Overview
GRI 102-18, 102-23, 102-26, 102-30, 102-31, 102-32, 102-35; TCFD: Governance A, B-24, 102-2
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CF Industries is committed to sound corporate governance practices that make our Board of Directors and management team more effective. Our chairman of the Board is independent and separate from the chief executive officer. We regularly review Board composition to ensure we have diverse competencies and attributes represented, and we consider diversity when identifying new nominees. We also ensure that we engage shareholders in matters related to corporate governance.
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Board Oversight of ESG Issues
In October 2020, our Board of Directors established a new committee, the Environmental Sustainability and Community Committee, which held its first meeting in December 2020. This committee oversees all aspects of the progress toward net-zero carbon emissions, sustainability activities and reporting, and the Company’s active involvement in the communities in which it operates. Going forward, the committee will meet five times per year and hold management accountable for meeting the Company’s new goals.
The Board’s Compensation and Management Development Committee has oversight of I&D and employee well-being initiatives.
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Executive Compensation Tied to ESG Goals
As we announced our new ESG goals, we also announced executive compensation would be tied directly to progress to certain goals. This new policy, which applies to all corporate executives, is a tangible way to ensure we deliver on our commitment.
In 2021, progress in the following areas will directly affect compensation:
- Goal: Identifying emissions reduction projects
- Goal: Behavioral and process safety
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Corporate Management of ESG Issues
Rather than having a management system specific to ESG issues, CF Industries incorporates how we manage these issues into everyday business. We want every employee to play a role in meeting our ESG goals. Goals are set and tracked by corporate leadership and reviewed at the Board level, while day-to-day goal management occurs at the site level. Each site’s leadership team reviews data and manages progress toward the goals.