CF Industries remains committed to implementing sound corporate governance practices that enhance the effectiveness of our Board of Directors and management team. The experience and diversity of our directors has been, and continues to be, critical to our success.
Board Oversight
Our Board plays an integral role in oversight of our ESG program and engages with senior management on a broad range of ESG topics. The four standing committees of the Board assist the full Board in its oversight role concerning the committee’s respective areas of responsibility.
Audit Committee
Our Board plays an integral role in oversight of our ESG program and engages with senior management on a broad range of ESG topics. The four standing committees of the Board assist the full Board in its oversight role concerning the committee’s respective areas of responsibility.
Compensation and Management and Development Committee
Our Board plays an integral role in oversight of our ESG program and engages with senior management on a broad range of ESG topics. The four standing committees of the Board assist the full Board in its oversight role concerning the committee’s respective areas of responsibility.
Corporate Governance and Nominating Committee
Our Board plays an integral role in oversight of our ESG program and engages with senior management on a broad range of ESG topics. The four standing committees of the Board assist the full Board in its oversight role concerning the committee’s respective areas of responsibility.
Environmental Sustainability and Community Committee
Our Board plays an integral role in oversight of our ESG program and engages with senior management on a broad range of ESG topics. The four standing committees of the Board assist the full Board in its oversight role concerning the committee’s respective areas of responsibility.
Management Oversight of ESG Goals and Progress
Our shareholders elect our directors to oversee management and ensure proper governance across all business functions. Our leadership team is responsible for delivering on our strategy, creating our culture, establishing accountability, and managing risk across the entire business and at every level within the organization.
Executive Compensation Tied to ESG Objectives
As our Senior Leadership Team is responsible for the overall progression of our ESG goals, we linked executive compensation to certain ESG goals and material topics:
- GHG Emissions Reduction: Developing and prioritizing a list of viable GHG reduction capital projects (Annual Incentive Plan metric in 2021);
- Workforce Health and Safety: Completing safety critical equipment inspections on schedule and timely management of changes, subject to first achieving a gating level of behavioral safety practices (Annual Incentive Plan metric in 2021 and 2022).
To ensure that executive compensation remains in line with our business and ESG objectives, we reevaluate the structure of our executive compensation program annually.
Assessing the ESG Goals of Our Supply Chain
In 2021, CF Industries began formally assessing the ESG programs of our suppliers through the administration of EcoVadis’ annual questionnaire. In our assessment, we consider our suppliers’ commitment and performance in key ESG areas, including their emissions reduction goals, anti-harassment policies, child labor policies, and other topics related to CF Industries’ ESG goals and core values. In 2022, the EcoVadis program engaged suppliers and service providers representing 48% of the Company’s total procurement and supply chain expenditures.
Ethics in Our Supply Chain
Our core values underscore the importance of acting ethically and in compliance for all our business dealings. We extend this view into how we engage with and select suppliers throughout our supply chain. CF Industries’ supply chain includes local, regional, and global partners from whom we purchase products and services, including natural gas, transportation, utilities, maintenance services, and capital equipment.