RADICAL TRANSPARENCY OVERVIEW

Radical Transparency: A New Era of Responsible Domestic Energy Development

In late 2023, CNX unveiled a first-of-its-kind collaboration on environmental monitoring, data collection, and real-time disclosures with Pennsylvania’s Governor Josh Shapiro and the Pennsylvania Department of Environmental Protection (“PA DEP”). We call this effort Radical Transparency.

Radical Transparency means CNX will monitor air and water quality for operations across our Pennsylvania footprint and open source this data in real-time via a public website. Additionally, CNX will publicly disclose all chemicals intended to be used for drilling and hydraulic fracturing before they are used. These disclosures will create a mutual trust that will serve as the basis for future cooperation and real environmental and economic progress. The PA DEP will share custody of the air quality data to provide further transparency and confidence to the public in its reliability. The data will facilitate informed policies and regulations by PA DEP and provide CNX with unimpeachable facts to advocate for our company and industry.

This unprecedented brand of transparency is good for resident and worker health, for economic development, for energy security, for the environment, and for community investment. Through our Radical Transparency program, we aim to lead the industry to a new era of responsible domestic energy development.


Nick Deiuliis, CNX Resources Corporation President and CEO speaks to the press. Governor Josh Shapiro and CNX Resources Corporation (NYSE: CNX) President and CEO Nick Deiuliis announced a historic commitment that will further heighten the company’s operational disclosures in collaboration with state environmental regulators and the public, furthering a promise Governor Shapiro made as Attorney General to advance commonsense measures that prioritize public health and safety and ensure the natural gas industry is performing its work in line with the highest standards. NOVEMBER 02, 2023 – CLAYSVILLE, PA

2023 Highlights

Environmental Stewardship Turbo-Charged

Our efforts to protect and improve the environment are revolutionary and unmatched:

  • Radical Transparency: In 2023, CNX established a first-of-its-kind environmental monitoring, data collection, and real-time public disclosure collaboration with Pennsylvania Governor Josh Shapiro and the Pennsylvania Department of Environmental Protection. Through this initiative, we aim to lead the industry to a new era of responsible natural gas development.
  • Continuing to Lower Methane Intensity: We achieved a nearly 30% reduction in operational methane intensity over the prior year in our production segment. Since 2020, we have reduced over 105,000 tons of methane CO₂e emissions. In 2023, we joined peers in the Appalachian Methane Initiative to further enhance methane monitoring and facilitate methane emissions reductions in the Appalachian Basin.
  • Pioneering Waste Methane Capture: CNX captured approximately 9.1 million metric tons of waste methane CO₂e, far surpassing emissions from our activities.
  • Innovation and Partnerships: Our New Technologies segment continues to focus on our waste methane abatement efforts and other proprietary technologies to vertically expand markets for our ultra-low carbon intensity derivative products.
  • Investment in Emissions Mitigation: In 2023, we committed $7 million to further mitigate methane emissions, achieving an annualized benefit of 85,000 tons of CO₂e, which well exceeded our goal of 70,000 tons.
  • Water Stewardship: We recycled and reused more produced water than we produce ourselves by consuming produced water from our peers to minimize freshwater consumption. In 2023, CNX spent over $19 million to upgrade and expand our water infrastructure—further reducing the need to transport water via truck and diversifying freshwater sources to lessen our impact on water resources.

 

Community and Workforce Investment: Beyond the “Oversized Check Photo”

CNX has a unique commitment to local communities. We roll up our sleeves and tackle the toughest of issues:

  • Community Investments: In 2023, CNX and the CNX Foundation invested $5.6 million to tackle some of the most challenging issues facing our local communities. By the end of 2023, we had contributed $15 million toward our pledge to invest $30 million through 2026 in local initiatives supporting underserved causes within our operating footprint.
  • Mentorship Academy: Student participation in our Mentorship Academy—now entering our fourth year—increased 35%, with 85 students enrolled. The academy includes underserved students representing 21 schools across five counties in the southwestern Pennsylvania region.
  • The Headquarters at CNX: Beginning in 2023, 18 new tenants joined the Headquarters at CNX, bringing capacity to 82%. The Headquarters at CNX provides workspace at our corporate location to small businesses, including minority and women-owned businesses, educational institutions, and non-profit organizations that share CNX’s focus on Tangible, Impactful, Local causes.

Stakeholder Engagement

Successful engagement starts with understanding how we can better collaborate with our stakeholders through transparency, dialogue, and active listening. We work together with our stakeholders to solve community issues, promote economic opportunities, and build relationships to help our region thrive.

PICTURED: Pennsylvania Governor Josh Shapiro visits CNX operations to announce historic collaboration with CNX.

