GRI Indicator
102-5
Disclosure Title
Ownership and legal form
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
4
GRI Indicator
102-1
Disclosure Title
Name of the organization
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
0
GRI Indicator
102-3
Disclosure Title
Location of headquarters
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
2
GRI Indicator
102-4
Disclosure Title
Location of operations
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
3
GRI Indicator
102-6
Disclosure Title
Markets served
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
5
GRI Indicator
102-7
Disclosure Title
Scale of the organization
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
6
GRI Indicator
102-2
Disclosure Title
Activities, brands, products and services
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
Our products — oil and natural gas and some of their derivatives, including propane — are traded globally, and none are banned. We monitor stakeholder questions and public debate about our industry’s products on an ongoing basis. Issues that are important to our stakeholders are confirmed through our annual materiality reviews and included within the scope of our sustainability reporting. For more information on how we assess and respond to stakeholder questions and key material issues, please see the Stakeholder engagement (pages 18–20) and Materiality (page 5) sections of our 2017 SR.
1
GRI Indicator
102-8
Disclosure Title
Information on employees and other workers
GRI Status
UNGC Principle(s)
3, 10
IPIECA Indicator(s)
Comments
7
GRI Indicator
102-9
Disclosure Title
Supply chain
GRI Status
UNGC Principle(s)
3, 10
IPIECA Indicator(s)
8
GRI Indicator
102-10
Disclosure Title
Significant changes to the organization and its supply chain
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
9
GRI Indicator
102-11
Disclosure Title
Precautionary principle or approach
Reference
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
In keeping with a precautionary approach, we evaluate identified risks and develop and implement mitigation plans as part of our enterprise risk management and new country entry processes. We also use environmental and social screening tools and conduct environmental and social impact assessments for major new projects.
10
GRI Indicator
102-12
Disclosure Title
External initiatives
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
11
GRI Indicator
102-13
Disclosure Title
Membership of associations
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
Our memberships in industry and business associations further our knowledge, understanding and ability to address issues that impact our business. These memberships enable us to benchmark and share best practices with sector peers, contribute to guidance documents on environmental and social issues and access tools to manage those issues.
To understand trends in regional markets, we belong to regional industry and business associations, local chambers of commerce, building associations and state petroleum and gas associations.
12
GRI Indicator
102-14
Disclosure Title
Statement from senior decision-maker
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
13
GRI Indicator
102-15
Disclosure Title
Key impacts, risks and opportunities
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
14
GRI Indicator
102-16
Disclosure Title
Values, principles, standards and norms of behavior
GRI Status
UNGC Principle(s)
10
IPIECA Indicator(s)
Comments
15
GRI Indicator
102-17
Disclosure Title
Mechanisms for advice and concerns about ethics
GRI Status
UNGC Principle(s)
10
IPIECA Indicator(s)
Comments
See pages 6 and 7 of our Code of Business Conduct and Ethics.
16
GRI Indicator
102-18
Disclosure Title
Governance structure
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
The Board of Directors of Hess Corporation is responsible for oversight of the business and affairs of the company in the best interest of our stockholders, with due regard to our customers, the communities in which we operate and our employees. Based on the recommendation of the Board’s Corporate Governance and Nominating Committee, the Board has developed and adopted a set of corporate governance principles to provide guidance to the Board and management in carrying out these responsibilities, to promote the effective functioning of the Board and its committees and to set forth a common set of expectations as to how the Board should perform its functions.
The Board has three principal committees: the Audit Committee, the Compensation and Management Development Committee and the Corporate Governance and Nominating Committee. Each committee has a written charter that sets forth its purpose and responsibilities. Under the Audit Committee, there is an Environment, Health and Safety (EHS) subcommittee that focuses on these matters. Additional information on the Board, its charters, requirements for Related Party Transactions and contact information is available at
hess.com/investors.
