas provides a cleaner fuel source as an alternative to other fossil fuels,playing a crucial role in reducing greenhouse gas(GHG)emissions and supporting the global transition towards more sustainable energy solutions.To maximize the clima

20、te benefits of our LNG,we continued to progress our climate strategy guided by our climate and sustainability principles to measure and mitigate GHG emissions across the U.S.LNG supply chain.In 2023,we completed our Quantification,Monitoring,Reporting,and Verification(QMRV)research and development p

21、rojects,advancing technologies and methodologies to measure GHG emissions and inform our mitigation actions.This collaboration with experts from academia and across our supply chain has resulted in the publication of six peer-reviewed journal articles that support not only our climate initiatives,bu

22、t those of our suppliers,customers,and policymakers.In recognition of our efforts,Cheniere ranked 122 on the Fortune 500 list in 2023 and we debuted in the Fortune Global 500.We were also recognized as one of the best-managed companies of 2023 according to the Wall Street Journals annual Management

23、Top 250.These accolades underscore our commitment to excellence and our ability to consistently deliver on our promises.To meet future demand for LNG,Cheniere announced a potential expansion at our Sabine Pass Liquefaction facility and signed a number of long-term agreements to help ensure that we c

24、an continue to meet our customers demand for reliable and affordable energy.Cheniere is proud to be at the forefront of the energy transition,playing a key role in meeting global energy demands while advancing sustainability.As we look ahead,we remain focused on our mission to provide energy to the

25、world,support economic growth at home and abroad,with a commitment to environmental stewardship.Thank you for your continued support and trust in Cheniere.G.Andrea Botta Chairman of the Board Jack A.Fusco President and CEO INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENTCOMMUNITIES HEALTH&SAFETY TEAM D

26、IVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 3 ABOUT OUR BUSINESS Cheniere is the largest producer and exporter of LNG in North America and the second-largest LNG operator by capacity,globally,with 637 cargoes shipped in 2023 and over 3,500 since our fi

27、rst export in 2016.Our business helps drive economic development and job creation,and provides significant benefits to communities in the areas where we live and work.We have invested approximately$45 billion in our two liquefaction facilities and associated infrastructure along the U.S.Gulf Coast a

28、t Sabine Pass in Louisiana(SPL)and Corpus Christi in Texas(CCL).Our daily average gas purchases account for more than 7%of total daily U.S.gas production,routed through interstate and intrastate pipelines that connect our terminals to North American natural gas basins.1 At our facilities,gas is cool

29、ed to a liquid state and shipped as LNG to destinations over the world,connecting North American producers to the global market.Our mission,vision and core values establish the foundation that make this possible.They establish the framework for achieving excellence and inspire even greater aspiratio

30、ns.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 4 OUR MISSION We responsibly deliver a reliable,competitive and integrated source of LNG in a safe and rewarding work environme

31、nt.Lead and innovate in the LNG market.Maintain safe,reliable and efficient operations.Execute the construction of our facilities safely,on time and on budget.Comply with applicable laws,regulations,policies and procedures,following the highest ethical standards.Deliver long-term value to stakeholde

32、rs.OUR VISION Our vision is to provide clean,secure and affordable energy to the world.By carrying out this vision,we are responding to the worlds shared energy challenges:increasing energy security and affordability,improving air quality and supporting the transition to a lower-carbon future.OUR VA

33、LUES A train refers to the liquefaction process at an LNG plant.Here,safety and adherence to the process are critically important.To emphasize that Cheniere is differentiated not only by what we do but the way we do it,we use TRAINS as an acronym for the values we embrace:T Teamwork Trust each other

34、,share ideas and collaborate to meet our shared goals.R Respect Respect each other,the company,our stakeholders and the environment.A Accountability Set high,measurable performance goals,keep commitments and hold yourself and others responsible.I Integrity Hold yourself and each other to the highest

35、 standards of honesty and transparency.N Nimble Innovate and be flexible and adaptable when facing change.S Safety Protect the safety and well-being of people,our customers and the communities in which we operate.1 Cheniere purchased gas volume(MCF)divided by volume(MCF)of natural gas(dry production

36、)produced in the U.S.in 2023.U.S.Energy Information Administration(2023,April).Natural Gas Summary.30%of all LNG imported by the EU in 2023 was provided by Cheniere exports.50%of all U.S.LNG exports in 2023 were produced by Cheniere.94%of our customer markets had climate goals in 2023.ENERGY FOR A G

37、ROWING WORLD INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIESHEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCEAPPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 5 INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE AP

38、PENDIX CHENIERES LNG:BENEFITING THE U.S.AND BEYOND U.S.natural gas,and LNG in particular,delivers benefits to this country and to the rest of the world.U.S.LNG exports create millions of jobs,drive increased purchasing power at home and contribute billions of dollars in value for the U.S.economy.It

39、provides an affordable source of energy that takes advantage of abundant domestic natural gas production and gives countries a cleaner source of energy to displace coal,improving air quality and decreasing GHG emissions at home and abroad.DOMESTIC BENEFITS Domestically,natural gas is the largest sou

40、rce of primary energy consumption in the United States and is expected to play a crucial role in energy security and economic security through 2050.2 The U.S.is the world leader in natural gas production,meeting record domestic demand and becoming the top exporter of LNG in 2023.And while exports re

41、ached record highs in 2023,domestic prices declined 62%(from the 2022 average price)as U.S.natural gas production also surged to record levels demonstrating this industrys ability to meet rising global demand for natural gas while maintaining a well-supplied domestic market.3“Security of supply for

42、natural gas remains a key aspect of energy policy making.The risks highlight the need to strengthen international cooperation,including in assessing and implementing flexibility options along gas and LNG value chains.”International Energy Agency,2024 ADVANCING GLOBAL ENERGYSECURITY Energy security i

43、s a paramount concern for nations worldwide,as access to reliable and affordable energy sources is essential for economic growth,social stability and national security.Recent studies show that both Europe and Asia face long-term natural gas supply gaps that threaten their energy security.4 The U.S.i

44、s now the worlds leading exporter of LNG,and LNG is the third-largest U.S.export by value behind only petroleumproducts and crude oil.By providing additional supply into world markets,often without destination-linked constraints,U.S.LNG provides market depth and enables rerouting of cargoes to allev

45、iate localized supply shortages.U.S.LNG supply has supported European energy security by providing an alternative to Russian supply curtailed following the invasion of Ukraine,while simultaneously providing supplies to other nations.Cheniere plays a pivotal role in enhancing global energy security t

46、hrough our LNG operations,which offer several key benefits:Diversification The U.S.has multiple producing basins,more than 300,000 miles of interstate and intrastate natural gas transmission pipelines,2.3 million miles of distribution pipelines,and 388 underground storage facilities that provide rel

47、iable energy security not only within the United States,but also globally,thus delivering reliability in the future energy mix.2 Cheniere procures natural gas through this diverse U.S.supply chain,enabling us to meet our contractual obligations so that our customers receive the LNG they need,when th

48、ey need it.By providing energy to other nations through LNG exports,Cheniere helps them reduce dependence on a single energy supplier or fuel type.Diversification of energy sources can mitigate risks associated with supply disruptions,geopolitical tensions,and price volatility in traditional energy

49、markets,enhancing energy security for importing countries.Moreover,weather events and the increased deployment of intermittent energy sources creates more volatile energy systems,further underscoring the imperative to secure diverse and reliable energysources.Reliability Chenieres focus on operation

50、al excellence enables a reliable flow of energy to customers worldwide.This reliability is crucial for meeting energy demands,especially during times of peak consumption or unforeseen disruptions in traditional energy supplies.Affordability Approximately 80%-90%of our LNG is sold on a long-term basi

51、s at negotiated prices that mitigate the volatility of the spot market,supporting stable cash flows for Cheniere and cost competitiveness for our customers.This arrangement is particularly crucial amid geopolitical unrest,exemplified by the ongoing conflict in Ukraine,which can disrupt global energy

52、 stability.ECONOMIC IMPACT OF CHENIERE LNG$45 billion in capital projects between 2013 and 2023$740 million expenditure with local businesses in 2023$5.6 million direct giving to community initiatives in 2023 ENERGY FOR PROGRESS Access to reliable and affordable energy is a fundamental necessity for

53、 the sustainable development of nations,particularly for developing countries striving to make progress and improve the quality of life for their citizens.Natural gas,in particular,plays a crucial role in providing the energy needed to drive economic growth,enhance social well-being and foster techn

54、ological advancement in these regions.As nations develop infrastructure to leverage renewable energy sources,the importance of natural gas remains significant,especially to transition away from the harmful effects of coal still the primary energy source in many developing countries.Natural gas provi

55、des a reliable flow of energy to supplement the intermittent nature of renewables,it offers solutions for hard-to-electrify sectors,and it can often be used with existing infrastructure,while the infrastructure needed for renewable energy isnt yet available.Compared to coal,natural gas provides a cl

56、eaner alternative,enabling reductions in emissions and improvements in air quality,while offering a reliable energy supply,which is essential for attracting investment,fostering innovation and driving economic diversification.By providing reliable and affordable energy solutions,Cheniere empowers na

57、tions to achieve their economic and social development goals,improve citizens well-being and build a sustainable future.2 NPC(2024).Charting the Course.3 EIA(2024).Today in Energy.4 EIA(2022).How to Avoid Gas Shortages in the European Union in 2023;and Rystad Energy(2023).Asian Energy Security:an AN

58、GEA Report.CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 6 INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX ADVANCING THELOWER-CARBON TRANSITION As companies and nations worldwide execute their climate strategies,including in

59、vestments in lower-carbon energy supplies,natural gas reliably and affordably fuels economies with lower emissions than other commonly used fuel sources,particularly coal.Increased energy demands in growing markets such as China,India and Southeast Asia have also led to increased coal consumption,ou

60、tpacing declines in the use of coal in Europe and the U.S.5 With global emissions from coal hitting all-time highs in each of the last three years,we believe that the use of natural gas to replace coal provides the fastest scalable option to help countries achieve rapid decarbonization.Unlocking Env

