We have incentivized pursuit of these goals through the compensation structure for all employees, which incorporates EHS performance targets including TRIR, spill volumes and GHG emissions (including targets for CO2e and methane emissions). In early 2022, we developed an operations EHS Dashboard that provides nearly real-time tracking of SM Energy’s safety and environmental performance and is available to all employees and regularly reported to the Board of Directors. ESG performance metrics for emissions, safety and spills also factor into SM Energy’s performance-based long-term incentive compensation grants made to the executive team and qualifying employees.
As part of our commitment to environmental stewardship, SM Energy is a leader in transparency of information and disclosure. In 2020, SM Energy initiated participation in the Carbon Disclosure Project (CDP) and in the publication of Sustainability Accounting Standards Board (SASB) metrics for oil and gas exploration and production companies. In 2021, we added disclosure in the Task Force on Climate-Related Financial Disclosures (TCFD) framework. In addition, SM Energy continues to participate in the improvement and benchmarking efforts of the American Exploration and Production Council (AXPC) whose membership is comprised of 34 of America’s premier independent natural gas and oil exploration companies. SM Energy is also a member of the American Petroleum Institute (API) Environmental Partnership.