Sustainability Strategy and Governance

Sustainability at Crestwood means maintaining rigorous ethical standards, operating responsibly, creating a strong safety culture, supporting our communities, protecting the environment and developing our employees. These shared commitments drive us forward as we grow our business with a focus on responsible growth and authentic advancement. We embed sustainability in all we do, for the good of our business, our stakeholders and the areas where we live and work.

Our ESG Journey

While ESG has always been engrained in our values, Crestwood formalized a sustainability governance framework in September 2018 with the establishment of a Board of Directors Sustainability Committee and dedicated ESG function. As our journey continues, we will remain focused on making sustainability and responsible operations a foundational part of our business and success as a best-in-class midstream company.

Sustainability Strategy: 2022-2024

Incorporating lessons learned from our previous three-year strategy and using the results of our second materiality assessment as guidance, in January 2022, we published our sustainability strategy for 2022–2024. We made significant strides during the first year of our sutstainability strategy.

Focus Area	2022 Key Achievements
Environment
Biodiversity & Ecosystem Protection	Received Wildlife Habitat Council (WHC) Recertification for the Grasslands Project on the Fort Berthold Indian Reservation Partnered with Continental Resources to renew the Plan for the Development of Oil and Gas Resources within the Sage-Grouse Core Population Area in Wyoming
To mitigate impacts on and to enhance species and ecosystems specifically pertaining to items such as soil, air and water contamination; habitat fragmentation; deforestation and erosion
Carbon Management	Linked employee compensation to methane emissions intensity reduction for three consecutive years Conducted a physical climate risk assessment on key facilities Installed continuous methane monitoring devices on 13% of our assets with a commitment to achieve 40% by the end of 2023 Developed a Carbon Acquisition/ Divestiture Protocol utilized  in four strategic transactions
To lead the midstream industry in best-in-class carbon management practices and technology implementation
Social
Diversity, Equity and Inclusion	31% females in management Continued to monitor pay equity, including gender, race and age Conducted Indigenous Cultural Awareness Training for a second consecutive year Named to the Bloomberg Gender-Equality Index for the third consecutive year Continued strategic partnerships such as Catalyst
To create a diverse culture where everyone feels valued and able to bring their authentic self to work, while building the pipeline of future talent and enhancing retention efforts of current talent
Indigenous Relations	Supported science, technology, engineering and math (STEM) education at Indigenous schools in North Dakota Donated $3 million to organizations to support the Mandan, Hidatsa and Arikara (MHA) Nation on the Fort Berthold Indian Reservation since 2017 Conducted bi-annual meetings with Chairman Mark Fox to understand environmental and social issues affecting the MHA Nation
To continue to further our existing culture of open and transparent dialogue with Indigenous stakeholders where all parties feel engaged and respected
Governance
Supply Chain Management	Spent over $210 million with diverse suppliers since 2019 Approximately 16% of our suppliers were diverse in 2022
To build a dynamic and diverse supply chain that operationalizes sustainability, mitigates risk and meets organizational objectives
Transparency & Disclosure	MSCI score upgraded to A from BBB; Sustainalytics rating improved 10% Integrated ESG performance in Inaugural Proxy Statement Disclosed Board Skills Matrix Developed an ESG Reporting Manual and continue to work with Internal Audit and Financial Reporting teams to enhance ESG reporting controls
To strive for robust, quality and verified data as the core foundation to reliable ESG disclosures

*Additional achievements can be found in the relevant sections of this sustainability report

Sustainability Governance

Sustainability governance and oversight are fundamental to the success of our sustainability strategy, disclosures and performance. We take a coordinated approach to managing sustainability risks across the company. See below for how we distribute roles and responsibilities to drive continuous improvement

Sustainabilty Governance & Oversight
Sustainability Board Committee	Provides direction and guidance on key ESG risks affecting Crestwood Oversees the development of Crestwood's sustainability strategy Reviews and provides oversight of sustainability disclosure and engagment
Chief Executive Officer	Sustainability executive sponsor Approves direction for sustainability strategy
Sustainability Steering Committee	Includes leader from business segments and key functions Establishes directions and oversees implementation of the sustainability strategy Ambassadors of susatinability—ensure the culture of sustainability is integrated into hte company
Sustainability Working Group	Directors and managers from the business segments and key functions Provides data, information and support for Crestwood's sustainability report and implementation of a sustainability strategy
SVP, ESG & Corporate Communications	Works with enterprise-wide functions to address sustainability opportunities and mitigate risks Develops and implements the sustainability strategy Acts as a liaison on ESG issues

 

Compensation Linked to Sustainability Performance

Our commitment to advancing sustainability within the company is aligned with employee and executive compensation and associated key performance indicators. In 2023, achieving key safety metrics comprises 20 percent of employee compensation and meeting key sustainability metrics comprises 15 percent of employee compensation, an increase from 10 percent in 2022. In total, safety and sustainability metrics now comprise 35 percent of our compensation. Key performance indicators in 2023 include deployment of continuous methane detection devices on facilities with methane emissions sources, diversity, equity and inclusion training and community engagement.