61、ironmental Advantages:Transitioning from Coal to Natural GasNatural gas produces approximately 50%lower GHG emissions compared to coal when producing electricity,and over 30%lower compared to coal when providing heat.6 Chenieres life cycle assessment model of a cargo of LNG delivered to China for po

62、wer generation demonstrates that the effect of fuel switching from coal to natural gas in China is estimated at a 47%-57%reduction in GHG emission intensity,cradle through power generation.7 Additionally,the International Energy Agency(IEA)estimates that switching from coalto natural gas has helped

63、limit the rise in global CO2 emissions since 2010 and avoided more than 699 million metric tons of CO2 emissions between 2010 and2020.8 Going forward,we believe that emissions reduction policies and regulations will further improve the emissions profile of the natural gas supply chain.The National P

64、etroleum Council(NPC)estimates that under existing policies,regulatory and voluntary actions,technology advancements and market mechanisms,a 50%reduction in methane emissions can be achieved by 2050,with most of that occurring before 2030.A scenario with more ambitious policies and technology advanc

65、ements shows methane decreasing by 70%and CO2 emissions decreasing by 33%through 2050.9 In addition,natural gas helps improve air quality when replacing more emissions-intensive energy sources.On a life cycle basis,natural gas reduces nitrogen oxide(NOx)emissions by 40%and sulfur dioxide(SO2)emissio

66、ns by 44%compared to coal when used in combined cycle power plants.10 As shown by the chartsto the right,in the U.S.,replacing coal with natural gas in the energy mix corresponds withsignificant improvements in airquality and reduction in CO2emissions.Complementing RenewableTechnologies IEA analysts

67、 expect that investment in renewableenergy would need to reach$4.5 trillion by 2030 tomeet Paris-aligned policy goals.11 These scale-upchallenges mean that an existing energy source willneed to be available so that the world can meet growing energy demands.Natural gas provides this needed energy wit

68、h lower emissions than alternatives such as coal or oil.In addition,natural gas plays a complementary role in supporting renewable technologies such as wind andsolar.Natural gas helps ensure grid stability,providing baseload power to balance the variability of renewable energy generation.With its qu

69、ick-to-ramp-up power,low capital cost,high efficiency and lower emission intensity than fossil fuels such as coal or oil,natural gas remains a key ally to renewables by compensating for fluctuations in renewable energy supply and rapidlyresponding to sudden demandsurges.Asthe global energy mix evolv

70、es,Cheniere envisions continued demand for LNG as a reliable and reinforcing component in advancing the use ofrenewabletechnologies.Advancements in LNG Shipping:Delivering with Higher Efficiency Fleets The landscape of LNG shipping is undergoing asignificant transformation.The International Marine O

71、rganizations 2023 GHG strategy aims to reduce the carbon intensity of international shipping by 40%by2030 relative to 2008 and calls for zero or near-zerotechnologies to cover 5%of the energy used.In 2024,the EU began including maritime CO2 emissions into its Emissions Trading System(EU ETS)and will

72、 includemethane emissions by 2026.Additionally,the EUadopted FuelEU,a regulation intended to reduce thecarbon intensity of shipping fuel.Commencing January2025,FuelEU Maritime standards aim to reduce theGHG intensity on a well-to-wake basis starting with a2%reduction compared to a 2020 average basel

73、ine andreaching a reduction goal of 80%by 2050.12 Such regulations act as catalysts for the development and adoption of cleaner technologies.Cheniere is integrating advancements in ship technology into its business strategy and carbon-management initiatives.As of December 31,2023,85%of our charter f

74、leet is comprised of ships with high-efficiency propulsion technology.See Managing Emissions from Shipping for more information about how Cheniere manages emissions from shipping.CO2 Emissions from Electricity Generation 12,000 10,000 8,000 Natural Gas Consumption for Electricity Generation(billion

75、cubic feet)CO2 Emissions from Electric Power Sector1,400 1,600 1,800 2,000 2,200 2,400 2,600(million metric tons of CO2)6,000 1,200 4,0001,00020002005201020152020 Natural Gas Consumption CO2 Emissionsfor Electricity Generation from Electric Power Sector(billion cubic feet)(million metric tons of CO2

76、)Criteria Air Pollutants(thousand tons)10,000 20,000 30,000 Energy ConsumptionU.S.Energy Consumption and National Tier 1Criteria Air Pollutants4040,000 35(Quadrillion BTUs)30 25 20 15 10 50 0200520002020 20152010 Natural Gas Consumption Nitrogen Oxide(NOx)Coal Consumption Sulfur Dioxide(SO2)Volatile

77、 Organic Compounds(VOC)Renewable Energy Consumption Carbon Monoxide(CO)In the U.S.energy mix between 2000 and 2023,coal consumption fell by 64%while natural gas consumption rose by 41%.In the same time frame,NOx fell 69%,SO2 fell 90%,VOC fell 17%and CO fell 57%.CO2 from power generation fell 38%.13

78、5 NPC(2024).Charting the Course.6 IEA(2019,July).The Role of Gas in Todays Energy Transitions.7 Roman-White et al.(2021).LNG Supply Chains:A Supplier-Specific Life-Cycle Assessment for Improved Emission Accounting.ACS Sustainable Chem.Eng.2021,9,32,10857-10867.8IEA(2019,July).The Role of Gas in Toda

79、ys Energy Transitions.Additional provisional data for 2021 was provided by the IEA(February 2021).9Estimates correspond to the Existing Policies(EP)Pathway and the Technology,Innovation and Policy(TIP)Pathway,respectively.See NPC(2024.)Charting the Course 12.10Gouw,J.A.de,D.D.Parrish,G.J.Frost,and M

80、.Trainer(2014).“Reduced Emissions of CO2,NOx,and SO2 from U.S.Power Plants Owing to Switch from Coal to Natural Gas with Combined Cycle Technology.”Earths Future 2(2):7582.11IEA(2023).Net Zero Roadmap:A Global Pathway to Keep the 1.5 Goal in Reach.12NPC(2024).Charting the Course.13U.S.EIA(2024,May).

81、Monthly Energy Review.CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 7 INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX 2023 HIGHLIGHTSDELIVERING ENERGY SECURITY 637 cargoes exported from Cheniere facilities,delivering 2,300TB

82、tu to 33 customer markets 11%of global LNG produced in2023 73%of our volumes were delivered to Europe,continuing to support theglobal call for reliable,flexible LNGsupply 7.5B cubic feet/day of natural gas procured from morethan 100counterparties14 51.4%of the CCL Stage 3 projectcomplete at year-end

83、,including 11.1%of construction,ahead of schedule and with first LNG expected in 2024 119M+metric tons of aggregate volumes to be delivered from 2026-2050 were signed vialong-term contracts that support the SPL expansionproject 14“Counterparties”includes producers,marketers,processors and pipelines.

84、15 Crestwood has since been acquired by Energy Transfer.ADVANCING THE ENERGY TRANSITIONAdvanced our goal to provide reliable,transparent,and science-and measurement-based GHG emissions information:Completed our quantification,monitoring,reporting and verification(QMRV)R&D projects in collaboration w

85、ith business partners along each part of Chenieres supply chain,in order to improve the overall understanding of life cycle GHG emissions and further deployment of advanced monitoring technologies and protocols.Published the results of our work on measurement and life cycle assessment in six peer re

86、viewed papers between 2021 and 2023,to share these learnings with our customers,suppliers and policymakers.Co-founded and sponsored the Energy Emissions Modeling and Data Lab(EEMDL),a multidisciplinary research and education initiative to advance methods and tools that address the need for accurate,

87、timely and clear accounting of GHG emissions.10 supply chain partners collaborated in QMRV measurement researchstudy15 35+academics and subject matter experts participated in QMRV R&Dprojects 6 peer reviewed papers co-authored by Cheniere scientists published in scientific journals since 2021 3 acad

88、emic institutions and think tanks provided world-class knowledge tosupport the QMRV R&Dprojects ADDING STAKEHOLDER VALUE0.10 top-decile safety record with Total Reportable Incident Rate(TRIR)195%Five-year total return on common stock$5B deployed under“20/20 Vision”capital allocation plan 30%of compe

89、nsation related to the 2023 annual performance scorecardtied to ESGperformance,including safety$5.6Mof direct giving to community initiatives on a cash basis 13,000+hours spent volunteeringto support ourcommunities CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 8 INTRODUCTION OUR APPROACH CLIMATE ENV

90、IRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX OUR APPROACH TO CORPORATERESPONSIBILITY We are committed to the management of our ESG impacts,risks and opportunities.Our approach to corporate responsibility is guided by our Climate and Sustainability Principles

91、:Transparency,Science,Supply Chain and Operational Excellence.These efforts are underpinned by regular stakeholder engagement to maintain the responsiveness of our approach as well as close collaboration with our suppliers,customers and communities.CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 9 INT

92、RODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES CLIMATE AND SUSTAINABILITY PRINCIPLES Our Climate and Sustainability Principles provide a foundational touchstone for identifying,understanding and addressing risks and opportunities related to environmental,social and governance(ESG)matters how

93、 we conduct business,the relationships with our employees and other people who make operating our business possible,the health of the environment,and the well-being of society.These principles drive us toward executing our vision in a responsible manner and in the best interests of our stakeholders.

