Sustainability Strategy and Governance
Sustainability at Crestwood means operating ethically, maintaining a strong safety culture, being socially responsible, supporting our communities, protecting the environment and developing our employees. As we continue our sustainability journey, we remain focused on integrating sustainability across our business to enhance our operations and integrate ESG through best practices in the midstream sector.
While we have always had ESG ingrained in our values, Crestwood’s ESG journey began in earnest in September 2018, which included establishing a Board committee and dedicated ESG function. We also undertook a rigorous assessment of the sustainability topics and metrics that are material to our stakeholders and our business. The results of this initial exercise provided a solid foundation for the past three years, guiding our ESG strategy, performance and progress.
We closely monitor our performance and ESG risks to drive continuous improvement. In 2021, we conducted a full materiality refresh, an exercise to objectively gather feedback on issues material to Crestwood’s business. Both internal and external stakeholders participated in the month-long exercise.
Our 14 material issues reflect the internal and external evolving ESG dynamics Crestwood continues to navigate, including capturing emerging risks and identifying opportunities. The materiality refresh guided us through our ESG strategy development which includes our goal and target setting. To learn more, visit our Materiality Assessment page.
When we initiated our sustainability program in 2018, we began with a three-year strategy with a targeted focus on the following:
- Supply Chain Management
- Environmental, Social and Governance (ESG) Investor Strategy & Disclosure
- Environmental Stewardship: Climate Change and Biodiversity
- Diversity and Inclusion
- Social Investment
We are proud to share our achievements in each of these areas over the last three years.
Incorporating lessons learned from our previous three-year strategy and using the results of our second materiality assessment as guidance, we have developed our sustainability strategy for 2022–2024. Crestwood’s enhanced sustainability strategy aligns with our business goals and stakeholder expectations, continually driving strategic performance. Integrating sustainability and ESG performance across our business is foundational to our success as a best-in-class MLP midstream company.
Governance and oversight of sustainability are fundamental to the success of our sustainability strategy, disclosures and performance. See below for how we distribute roles and responsibilities to drive continuous improvement.
Our commitment to advancing sustainability within the company is linked to employee and executive compensation and its associated key performance indicators. In 2022, achieving key safety metrics comprises 20 percent of employee compensation and meeting key sustainability metrics, including diversity and inclusion, social investment and our methane emissions intensity reduction and leak detection and repair target comprises 10 percent of our employee compensation.