Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental, Health and Safety
• Community Relations
• Human Rights
• Business Ethics and Transparency
• Human Capital
• Workforce Health and Safety

Environmental Achievements

• 43% reduction in Scope 1 greenhouse gas emissions intensity from 2019 to 2021
• 77% reduction in methane intensity from 2019 to 2021
• 70% reduction in flare intensity from 2019 to 2021
• Approximately 33% reduction in absolute CO2 emissions from 2019 to 2021
• Approximately 68% reduction in CH4 emissions from fugitive sources from 2019 to 2021
• 96% less measured methane emissions from tankless facility compared to conventional facility in a seven-month study

Social Achievements

• Launched initiatives to improve community relations, focusing on workforce development, educational assistance, minimizing operational impact, arts and culture, and access to healthcare
• Post-merger Houston-based hiring resulted in new team members that are 56% female and 52% ethnic minorities
• Implemented a contractor safety program to enhance safety performance on Coterra locations

Governance Achievements

• Established an Environment, Health & Safety Committee (EHS Committee) and a Governance and Social Responsibility Committee (GSR Committee) to oversee ESG matters
• Implemented a Code of Business Conduct and Ethics with periodic training for employees, officers, and directors
• Established an external whistleblower hotline for anonymous reporting of violations

Climate Goals & Targets

Environmental Challenges

• Regulatory risks related to climate change legislation restricting greenhouse gas emissions
• Technological risks related to innovations supporting the transition to a lower-carbon economy
• Market risks related to shifts in supply and demand for oil and gas, and limited access to capital
• Reputational risks related to climate change impacts and societal expectations
• Physical risks related to extreme weather events and changes in climate patterns
• Water scarcity

Mitigation Strategies

• Actively pursuing strategic actions to manage climate risks and capture opportunities by investing in projects and technologies to reduce greenhouse gas emissions
• Employing a multidisciplinary Enterprise Risk Management (ERM) process for integrating risk management throughout the business
• Implementing emissions reduction initiatives such as electrification, fuel optionality, and flare mitigation
• Recycling and reusing produced waters where technically and economically feasible
• Investigating alternative means to minimize freshwater needs
• Developing an on-demand pipeline system to reuse produced water for completion operations

Supply Chain Management

Responsible Procurement

• Vetting contractors for required training and qualifications
• Conducting periodic reviews and assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Floods
• Changes in water availability

Transition Risks

• Climate change legislation
• Technological improvements
• Market shifts
• Investor pressure
• Reduced demand for oil and gas

Opportunities

• Increased demand for natural gas due to global disruptions in energy supplies
• Emissions reduction opportunities through investments in projects and technologies

Reporting Standards

Frameworks Used: TCFD, SASB

Third-party Assurance: Third-party auditor verification of Coterra’s Scope 1 GHG emissions for 2021

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental, Health & Safety
• Community Relations
• Business Ethics & Transparency
• Human Capital

Environmental Achievements

• Reduced absolute Scope 1 CO2 emissions by approximately 32% from 2019 to 2022.
• Reduced methane intensity by approximately 77% from 2019 to 2022.
• Reduced flaring intensity by approximately 77% from 2019 to 2022.

Social Achievements

• Launched Community Action Group (CAG) initiative to strengthen community connections and align support with local needs.
• Established partnerships with educational institutions to support workforce development and STEM initiatives.
• Implemented contractor safety program to enhance safety performance on Coterra locations.

Governance Achievements

• Established a Code of Business Conduct and Ethics with training and a 24/7 whistleblower hotline.
• Three climate metrics included in executive short-term incentive targets (15% of overall incentives).

Climate Goals & Targets

Environmental Challenges

• Technological challenges in scalable emission detection and quantification technologies.
• Variability and uncertainty in methane leak volume quantification using Continuous Emissions Monitoring Systems (CEMS).
• Water scarcity risks.

Mitigation Strategies

• Joined Oil & Gas Methane Partnership 2.0 (OGMP 2.0) for reliable methane measurement, reporting, and mitigation.
• Utilizing electrification, fuel optionality, and flare mitigation to reduce CO2 emissions.
• Employing optical gas imaging (OGI) cameras, drones, and third-party flyovers for leak detection and repair (LDAR).
• Recycling and reusing produced water where technically and economically feasible.
• Developing an on-demand pipeline system to reduce freshwater usage.

Supply Chain Management

Responsible Procurement

• Contractor safety program; vetting contractors for required training and qualifications; periodic reviews and assessments.

Climate-Related Risks & Opportunities

Transition Risks

• Market regulations
• Investor pressure to reduce carbon footprint
• Rapidly evolving developments

Opportunities

• Global energy demand growth; premier position to supply oil and gas; emissions reduction opportunities through electrification and other initiatives.

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: ISO 14064-3 (limited assurance)

Third-party Assurance: Third-party auditor (limited assurance for 2022 reported emissions)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Health and Safety
• Human Capital
• Community Relations
• Corporate Governance
• Human Rights
• Biodiversity

Environmental Achievements

• Reduced Scope 1 greenhouse gas emission intensity by 16.6% from 2022 to 4.56 MT CO2e/Gross Mboe Produced (52.5% reduction since 2019)
• Reduced methane intensity by 41% from 2022 to 0.023% (86.3% reduction since 2019)
• Reduced flaring intensity by 23.9% from 2022 to 0.083% (82% reduction since 2019)
• Increased oil production from tankless facilities to over 50% in 2023 (from ~36% in 2022)
• Increased Permian Basin midstream electrified compression horsepower to 30% in 2023 (from 8% in 2022)

Social Achievements

• Launched "Feedback That Works" training for managers
• Partnered with Lyra Health for a new mental health and employee assistance program
• Invested over $10 million in communities
• Provided educational assistance to over 1,175 students

Governance Achievements

• Board oversight of sustainability program through the Environment, Health & Safety Committee
• Implementation of a robust Environmental, Health, and Safety Management System (EHS MS)
• Annual review and revision of Corporate Governance Guidelines

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the regulatory environment controlling sustainability practices
• Increased price of power in operating areas
• Challenges in receiving new power loads from electric utilities
• Complex terrain and higher electricity prices hindering electrification in Marcellus assets
• Depressed natural gas prices making electrification economically challenging

Mitigation Strategies

• Continued environmental initiatives regardless of regulatory changes
• Investment in behind-the-meter solar farm
• Collaboration with local utilities for power loads
• Exploration of alternative electrification strategies for Marcellus
• Focus on near-term, actionable emissions targets

Supply Chain Management

Responsible Procurement

• Review of contractor safety practices
• Contractor compliance with Coterra's safety standards
• Use of ISNetworld contractor verification program

Climate-Related Risks & Opportunities

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputational risks

Opportunities

• Continued global energy demand
• Increased U.S. energy exports
• Emissions reduction projects and technologies

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: ISO 14064-3 (limited assurance)

Third-party Assurance: Spirit Environmental, LLC