2023 Report Details Progress Towards Unique Appalachia First Sustainability Goals Generating Long-term Value for Shareholders, Employees, and Appalachian Region
PITTSBURGH, June 5, 2024 /PRNewswire/ -- Today, CNX Resources Corp. (NYSE:CNX) published its thirteenth annual Corporate Sustainability Report, Radical Transparency, highlighting how the Company's distinct corporate strategy and investment approach continues to deliver material results for all stakeholder groups across the Appalachian region and beyond.
"The 160-year legacy of CNX is rooted in being thoughtfully innovative, and that innovative spirit has shaped our unique Tangible, Impactful, Local ESG effort which is summarized in this report," commented CNX Chief Risk Officer Hayley Scott. "This document tells the story of our ongoing strategic journey—a journey that has clearly positioned CNX as a differentiated energy solutions company poised to once again lead an energy renaissance from right here in the heart of Appalachia."
CNX's 2023 report outlines the Company's continued dedication to transparency, innovation, environmental stewardship, and community engagement, aligning closely with the standards set forth by prominent international frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), the Sustainability Accounting Standards Board (SASB), and the Global Reporting Initiative (GRI) Standards.
Core to CNX's updated report is the Company's groundbreaking collaboration with the Commonwealth of Pennsylvania where, in partnership with Governor Josh Shapiro's Administration and the Pennsylvania Department of Environmental Protection (PADEP), the Company is deploying robust environmental monitoring and data collection of its operations in the state. By publicly disclosing the data in real-time via CNXRadicalTransparency.com, all stakeholders can access and better understand the natural gas development process and its critical role in the economy and environment.
"Through our commitment to Radical Transparency, we aim to lead the industry into a new era of responsible domestic energy development—one where facts and data prevail over speculation and ideology," Ms. Scott continued. "Through these efforts, we are proving every day that natural gas development is safe and inherently good for the communities where we are privileged to live and operate."
Key highlights from the 2023 report include:
Unmatched Environmental Protection & Improvement Efforts:
- Radical Transparency: Established a first-of-its-kind environmental monitoring, data collection, and real-time public disclosure collaboration with the Commonwealth of Pennsylvania.
- Emission Reductions:
- 30% year-over-year (YOY) decline in production segment's operational methane intensity.
- Reduced over 171,000 tons of methane CO₂e emissions since 2020.
- Joined the Appalachian Methane Initiative, further enhancing regional methane monitoring and emission mitigation efforts.
- Invested $7 million to further drive methane emissions reductions, achieving an annualized benefit of 85,000 tons of CO₂e (achieved via improvements to pneumatic devices & liquids unloading procedures).
- Pioneering Waste Methane Capture: Captured approximately 9.1 million metric tons of waste methane CO₂e, far surpassing emissions from our activities.
- Innovation and Partnerships: Expanded New Technologies segment focused on waste methane abatement efforts coupled with other proprietary technologies to vertically expand markets using ultra-low carbon intensity products.
- Responsible Water Stewardship:
- Minimized freshwater consumption by sharing produced water among peers; recycled and reused more produced water than produced via CNX operations.
- Invested over $19 million to upgrade and expand water infrastructure, further reducing water truck transport needs.
- Continued diversifying freshwater sources to lessen water resource impacts and provide community co-benefits.
Tackling Appalachia's Toughest Community & Workforce Challenges
- Community Investments:
- $5.6 million invested by CNX and the CNX Foundation in 2023 addressing region's most pressing issues.
- Contributed $15 million toward $30 million investment pledge through 2026 in local initiatives supporting underserved causes across our operating footprint.
- Supporting Regional Businesses:
- $347 million spend with local small businesses.
- $45 million paid in taxes and Impact Fees.
- Expanded The HQ at CNX with 18 new tenants using low-cost workspace at Company headquarters. Total capacity currently at 26, or 82% full.
- Workforce Development:
- Student participation in the CNX Mentorship Academy increased 35% to 85 students enrolled.
- Students represent 21 schools across five counties in southwestern Pennsylvania.
Building Upon Strong Corporate Governance & Risk Management Foundation
- Employee Empowerment:
- $176,000 median employee compensation, 178% higher than median household income in Pittsburgh region.
- "Pay for Performance" philosophy encourages business goal achievements tied to total compensation, including ESG-linked incentives.
- Safety & Risk Management:
- 41% decrease YOY in lost time incident rate.
- 29% decrease YOY in total recordable incident rate.
To view this year's report and learn more about CNX's commitment to innovation, the environment, our people, and the Appalachian region, visit: https://sustainability.cnx.com/.
Cautionary Statements
We are including the following cautionary statement in this press release to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of us. With the exception of historical matters, the matters discussed in this press release are forward-looking statements (as defined in 21E of the Securities Exchange Act of 1934 (the "Exchange Act")) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income, and capital spending. When we use the words "believe," "intend," "expect," "may," "should," "anticipate," "could," "estimate," "plan," "predict," "project," "will," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe a strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release; we disclaim any obligation to update these statements. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond our control. Specific factors that could cause future actual results to differ materially from the forward-looking statements are described in detail under the captions "Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (SEC) and any subsequent reports filed with the SEC. Those risk factors discuss, among other matters, pricing volatility or pricing decline for natural gas and NGLs; local, regional and national economic conditions and the impact they may have on our customers; the impact of events beyond our control, including a global or domestic health crisis; dependence on gathering, processing and transportation facilities and other midstream facilities owned by others; conditions in the oil and gas industry; our current long-term debt obligations, and the terms of the agreements that govern that debt; strategic determinations, including the allocation of capital and other resources to strategic opportunities; cyber-incidents targeting our systems, oil and natural gas industry systems and infrastructure, or the systems of our third-party service providers; and changes in safety, health, environmental and other regulations.
About CNX Resources
CNX Resources Corporation (NYSE:CNX) is unique. We are a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company centered in Appalachia, one of the most energy abundant regions in the world. With the benefit of a 160-year regional legacy, substantial asset base, leading core operational competencies, technology development and innovation, and astute capital allocation methodologies, we responsibly develop our resources and deploy free cash flow to create long-term per share value for our shareholders, employees, and the communities where we operate. As of December 31, 2023, CNX had 8.74 trillion cubic feet equivalent of proved natural gas reserves. The company is a member of the Standard & Poor's Midcap 400 Index. Additional information is available at www.cnx.com.
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SOURCE CNX Resources Corporation