Sustainability Reporting Standards | Hess Corporation
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Approach to Reporting

approach-to-reporting

In our 2020 Sustainability Report, we provide descriptions of Hess’ strategy and 2020 performance regarding material economic, social and environmental issues. Our annual report, U.S. Securities and Exchange Commission Form 10-K filing and proxy statement detail our financial and governance information and can be found on our website. Additional sustainability and investor information is available at hess.com/investors.


Reporting Standards


This report was prepared in accordance with the Core option of the Global Reporting Initiative (GRI) Standards.

Our reporting is also informed by:


  • The Sustainability Reporting Guidance for the Oil and Gas Industry, which was jointly developed by IPIECA (the global oil and gas industry organization for environmental and social issues), the American Petroleum Institute and the International Association of Oil & Gas Producers
  • The United Nations (U.N.) Global Compact’s Ten Principles
  • Recommendations from the Task Force on Climate-Related Financial Disclosures
  • Oil and gas industry metrics from the Sustainability Accounting Standards Board (SASB)
  • Key external environmental, social and governance ratings and scorecards

An index of GRI, IPIECA, SASB and U.N. Global Compact reporting indicators is available at hess.com/sustainability/sustainability-reports/gri-index.


Materiality


We determined the content for this report by applying the GRI’s reporting principles; for example, we considered our operations and performance in the wider context of sustainability issues as well as ensured stakeholder inclusiveness and completeness of information. Consistent with the GRI Standards’ materiality guidance, we identified and prioritized new and emerging issues important to our stakeholders. Engagement with our stakeholders – which include employees, suppliers, customers, communities, shareholders, government bodies, nongovernmental organizations, industry peers and academics – enables us to strengthen our license to operate and brings increased focus to our transparency goals.


In 2020, we completed an updated materiality assessment, facilitated by third party experts, to help us prioritize the key sustainability topics most relevant to our company. The assessment was consistent with approaches and guidance provided by leading standards bodies, including GRI, IPIECA and the International Organization for Standardization; it also considered the SASB materiality profile for the oil and gas industry as an additional reference point.


The prioritization process helped us to determine the top eight material issues, which were then used to develop focused initiatives aimed at driving continuous improvement in our environment, health, safety and social responsibility (EHS & SR) strategy for the next five years. The materiality assessment and strategy development effort is described more fully in the Strategy and Progress section (see pages 10–11 of our 2020 Sustainability Report). While these eight topics will be the focus of our strategic sustainability actions through 2025, many of the other relevant topics included in our materiality assessment are still important to our stakeholders and our company and will continue to be addressed in our business processes and external reporting.


Based on the materiality assessment, the eight most material sustainability issues for our company are as follows:


  • Climate Related Risk and Greenhouse Gas (GHG) Emissions
  • Community and Stakeholder Engagement
  • Diversity, Equity and Inclusion
  • Emergency Preparedness and Response
  • Occupational Health and Safety
  • Process Safety and Release Prevention
  • Supply Chain and Contractor Management
  • Water Management

These material issues have not only informed our forward looking EHS & SR strategy, but have also helped to define the boundaries of this report. As has been our practice, we plan to continue annual, document based assessments of key stakeholder perspectives and Hess’ operational and regulatory risks to validate our top material issues for our sustainability reporting and strategy. See reporting boundaries for each of these issues at hess.com/sustainability/approach-to-reporting/boundaries-for-material-issues.


Boundary Setting


Included within the scope of this report are the facilities and assets operated by Hess Corporation and our subsidiaries during calendar year 2020, unless otherwise indicated. Data presented are gross figures from operated facilities, unless specified otherwise.


We report GHG emissions on both an operated and equity share basis in accordance with the GRI G4 Oil and Gas Sector Supplement and the IPIECA Sustainability Reporting Guidance for the Oil and Gas Industry (4th edition, 2020), Module 3: Climate Change and Energy, as well as IPIECA’s 2016 report Estimating Petroleum Industry Value Chain (Scope 3) Greenhouse Gas Emissions. We report social investments for our operated assets, joint ventures and nonoperated facilities in which we hold a significant interest. Our workforce metrics include data for contractors whose hours we track. See our expanded performance data at hess.com/sustainability/performance-data/key-sustainability-metrics.


Restatements


We believe our approach to restating data complies with the GRI Standards’ principle of comparability and specific disclosure regarding restatements of information, as well as IPIECA guidance. For GHG emissions, in cases of acquisitions and divestitures and other source ownership and control changes, we adjust our base year emissions if the change exceeds 10% of the original base year emissions total. The exact timing of the adjustment depends on several factors, as described in the Hess GHG Inventory Protocol. We also review and adjust targets included as part of our annual incentive plan formula to account for divestitures as needed. In 2017 and 2018, this included restating our targets and associated annual metrics for severe safety and environmental incident rates to account for the Permian, Equatorial Guinea and Utica divestitures.


Access the Hess GHG Inventory Protocol at hess.com/sustainability/climate-change-energy.


Internal Quality Assurance


Our internal information systems promote the centralized collection of data from Hess operated and joint venture assets around the world. In order to evaluate accuracy and reliability, we conduct quality assurance/quality control reviews and validation of both aggregated and facility level data. Individual numbers in the charts, tables and text may not precisely sum to the total amounts shown due to rounding. All currency references in the report are in U.S. dollars.


External Assurance


This report, including our sustainability data and self declared GRI “in accordance” status, was assured by ERM Certification and Verification Services (see page 64 of our 2020 Sustainability Report). This external review helps to ensure consistent and objective data collection and reporting of our sustainability performance.


In addition to providing assurance in relation to our sustainability report, ERM Certification and Verification Services also conducts a separate verification of the GHG emissions data provided in the report and in our CDP Climate Change response.