94、Our corporate responsibility efforts are supported by close collaboration with our suppliers and customers and regular stakeholder engagement to maintain our approachs responsiveness.A collaborative,transparent and data-driven approach is central to how we view our corporate responsibility.We believ

95、e the most meaningful actions depend on the ability to measure their effects accurately and consistently.This is particularly important in our approach to climate change and emissions management.SCIENCE We promote and follow peer-reviewed science to assess ourimpacts,anchor our engagements anddeterm

96、ine ouractions.SUPPLY CHAIN We work with our partnersto reduce environmental impacts throughout our supplychain.OPERATIONALEXCELLENCE We design and operate our facilities with a focus on safety and reducing environmental impacts.TRANSPARENCY We communicate openly and proactively with ourstakeholders

97、.1The use by Cheniere Energy,Inc.of any MSCI ESG Research LLC or its affiliates(MSCI),and the use of MSCI logos,trademarks,service marks or index names herein,do not constitute a sponsorship,endorsement,recommendation or promotion of Cheniere Energy,Inc.by MSCI.MSCI services and data are the propert

98、y of MSCI or its information providers and are provided as is and without warranty.MSCI names and logos are trademarks or service marks of MSCI.2Copyright 2023 Sustainalytics.All rights reserved.This publication contains information developed by Sustainalytics.Such information and data are proprieta

99、ry of Sustainalytics and/or its third party suppliers(Third Party Data)and are provided for informational purposes only.They do not constitute an endorsement of any product or project,nor investment advice,and are not warranted to be complete,timely,accurate or suitable for a particular purpose.Thei

100、r use is subject to conditions available at https./ TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX RECOGNITION FOR OUR PERFORMANCE“AA”RATING In 2023,Cheniere received a rating of AA(on a scale of AAA-CCC)in the MSCI ESG Ratings assessment.1 FORTUNE GLOBAL 500 DEBUT Cheniere made its debut on th

101、e 2023 Fortune Global 500(listed at#458),solidifying the companys position among the worlds foremost corporations.BEST-MANAGED COMPANIES In 2023,the Wall Street Journal recognized Cheniere as one of the best-managed companies in its annual Management Top 250 rankings,underscoring the companys exempl

102、ary leadership and operational excellence.SUSTAINALYTICS Chenieres ESG risk rating places it in the 9th percentile in the Refiners and Pipelines industry assessed by Sustainalytics.2 BEST ESG PROGRAM,BEST COMPANY BOARD For the second consecutive year,Cheniere swept every category of Institutional In

103、vestors All-America Executive Team rankings for the Natural Gas and MLP Sector,securing top honors in areas ranging from best ESG to Investor Relations programs,reaffirming the companys commitment to excellence across diverse fronts.JUST JOBS TOP PERFORMER Ranked Top Performer in both the Employee W

104、ellness and Training&Development categories on the JUST Capital 2024 JUST Jobs Scorecard.CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 10 CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 11 INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANC

105、E APPENDIX RESPONSIBILITY ACROSS THE VALUE CHAIN The benefits of Chenieres LNG operations extend from the communities surrounding our facilities to nations around the globe,advancing economic growth,energy security and the transition to lower-carbon economies andsocieties.Production and Midstream Su

106、ppliers We collaborate with over 100 counterparties and purchase 9.6%of natural gas consumed in the U.S.3 Strengthen supplier relationships,foster trust and share health,safety and environmental values.Collaboration with natural gas suppliers and midstream partners to deploy technologies to measure

107、and mitigate GHG emissions,support measurement-informed emissions inventories,and improve the environmental competitiveness of U.S.natural gas.Shipping 85%of our charter fleet is comprised of ships with high-efficiency propulsion technology.Installed Continuous Emissions Monitoring Systems(CEMS)on o

108、ver 30%of chartered vessels to identify strategic mitigation activities.CEMS measurements undergoing scientific review and could potentially support compliance with EU shipping regulations,such as EU Emissions Trading System.Support shipping decarbonization by sponsoring cargo piping modifications u

109、sed during gas trials.Communities We are an active partner in the Gulf Coast and other communities in which we operate.We support the people,the livelihoods and the natural resources of these communities.Engage,listen,respond to community needs.Develop and hire local workforce through internships,ap

110、prenticeships,recruiting.Support local businesses with Supplier Roadshows.Provide emergency response communication and tools.Support coastal habitat recreation,restoration and conservation.Workforce and Operations We own and operate two Gulf Coast LNG liquefaction and export facilities and 115 miles

111、 of natural gas supply pipeline.Prioritize health,safety and well-being for our employees and contractors.Avoid and minimize environmental impact through the responsible management of water,waste,biodiversity and air emissions.Maximize operational efficiency.Develop a measurement-informed emissions

112、inventory for our liquefaction assets through QMRV.Support our employees through workforce development and engagement.Customers We support energy security and climate goals around the world.Offer a secure and reliable source of natural gas to displace emissions-intensive fuels like coal.Enable agile

113、 rerouting of cargoes through destination flexibility.Provide transparent emissions data to customers via Cargo Emissions Tags(CE Tags).Reduce price volatility through long-term negotiated price contracts.3 Cheniere purchased gas volume(MCF)divided by volume(MCF)of natural gas delivered to consumers

114、 in the U.S.for residential,commercial,industrial,vehicle fuel and electric power use in 2023.U.S.Energy Information Administration(2023,April).Natural Gas Summary.UNDERSTANDING ESG IMPACTS,RISKS AND OPPORTUNITIES Our ESG efforts and reporting prioritize key issues relevant to our business and stake

115、holders,aiming to enhance long-term shareholder value.We identify these considerations through systematic assessments,including engagements with external stakeholders.Since 2022,our ESG topic assessment has used a double-materiality approach,focusing on understanding risks and opportunities for our

116、business and our actual or potential impact on the environment and stakeholders.We conducted an extensive external stakeholder feedback exercise in 2021,4 including interviews and surveys,to identify key ESG topics to inform our corporate responsibility strategy and disclosures.Each year since then,

117、we have updated that priority topic assessment by engaging with select stakeholders and internal experts to review identified ESG topics and identify emerging ones.Our CEO and executive leadership team review the analysis of these engagements,including resulting updates to our strategy and disclosur

118、es.Updates to priority topic analysis are also shared with our Board of Directors.Our highest priority ESG topics,which we call relevant ESG topics,are those listed on our website and discussed in this report.They are identified based on internal and external engagement on these issues,combined with

119、 2022 survey data.ESG REPORTING PROCESS 1 Map Disclosures and Identify ESG Topics Map ESG disclosures,benchmark peers and identify relevant topics.Annually 2 Identify External Stakeholders Identify external stakeholders to ensure engagement and collaboration.A description of stakeholders whose views

120、 have informed our review can be found here.Annually 3 Engage Internal and External Stakeholders Engage internal stakeholders to prioritize ESG topics and disclosures.Interview and survey external stakeholders for quantitative feedback.Continual engagement with internal and external stakeholders on

121、ESG topics Interviews and broader surveys occur every 1-2years 4 Collect and Analyze Feedback Analyze engagement results,policy/regulatory developments affecting Cheniere or its customers,social/environmental impact assessments,scientific research and data.Continually 5 Prioritize ESG Topics and Sel

122、ect Disclosures Perform desk-based research,leveraging third-party specialists,to grasp ESG trend changes and external stakeholder preferences.Integrate research and interview feedback into a structured scoring and prioritization framework to select ESG disclosures for the Corporate Responsibility R

123、eport(“relevant ESGtopics”).Annually 6 Integrate Priority Topics Into Strategy and Operations Integrate relevant ESG topics through our business strategy review,annual plan,risk management andtechnology developmentprocesses.Continually 7 Monitor and Revise Continue to review relevant ESG topics thro

124、ugh ongoing engagement with internal and external stakeholders.Revise disclosures and reporting focus areas asnecessary.Continually TEAM CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 12 INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPE

125、NDIX 4 For more information,see website.STAKEHOLDER ENGAGEMENT We take a proactive stance in engaging with our stakeholders,fostering constructive relationships aimed at achieving mutually beneficial outcomes.The valuable feedback we receive from stakeholders influences our sustainability approach,g

126、uiding our ongoing endeavors to responsibly manage our impacts and create value for all involved parties.A description of stakeholders with whom we engage and additional details can be found in the Communities and Governance sections of this report and on our website.Customers Investors Communities

127、Employees Contractors Suppliers Regulators and policymakers Academia,NGOs and think tanks DEl considerations are integrated across our operations,embedded within other priorities,and extensively discussed throughout our reporting.We have included this icon to help identify those initiatives with a p

128、articular emphasis on DEl.ESG GOVERNANCE Board and Executive Oversight The Board of Directors exercises oversight over Chenieres sustainability considerations,including overseeing the management of significant ESG issues.Although the full Board actively engages with climate issues,the Governance and

129、 Nominating Committee of our Board has been delegated responsibility for reviewing the companys climate and sustainability policies,strategies,performance and progress.The Audit Committee oversees Chenieres Enterprise Risk Assessment process,which includes consideration of climate-related and other

130、sustainability risks.A senior and executive-level CR Steering Committee updates the Board on these matters at every regular Board meeting,at a minimum.Throughout 2023,the Board received comprehensive updates on ESG topics,including climate-related risks and opportunities,environmental management,hum

131、an capital,DEI,safety,community engagement,governance and Chenieres broader sustainability performance.The Board also oversees Chenieres progress against internal goals and the annual performance scorecard,which includes ESG metrics based on progress on climate strategy,DEI initiatives,safety perfor

132、mance and governance of regulatory and compliance issues.Subject to the formal oversight of the Board,our executive leaders are directly responsible for identifying,assessing and managing climate-related risks and opportunities and implementing our climate strategy.The SVP of Policy,Government and P

133、ublic Affairs(PGPA)leads the development and execution of our climate strategy.Executives across our business functions,including Finance,Commercial,Trading,Gas Supply,Legal and Operations,help guide this effort.Our executive leadership team reports regularly to our CEO on climate strategy and plann

134、ing.ESG Governance GOVERNANCE&NOMINATING COMMITTEE Review sustainability policies and strategies impacting the company CEO&EXECUTIVE LEADERSHIP Review processes developed by the CR team and coordinate approval of the CR report STEERING COMMITTEE Provide feedback on strategic work plans,review CR rep

135、ort and support the integration of CR into Chenieres corporate culture WORKING GROUP Support CR report development and provide feedback on processes to implement the CR program CR Team To instill a culture of sustainability across our organization,we have instituted a cross-functional corporate resp