17
GRI Indicator
102-19
Disclosure Title
Delegating authority
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
18
GRI Indicator
102-20
Disclosure Title
Executive-level responsibility for economic, environmental and social topics
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
19
GRI Indicator
102-21
Disclosure Title
Consulting stakeholders on economic, environmental and social topics
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
See our 2018 Proxy Statement – Form DEF 14A for a description of the Stockholder and Interested Party Communications process (page 9).
20
GRI Indicator
102-22
Disclosure Title
Composition of the highest governance body and its committees
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
See also the description in 405-1.
21
GRI Indicator
102-23
Disclosure Title
Chair of the highest governance body
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
The Chairman of the Board, Mr. James H. Quigley, is an independent, nonexecutive director. Refer to page 8 of the 2018 Proxy Statement – Form DEF 14A.
22
GRI Indicator
102-24
Disclosure Title
Nominating and selecting the highest governance body
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
23
GRI Indicator
102-25
Disclosure Title
Conflicts of interest
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
Hess’ Global Compliance team oversees a worldwide compliance program for the company. The centerpiece of this program is the expectation set forth in the Hess Code of Business Conduct and Ethics, which applies to every company director, officer and employee. The purpose of the Code is to advise individuals of their obligations to comply with applicable law, as well as the fundamental principles of business ethics to which they must adhere, such as avoidance of conflicts of interests or misuse of corporate opportunities and confidential information.
A discussion of processes in place for the highest governance body to ensure conflicts of interest are avoided is included in the Related Party Transactions section of the 2018 Proxy Statement – Form DEF 14A, page 9.
24
GRI Indicator
102-26
Disclosure Title
Role of highest governance body in setting purpose, values and strategy
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
The Audit Committee of the Board of Directors has oversight responsibility for the integrity of the company’s financial statements, financial reporting practices, systems of internal accounting, financial and disclosure controls, internal audit function, retention and oversight of independent auditors and compliance with legal and regulatory requirements. The Audit Committee also provides oversight and makes recommendations to the full Board with respect to Hess Corporation’s policies, positions and systems for environment, health, safety and social responsibility (EHS & SR), compliance and risk management. Under the Audit Committee is the EHS Subcommittee, which focuses on these areas.
The company has developed an enterprise risk program, which includes consideration of EHS & SR risks, to strengthen the consistency of risk consideration in making business decisions. The full Board has oversight of Hess’ risk management policies with an emphasis on understanding the key enterprise risks affecting the company’s business and the ways in which the company attempts to prudently mitigate such risks. The Chief Risk Officer reviews the enterprise risk program with the Board annually.
See page p. 11 of our 2017 SR for a general description of our governance related to EHS & SR issues and page 12 for our approach to enterprise risk management.
25
GRI Indicator
102-27
Disclosure Title
Collective knowledge of highest governance body
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
See also the description in 102-26 above.
26
GRI Indicator
102-28
Disclosure Title
Evaluating the highest governance body’s performance
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
27
GRI Indicator
102-29
Disclosure Title
Identifying and managing economic, environmental and social impacts
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
See also the description in 102-26 above.
28
GRI Indicator
102-30
Disclosure Title
Effectiveness of risk management processes
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
See also the description in 102-26 above.
29
GRI Indicator
102-31
Disclosure Title
Review of economic, environmental and social topics
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
The EHS Subcommittee of the Board of Directors’ Audit Committee met four times in 2017. The full Board of Directors met nine times in 2017.
30
GRI Indicator
102-32
Disclosure Title
Highest governance body’s role in sustainability reporting
Reference
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
Hess’ sustainability report is reviewed by the EHS Subcommittee of the Board of Directors, as well as by our Chief Executive Officer.
31
GRI Indicator
102-33
Disclosure Title
Communicating critical concerns
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
See our 2018 Proxy Statement – Form DEF 14A for a description of the Stockholder and Interested Party Communications process (page 9).
32
GRI Indicator
102-35
Disclosure Title
Remuneration policies
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
Linkage between compensation for members of the highest governance body and the organization’s performance is stated in the Hess Corporation Compensation and Management Development Committee Charter.
