The ConocoPhillips Board of Directors oversees our sustainable development (SD) positions and related strategic planning and risk management policies and procedures. The Board delegates certain elements of its oversight functions to one or more of its five standing committees : Executive, Audit and Finance, Human Resources and Compensation, Directors’ Affairs, and Public Policy and Sustainability. Each committee, other than the Executive Committee, convenes at least quarterly.

The Committee on Directors’ Affairs regularly evaluates the size and composition of the Board and continually assesses whether the composition appropriately relates to ConocoPhillips’ strategic needs, which change as the business environment evolves. We seek director candidates who possess the highest personal and professional ethics, integrity, and values and who are committed to representing the long-term interests of all ConocoPhillips’ stakeholders. The Committee on Directors’ Affairs considers background and diversity (including gender, ethnicity, race, national origin, and geographic background) and also seeks to ensure that the Board reflects a range of talents, ages, skills, personal attributes, and expertise — particularly in the areas of leadership and management, financial reporting, issues specific to oil- and gas-related industries, both domestic and international markets, public policy and government regulation, technology, public company board service, human capital management and environmental and sustainability matters.

Read more about our directors on our website.

The Public Policy and Sustainability Committee (PPSC) is responsible for identifying, evaluating and monitoring sustainable development and climate-related trends and risks that could affect business activities and performance. The PPSC makes recommendations to the Board and monitors compliance with the company’s policies, programs and practices regarding:

• Health, safety, security (excluding cybersecurity)
• Environmental protection
• Climate change
• Water and biodiversity
• Human rights and social issues
• Business operations in sensitive countries
• Government relations
• Political/regulatory risk management and political contributions
• Corporate philanthropy and corporate reputation

Sustainable development is a standing agenda item at PPSC meetings to discuss the SD risk management process, the implementation of our net-zero ambition and Paris-aligned emissions reduction targets, and the use of reporting and disclosure frameworks. In 2021, this included:

• SD strategic priorities
• Climate-related risk strategy, management, metrics and disclosure
• Lower 48 flaring and methane emissions
• Water risk management
• Updated Biodiversity and Water Positions
• Social risk management
• ESG trends in the financial sector
• ESG engagement strategy
• SD reporting and ratings

Issues considered by the PPSC are reported to the full Board as appropriate.

Other Board committees also address sustainability issues. The Audit and Finance Committee (AFC) oversees enterprise risk management (ERM) and cybersecurity. The AFC facilitates appropriate coordination among the Board committees to ensure that our risk management processes are in place with necessary steps taken to foster a culture of prudent decision-making throughout the company. The AFC receives annual updates on how enterprise risk is being addressed, mitigated and managed across the company, including sustainable development considerations that influence market, reputational, operational and political risks within the ERM system. The Human Resources and Compensation Committee oversees executive compensation and the performance-based components of the company’s incentive programs, including ESG metrics, targets and performance, as well as human capital management and diversity, equity and inclusion. Annual incentive programs promote achievement of strategic milestones and objectives that address stakeholder issues essential to sustaining excellence in environmental and social performance.