136、onsibility(CR)program managed by a CR team comprising leaders and subject matter experts from diverse functional areas and business units.This program facilitates the seamless integration of our sustainability approach throughout the company.The CR Steering Committee provides guidance on our sustain

137、ability strategies and initiatives and the development of this report.The SVP of PGPA coordinates the approval of this report with our executive leadership.Company-wide Accountability All of our employees play a role in advancing Chenieres corporate responsibility efforts.To emphasize and reward tha

138、t commitment,30%of the annual performance scorecard compensation for all employees and executives was tied to ESG metrics.5 Read More Board and management oversight of ESG topics.ESG metrics in annual performance scorecard.Relevant ESG topics assessment processINTRODUCTION OUR APPROACH CLIMATE ENVIR

139、ONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX.ESG policies Our commitment to the responsible management of ESG impacts,risks and opportunities is firmly embedded in our policies.Links to these policies can be found throughout this report in the governance subse

140、ctions at the end of each topic and on our website.5 Of the 30%for 2023 annual performance scorecard,Climate Business Development(Carbon Capture and Sequestration,Renewables,etc.)and Emissions Strategy(Life Cycle Assessment)account for 10%.Safety(TRIR)and Progress on DEI initiatives account for 15%a

141、nd Regulatory/Compliance account for 5%.For more information,see Chenieres 2024 Proxy Statement.CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 13 CLIMATE CHENIERE IS LEADING THE WAY TOWARD A DATA-AND SCIENCE-BASED APPROACH TO ACHIEVE MORE ACCURATE AND ACTIONABLE EMISSION REDUCTION STRATEGIES.As the l

142、eading U.S.LNG producer and exporter,we connect customers to a reliable source of secure and affordable energy,supporting our customers energy needs and helping to power the global transition to a lower-carbon future.We want to be the LNG supplier of choice as economies address the transition to a l

143、ower-carbon future.To improve the climate competitiveness of our product and ensure the long-term resilience of our business,we need the ability to have better insights into where greenhouse gases are emitted across our entire supply chain from wellhead to delivery point and the ability to accuratel

144、y and reliably measure emissions so that reduction efforts can be credibly established,measured and monitored.To do this,we are advancing the use of credible and more accurate GHG emissions measurement methodologies across our supply chain that lead to meaningful and actionable emission management m

145、easures.PROGRESS AND HIGHLIGHTS Completed quantification,monitoring,reporting and verification(QMRV)R&D projects,including at Chenieres two liquefaction facilities.Co-authored six QMRV and other research findings with academics in peer-reviewed journals.Cheniere staff participated and contributed to

146、 National Academies of Sciences Engineering and Medicine(NASEM)and National Petroleum Council(NPC)studies on GHG emissions.Updated our supplier-specific life cycle assessment(LCA),continuing to improve our ability to form a holistic and robust understanding of our supply chain emissions profile.Init

147、iated front-end engineering design(FEED)and the inclusion of accommodations for a pre-combustion carbon capture and storage(CCS)project in the regulatory filings for the SPL expansion project.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT HEALTH&SAFETY DIVERSITY,EQUITY&INCLUSION APPENDIX COMMUNITIES

148、TEAM GOVERNANCE CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 14 QMRV MEASUREMENT&QUANTIFICATION OGMP 2.0 CR REPORT PUBLICATIONS CE TAGS REGULATORY LIFE CYCLE ASSESSMENT,EEMDL&ACADEMIA MITIGATION STRATEGY&ACTIONS OUR CLIMATE STRATEGY We believe that LNG has a critical role to play in meeting the wor

149、lds energy needs,improving air quality and supporting the transition to a lower-carbon future.Chenieres climate strategy is to maximize the environmental benefits of our LNG through two critical and complementary components of GHG emissions management:measurement and mitigation.We have taken a data-

150、driven approach that leverages our unique position within the LNG supply chain to collaborate with our suppliers,scientific experts and customers to improve the climate competitiveness of our LNG and strengthen the resilience of our business over the long term.To that end,we believe that a reliable

151、and holistic assessment of the GHG emissions profile of our LNG operations and supply chain is crucial to inform our investments in strategic and cost-effective opportunities to improve our GHG emissionsperformance.Our programs supporting this strategy involve transparent collaboration with members

152、of our supply chain,1 enabling our stakeholders to better understand the emissions profile of the LNG we deliver and to identify opportunities to improve emissions performance.By providing business partners with actionable emissions data,we are supporting opportunities for improved emissions perform

153、ance beyond our immediate operations.We believe this strategy makes an important contribution to climate competitiveness as we help to meet the worlds energy needs.Chenieres climate strategy positions us to improve our climate competitiveness to meet the growing demand for LNG.COMMUNITIES INTRODUCTI

154、ON OUR APPROACH CLIMATE ENVIRONMENT HEALTH&SAFETY DIVERSITY,EQUITY&INCLUSION TEAM GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 15 CHENIERES CLIMATE STRATEGY More timely and accurate data supports emissions reductions and helps ensure the long-term competitiveness of Chenieres LN

155、G.CORE PRINCIPLES:Operational Excellence Science Transparency Supply Chain 1 Supply chain includes production through liquefaction for free-on-board LNG cargoes and includes shipping for delivered ex-ship(DES)cargoes.MEASUREMENT Existing standards for calculating and reporting methane emissions rely

156、 on generalized national or regional emissions factors,offering limited insight into actual company performance.Multiple studies,including our QMRV R&D projects,have shown there is considerable variability in methane emissions,and measured methane emissions are generally higher than calculations bas

157、ed on EPA Greenhouse Gas Reporting Program(GHGRP)and other general GHG accounting protocols.Measurement methodologies and data are critical to developing representative emissions profiles that inform strategic and cost-effective mitigation strategies and actions.Otherwise,ineffective deployment of c

158、apital and resources may occur as a result of relying on poor baseline inventories estimated using traditional,activity-based engineering methods.Cheniere is advancing tools and methods that generate actionable measurement data to directly inform mitigation actions and allow reliable verification of

159、 data.An emphasis on measurement will also help prepare us for the increasing focus of domestic and international policymakers on measured data.For example,recent regulations in the U.S.and EU support the development of measurement-based,as opposed to estimate-based,GHG emission inventories.LIFE CYC

160、LE ASSESSMENT(LCA)We developed the LCA model as the foundational analytical tool for our climate strategy.The details of the first-of-its-kind supplier-specific LCA were published in 2021 in a peer-reviewed scientific journal(co-authored by scholars from the University of Texas at Austin,Queen Mary

161、University of London,and DukeUniversity),and we continue to make improvements on the model.The Cheniere LCA provides bespoke emissions profile of our LNG supply chain based on gas supply,and emissions data from our suppliers and their associated operating facilities and infrastructure.Since individu

162、al-supplier GHGperformance variessignificantly,by incorporating data from Chenieres own supply chain,our LCA provides a more accurate estimate thannational/regionalaverage supply chain data canprovide.Our LCA shows that approximately 75%of the total emissions profile of Chenieres LNG supply chain(fr

163、om production to delivery at the ship or the regasification terminal)originates outside our operations.This underscores our need to collaborate with suppliers and other partners to understand our supply chain emissions so that reduction strategies can be developed throughout the supply chain.In 2023

164、,we advanced our LCA by launching our LCA Supplier Portal,a web-based application for suppliers to voluntarily provide their emissions-related data.TheLCA Supplier Portal allows for a more robust,efficient and verifiable data collection process,resulting in higher confidence in our LCA model outputs

165、.An improved understanding of the emissions intensity across our supply chain can help inform our overall climate strategy,including emission measurement or mitigation technologies,or help us understand the potential impacts of new policies or regulatory initiatives.We continue to refine and update

166、the LCA model,including incorporating the findings of the QMRV program to integrate measurement-based emissions data into the model.This can result in a more accurate,measurement-informed emissions profile,providing a stronger foundation upon which to develop emissions policies and mitigation measur

167、es.CARGO EMISSION TAGS(CE TAGS)Since 2022,Cheniere has been providing our long-term customers with CE Tags2 as part of our efforts to improve transparency and share emissions data with customers and to support our efforts and those of our customers and suppliers to mitigate emissions across the supp

168、ly chain.The CE Tags provide the GHG emissions(CO2e on both absolute and intensity basis)and methane emissions intensity(as a percentage of LNG delivered),along with other details related to each cargo delivered to our customers either on a“Free on Board”(FOB)or“Delivered Ex Ship”(DES)boundary basis

169、.The emissions details associated with each cargo in each CE Tag are calculated using Chenieres peer-reviewed LCA model.3 As part of our commitment to refine and improve our LCA model and CE Tags,Cheniere continues to publish peer-reviewed papers to advance the science and work with academic and oth

170、er stakeholder experts to incorporate these findings in order to improve the understanding of the emissions profiles of our delivered LNG.We believe our experience with the QMRV R&D projects,our LCA modeling,OGMP 2.0,continued research with global experts,and our relationship with our feed gas suppl

171、iers provides Cheniere a distinct advantage as the LNG supplier of choice to our globalcustomers.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 16 2 The CE Tags are provided vol

172、untarily to our customers and reflect emissions profiles based on peer-reviewed methods.The CE Tags are not a claim of a specific“differentiated”or“certified”or“responsible”LNG product,nor has Cheniere transacted in the commercialization of such products.3 CE Tags are calculated utilizing Chenieres

173、LCA model.See Roman-White et al.(2021).“LNG Supply Chains:A Supplier-Specific Life-Cycle Assessment for Improved Emission Accounting.”ACS Sustainable Chem.Eng.2021,9,32,10857-10867 for modeling framework method.Chenieres commitment to advancing measurement-informed data,analysis,and emissions manage

174、ment strategies is a driver for our participation and leadership in a number of organizations focused on these efforts.One example is OGMP 2.0,which Cheniere has been a member of since 2022.A multi-stakeholder initiative launched by the UN Environment Programme and the Climate and Clean Air Coalitio

