Engaging Our Stakeholders
We recognize the responsibility entrusted to us by our stakeholders and are committed to transparency and open communication. Regular interaction with those who may influence or be impacted by our business allows us to both listen and educate while deepening those relationships that matter most to our operational conduct.
Increasing Transparency and Engaging on ESG Matters
We recognize the growing emphasis on ESG matters both throughout the industry and at Chesapeake.
In 2017, Chesapeake received a shareholder proposal requesting that the company publish a Climate-Related Risk Analysis. After engaging with the proponent of the proposal, the company agreed to produce the report which was published in 2018.
Since 2016, we have been an active participant in the Disclosing the Facts investor scorecard process. As You Sow — a nonprofit organization — and its investor partners publish an annual rating to measure how oil and natural gas companies manage their environmental and community risks. Through transparency on key issues, As You Sow believes investors can better recognize and evaluate the effectiveness of risk mitigation across individual companies.
Each year, Chesapeake's internal subject matter experts hold meaningful dialogues with As You Sow geared to both increase our transparency and address their questions related to our business approach. For its 2017 scorecard (published in 2018), As You Sow prepared a special edition focused on methane emissions management. Out of a total of 13 possible points, Chesapeake scored a 10 and was positioned in the top quartile of companies.
In 2019, the organization published another focused installment of its scorecard series, with an emphasis on chemical and water management. Although our initial score was a 3, following outreach discussions with As You Sow, we added new content and data to our website's Environment section, meeting the criteria for 13 out of 25 points. Notably, As You Sow recognized Chesapeake for our water management and chemical safety disclosures.
In addition, Chesapeake representatives are actively engaged in addressing ESG issues from an industry standpoint. We are a founding member of The Environmental Partnership led by the American Petroleum Institute (API) which is committed to continuously improving the industry's environmental performance. We are also actively participating in API's Climate and Communications Committees, the American Exploration and Production Council's ESG, Communications and Climate Committees, and many other local trade organizations.
The Chesapeake Board of Directors, Executive Committee, Investor Relations Group and ESG Advisory Board are committed to continuing this outreach to ensure we are addressing shareholder and stakeholder concerns effectively.