Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Advanced water management infrastructure in West Texas, reducing the need for fresh water
• Reduced air emissions through improved standard operating procedures and an industry-leading leak detection and repair program
• Minimized flaring of gas, implementing vapor recovery units at horizontal well tank batteries
• Replaced high-bleed, gas-driven pneumatic controllers with low-emitting devices
• Improved pipeline pigging, compressor maintenance, and storage tank cleaning to capture previously released gases

Social Achievements

• Reduced preventable vehicle accidents, OSHA recordable rates, and lost-time incident rates through the 'Drive to Zero' safety campaign
• Initiated the 'Safely8760' program to maintain safety progress
• Instituted a new diversity and inclusion program ('One Pioneer') and formed employee resource groups
• Continued community engagement in education, social services, and law enforcement
• Celebrated a 10-year partnership with Dallas Area Habitat for Humanity

Governance Achievements

• Developed sound governance practices guided by Corporate Governance Guidelines
• Formed a Corporate Social Responsibility (CSR) Committee to review and prioritize sustainability issues
• Implemented a Code of Business Conduct and Ethics for all employees, officers, and directors
• Established multiple methods of reporting compliance concerns, including anonymous reporting

Climate Goals & Targets

Environmental Challenges

• Potential impact of growing alternative energy sources and climate change policy on global fossil fuel demand
• Managing water usage for well completions
• Reducing fugitive emissions

Mitigation Strategies

• Assessment of potential impact of alternative energy and climate change policy on long-term business prospects
• Utilizing effluent water, brackish water, and recycled produced water for drilling and completions
• Implementing a leak detection and repair (LDAR) program, using optical gas imaging cameras and Remote Methane Leak Detectors™

Supply Chain Management

Responsible Procurement

• Contractor safety program
• Supplier chemical pre-qualification system for Pioneer Pumping Services

Climate-Related Risks & Opportunities

Transition Risks

• Potential impact of growing alternative energy sources and climate change policy on global fossil fuel demand

Reporting Standards

Frameworks Used: GRI Standards, DisclosingTheFacts.org, IPIECA

Awards & Recognition

• Forbes 'most just' oil and gas company
• The Dallas Morning News top place to work

Environmental Metrics

ESG Focus Areas

• Climate Change
• Greenhouse Gas Emissions
• Methane Emissions
• Flaring
• Water Management
• Freshwater Reduction
• Biodiversity Conservation
• Waste Management
• Workforce Health and Safety
• Diversity and Inclusion
• Human Rights
• Corporate Governance
• Supply Chain Management
• Community Engagement

Environmental Achievements

• Reduced GHG emissions intensity by achieving a flaring intensity rate of less than one percent.
• Reduced freshwater consumption by 47 percent since 2015.
• Recycled nearly 17 percent of total horizontal well produced water production in 2019.
• Captured 9.3 billion cubic feet of gas (equivalent of 5.6 million metric tonnes of CO2e emissions) using VRUs in 2019.
• Reduced the absolute chemical mass percent in hydraulic fracturing fluids by 66 percent since 2017.

Social Achievements

• Established OnePioneer, an inclusive culture program with over 30% employee participation.
• Implemented a formal Human Rights Policy and Commitment.
• Contributed nearly $5 million to charitable organizations and educational institutions in 2019.
• Achieved a 37 percent year-over-year reduction in contractor health and safety recordable incident rate.

Governance Achievements

• Formalized a Sustainability Reporting Committee on the Board.
• Increased the weighting of HSE and ESG performance indicators within executive compensation to 20 percent.
• Updated Board committee charters to include formal oversight of climate-related risks and opportunities.
• Extended the Code of Business Conduct and Ethics to contractors and suppliers.

Climate Goals & Targets

Environmental Challenges

• Water scarcity in the Permian Basin.
• Climate change-related risks (transitional and physical).
• Maintaining a strong HSE culture during workforce reductions.
• Managing induced seismicity.
• Addressing flaring in the Permian Basin.

