About EQT and This Report
Stakeholder Engagement
and Materiality

Engaging Stakeholders

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List of stakeholder groups

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Identifying and selecting stakeholders

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Approach to stakeholder engagement

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Key topics and concerns raised

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Our mission is to “Realize the full potential of EQT to become the operator of choice for all stakeholders.” By stakeholders, we mean those most interested in, and affected by, our operations — employees, contractors, service providers, landowners, residents of communities near our operations, emergency service professionals, elected officials and regulators, and investors and capital providers, among others.

Stakeholders provide us with valuable feedback from a variety of perspectives. We monitor stakeholder interests specific to us and to the broader natural gas industry, and actively engage with stakeholders as part of our effort to continuously improve.

We believe in maintaining an open and honest dialogue with our stakeholders and, in 2019, renewed our commitment to stakeholder engagement. We provide numerous avenues for our stakeholders to engage with us. Based on our experience and ongoing connections with stakeholders, we have developed specific methods of response designed to meet our stakeholders’ diverse expectations and engagement preferences.

Many of our stakeholders share similar, broad-based concerns about the natural gas industry overall; however, select individual groups may have specific concerns. Our integrated engagement strategies for each stakeholder group are outlined below, with corresponding information about each group’s key concerns. We provide links to our management approach and performance for each topic covered in this report.

For the purposes of this report, we define our workers as follows:

  • Employees: Full-time and part-time employees of EQT.
  • Contract Workers: Temporary workers assigned to fill a role or complete a specific project.
  • Service Providers: Third-party or outsourced providers hired to perform specialized services for EQT.
Stakeholder Engagement Approaches

 Stakeholder

Engagement Approaches

Key Topics and Concerns

Employees

Ongoing:

  • Print and electronic communications
  • Employee staff meetings
  • Employee town halls
  • Digital Work Environment (Salesforce)
  • Lunch and learn seminars
  • Volunteer activities
  • Surveys
  • Compliance Network
  • Ethics HelpLine

Service Providers

Ongoing:

  • Websites
  • Request-for-proposal process
  • Training sessions
  • Safety meetings
  • Trade shows
  • Diversity initiatives

Landowners/Royalty Owners/Joint Interest Owners

24/7 communication:

  • Owner Relations hotline (844-EQT-LAND or OwnerRelations@eqt.com)
  • Owner Relations web page
  • Online owner relations portals for account access

As needed or requested:

  • In-person meetings
  • Letters
  • Access to company landmen or land agents
  • Town halls
  • Public meetings

Residents Near Operations

24/7 communication:

As needed or requested:

  • In-person meetings with EQT Local Government and Community Affairs Specialists
  • Weekly operation updates to townships
  • Facility and rig tours
  • Community meetings
  • Surveys
  • Public safety communications

Ongoing:

  • Community relationship building
  • Local natural gas task force involvement at the county level
  • Philanthropic giving programs
  • Presentations to local organizations
  • Sponsorships
  • Advertising

Emergency Service Professionals

As needed or requested:

  • In-person meetings
  • Public meetings
  • Safety outreach
  • Local donations

Elected Officials/Regulators

 

Ongoing:

  • Weekly drilling and completion activity location updates
  • Policy discussions
  • Meetings with national and state regulators, local municipal leaders and lobbyists
  • Attending and/or participating in township meetings

As needed or requested:

  • In-person meetings
 

Investors/Capital Providers

 

At least once each quarter:

  • Earnings releases
  • Securities and Exchange Commission filings
  • Investor teleconferences and the related replays and transcripts

Annually:

  • Proxy statement
  • Shareholder meeting

From time to time, as needed:

  • Meetings with investors, banks and insurance companies regarding stakeholder relations, governance and compensation
  • Investor conferences, meetings and calls
  • Responses to inquiries submitted to the Corporate Secretary of EQT via the contact listed on our Investor Relations website

Ongoing:

  • Routine updates, presentation postings and news releases to our Investor Relations websites
 

Industry/Trade Associations

 

Ongoing:

  • Chamber of Commerce memberships
  • Membership in trade associations
  • Participation in association leadership
 

Non-Governmental Organizations (NGOs)/Charities

 

As needed or requested:

  • Project partnerships
  • Reporting on environmental, economic and social topics
  • Philanthropic giving
  • Environmental assessments
  • In-person meetings
 

News Media/Industry Analysts

 

As needed or requested:

  • News releases
  • Media statements
  • Website-based Newsroom
  • Phone calls
  • Email correspondence
  • In-person meetings
  • Interviews
  • Speaking engagements by executives and senior managers
 

Strategic Materiality Assessment

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Defining report content and topic Boundaries

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We have undergone a significant transformation since the completion of our previous materiality assessment in early 2017. Since that time, we have (i) acquired Rice Energy Inc., making us the largest domestic natural gas producer, (ii) spun-off our former midstream business into Equitrans Midstream Corporation, a standalone publicly traded corporation, and (iii) undergone a substantial reconstitution of our Board of Directors and senior leadership in July 2019. In addition, along with much of the upstream industry, we have transitioned to a “value over volumes” approach, resulting in a flattening of production volumes as compared to the significant volumes growth environment prior to 2018.

Furthermore, our new leadership has established a corporate strategy that places a significant focus on technological and human capital in order to support our operational strategy of pursuing combo-development. In recognition of this significant change, in early 2020, we undertook a strategic materiality assessment to analyze the environmental, social and governance (ESG) topics most important to our operations, internal and external stakeholders, and new management.

Coordinated by Environmental Resources Management (ERM), a leading sustainability consulting firm, this comprehensive process followed the Global Reporting Initiative’s materiality process of Identification, Prioritization and Validation.

Identification:

  • Reflecting EQT’s focus on technological innovation and process efficiencies, ERM used an artificial intelligence software provider, Datamaran, to identify the universe of potentially relevant environmental, social and economic topics applicable to our industry.
  • ERM refined this initial list through an interactive value chain impact mapping exercise with 12 EQT subject matter experts representing a cross-section of our business functions, allowing us to define the boundary for each topic.

Prioritization:

  • Interviews with our management team, two members of our Board of Directors and representatives from a key industry association provided evidence of impacts, risks and opportunities.
  • Analysis of written internal and external sources supplemented stakeholder interviews to provide additional evidence of priorities for key stakeholders.
  • Datamaran’s benchmarking, regulation, news flow and social media modules analyzed thousands of additional inputs to add to our analysis.

Validation:

  • Our management team validated the results during a three-hour interactive workshop.

Material Topics

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List of material topics

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We proudly cover our material topics in this report, and are using the findings to inform our organizational strategy and management approaches. We did not use the U.S. Securities and Exchange Commission’s concept of materiality within the context of this report. The infographic below displays the results of our 2020 materiality assessment.

Materiality Matrix1
Environmental
Governance
Social
Air Quality
Biodiversity and Land Impacts
Climate and GHG Emissions
Energy
Spills
Waste
Water
Corporate Governance
Cybersecurity and Data Privacy
Ethics and Integrity
Procurement and Supply Chain Practices
Public Policy and Perception
Shareholder Relations
Sustainable Value Creation
Technological Innovation
Community Impacts and Safety
Political and Natural Disasters
Customer Responsibility
Human Rights
Landowner Relations
Stakeholder Inclusion
Diversity and Inclusion
Employee Development
Labor Practices
Occupational Health and Safety
Talent Attraction and Retention
Volunteering and Philanthropy
Importance to EQT
Significance to Our Stakeholders
Materiality
Matrix
Click on EQT’s material topics to learn more.
Click on EQT’s material topics to learn more.
Click on EQT’s material topics to learn more.
Click on EQT’s material topics to learn more.

Environmental

Air Quality

Definition / Boundary
Managing and minimizing non-GHG air emissions (volatile organic compounds, nitrogen oxides, etc.) across EQT’s value chain.
 
Primary Stakeholders Impacted
Internal:
  • Permitting
  • Completions turbines
  • Compressor stations
  • Sites
  • Drilling sites
External:
  • Water hauling (contractors)
  • Landowners
  • Local communities
  • Appalachian Basin flora and fauna
  • Local, state and federal governments

Biodiversity and Land Impacts

Definition / Boundary
Using land management systems and practices that protect soil quality, biodiversity, forests, animal welfare and habitats, including during reclamation and decommissioning.
 
Primary Stakeholders Impacted
Internal:
  • Site design
  • Development
  • Operations
  • Decommissioning
External:
  • Landowners
  • Local communities
  • Appalachian Basin flora and fauna
  • Local, state and federal governments

Climate and GHG Emissions

Definition / Boundary
Addressing and mitigating current and potential climate change impacts on EQT’s operations, including regulations on GHG emissions and emission trading, the increasing market demand for renewable energy sources and EQT’s own GHG emissions.
 