175、n,OGMP 2.0 is a comprehensive,measurement-based framework intended to broaden the understanding of methane emissions and improve the credibility and transparency of methane emissions reporting in the oil and gas sector.3 The mission of the partnership is to improve measurement,reporting and verifica

176、tion of methane emissions.OGMP 2.0s data is one of the key components of implementing the Global Methane Pledge,an EU-U.S.-led effort gathering over 150 countries to reduce global methane emissions by 30%by 2030.The framework incentivizes governments and companies to target strategic mitigation acti

177、ons and identify science-based policy options,thanks to its unique global database.Participation in the OGMP 2.0 initiative is directly aligned with Chenieres climate strategy and its emphasis on measurement accuracy and scientific rigor.QUANTIFICATION,MONITORING,REPORTING AND VERIFICATION(QMRV)Our

178、QMRV R&D projects were initiated in 2021 to improve the understanding of GHG emissions through the deployment of advanced monitoring technologies andprotocols.In 2023,Cheniere completed the field measurement campaign for the QMRV R&D project at our liquefaction facilities.This first-of-its-kind,mult

179、i-scale,multi-year methane emissions measurement campaign utilized aerial,ground-based and satellite measurement technologies that provided a robust data set of GHG emissions measurement data for our LNG facilities.Also in 2023,we completed our previously announced collaboration with multiple natura

180、l gas midstream companies,methane detection technology providers and leading academic institutions to implement the QMRV R&D project at natural gas gathering,processing,transmission and storage systems specific to Chenieres supply chain.This work concludes the QMRV R&D Project series across our supp

181、ly chain,the learnings of which will inform our emissions measurement program and mitigation strategy going forward.The results of these projects have been published in peer-reviewed journals,an industry-leading practice that seeks to ensure a robust scientific basis and transparency of our climate

182、strategy.They reveal important principles to guide future emission-detection and quantification strategies in the supply chain.Among other learnings,our QMRV work highlights the importance of understanding thelimitations of individual measurement technologies to achieve a cohesive understanding of e

183、missions on a technological,site-specific or regional level.This multi-pronged approach is preferred,as any single method mightmiss key emission sources.We are now analyzing the findings from these projects to inform and operationalize a measurement-based approach for long-term emissions measurement

184、 and mitigation.The QMRV insights also inform the work of the Energy Emissions Modeling and DataLab(EEMDL),in its goal of enabling measurement-based GHGemission assessments to be adopted on a widescale.Key Findings Multi-scale measurements can developmeasurement-informed estimates that accountforbot

185、h persistent and intermittent emissions.Measurement-informed inventories are generallyhigher than traditional inventorymethods.Midstream facility complexities make measurementdifficult given that varying technologies can givesignificantly different answers for the same facilitywhen deployedsimultane

186、ously.Operator engagement is critical to reconcilingmeasurements and engineering-estimates toidentify design and operator changes necessaryforcost-effective mitigation.Independent,third-party verification is criticalnotonly for external credibility but also improveddataanalysis.Growing use of measur

187、ement-based approachestomethane mitigation provides a scalable way toimprove inventories.ENERGY EMISSIONS MODELING AND DATA LAB(EEMDL)Key learnings from our QMRV R&D projects have concluded that credible,independent,third-party expertise is critical not only for external credibility but also improve

188、d data analysis.To meet this need,Cheniere co-founded and sponsors EEMDL,a multidisciplinary research and education initiative led by the University of Texas at Austin in collaboration with Colorado State University and the Colorado School of Mines.Data and analysis from this endeavor will help both

189、 public and private institutions develop climate strategies and actions informed by accurate,verified data,identifying opportunities for emissions reductions.Workingwith stakeholders,the lab is developing publicly available methodologies and protocols to enable entities to establish comprehensive,re

190、liable,transparent and measurement-based GHG emissions assessments of oiland gas supply chains.The lab will offer education and training programs to help oil and gas operators,government agencies and other stakeholders utilize the tools and data.Through our leadership in this effort,Cheniere is work

191、ing to scale up our own focus on measurement-informed GHG management,supporting industry-wide improvement and future policy related to emissions reporting and reduction.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIER

192、E|2023 CORPORATE RESPONSIBILITY REPORT 17 Peer-reviewed papers demonstrate commitment to science and transparency Chenieres core principles of science and transparency are evident in our ongoing work with scientific institutions and academics.We hold ourselves accountable to high levels of rigor and

193、 scrutiny by developing the core elements of our climate strategy in collaboration with scientists and other experts.We disseminate the results via peer-reviewed papers in academic journals,co-authored by Cheniere staff.In this way,we can be confident that our strategy is based on real,quantifiable,

194、scientifically supported evidence.We let the science speak for itself,and develop our strategies based on the evidence.LNG Supply Chains:A Supplier-SpecificLife-Cycle Assessment for Improved EmissionAccounting(2021,Roman-White et al.)Multiscale Methane Measurements at Oil andGas Facilities Reveal Ne

195、cessary Frameworks forImproved Emissions Accounting(2022,Wanget al.)Toward Multiscale Measurement-InformedMethane Inventories:Reconciling Bottom-UpSite-Level Inventories with Top-DownMeasurements Using Continuous MonitoringSystems(2023,Daniels et al.)Informing Methane Emissions Inventories UsingFaci

196、lity Aerial Measurements at MidstreamNatural Gas Facilities(2023,Brown et al.)Evaluating Development of Empirical EstimatesUsing Two Top-Down Methods at MidstreamNatural Gas Facilities(2024,Brown et al.)Moving Toward Zero Routine Flaring in thePermian Basin Oil and Gas Production Region:Measuring Pr

197、ogress and Driving Factors(2024,Allen et al.)CHENIERES CLIMATE STRATEGY TIMELINE WE HAVE TAKEN A PHASED,ACTIONABLE APPROACH TO CLIMATE.Climate&Sustainability Principles Cargo Emissions Tags Life Cycle Assessment OGMP 2.0 QMRV Shipping 2018 JUL 2019 MAY 2021 JUN 2021 AUG 2021 APR 2022 JUN 2022 JUN 20

198、22 OCT 2022 JAN 2023 JULY 2023 SEPT 2023 APR 2024 JUN 2024 First CR Report QMRV Liquefaction QMRV MidstreamQMRV Upstream Energy Emissions Modeling and Data Lab LNG Supply Chains:A Supplier-Specific Life-Cycle Assessment for Improved Emission Accounting(2021,Roman-White et al.)Total Methane and CO2 E

199、missions from Liquefied Natural Gas Carrier Ships:The First Primary Measurements(2022,Balcombe et al.)Multiscale Methane Measurements at Oil and Gas Facilities Reveal Necessary Frameworks for Improved Emissions Accounting(2022,Wang et al.)Toward Multiscale Measurement-Informed Methane Inventories:Re

200、conciling Bottom-Up Site-Level Inventories with Top-Down Measurements Using Continuous Monitoring Systems(2023,Daniels et al.)Informing Methane Emissions Inventories Using Facility Aerial Measurements at Midstream Natural Gas Facilities(2023,Brown et al.)Evaluating Development of Empirical Estimates

201、 Using Two Top-Down Methods at Midstream Natural Gas Facilities(2024,Brown et al.)Moving Toward Zero Routine Flaring in the Permian Basin Oil and Gas Production Region:Measuring Progress and Driving Factors(2024,Allen et al.)ENVIRONMENT INTRODUCTION OUR APPROACH CLIMATE COMMUNITIES HEALTH&SAFETY TEA

202、M DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 18 MITIGATION Chenieres safety-first culture and the achievement of operational excellence are foundational strategic priorities for the company,and are primary factors as we work to improve our GHG emissi

203、ons intensity and profile.Our successful efforts to safely and reliably increase LNG production at both of our operating facilities have improved our GHG emissions intensity over time,as we have demonstrated since our first LNG cargo was produced and exported in 2016.As we work to utilize reliable,m

204、easured emissions data to inform effective long-term mitigation strategies,we also take current action to identify,minimize and mitigate the environmental impact of our operations.To that end,we continue our work to deploy innovative,leading-edge technologies and processes to increase the efficiency

205、 of our operations and manage our Scope 1 and Scope 2 GHG emissions.As part of our continuous improvement processes around operational efficiency and emissions mitigation,we conduct regular assessments at our facilities,utilizing industry best practices and benchmarks.While our performance compares

206、favorably with industry peers across the globe,we are committed to continuous improvement across all facets of our operations.This focus underscores our dedication to environmental stewardship and sustainable practices.FACILITY DESIGN CONSIDERATIONS For the design and operation of our existing and f

207、uture facilities,Cheniere has considered cost,efficiency,reliability and GHG emissions.A sufficient,continuous supply of natural gas and electricity is critical to ensure that our liquefaction facilities are able to run safely,efficiently and reliably.The potential impacts of severe weather events,i

208、ncluding seasonal hurricanes,on the consistent availability of offsite electric power and the resulting impacts on LNG production is an important consideration.The real-world consequences of these issues were noted by the Energy Information Administration following Hurricane Laura in 2020,which caus

209、ed widespread damage to the Gulf Coast region.4 With respect to GHG emissions,the net comparison between systems must be viewed holistically,given the potential lifecycle GHG intensity of the power needed to service electric or hybrid compressor driven systems.Chenieres LNG facilities are the primar

210、y source of Scope 1 GHG emissions for the company,due to the turbines and compressors used for the liquefaction process and for power generation.At our SPL facility,we operate 44 high-efficiency stationary combustion turbines for six liquefaction trains.Thirty-six of these turbines drive our six ope

211、rating liquefaction trains.Eight of these turbines are utilized for on-site power generation at SPL,providing 100%of the facilitys power needs.This power generation is required given the remote location of SPL and the lack of economic options for grid connectivity.The unavailability of grid connecti

212、vity is a key consideration in the prioritization of advancing the pre-combustion carbon capture and storage(CCS)project at SPL(discussed below)which,if implemented,would be one of the largest CCS projects ever built and could meaningfully reduce our absolute Scope 1 CO2 emissions and improve our ov