Discussion of the linkage between compensation for members of the highest governance body, senior managers and executives and the organization’s performance is also included in the annual Proxy Statement – Form DEF 14A, as follows:
• Director compensation: page 19
• CEO and other Named Executive Officer (NEO) compensation process and results: pages 21–47
• Changes in payout philosophy and actions taken in response to stockholder outreach: page 25
• Compensation principles (including “Safety and Sustainability”): pages 26–30
• Cash bonus plan for EHS metrics: pages 27-29
• EHS metrics components and percent of 2017 bonus for each NEO: page 27-29.
34
GRI Indicator
102-36
Disclosure Title
Process for determining remuneration
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
The roles and responsibilities of the Board of Directors’ Compensation and Management Development Committee are described on page 10 of our 2018 Proxy Statement – Form DEF 14A. Our key compensation practices, including the use of compensation consultants, are listed on pages 20–36. See page 33 for a description of our process for determining compensation and the role of compensation consultants.
35
GRI Indicator
102-37
Disclosure Title
Stakeholders’ involvement in remuneration
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
See our 2018 Proxy Statement –Form DEF 14A for a description of the Stockholder and Interested Party Communications process (page 9).
36
GRI Indicator
102-40
Disclosure Title
List of stakeholder groups
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
39
GRI Indicator
102-41
Disclosure Title
Collective bargaining agreements
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
At year-end 2017 less than 3 percent of employees were represented by collective bargaining agreements.
40
GRI Indicator
102-42
Disclosure Title
Identifying and selecting stakeholders
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
We identify stakeholders in a number of ways, including through our enterprise risk management process and associated risk heat map. Additionally, we review business plans function-by-function to identify material issues for our industry and determine how they relate to our stakeholders’ (e.g., land owners, nongovernmental agencies, industry peers, contractors etc.) potential concerns. These exercises result in expanded stakeholder plans and targeted stakeholder groups for Hess representatives to engage.
41
GRI Indicator
102-43
Disclosure Title
Approach to stakeholder engagement
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
The frequency of our engagement varies by stakeholder and issue. For example, we meet with landowners on a regular basis and increase the frequency of those engagements if needed based on the key issues for these stakeholders. Our engagement frequency with other stakeholders is determined on a risk basis.
42
GRI Indicator
102-44
Disclosure Title
Key topics and concerns raised
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
See SR page 5 for materiality determination, including how we incorporate stakeholder feedback into our reporting process and the resulting material issues. See pages 18–20 for information about our stakeholder engagement process, including two case studies of our engagement efforts. See page 19 for engagement examples by stakeholder type, including indigenous groups.
43
GRI Indicator
102-45
Disclosure Title
Entities included in the consolidated financial statements
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
44
GRI Indicator
102-46
Disclosure Title
Defining report content and topic Boundaries
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
45
GRI Indicator
102-47
Disclosure Title
List of material topics
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
46
GRI Indicator
102-48
Disclosure Title
Restatements of information
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
47
GRI Indicator
102-49
Disclosure Title
Changes in reporting
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
48
GRI Indicator
102-50
Disclosure Title
Reporting period
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
49
GRI Indicator
102-51
Disclosure Title
Date of most recent report
Reference
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
Hess’ most recent previous report was the 2016 SR, released in 2017.
50
GRI Indicator
102-52
Disclosure Title
Reporting cycle
Reference
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
Hess publishes a sustainability report on an annual basis.
51
GRI Indicator
102-53
Disclosure Title
Contact point for questions regarding the report
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
52
GRI Indicator
102-55
Disclosure Title
GRI content index
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
54
GRI Indicator
102-54
Disclosure Title
Claims of reporting in accordance with the GRI Standards
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
53
GRI Indicator
102-56
Disclosure Title
External assurance
GRI Status
UNGC Principle(s)
IPIECA Indicator(s)
Comments
Hess’ practice is to have our sustainability report assured by a third party on an annual basis. The assurance effort includes a review of our sustainability data and self-declared GRI “in accordance” option.
55