Formalizing Corporate Responsibility at SBP
President and Chief Executive Officer
“At SBP, we believe that corporate sustainability goes hand in hand with our overall management approach. We strive to build a business that will last for decades, develop the leaders of tomorrow, and steward the natural resources that we need to be successful. While we have had this mindset for years, we are happy we have formalized our approach to corporate sustainability, creating internal accountability and transparency for our stakeholders.”
As a values-driven company, SBP has long embraced its responsibility to steward natural resources and to have a positive impact on the people who work there. Its management team has a history of working on projects aligned to ESG principles without having a formalized ESG strategy. At the direction of its CEO and Board of Directors, SBP worked to formalize its ESG strategy over the past year with extensive stakeholder engagement across SBP.
Materiality Assessment and Benchmarking
The first step of SBP’s ESG journey was considering the full universe of ESG topics and identifying those relevant to SBP’s unique business model. Upon completing this step, SBP evaluated how competitors, customers, and other peers performed on these topics and created a benchmark to compare its own performance against the market. SBP used these inputs to build an internal framework, giving it the foundation to build an approach to ESG that is authentic and aligned to broader business goals.
ESG Strategy
Using information from the benchmarking exercise, the new ESG framework, and internal interviews, SBP held interdisciplinary working sessions to develop a multiyear ESG strategy with its Executive Team. Collectively, the Executive Team identified its performance ambition on each material ESG topic and identified a variety of initiatives to support those ambitions. Examples of these initiatives include enhancing energy management processes, adding resources to its Safety Team, and developing an inaugural, annual Corporate Sustainability Report.
Governance and Oversight
SBP’s Board of Directors, specifically its Nominating and Governance Committee, played a crucial role in supporting this initiative and providing input throughout the process, bringing their expertise to bear from a variety of relevant industries and roles. The Executive Team also remains involved in execution and oversight of the ESG strategy, with updates to the Committee at least twice a year and Executive Team ESG meetings at least once a quarter. The ongoing engagement from these stakeholder groups creates accountability for continued progress.
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