The Board takes an active role in overseeing the design and implementation of our ESG strategy, while working with management to cultivate our Health, Safety and Environmental (HSE) culture.
Pioneer’s Board and Executive Committee recognize that strong corporate governance drives alignment with the interests of our shareholders and other stakeholders, and strengthens our culture, provides accountability and risk oversight, and ensures the sustainability of our organization.
Board of Directors
The Board is responsible for overseeing the company’s assessment of major risks, and the measures taken to prepare for and manage such risks. The company and the Board view sustainable development as a multidisciplinary approach to our business, which balances economic growth, environmental stewardship and social responsibility. In addition, the Board takes an active role in overseeing the design and implementation of our ESG strategy, while working with management to cultivate our HSE culture.
Further, Pioneer leadership believes consideration of climate-related risks and opportunities should be integrated into our policies, processes and culture. As a company, we employ an integrated approach to managing climate-related risks and opportunities to better inform decisions and implement business strategies that are reviewed against climate impacts across short-, medium- and long-term time horizons. The Board seeks to be apprised of the latest climate issues by periodically participating in discussions with management, outside experts and stakeholders on a variety of oil and gas supply-and-demand scenarios, climate change and energy transition topics. Continuing director education is an important part of our Governance process and is provided via two primary avenues: (1) during regularly scheduled Board and committee meetings; and (2) during specifically scheduled director education sessions. Education provided during regularly scheduled Board and committee meetings focuses on topics that assist the Board in discharging its duties, including updates on specific matters covered by each committee, such as ESG and climate.
Additional detail on our directors’ qualifications and recent actions resulting from Pioneer’s external engagement process can be found in our latest Proxy Statement and on PXD.com > Culture > Governance. Pioneer’s Governance practices are described in our Corporate Governance Guidelines.
Board Diversity
Pioneer is committed to having a Board comprised of diverse backgrounds, skills and professional experience in areas relevant to Pioneer’s business and strategy.
In assessing the composition of the Pioneer Board and during recruitment of new Board members, the Board and our Nominating and Corporate Governance Committee strive to achieve an overall balance of diversity of backgrounds and experience at policymaking levels, with a complementary mix of skills and professional experience in areas relevant to the company’s business and strategy. The Nominating and Corporate Governance Committee achieves that balance through Board representation in the areas of oil and gas engineering and operations; midstream and downstream segments of the energy industry; climate change; environmental policy; alternative energy; regulatory matters; ESG oversight; safety; accounting; capital markets; corporate finance; corporate governance; human resources; diversity, equity and inclusion; and other areas. The Nominating and Corporate Governance Committee also regularly assesses the company’s evolving needs in light of our strategy and evaluates additional skills, experiences and backgrounds that should be considered for future Board refreshment efforts.
Additionally, two members of the Board, Phoebe A. Wood and Maria S. Dreyfus, serve on the Board of Directors of Invesco Ltd. and CDPQ, respectively. This experience with large asset management firms provides the Board with insight into topics important to large institutional investors.
Pioneer’s Board currently consists of 12 individuals, four of whom self-identify as women, and two self-identify as individuals from communities that are traditionally underrepresented in our industry (Black, African American, Hispanic, Latino, Asian, including the Middle East, Pacific Islander, Native American, Native Hawaiian, or Alaska Native, or who self-identify as gay, lesbian, bisexual or transgender), resulting in 42% aggregate Board diversity.
More information on Pioneer’s Board and its committees can be found in our most recent annual Proxy.