Photo by Kyla Chambers
We are committed to sound corporate governance practices directed by our active and engaged Board of Directors. Our Board of Directors is equipped with an effective balance of fresh perspective and industry and company experience, responsible for representing the long-term interests of our stockholders, ensuring ethical conduct and compliance and overseeing risk management processes.
The Governance and Sustainability Committee periodically reviews the company’s status with respect to federal, state, and local regulations for air emissions, waste, water, wildlife, spill reporting, safety, and general operations. The Governance and Sustainability Committee regularly reviews sustainability-related disclosure practices within the industry, as well as peer benchmarking of sustainability metrics and changing technologies and practices that have the potential to improve the Company’s overall sustainability strategy and performance.
In addition to the Governance and Sustainability Committee, our CEO, who is a member of the Board of Directors, is a member of our Management ESG Committee and directs management’s efforts and responsibilities for sustainability matters. This multidisciplinary committee meets regularly and works closely to identify, monitor, and evaluate environmental-related policy, regulatory, and legislative developments. The committee reports on current sustainability risks and opportunities; makes recommendations to the Board of Directors on policies, programs, and initiatives necessary to achieve the Company’s sustainability targets and goals; and monitors Company performance towards achieving sustainability goals and targets.
Integrity and ethical behavior are key pillars of our culture, and we are committed to conducting our business according to the highest ethical standards. We uphold these standards for our employees and contractors while striving to always operate in compliance with applicable laws and regulations. Our Code of Business Conduct and Conflict of Interest Policy states the expectations of conduct that every SM Energy employee, officer, and director is expected to meet. We administer trainings on our Code and require annual certification of compliance. As a means of promoting compliance, we support multiple methods of reporting violations and concerns, including anonymous reporting through our confidential hotline. On a bi-annual basis, we perform anonymous inquiries with our employees covering business conduct and ethical standards as well as employee expense audits. We prohibit retaliation against any employee for providing information concerning a violation of law, regulation, or policy.
Cybersecurity plays a critical role in our core sustainability practices, expanding beyond awareness to cybersecurity resilience. We have built a culture of cybersecurity across all levels of our organization, and we take a multi-layered approach, employing a number of processes and technologies to help safeguard our systems and people. The Board of Directors and Audit Committee oversee our cybersecurity risk and business continuity functions, and quarterly updates are presented to the Audit Committee by management.
As our employees and partners are the key to our success in detecting and preventing identity and social engineering threats, we provide continuous training and also informal chats and socialization of current topics to help identify trending risks and encourage reporting. Here are some other ways we strive to maintain cybersecurity resilience:
At SM Energy, we are proud to contribute to United States energy independence. To help our country become energy self-reliant, SM Energy works with industry partners and our legislative representatives to advocate for a secure energy future. SM Energy does not have a political action committee; however, through industry trade associations, we participate in the legislative process to inform policymakers and regulators about our industry and advocate for solutions that mutually benefit the communities in which we live and work.
We are committed to preserving, protecting, and fostering a culture of trust and integrity that defines SM Energy as a company. The ethics and compliance hotline and website is administered by a third party to allow any person—including employees, contractors, vendors, suppliers, and external and community stakeholders—to anonymously report any grievances or perceived violations of our Code of Business Conduct, ethical standards, suspected violation of law, or other compliance-related matters. Any concerns will be investigated by our General Counsel and reported to our Audit Committee and senior management.