213、erall Scope 1 GHGintensity.At CCL,we operate 18 high-efficiency stationary combustion turbines across our three operating liquefaction trains.The location of CCL enables an interconnection with the electric grid for the power required and utilized by the facility,and as such there is not currently o

214、n-site power generation for our liquefaction operations.The CCL Stage 3 expansion project,currently under construction,is being implemented with electric drive motors instead of natural gas driven turbines.Because of this,we expect the CCL Stage 3 expansion project to improve our Scope 1 GHG intensi

215、ty once operational.Across both operating facilities we have analyzed both increased electrification as well as post-combustion CCS as potential avenues to further improve the companys Scope 1 GHG profile.These present significant technical,technological,operational and economic challenges which ren

216、der them presently infeasible.While we will continue to evaluate these prospective opportunities over time,currently we are prioritizing projects and design considerations to improve Chenieres emissions profile which are more technically,technologically,operationally and economically feasible at thi

217、s time,such as pre-combustion CCS.FOCUS ON METHANE Chenieres primary business is selling natural gas or methane to our global customers.Minimizing methane emissions is therefore strategically critical to achieve both our economic and environmental priorities.And although methane is less than 5%of Ch

218、enieres total Scope 1 GHG emissions,the environmental impact from methane has been shown to be significant.We believe that quantifying,monitoring and reducing methane emissions across the U.S.natural gas supply chain from natural gas production,pipeline transportation,liquefaction and LNG shipping i

219、s crucial for natural gas and LNG to continue to play a significant role in accelerating the transition of global energy systems away from more polluting fuels and toward a lower-carbon future.That is the driver of Chenieres focus on methane measurement and management,not only at our operations but

220、across our entire supply chain.As discussed above,Cheniere completed the QMRV R&D project at both the SPL and CCL liquefaction facilities in 2023.This first-of-its-kind project successfully utilized multi-scale measurement technologies to identify,quantify,mitigate and verify mitigation of Scope 1 m

221、ethane emissions.We continue to work with our scientific partners to analyze the methane emissions measurement data in order to develop measurement-informed inventories and support strategic emissions management.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,E

222、QUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 19 4 EIA(2020).LNG Exports Resume from Sabine Pass and Cameron Terminals As Another Hurricane Approaches.CARBON CAPTURE:UPDATES ON MITIGATIONPROJECTS Cheniere commenced early-stage development of pre-combustion CCS pro

223、jects at our SPL facility that,if implemented,could result in meaningful Scope 1 CO2 emissions reductions.In 2023 we made progress on important milestones for the projects,including the initiation of front-end engineering design(or FEED)studies and inclusion of accommodations for a project in the re

224、gulatory filings for the SPL expansion project.While the quantity of CO2 captured is dependent on the outcome of ongoing studies and therefore is unknown at this time,the quantity captured would be expected to exceed 1 mtpa annually.Implementation of carbon capture at an existing operational liquefa

225、ction terminal and the expansion at this scale project with numerous technical and economic challenges.would be a first of its kind The CCS project economics,feasibility and timeline include aspects outside of our direct control.For example,important aspects of regulatory oversight which would be re

226、quired as part of the project are evolving at the state and federal levels.In addition,since Chenieres core business and expertise is LNG,wealso recognize that a successful CCS project would require a partner with extensive geologic and sequestration experience.Thus,a commercial partner forthe seque

227、stration of the carbon captured at SPL isnecessary,and the finalization of such an agreement is not in our unilateral control.While Cheniere continues to develop the CCS project at SPL,the economics of the project are challenging.While we have commenced the regulatory and permitting process for the

228、accommodations for the CCSproject as part of the regulatory process for the SPL expansion project,the regulatory timeline for carbon sequestration is uncertain.The Board is updated regularly on this project opportunity and progress.We plan to continue investing time and resources in the development

229、of this important CO2 mitigation project opportunity,as we work to address the various economic,technical and regulatory challenges of this novel technology.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPO

230、RATE RESPONSIBILITY REPORT 20 REDUCING METHANE EMISSIONS THROUGH INNOVATION AND IMPROVED MEASUREMENT The International Energy Agency estimates that more than 260 bcm of gas was wasted worldwide in 2021 due to flaring,venting and leaking and that 47%of those emissions can be mitigated with existing t

231、echnology through measures such as leak detection and repair.5 Cheniere is targeting strategies to address this challenge in multiple ways.Improvements to Pipeline Compressor Stations Chenieres proactive efforts to mitigate methane emissions include process improvements made over the last two years

232、at our pipeline compressor stations in Louisiana and Texas.Electric seal boost compression systems have been installed at all Corpus Christi Pipeline(CCPL)and Creole Trail Pipeline(CTPL)compression sites,resulting in estimated methane emissions reductions of 67%and 35%,respectively.Also,we are curre

233、ntly upgrading all chemical injection pumps on CCPL and CTPL from process-gas-driven to solar-powered electric pumps,which would eliminate the emissions from this source.Emissions Reduction through QMRV Our QMRV project,even during this initial R&D stage,has already strengthened our ability to detec

234、t and repair leaks at our liquefaction facilities and midstream operations,resulting in emission reductions at multiple sources.For example,aerial measurements detected methane emissions from the refrigeration turbine compression seal gas vents.SPL performed a valve alignment survey and identified u

235、noptimized valves on the highest-emitting trains.After SPL adjusted valve positions,later measurements identified a significant reduction in site emissions for these locations.QMRV also identified numerous fugitive emissions,some of which would not have been possible to detect by normal LDAR program

236、s,and others which would have been difficult if not impossible to detect with traditional OGI cameras.We expect that as the QMRV program matures over time,advancing our use of measurement technologies and methodologies will be key to our efforts to manage and mitigate emissions.5 IEA(2023).Global Me

237、thane Tracker.Managing emissions at our LNG facilities To achieve maximum possible thermal efficiency and minimize thermallosses and emissions,we have implemented several processes and technologies,including the following:Liquefaction efficiency Highly efficient Optimized Cascade process used at SPL

238、 and CCL LNG facilities.High-efficiency gas turbines State-of-the-art aeroderivative gas turbines limit NOxemissions.High-efficiency translates into less natural gas consumed in the liquefaction process per unit of LNG produced.Electric drive compressors Electric drive compressors at the CCL facilit

239、y expansion are expected to result in greater efficiency and emission reduction than traditional gas-powered turbines.Waste-heat recovery LNG trains are equipped to capture waste heat from exhaust of refrigeration gas turbines and thermal oxidizers.Recovered heat is reused in other facility processe

240、s.Floating roof tanks Floating roof tanks on condensate tanks prevent the release of surface hydrocarbons.Boil-off and ship-vapor recovery Boil-off gas generated during normal operations and ship loading is captured and reused,redirecting it for re-liquefaction rather than flaring.Half rate trip con

241、trols Automated controls enhance plant stability,maximize production and minimize thermal stress and losses across diverse operatingscenarios.Maintenance plan improvements Turnaround intervals have been extended by leveraging internal expertise and collaborations with key equipment providers,minimiz

242、ing losses associated with planned activities.Production optimization Numerous production optimization activities have increased flexibility on LNG trains to distribute load across different refrigeration compressors.This approach further improves LNG train efficiency and contributes to reduction in

243、 specific power required to produce a unit of LNG.Managing methane emissions While methane constitutes a small portion of our overall GHG emissions,we are focused on reducing methane emissions from our operations because of methanes heightened global-warming impact compared to CO2.Methane emissions

244、primarily stem from leaks and flaring,prompting us to implement measures to address and reduce these emissions.In conjunction with the pipeline emissions-reduction initiatives outlined below,our targeted measures to curb methane emissions include:Closed-loop cooling process Closed-loop cooling proce

245、ss captures volatilized methane during the cooling process and redirects it back into the liquefaction process,eliminating the need to vent it into theatmosphere.Leak detection and repair Routine audio,visual and olfactory inspections and other leak detection and repair activities at our terminals a

246、nd compressor stations detect fugitive emissions,particularly methane.Leak detection surveys are conducted across our operations on a quarterly to annual basis using techniques like optical gas imaging cameras and Environmental Protection Agency Method 21.Our QMRV program supplements these leak dete

247、ction surveys.Pressure safety valves are monitored to maximize operational reliability and minimize overpressure events,reducing methane emissions.Compressed air valve control Compressed air,instead of natural gas,is used to control valves and other equipment,reducing fugitive emissions.Low-or no-bl

248、eed devices Use of these devices at meter stations and control valves lowersemissions.Pipe flange management Specialized pipe flanges,coupled with ongoing inspections and maintenance,reduce potential fugitive emissions.Managing emissions from flaring We tailor our flare emission-reduction efforts to

249、 each facilitys unique designs and processes.Active flare management Skilled operators finely tune air in our liquefaction facilities during flaring events to optimize flareefficiency.Flare tip redesign Flare tips at both our SPL and CCL liquefaction facilities have been redesigned,doubling their op

250、erational life and reducing flaring during flare tip replacements by50%.Seal gas recovery systems Seal gas recovery systems have been installed on CCL Stage 1,CCL Stage 2 and all SPL liquefaction facility compressors,reducing volume of refrigerant lost to flare.Thermal oxidizer Emissions from acid g

251、as removal unit at CCL Stage 1,CCL Stage 2 and SPL liquefaction facility as directed to a thermal oxidizer,reducing volume of gas routed toflare.Exchanger cleaning New exchanger cleaning process reduces the need for operational defrosting and associated flaring by50%.Increased temperature specificat

252、ions Processes have been implemented to allow increased temperature specifications for LNG ship loading operations,reducing need to flare off LNG vessels.Managing emissions from our pipelines We have implemented several measures to manage emissions throughout our three pipeline operations.Compressed

