Sitio Royalties Corp.
Climate Impact & Sustainability Data (2021-12-31 to 2022-09-30, 2022)
Reporting Period: 2021-12-31 to 2022-09-30
Environmental Metrics
Total Carbon Emissions:82 tCO2e/year (2021)
Scope 1 Emissions:0 tCO2e/year
Carbon Intensity:0.0197 MT CO2e/MBOE (2021)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Zero scope 1 emissions; scope 2 emissions are only from power consumption at Sitio office locations
- Sitio’s lease form provides an economic disincentive for flaring gas
- Target leasing minerals to operators with strong environmental track records
Social Achievements
- Employee base and Board reflective of a culture that values diversity
- ~50% of Sitio’s current employees are women
- 5 out of 9 current board members are diverse
Governance Achievements
- Incentive compensation is 100% equity based, with emphasis on total shareholder return
- Experienced, dedicated management team is 100% focused on STR’s business
- Board and management compensation is structured to drive total long-term shareholder returns
- Capital allocation policy prioritizes return of capital to shareholders while preserving balance sheet strength using retained cash
Climate Goals & Targets
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2022
Environmental Metrics
Scope 1 Emissions:0
Scope 2 Emissions:128 MT CO2E (2022)
ESG Focus Areas
- Governance
- Human Capital Management
- Climate Change
- Community Relations
- Human Rights
- Workforce Health & Safety
Environmental Achievements
- Denver headquarters located in a LEED Gold Core and Shell certified office building
- Houston office is LEED Silver certified
- Form lease agreement with operators provides an economic disincentive for the flaring of natural gas
Social Achievements
- Annual Volunteer Day at each office
- Competitive base salary, annual bonus and other incentives for employees
- Company-paid health, vision, and dental insurance for employees
Governance Achievements
- Established a Corporate Responsibility Taskforce
- Implemented several corporate responsibility-related policies and charters (Audit Committee Charter, Compensation Committee Charter, Nominating and Corporate Governance Committee Charter, Corporate Code of Business Conduct and Ethics, Corporate Governance Guidelines, Whistleblower Policy)
- Intends to implement and disclose a Board-approved Environmental Policy, Bribery and Anti-Corruption Policy and Human Rights Policy in 2024
Climate Goals & Targets
Environmental Challenges
- Limited control over and visibility into Scope 3 emissions
- Limited control over biodiversity impacts of E&P activities on its acreage
- Potential exposure to bribery and corrupt practices
Mitigation Strategies
- Intends to continue to monitor developments with respect to the measurement and disclosure of Scope 3 emissions
- Supports its operators’ efforts to minimize ecological and biodiversity impacts from their operations
- Intends to implement and disclose a standalone Bribery and Anti-Corruption Policy in 2024