ESG REPORT
Engaging Stakeholders
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:
|
|
|
Service Providers |
Ongoing:
|
|
|
Landowners/Royalty Owners/Joint Interest Owners |
24/7 communication:
As needed or requested:
|
|
|
Residents Near Operations |
24/7 communication:
As needed or requested:
Ongoing:
|
|
|
Emergency Service Professionals |
As needed or requested:
|
|
|
Elected Officials/Regulators |
Ongoing:
As needed or requested:
|
|
|
Investors/Capital Providers |
At least once each quarter:
Annually:
From time to time, as needed:
Ongoing:
|
|
|
Industry/Trade Associations |
Ongoing:
|
|
|
Non-Governmental Organizations (NGOs)/Charities |
As needed or requested:
|
|
|
News Media/Industry Analysts |
As needed or requested:
|
|
Strategic Materiality Assessment
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
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
Matrix
Click on EQT’s material topics to learn more.
Click on EQT’s material topics to learn more.
MATERIAL TOPICS
Air Quality
Managing and minimizing non-GHG air emissions (volatile organic compounds, nitrogen oxides, etc.) across EQT’s value chain.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
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
Using land management systems and practices that protect soil quality, biodiversity, forests, animal welfare and habitats, including during reclamation and decommissioning.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
Internal:
- Site design
- Development
- Operations
- Decommissioning
External:
- Landowners
- Local communities
- Appalachian Basin flora and fauna
- Local, state and federal governments
Climate and GHG Emissions
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.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
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
Preventing spills and leakages into the environment and managing them when they occur, with particular attention paid to harmful substances.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
Internal:
- Drilling
- Completions
External:
- Water hauling (contractors)
- Local communities
- Appalachian Basin flora and fauna
Water
Minimizing water use and increasing use of recycled water to protect local water sources while preserving water quality through sound wastewater management practices.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
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
Click on EQT’s material topics to learn more.
MATERIAL TOPICS
Ethics and Integrity
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.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
Internal:
- All employees
External:
- Business partners
- Local, state and federal governments
Public Policy and Perception
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.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
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
Creating long-term value for investors and society by providing access to affordable and reliable domestic energy.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
Internal:
- Operations
External:
- Natural gas users (industrial, commercial, residential)
- Investors
- Domestic and international economies
Technological Innovation
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.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
Internal:
- All employees
External:
- Appalachian Basin flora and fauna
- Local communities
- Contractors
Click on EQT’s material topics to learn more.
MATERIAL TOPICS
Community Impacts and Safety
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.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
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
Maintaining positive, trusted relationships with landowners through engagement, open communication and maintaining timely reporting channels.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
Internal:
- Owner Relations team
External:
- Landowners
- Local communities
Occupational Health and Safety
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.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
Internal:
- All employees (especially field operations)
External:
- Contractors
Talent Attraction and Retention
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.
VIEW MATERIAL TOPIC
IMPACT BOUNDARIES
Internal:
- All employees
External:
- Local labor markets
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.