Primary Stakeholders Impacted
Internal:
  • Drilling
  • Completions
  • Production
  • Gas field service
  • Transportation
  • Environmental, Health and Safety (EHS)
External:
  • Midstream
  • End users
  • Environment
  • Local communities
  • Global populations
  • Local, state and federal governments
  • Emissions trading markets

Spills

Definition / Boundary
Preventing spills and leakages into the environment and managing them when they occur, with particular attention paid to harmful substances.
 
Primary Stakeholders Impacted
Internal:
  • Drilling
  • Completions
External:
  • Water hauling (contractors)
  • Local communities
  • Appalachian Basin flora and fauna

Water

Definition / Boundary
Minimizing water use and increasing use of recycled water to protect local water sources while preserving water quality through sound wastewater management practices.
 
Primary Stakeholders Impacted
Internal:
  • Drilling
  • Completions
  • Production
  • EHS
External:
  • Appalachian Basin watersheds (Pennsylvania, West Virginia, Ohio)
  • Landowners
  • Local communities
  • Commercial disposal facilities (Ohio)
  • Local, state and federal governments

Governance

Ethics and Integrity

Definition / Boundary
Ensuring that we preserve our integrity and credibility with our stakeholders by promoting ethical business behavior throughout the value chain, preventing corruption and favoritism, providing mechanisms for stakeholders to report on concerns, and operating in accordance with our values — Trust, Teamwork, Heart and Evolution.
 
Primary Stakeholders Impacted
Internal:
  • All employees
External:
  • Business partners
  • Local, state and federal governments

Public Policy and Perception

Definition / Boundary
Thoughtfully engaging in political activity, providing corporate contributions to political candidates and organizations, and contributing to public policy and dialogue that supports the responsible development of natural gas as a resource for addressing domestic and global energy demands and as a tool for enhancing social equity.
 
Primary Stakeholders Impacted
Internal:
  • Executive team
  • Public Relations team
  • Public Policy and Corporate Responsibility Committee
External:
  • Local, state and federal officials
  • Industry/trade associations
  • Landowners
  • Local communities
  • U.S. residents

Sustainable Value Creation

Definition / Boundary
Creating long-term value for investors and society by providing access to affordable and reliable domestic energy.
 
Primary Stakeholders Impacted
Internal:
  • Operations
External:
  • Natural gas users (industrial, commercial, residential)
  • Investors
  • Domestic and international economies

Technological Innovation

Definition / Boundary
Exploring and implementing technologies and innovative processes to reduce costs, improve safety and environmental performance, enable a digital workplace and support EQT’s business strategy.
 
Primary Stakeholders Impacted
Internal:
  • All employees
External:
  • Appalachian Basin flora and fauna
  • Local communities
  • Contractors

Social

Community Impacts and Safety

Definition / Boundary
Managing positive and negative impacts on and relations with the communities in which EQT operates, including traffic and impacts on roads; noise pollution; indirect local economic impacts; public safety and emergency planning; and other specific community concerns. Also includes EQT’s financial, educational and other community support.
 
Primary Stakeholders Impacted
Internal:
  • Site design and construction
  • Marcellus and Utica operations
  • Decommissioning
  • EQT Foundation
External:
  • Water hauling (contractors)
  • Landowners
  • Local communities
  • Local, state and federal governments
  • State and local first responders
  • Law enforcement
  • Suppliers
  • NGOs/charities

Landowner Relations

Definition / Boundary
Maintaining positive, trusted relationships with landowners through engagement, open communication and maintaining timely reporting channels.
 
Primary Stakeholders Impacted
Internal:
  • Owner Relations team
External:
  • Landowners
  • Local communities

Occupational Health and Safety

Definition / Boundary
Ensuring the safety and well-being of all workers by maintaining safe working conditions, supplying personal protective equipment and providing resources to maintain and improve physical and emotional health.
 
Primary Stakeholders Impacted
Internal:
  • All employees (especially field operations)
External:
  • Contractors

Talent Attraction and Retention

Definition / Boundary
Attracting workers with valuable skills, including local talent, and developing strategies for retaining and engaging employees by providing professional development opportunities and technology-enabled work tools, promoting diversity and inclusion, and ensuring workforce changes are communicated effectively.
 
Primary Stakeholders Impacted
Internal:
  • All employees
External:
  • Local labor markets
 

1 “Impact Boundary” refers to potential items that may be impacted by a material topic, and EQT’s involvement in such impacts.

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