Our sustainability strategy is focused on leading the way in energy infrastructure by working to ensure that our operations meet today’s demands and contribute to a more secure and low-carbon energy future. We are advancing innovative solutions, maintaining strong standards of reliability and fostering a culture of integrity in all that we do, so we can continue to provide energy that helps markets grow and communities thrive.
Board and executive oversight
Our approach to governance reinforces our core value of reliability by embedding ethical decision-making, proactive oversight and accountability into all aspects of our operations. Our culture promotes ethical practices and compliance with established policies that guide how we do business every day. Governance is further strengthened through executive committees led by senior management, which oversee critical areas of our operations.
We are a wholly owned subsidiary of Loews Corporation and are not required to follow the independence rules of the New York Stock Exchange. The Board provides oversight and strategy for the company and gives consideration to our employees, suppliers, customers and the communities in which we operate and conduct business.
The Board meets at least quarterly, with additional meetings held as needed. Members of senior management and key employees across the company communicate with board members regularly. Topics typically include our financial performance, five-year plan, capital expenditures related to growth projects and significant maintenance projects related to compliance objectives, business strategies, business risks and opportunities, enterprise risks, and potential acquisitions and divestitures, among others.
Risk management
Our Enterprise Risk Management process seeks to provide a framework for identifying, assessing, monitoring and managing risks. Risk management is incorporated into various roles and responsibilities throughout the company. We use committees when appropriate to better focus on new risk areas or those impacting significant areas of our business. Our risk management process is intended to help identify and prepare for potential risks that could affect our business’s short-term continuity and long-term viability.
We have established several committees to help ensure effective governance and management of critical areas, including risk, compliance, employee benefits and sustainability.
- The Risk Committee assists the chief executive officer, the Board and audit council by overseeing and reviewing information regarding our ERM process, including significant policies, procedures, and practices employed to manage the most critical risks impacting our business, such as commercial, cyber, credit, financial, market, regulatory, compliance and operational risks. Our chief financial officer, who also serves on our Board, leads the committee. Any changes in risk are communicated to the chief executive officer, the Board and the audit council.
- The Compliance Committee assists the chief executive officer and the audit council by reviewing our compliance with applicable legal, operational, financial and regulatory requirements, industry standards and our Code of Business Conduct and Ethics. Our general counsel, who also serves on our Board, leads this committee.
- The Benefits Committee administers employee benefit plans related to retirement, health and welfare. Members are appointed by the Board and include representatives from human resources, operations, engineering, commercial, finance and accounting and regulatory. Our senior vice president of human resources, communications and sustainability leads this committee.
- The cross-functional Sustainability Committee, led by the senior vice president of human resources, communications and sustainability, advises on sustainability matters, supports the development of resources to further our strategy, engages with stakeholders to understand relevant topics, and identifies, recommends and promotes sustainability initiatives. Meeting at least quarterly, the committee supports strategy development, stakeholder engagement and the advancement of company-wide initiatives. Its environmental sub-committee focuses on our GHG emissions reduction initiatives and reports progress to the full Sustainability Committee and our chief executive officer at least bi-monthly. Committee members include leaders from various departments, including operations, engineering, environmental, commercial, human resources, legal, regulatory, corporate development, communications, finance and accounting and sustainability.
Ethics and business conduct
Our core value of integrity supports our dedication to business ethics. Strong ethics and compliance with all applicable laws and regulations are essential to our success, and we require every employee to engage in ethical behavior.
We maintain high standards for honest and ethical conduct in all our operations and business dealings. Our policies, programs and procedures are designed to reflect our commitment to ethical business practices. Responsible governance is an important part of our corporate culture. Our general counsel and senior vice president of human resources, communications and sustainability oversees the implementation and compliance of our Code of Business Conduct and Ethics.
Our Code sets expectations and standards for ethical behavior. It covers topics including compliance with laws, conflicts of interest, fair competition and non-discrimination. We expect all our employees to perform their work with integrity, and we provide regular training and resources to support compliance with the Code, which includes reporting procedures for employees to communicate concerns formally or informally regarding misconduct, illegal or unethical behavior or Code violations. All employees must review and acknowledge the Code upon hiring and on a biennial basis.
Our policies are intended to reflect our commitment to operate ethically, and to avoid corrupt business practices. Our revenues are generated solely within the United States, although we do have international vendors and suppliers. Designed to detect and prevent fraudulent activities, our internal controls include our delegation of authority, three and four-way matching of documents in our accounting system and our vendor set-up process.
Systems and practices for reporting violations
Our ethics hotline allows employees to report ethics violations and concerns anonymously. The hotline is managed by a third-party provider 24 hours a day, seven days a week, and management has established and communicated an Ethics Hotline Policy to employees. Calls to the hotline are initially reviewed by our general counsel and other members of senior management as needed. Calls received through the hotline are confidential and investigated using appropriate protocols, with the results communicated to appropriate parties. No material ethics violations or concerns were reported to our ethics hotline in 2024.
Stakeholder engagement
We regularly interact with stakeholders to develop and strengthen relationships and understand their needs and priorities. Our external stakeholders include customers, investors, credit rating agencies, federal and state regulators, and members of the communities in which we operate. We actively engage through meetings, participation in community events and conferences to advance our business and communication objectives.
Customers
We serve a broad mix of customers, including producers, natural gas gatherers and marketers, local distribution companies, electric generators, industrial users, liquefied natural gas exporters, and other interstate and intrastate pipelines. In addition to day-to-day interactions, we have annual customer meetings where we provide relevant business updates.
Investors and credit rating agencies
We engage with our bond investors and credit rating agencies to provide updates on our initiatives and discuss relevant topics. We meet with bond investors at industry conferences and post the related presentations on our website. These presentations outline our strategy and provide updates on performance, key initiatives, projects and trends occurring in our industry. We also participate in scheduled meetings or phone calls with our investors when requested. We meet with our credit rating agencies at least annually and engage with them on a routine basis. The credit rating agencies rate our senior unsecured debt. The credit ratings can affect our ability to access the debt markets, as well as the terms and the cost of our borrowings. We have board meetings at least quarterly with Loews Corporation, our parent company, to discuss financial and operational performance, strategy, projects, financing needs, forecasts and other initiatives.
Regulators and elected officials
We keep regulators and elected officials informed about our company and projects by creating open and consistent lines of communication. We seek to identify and address their questions and concerns and better understand the needs of communities around our facilities. We are responsive and available to address their inquiries in a timely manner.
Communities and landowners
We keep communities and landowners whose property is surrounding our facilities and pipelines informed about our activities. We understand that open and transparent communication regarding our operations is vital to building lasting relationships. Our general counsel provides oversight and leadership on our Public Participation Plan, landowner engagement policies and community consultation guidelines.