253、-air pneumatic controllers Compressor stations employ zero-emission compressed-airpneumatic controllers,rather than high-bleed natural gas pneumatic devices,on valves and other equipment to eliminate methane emissions.Reducing maintenance and“blowdown”emissions Operational lifespan of critical equip

254、ment is extended through strategic partnerships with major equipment providers,reducing maintenance shutdowns and associated emissions.Pipeline blowdowns(essential releases of gas to reduce pressure for maintenance,testing or other activities)have been reduced by keeping compressors pressurized post

255、-shutdown for up to several days.Low-NOx compressor engines State-of-the-art compressor engines are used to drive pipeline compressors,limiting NOx emissions.Managing emissions at our offices LEED Gold certification Our corporate headquarters in Houston and our Washington,D.C.office are located in b

256、uildings certified with Leadership in Energy and Environmental Design(LEED)Platinum and Gold ratings,respectively.Energy-saving strategies in all office buildings Energy-efficient lighting.Advanced building management systems designed to optimize heating,ventilation and air conditioning usage.Encour

257、aging sustainable commuting practices Reimbursement to employees who opt to commute to U.S.corporate offices via public transportation.Managing emissions from LNG shipping Cheniere Marketing(CMI)contracts a long-term chartered fleet to deliver LNG to customers who choose Delivered at Terminal gas.We

258、 improve chartered ship fleet fuel economy by focusing on efficiency,emissions management and transparent communication with customers and partners.CMI charters vessels equipped with the most efficient propulsion and containment systems and onboard reliquefaction/subcooler units whenever feasible.On

259、going engagement with ship owners and shipyards includes workshops,emergency drills and collaboration on optimizing operational efficiency and emissions management.XDF/MEGI/MEGA propulsion The vast majority of CMIs long-term chartered fleet(85%at 2023 year-end)features cutting-edge,highly efficient

260、XDF/MEGI/MEGA propulsion technologies.Engineering improvements Two new build LNG carriers delivered to Cheniere have cargo piping modifications aimed at reducing methane emissions associated with gas trials and gas-up procedures.Continuous Emissions Monitoring Systems(CEMS)CEMS installed on over 30%

261、of CMIs long-term chartered vessels to continue identifying strategic mitigation activities.CE Tags We issue CE Tags to all long-term customers for transparent emissions information per cargo.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVE

262、RNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 21 MANAGING OUR CLIMATE RISK Our assessment and management of climate-related risks and opportunities is integrated into our business planning processes.That integration occurs throughout Chenieres functional areas,including governance,co

263、mpensation,research and development,and operations.Information regarding potential transition and physical climate risks and opportunities can be found in the Climate section of our website.6 Examples of how Cheniere integrates and addresses climate-related risk and opportunities include:Integrating

264、 governance andbusiness Climate risk is integrated into our Enterprise Risk Assessment(ERA)process.Utilize specialized departments to evaluate,engage with and incorporate climate strategies,with ongoing supervision from our leadership team and Board of Directors.30%of our 2023 annual performance sco

265、recard compensation tied to ESG performance,ensuring accountability of all Cheniere executives and employees regarding climate initiatives.Use LCA to evaluate project emissions impacts and guide business decisions,capital projects and policy analysis.Advancing emissions measurement and transparency

266、Employ our LCA and QMRV programs to guide effective emissions reduction strategies throughout our supply chain and enhance tracking of mitigation impacts.Engage with customers,supply chain partners,academics and think tanks to understand and minimize GHG emissions.Transparently disclose estimated ca

267、rgo emissions to long-term customers via CE Tags to driveimprovement.Continue analyzing results of completed QMRV R&D projects for Shipping,Midstream,Pipeline and Liquefaction for further integration into business operations and emissions reduction strategy.Collaborate with academic experts and supp

268、ly chain partners to publish QMRV project methods and findings in a peer-reviewedjournal(s).Mitigating emissions Upgrade aging LNG carriers with newer,more efficient vessels where possible.Implement facility design enhancements and technologies aimed at increasing efficiency and reducing emissions.P

269、lan for the use of CCS to mitigate emissions.Process optimization.Fugitive emissions reduction program.Took possession of two MEGA ships,the next generation of two-stroke dual-fuel LNG engines.Addressing transitionrisks Monitor emerging national and international regulations pertaining toGHG emissio

270、ns and climatereporting.Advance the testing and use of emissions measurement tools and methodologies.Climate Transition Risk Scenario Analysis examines Chenieres long-term resilience under various climate scenarios Participate in organizations such as EEMDL and OGMP 2.0,focused on strengthening meas

271、urement capacity and methodologies and inform climate policy.Use LCA for policy and business strategy considerations,as well as informing emissions reporting and transparency throughout the supply chain.Addressing physicalrisks Mitigate physical risks through the location,design and construction ofo

272、ur facilities to avoid or withstand extreme weather.Purchase property,casualty and business interruption insurance to help protect ourselves fromloss.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RE

273、SPONSIBILITY REPORT 22 6 Information regarding potential climate-related risks and opportunities,along with their corresponding financial impacts,can be found in Climate section of our website.Not all potential risks and opportunities are included.For a discussion of risk factors associated with Che

274、nieres business,please see our 2023 Annual Report on Form 10-K and as updated quarterly on each subsequent Form 10-Q.METRICS AND TARGETS GHG INTENSITY(METRIC TON CO2e/METRIC TON LNG EXPORTED)7.001 0.001 0.226 0.001 0.001 0.228.001 0.002 0.253 50 years 9.3%30 years 63.4%30-50 years MANAGEMENT DIVERSI

275、TY1Racial or Ethnic Diversity Percent of Management 23.1%25.1%28.8%32.7%32.8%2019 2020 2021 2022 2023 Women in Management Percent of Management27.0%27.4%27.7%26.6%26.0%2019 2020 2021 2022 2023 INTRODUCTION OUR APPROACH CLIMATEENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAMDIVERSITY,EQUITY&INCLUSION GOVER

276、NANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 46 1 International Privacy concerns prevent Cheniere from requiring racial/ethnicity disclosure for international employees.However,they may voluntarily self-disclose this data;otherwise,racial/ethnic diversity data for international emplo

277、yees is captured as undisclosed.Gender and Age diversity data is global.Data for 2021-2023 excludes interns(interns were included in 2019-2020 reporting).We define management to include both executive and nonexecutive management.Executive and nonexecutive managers are defined as managers,directors,s

278、enior managers,senior directors,vice presidents,senior vice presidents,executive vice presidents and chief executives.Supervisors are not included.GOVERNANCE OUR ORGANIZATIONS LONG-TERM SUCCESS RESTS ON TWO FOUNDATIONAL PILLARS:ROBUST CORPORATE GOVERNANCE AND ACOMMITMENT TO THE HIGHEST ETHICAL STAND

279、ARDS.Our corporate structure is built upon governance and ethical frameworks that stem from our TRAINS core corporate values.This section provides a detailed overview of our comprehensive strategy regarding corporate governance,business ethics,compliance,human rights,political engagement and the vig

280、ilant oversight of our supply chain.PROGRESS AND HIGHLIGHTS Increased transparency and accessibility through translating Supplier Code of Conduct to four additional languages.Advanced Supplier Diversity Program through enhanced engagement and identification of diverse supply chain.Continued to focus

281、 on Environment,Social and Governance(ESG)performance throughout the company,with 30%of annual compensation performance scorecard tied to ESG metrics.Enhanced disclosure of cybersecurity management practices.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENTCOMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY

282、&INCLUSION GOVERNANCEAPPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 47CORPORATE GOVERNANCE We believe in the importance of a robust corporate governance framework,overseen by our experienced Board of Directors,to ensure the ongoing success of our organization and maintain the trust of our sh

283、areholders and stakeholders.Our Board actively monitors our ESG focus areas and performance,regularly receiving updates on various ESG-related matters,including environmental management,human capital,safety,community engagement and broader sustainability performance.We pay attention to climate-relat

284、ed risks and opportunities as the regulatory focus on climate change increases.All executives and employees share responsibility for implementing our ESG initiatives.To strengthen this commitment,our annual performance scorecard includes ESG-related metrics,accounting for 30%of the total scorecard v

285、alue for all employees.These metrics focus on advancing our climate and DEI initiatives and safety performance,showing our dedication to integrating ESG considerations throughout ourorganization.For more information,see Chenieres 2024 Proxy Statement.BOARD OF DIRECTORS Chenieres Board of Directors p

286、lays a critical role in providing oversight and guidance to the management team,particularly regarding climate,sustainability and other ESG matters.While the entire Board is actively engaged in addressing these issues,the formal responsibility for reviewing strategy,performance and progress in these

287、 areas lies with the Governance and Nominating Committee.To ensure independence and effective governance,the Board appoints an independent non-executive Chairman of the Board.This Chairman is supported by three committees,all comprised of independentdirectors:the Audit Committee,Compensation Committ

288、ee,and Governance and Nominating Committee.BOARD DIVERSITY A diverse Board equips us to effectively navigate both new and familiar challenges,as it brings forth a range of perspectives.Our selection criteria for Board members are designed to guarantee that the Board and the company can benefit from

289、the contributions of a diverse group of directors,encompassing varied experiences,expertise,backgrounds and demographics.As of December 31,2023,three out of our nine directors,constituting 33%,were women,and two,representing 22%,were racially or ethnicallydiverse.BOARD EXPERIENCE Summary of the core

290、 competencies of our nine directors as of December 31,2023 Corporate Finance 6 Energy Industry Experience 9 Executive Leadership 9 Governance 7 Government/Regulatory 7 HSE/Sustainability 6 Human Capital Management 6 International Experience 8 Operations 7 Public Company Director 8 Risk Oversight/Cri

291、sis Management 9 Trading Financial Commodities 4 BOARD DIVERSITY Data as of December 31,2023 33%Women directors 78%Independent directors 22%Racially or ethnically diverse directors 62.3 years average age 5.2 years average tenure INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY

292、 TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 48 BUSINESS ETHICS AND COMPLIANCE Our commitment to compliance with laws and regulations,along with the highest ethical standards,is fundamental to our operations.We continuously review and improve our

