CORPUS CHRISTI – Earlier this month, Cheniere Energy released a Corporate Responsibility Report in order to increase its transparency when it comes to managing and reporting climate-related financial risks and opportunities critical for their business.
The report is based on analysis of relevant environmental, social and governance issues for Cheniere Energy Inc. data from 2016 to December 31, 2019.
The Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) established recommendations for voluntarily reporting such risks and opportunities in 2017.
Cheniere said in the report that over the past year they listened to feedback from stakeholders on the importance of TCFD and transparent reporting. In response, they voluntarily aligned with several TCFD disclosures in the inaugural Corporate Responsibility (CR) Report and became one of the first LNG companies globally to do so.
“Reducing methane emissions improves the environmental performance of natural gas,” said Senior Vice President of Policy, Government and Public Affairs Christopher Smith. “We support peer-reviewed science to innovate new ways to identify, measure and eliminate fugitive methane emissions throughout the domestic natural gas value chain.”
The report showcased China which has been focusing on air quality issues over the past few years. It showed that from 2016 to 2018, China’s natural gas use increased by more than 30% as the country’s LNG consumption more than doubled with a significant number of cargoes originating from their Sabine Pass facility in Louisiana.
The report showed that air quality improved over those years, especially in urban areas, as millions of households switched from coal to gas heating. By 2019, Beijing’s average air quality improved more than 30% relative to 2014.
When it comes to biodiversity and protecting wetland and migratory animals, the report first stated that Cheniere’s LNG facilities and pipelines are not located in areas of protected conservation status or critical habitat. It also states that construction activities to expand facilities will not cause additional disturbance to terrestrial areas.
When it comes to their pipelines, in order to reduce and mitigate environmental impacts they route their pipelines to minimize potential ecosystem impacts, restore habitats to pre-construction condition where possible, monitor pipeline restoration areas and document habitat restoration and restore any affected wetlands or buy wetland credits to offset impacts.
“Our urgency to address the key considerations of environmental, social and governance (ESG) issues — how our company manages our environmental footprint, values the safety of our people and interacts with and impacts communities large and small — is core to our operations and our shared values,” Cheniere Energy, Inc. President and CEO Jack A. Fusco said in the opening statement of the report.
“We’re proud of what we do and what we detail in this inaugural report, but it is just the first step. We will continue to look for ways to create positive impacts on our communities, our economy and our environment and welcome feedback on how we can improve our efforts.”
The full report can be found at www.cheniere.com/csr/our-commitments.
Paul Gonzales is a reporter at The News of San Patricio and can be reached at 361-364-1270, or by email at firstname.lastname@example.org.