 

Stakeholder Audience Type of Engagement Frequency
Employees
  • Charitable opportunities—mentoring, volunteering
  • Positive Energy Hub news platform
  • Electronic communications—CNX Pulse app, email updates
  • Town hall meetings
  • Department meetings
  • Training sessions
  • Lunch and learn events
  • Employee resource groups
  • Ethics hotline
  • Social media postings
  • News releases and media statements
Continuous
Business Partners (Contractors & Suppliers)
  • Mentorship Academy partnering
  • Site orientations
  • Supplier and Partner Summits—with a focus on QHSE
  • Training and performance management
  • Advocacy and political engagement
Ongoing
Landowners/Royalty Owners
  • Landowner relations team
  • Town halls and public meetings
  • Website portal and dedicated email address
  • Positive Energy Hub news platform
  • Social media postings
  • News releases and media statements
Ongoing
Local Communities (Residents, Emergency Services, NGOs, charities)
  • Radical Transparency program website
  • Operating area Community Relations team
  • Meetings to discuss Emergency Response plans
  • Town halls and public meetings
  • CNX Foundation management
  • Events and conferences
  • Project partnerships
  • Positive Energy Hub news platform
  • Social media postings
  • News releases and media statements
Ongoing
Elected Officials/Regulators
  • Radical Transparency website
  • Engagement with federal and state regulators
  • Policy discussions at all levels
  • Meetings with municipal and township leaders
  • Positive Energy Hub news platform
Ongoing
Investors/Capital Providers
  • Investor Relations website and contact information
  • Investor conferences, meetings, and calls
  • Financial presentations, SEC filings, annual report, Corporate Sustainability Report, presentations, and press releases
  • Quarterly earnings letter and annual meeting of shareholders
Ongoing
Industry/Trade Associations
  • Meetings and networking events
  • Trade association participation
As Needed
School Districts/Vocational Schools
  • Meetings with school superintendents and principals to discuss opportunities with the Mentorship Academy
  • Career fairs
Ongoing
Academic
  • Marietta College
  • West Virginia University
  • Waynesburg University
  • Community College of Allegheny County
  • Slippery Rock University
  • Texas A&M University
  • University of Pittsburgh
  • Duquesne University
Ongoing
We have previously listed news media and industry analysts as key stakeholder groups. However, as CNX continues to evolve and develop company platforms and brand journalism channels to illustrate the company’s corporate strategy and results thoroughly and transparently, third party analysis and coverage, which are often inaccurate or biased, have become obsolete.

 

About our ESG reporting

Our reporting was prepared following the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), Oil and Gas metrics from the Sustainability Accounting Standards Board (SASB), and the Global Reporting Initiative (GRI) Standards. We are aligning our reporting requirements with the Task Force on Nature-related Financial Disclosures (TNFD). CNX also references the IPIECA Sustainability Reporting Guidance for the Oil and Gas Industry to inform our reporting, and other key external governance, social, and environmental metrics and topics important to our stakeholders and community. Additionally, we disclose through the CDP Climate Change and Water Security Questionnaires. Transparency is vital to CNX, our Sustainable Business Model, and our stakeholders. CNX has consistently increased participation in voluntary disclosures in recent years, and we will continue to share key metrics in this report and other public disclosures.

Verification and Audit

CNX obtained limited assurance from Keramida, Inc., a WBE-certified global sustainability and EHS services firm, for certain 2023 ESG data presented on this website and the ESG Performance Scorecard—specifically Scope 1 and Scope 2 greenhouse gas emissions, air emissions, water, and waste data. CNX’s Internal Audit & Advisory Services team performed a review and provided limited assurance for all other 2023 data presented in the ESG Performance Scorecard. Note that certain financial data included in the scorecard is also subject to internal control procedures that are required for the Sarbanes-Oxley Act Section 302 certifications included in our SEC filings.

Material topics

CNX evaluates the materiality of ESG matters against two criteria: potential impact to our business and importance to our stakeholders. Our ESG assessment helps shape our ESG strategy, Enterprise Risk Management process, and reporting focus. This assessment will be updated as new developments arise that have the potential to impact our assessment of ESG materiality.

  • Environmental
  • Emissions and Climate Change
  • Air Quality
  • Biodiversity
  • Spills and Releases
  • Water Stewardship
  • Environmental Management System
  • Innovation and Technology
  • Social
  • Process Safety
  • Workforce Health & Safety
  • Diversity, Equity, and Inclusion
  • Employee Wellness
  • Impact to Local Economy
  • Community Investment
  • Governance
  • Regulatory Compliance
  • Risk Management
  • Business Ethics
  • Transparency and Reporting
  • Data Protection and Cybersecurity