Mitigation Strategies

• Developed advanced water infrastructure and secured long-term non-freshwater sources.
• Implemented aggressive emission intensity targets and proactive emission reduction actions.
• Provided generous severance packages and support during workforce restructuring.
• Incorporated seismicity risk analysis in well siting and engaged with researchers and regulators.
• Required natural gas sales connections prior to well production to prevent routine flaring.

Supply Chain Management

Responsible Procurement

• Code of Business Conduct
• Human Rights Policy and Commitment
• ESG component integrated into contract award process.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water availability

Transition Risks

• Regulatory/legislative initiatives
• Decreased demand for oil and gas
• Reputational risks

Opportunities

• Innovation and efficiency improvements
• Premium pricing for responsibly sourced oil and gas
• Access to global markets

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, IPIECA, UN SDGs

Third-party Assurance: Internal audit

UN Sustainable Development Goals

• SDG 7
• SDG 8

Pioneer's mission and ESG strategy align with SDG 7 (affordable and clean energy) and SDG 8 (decent work and economic growth).

Awards & Recognition

• Texas Employer Traffic Safety Award (NSC and TxDOT)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Biodiversity
• Workforce Health, Safety, and Security
• Diversity, Equity, and Inclusion
• Community Investment
• Governance

Environmental Achievements

• Reduced GHG emissions intensity by 27% from 2019 baseline
• Reduced methane emissions intensity by 50% from 2019 baseline
• Limited annual flaring intensity to 0.21% of natural gas production (79% below 1% target)
• Reduced hydrocarbon spill volumes by 32%
• Recycled nearly 18% of total horizontal well-produced water in 2020

Social Achievements

• Contributed over $4.1 million to charitable organizations
• Reduced total recordable injuries by 23%
• 47% diversity representation within executive leadership team
• 23% year-over-year reduction in contractor health and safety recordable incidents

Governance Achievements

• Established a Sustainability and Climate Oversight Committee
• Increased annual incentive compensation weighting for HSE and ESG metrics from 10% to 20%
• Welcomed three new directors to the Board

Climate Goals & Targets

Environmental Challenges

• Water scarcity in the Permian Basin
• Potential impacts of climate change on operations
• Managing risks associated with induced seismicity
• Maintaining a strong HSE culture during a pandemic

Mitigation Strategies

• Strategic water sourcing (recycled water, reclaimed water, brackish groundwater)
• Investment in water infrastructure ($134 million in Midland wastewater treatment plant)
• Proactive monitoring and management of seismicity
• Implementation of a comprehensive COVID-19 response plan
• Continuous improvement of HSE programs

Supply Chain Management

Supplier Audits: At least once every three years

Responsible Procurement

• Code of Business Conduct
• Human Rights Policy
• ESG component integrated into contract award process
• Use of EcoVadis platform for supplier ESG assessment

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and operations
• Renewable energy development

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UNGC, CDSB

Third-party Assurance: Internal audit

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 3
• SDG 4
• SDG 6
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16

Various initiatives throughout the report contribute to these goals.

Awards & Recognition

• Texas Employer Traffic Safety Award (NSC and TxDOT)

Environmental Metrics

ESG Focus Areas

• Governance
• Emissions Management
• Water Management
• Landscape Stewardship
• HSE Culture
• Social Value

Environmental Achievements

• 22% reduction in GHG emissions intensity from 2019 baseline
• 50% reduction in methane emissions intensity from 2019 baseline
• 0.41% flaring intensity in 2021 (59% lower than 1% target)
• Reduced freshwater use as a percent of total consumption in completions operations to 41% in 2021
• 100% of Pioneer’s completed wells in 2021 were tested for formation integrity

Social Achievements

• Contributed >$9.5 million to charitable organizations in 2021
• Decreased Total Recordable Injuries by 21%
• Scored a 90 out of 100 on Human Rights Campaign Corporate Equality Index
• Developed a Supplier Code of Conduct
• Onboarded 355 suppliers (80% of annual operational spend) to EcoVadis