293、 Compliance and Ethics policies to effectively address risks and provide appropriate guidance to both our employees and business partners.Regular compliance monitoring and auditing of our Code of Business Conduct and Ethics(Code of Conduct),and other policies and processes,are conducted using a risk

294、-based approach to identify potential legal and compliance risks.CODE OF CONDUCT ANDANTI-CORRUPTION Our standards for ethical behavior,accurate reporting,compliance with laws,and the reporting of violations are clearly outlined in the Code of Business Conduct&Ethics and Anti-Corruption and Economic

295、Sanctions Policy.This framework establishes a foundation for accountability.We maintain a robust anti-corruption due diligence process and consistently monitor compliance,subject to independent audits at regular intervals.The Chief Compliance and Ethics Officer,along with other senior management rep

296、resentatives,conducts an annual review of the Code of Conduct.Any proposed changes must undergo a thorough review and approval process by the Board.Our core TRAINS values are seamlessly integrated into the Code of Conduct and the performance review process,encouraging every employee to embody these

297、values in their daily work.An annual requirement mandates all employees to participate in Code of Conduct and anti-corruption training,with a portion of their compensation linked to completing this training through performance goals.In 2023,we achieved a 100%completion rate for Code of Business Cond

298、uct and anti-corruptiontraining.Third-Party and Culture Risk In 2023,we worked to install mitigants to risks identified from the legal and compliance risk assessment completed in 2022.Based on the outcomes of this assessment,we worked to strengthen mitigants for third-party and culture risk.Regardin

299、g third party risk,we recognize that we have limited control over all of the actions that our suppliers engage in.To reduce this risk,we are leveraging tools to perform prequalification due diligence and verification of compliance requirements.We work to quickly inform our suppliers of our Code of C

300、onduct,applicable standards and policies.This year,our Compliance and Ethics team aligned with our Supply Chain team to tighten third-party procedures,including leveraging third-party software monitoring,and internal review of suppliers for anti-bribery and anti-corruption activities.Regarding cultu

301、re risk,we are taking proactive measures to adopt psychological safety efforts to ensure that individuals feel safe to speak up to raise ideas or concerns.See Learning,Development,Awareness and Training for more details.Additionally,we are increasing the reach and understanding of our policies by tr

302、anslating the Code of Conduct into Spanish.This initiative aligns with our dedication to fostering a workplace culture that values diversity,promotes clear communication and ensures that all members of our organization have equal access to essential information and training materials.To facilitate c

303、onfidential reporting of concerns or questions,employees,suppliers,customers and other third parties can use our dedicated,150+language translation-capable hotline,with the option to remain anonymous.Retaliation against employees who make good-faith complaints,report a violation of the Code of Condu

304、ct,or disclose other illegal activities and ethical breaches is explicitly prohibited.Any such retaliation is subject to disciplinary action,up to and including termination.The Compliance and Ethics team conducts independent investigations,implements corrective actions when relevant and safeguards i

305、ndividuals from potential retaliation.The Chief Compliance and Ethics Officer regularly informs the Audit Committee of the Board of Directors about these investigations,including hotline reports,quarterly.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&I

306、NCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 49 ETHICS HOTLINE Cheniere Energy is committed to an environment where open,honest communications are the expectation.We want you to feel comfortable in reporting instances where you believe violations of policies or standard

307、s have occurred.This can be done in any of several ways:Contact Cheniere Hotline(this is hosted by NAVEX Global,a third-party hotline provider):1-866-207-4751(United States);0808 234 1127(United Kingdom)Report a Concern Contact the Compliance&Ethics Department:1-713-375-5623 ComplianceandE POLITICAL

308、 ENGAGEMENT We are committed to aligning our political engagement initiatives with our mission of providing secure and affordable energy worldwide.We take a nonpartisan approach,focusing on safety and environmental responsibility within the energy industry.This includes active participation in indus

309、try associations,lobbying efforts and contributions through the Cheniere Energy,Inc.Political Action Committee(Cheniere PAC),or directly as permitted by law.We stress the importance of conducting all political engagement activities in accordance with applicable state and federal laws,as well as comp

310、any policies.To reinforce this commitment,our employees undergo annual compliance training,including a thorough review of our Code of Conduct.This document outlines our expectations regarding political contributions and activities.In 2023,100%of eligible employees successfully completed this trainin

311、g,highlighting our dedication to ensuring that our political engagement remains ethically sound,transparent and compliant with all relevant regulations and policies.1 ENGAGEMENT AND LOBBYING ON ESG TOPICS We believe natural gas plays a crucial role in facilitating a smooth transition to a low-carbon

312、 economy.Engaging in state and federal rule-making processes,we advocate for environmental regulations that improve industry safety and reduce our environmental impact.Cheniere fully discloses its federal lobbying expenditures through the United States Houseof Representatives Clerk database.Contribu

313、tions madevia the Cheniere PAC are disclosed in theFederal Election Commission database,demonstratingour commitment to transparency and regulatorycompliance.In addition to our advocacy efforts,we collaborate with federal agencies to promote consistency and standardization in their requirements.This

314、strategic collaboration aims to support our ability to meet customer delivery timelines while enhancing energy security.Our approach reflects our commitment to navigate regulatory environments in a manner that aligns with our business objectives and contributes to the broader goals of promoting cons

315、istency and enhancing energy sector security.TRADE ASSOCIATIONS ANDMEMBERSHIPS We partner with industry,trade and business associations to advocate for our viewpoints on criticalindustry issues.As leaders in large-scale LNG operations in the U.S.,we leverage our expertise toimprove the safety and en

316、vironmental aspects of LNG through our participation in trade associations.Our contributions offer valuable insights and recommendations on assorted topics,including climate,energy security and economics.For a detailed list of our industry associations,please consult Cheniere Energy Memberships and

317、Trade Associations.1 Data on our political contributions can be accessed at the Federal Lobbying Database and the Texas and Louisiana state databases.ENTERPRISE RISK ASSESSMENT Chenieres Enterprise Risk Assessment(ERA)process is founded on our core belief in safeguarding the safety and security of o

318、ur employees,communities and the environment,as well as protecting company assets,reputation and shareholder value.This commitment is vital for the companys sustained growth and long-term viability.The ERA process is a comprehensive approach that involves identifying and prioritizing risks across ou

319、r organization,developing avoidance and mitigation strategies and establishing accountability through specific oversight responsibilities and timelines.Our primary goal is to eliminate risks whenever possible,with a subsequent focus on mitigating unavoidable risks.We follow a systematic approach tha

320、t includes identifying,assessing,controlling,monitoring,reviewing,documenting and communicating risks throughout our organization.Stakeholder communication and consultation are essential to ensure that diverse perspectives are considered.We actively encourage partners,suppliers and contractors to ad

321、opt the requirements outlined in our risk assessmentprocedure.During the ERA process,stakeholders are responsible for identifying and documenting potential risk events or scenarios,considering specified parameters.It is essential to conduct a comprehensive evaluation,considering both external and in

322、ternal riskfactors.INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 50 RESPECTING HUMAN RIGHTS We uphold the universally recognized human rights of all individuals,extending this

323、dedication to our personnel,suppliers and the communities in which we operate.Our approach involves ongoing efforts to identify and prevent potentially adverse human rights impacts within our operations.Should such impacts occur,we stand committed to taking prompt and effective remedial actions.As p

324、art of our ongoing commitment to human rights,we expanded accessibility to Modern Slavery training initiatives in 2023,by making the training available to all employees.We expect to further expand our Modern Slavery curriculum in 2024.The table on the right outlines the highlights of our approach to

325、 addressing human rights,labor standards and environmental justice(EJ)issues that are potentially relevant to our operations and value chain.See additional details about how we approach these issues in the Communities,Team and Supply Chain sections of this report.Read More Community grievance mechan

326、isms Managing EJ issues Supply chain Supplier Code of Conduct INTRODUCTION OUR APPROACH CLIMATE ENVIRONMENT COMMUNITIES HEALTH&SAFETY TEAM DIVERSITY,EQUITY&INCLUSION GOVERNANCE APPENDIX CHENIERE|2023 CORPORATE RESPONSIBILITY REPORT 51 CHENIERES APPROACH TO HUMAN RIGHTS Process Objectives Our Approac

327、h Risk management and due diligence Identify and mitigate potential human rights-related risks in our operations and supply chain,including ongoing review of compliance and effectiveness.Ongoing monitoring of suppliers for compliance with Health,Safety and Environmental standards.Social impact asses

328、sments to evaluate community needs and project impacts.Community and stakeholder engagement Identify potentially impacted stakeholders and develop ongoing two-way communication to understand and respond to their needs and concerns through our operations and community engagement.Stakeholder engagemen

329、t plans at each site.Public meetings to provide information and answer questions about expansion projects.Feedback mechanisms Provide formal mechanisms for communities and all stakeholders to communicate concerns,including a structured review and follow-up process aligned with international best pra

330、ctices.Monitor for alerts that our operations are causing or contributing to adverse human rights impacts.When practical,engage with feedback author to seek and propose resolution.Training Support employees to understand protecting human rights-related considerations to the extent applicable to thei

331、r role.Increase accessibility of Modern Slavery Statement Act Statement training.SUPPLY CHAIN We are dedicated to establishing a robust and growth-oriented supply chain that consistently delivers reliable solutions through an engaged and highly skilled workforce.Our collaboration with contractors an

332、d suppliers is essential for upholding our commitment to responsible operations and meeting corporate performance objectives.These partners provide a range of on-and off-site services,including equipment repairs and maintenance,engineering support,construction,fabrication,inspections,testing and log

333、istics.Aligning with contractors and suppliers who adhere to our safety,environmental,human rights and industry standards is integral to our overall business success.Compliance with our safety,health,environmental management and performance requirements is crucial in our supplier selection process,as is adherence to relevant laws and regulations related to fair-labor and human rights standards.To