Risk management is by nature multifaceted, and the Board’s approach to risk oversight recognizes this reality. While it is a control and compliance function, it is a strategic consideration in normal business decisions, including key areas such as operations, finance, security, cybersecurity, safety, health, and the environment.
The Board of Directors works through its Committees to oversee important functions of the business and evaluate risk as needed. The five Board Committees include the following:
To further enhance oversight and implementation of Range’s ESG goals, the Board established the ESG and Safety Committee in May 2021. This Committee is focused on providing strategic oversight of Range’s ESG initiatives and works closely with our Management Team to evaluate and monitor key social, regulatory, and environmental trends and issues.
The ESG and Safety Committee oversees the integration of relevant ESG considerations, including climate-related opportunities and risks in addition to the development and approval of Range’s business plans, strategy, and risk management policies. Over the past year, the ESG and Safety Committee has provided feedback regarding the risks and opportunities in achieving the Company’s goal of net zero GHG emissions (Scope 1 and Scope 2) by 2025, efforts to further our workforce diversity, and the Company’s charitable giving programs.
Complementing the work of the ESG and Safety Committee, the Compensation Committee works to align management incentives with our ESG goals. Emissions intensity performance targets continue to remain part of the Long-Term Incentive Program for certain senior executives to further drive our environmental strategy and more closely align executive compensation with this plan since they were introduced in 2021. Further, the Compensation Committee includes health, safety, and environmental performance within the discretionary portion of the Annual Cash Incentive plan, which is currently weighted at 25 percent.
Our leadership team and employees recognize our responsibility to meet our commercial and financial goals while demonstrating strong performance on ESG metrics that are key to our business. This recognition guides us to:
While the Board and its Committees oversee the Company’s risk management strategy, our Senior Management Team is responsible for managing risk on a day-to-day basis. We have a robust enterprise risk management process for identifying, assessing, and managing risk, while monitoring risk mitigation strategies. One way we work to manage risk is through a committee of officers and senior managers that work with our Principal Accounting Officer to identify and evaluate enterprise-level risk and to monitor emerging risks.
Climate change opportunities and risks are by nature interdisciplinary, and to that end, our Senior Management Team provides strategic direction regarding those opportunities and risks as well as oversight of emissions reduction efforts throughout the Company.
Various teams and departments throughout the Company are responsible for monitoring and managing climate-related opportunities and risks and report directly to or are led by members of the Senior Management Team. Our Legal and Government Affairs Departments monitor regulatory action and political activity and report quarterly to the Board. Our Finance Department and Marketing Departments assess the impact of different climate change scenarios when reviewing macroeconomic trends and projections that affect our industry.
The Company’s Environmental Compliance (EC) Department is responsible for the oversight and implementation of our Environmental Compliance policy, which is focused on environmental rules and regulations and the Company’s commitment to advancing our environmental goals through implementing best practices. The Department’s functions include advising operational teams, with specific focuses on developing policies, inspecting regulated activities, and confirming compliance with laws, rules, and policies, including data management and regulatory reporting. The EC Department also develops and maintains plans, procedures, and field guides. The Department reports to our CEO through Range’s General Counsel and provides quarterly updates to the ESG & Safety Committee on our environmental initiatives including our GHG emissions and progress towards emissions reduction goals.
Our Safety Department is responsible for overseeing and supporting the implementation of our Safety Policy, which includes Range’s workforce and community health and safety management systems. The Department’s functions include site and facility visits to monitor compliance with all applicable laws and regulations, monitoring of safety performance data, training and education of our employees, incident investigation and mitigation, identifying continuous safety improvement opportunities, and contractor safety management.
Safety Department representatives routinely engage with Range’s Senior Management Team and employees to assist in the development and implementation of processes and procedures that are designed to identify and mitigate risks and hazards in the workplace. The Department reports to our CEO and provides regular updates to the ESG & Safety Committee.