Governance Achievements

• Established an ESG Task Force
• Established a Sustainability and Climate Oversight Committee (SCOC)
• 46% of Board and 46% of executive management team are female and/or from historically underrepresented communities
• Revised executive leadership’s annual cash bonus incentive program to include 15% weighting for ESG and 5% for HSE metrics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Challenges in fully electrifying field operations due to limitations in electric transmission infrastructure
• Integrating newly acquired assets (Parsley and DoublePoint) to meet Pioneer's operational and environmental standards
• Increased seismic activity in the Permian Basin

Mitigation Strategies

• Partnering with local utility provider to develop a long-term power delivery strategy for field electrification
• Investing in infrastructure upgrades for acquired assets (e.g., vapor recovery units, replacing pneumatic controllers)
• Active engagement with state regulators and industry groups to address seismicity concerns
• Prioritizing produced water recycling over injection, and evaluating desalination technologies

Supply Chain Management

Supplier Audits: At least once every three years

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement Commitment
• ESG component integrated into contract award process
• Use of EcoVadis rating platform

Climate-Related Risks & Opportunities

Physical Risks

• Decreased groundwater availability due to climate change

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of renewable energy projects
• Electrification of field operations

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, S&P Global Corporate Sustainability Assessment, CDP Climate Change Survey, UN Sustainable Development Goals, IPIECA

Third-party Assurance: ERM CVS (limited assurance on selected Scope 1 and Scope 2 GHG emissions data)

Awards & Recognition

• Texas Employer Traffic Safety Award (five years in a row)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Emissions Management
• Water Management
• Landscape Stewardship
• Health, Safety, and Environment (HSE) Culture
• Governance
• Social Value
• Diversity, Equity, and Inclusion (DEI)

Environmental Achievements

• Reduced GHG emissions intensity by 22% from 2019 baseline
• Reduced methane emissions intensity by 64% from 2019 baseline
• Annual flaring intensity of 0.54% (46% lower than 1% target)
• Recycled more than 9 million pounds of solid waste in 2022 (55% increase from 2021)
• Reduced freshwater use in completions to 23% in 2022 (well on track to reach 20% by 2026)

Social Achievements

• Provided nearly $8 million in social investments and employee-led giving
• Donated $20 million to humanitarian efforts in Ukraine
• Spent $155 million with diverse suppliers
• Achieved a 76% response rate on employee engagement survey, scoring in the top 10th percentile

Governance Achievements

• Incorporated climate risk reporting into the Sustainability Report
• Increased weighting for ESG and HSE metrics in executive compensation
• Established an internal carbon price of $50 per tonne CO2e
• Secured limited assurance on selected Scope 1 and Scope 2 GHG emissions metrics from ERM CVS

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Escalating prices on raw materials
• Increased volatility in the commodities market
• Integrating recently acquired assets
• Challenges in fully electrifying field operations due to limitations in electric transmission and generation

Mitigation Strategies

• Investing significantly to align acquired assets with operational standards
• Maintaining a strong balance sheet and financial flexibility
• Utilizing company scale and technology advancements to reduce costs
• Partnering with local utility provider to develop a long-term power delivery strategy
• Exploring and integrating new emission-focused technologies (e.g., dual-fuel fleets, electrification)

Supply Chain Management

Supplier Audits: At least once every three years

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement Commitment
• Supplier Diversity Commitment
• ESG grading in contract award process
• EcoVadis onboarding

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Shift in climate patterns

Transition Risks

• Energy and financial market volatility
• Restrictive regulatory regime
• Technology advancements accelerating energy transition
• Negative perception of the company

Opportunities

• Improved methane capture
• Increased production efficiencies and lower energy intensity
• Improved water management flexibility
• Reduced energy costs and improved reliability
• Improved product pricing
• Investment in energy transition technologies

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UN SDGs, IPIECA

Certifications: ISO 14001, ISO 45001

Third-party Assurance: ERM CVS (limited assurance on selected Scope 1 and Scope 2 GHG emissions metrics)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Pioneer's business and charitable giving align with these goals.

Awards & Recognition

• 2022 Texas Employer Traffic Safety Award
• 2023 DiversityInc Top Regional Companies list