2020 Sustainability Report FOREWORD GOVERNANCE ENVIRONMENTAL SUSTAINABILITY SOCIAL IMPACT APPENDIX

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2020 Sustainability Report FOREWORD GOVERNANCE ENVIRONMENTAL SUSTAINABILITY SOCIAL IMPACT APPENDIX 2020 Sustainability Report FOREWORD GOVERNANCE ENVIRONMENTAL SUSTAINABILITY SOCIAL IMPACT APPENDIX Table of Contents Foreword ................................................................................................................................................................................................................................. 4 Message from Our Chairman & CEO ........................................................................................................................................................................ 4 About Concho .......................................................................................................................................................................................................................... 5 Reporting Approach ............................................................................................................................................................................................................ 7 1. Overview ............................................................................................................................................................................................................................. 7 2. Prioritizing Material Topics ...................................................................................................................................................................................... 8 3. Stakeholder Inclusiveness ...................................................................................................................................................................................... 9 Performance Summary .................................................................................................................................................................................................. 10 Governance ..................................................................................................................................................................................................................... 13 Governance ............................................................................................................................................................................................................................ 14 1. Overview ........................................................................................................................................................................................................................... 14 2. Ethics & Compliance ................................................................................................................................................................................................. 17 Risk Oversight & Management ................................................................................................................................................................................. 18 1. Overview ........................................................................................................................................................................................................................... 18 2. Maintaining Safe & Secure Operations ......................................................................................................................................................... 19 3. Avoiding Risk Through Supply Chain Due Diligence .......................................................................................................................... 20 Health & Safety .................................................................................................................................................................................................................... 21 1. Overview ........................................................................................................................................................................................................................... 21 2. Safety Performance ................................................................................................................................................................................................. 23 3. Vehicle Safety .............................................................................................................................................................................................................. 23 4. Emergency Preparedness ................................................................................................................................................................................... 24 Environmental Sustainability ................................................................................................................................................................ 25 Environmental Sustainability .................................................................................................................................................................................... 26 1. Overview .......................................................................................................................................................................................................................... 26 2. Guiding Principles for Environmental Management ............................................................................................................................ 26 Climate Risk & Air Quality ............................................................................................................................................................................................ 27 1. Overview .......................................................................................................................................................................................................................... 27 2. Focus and Progress .................................................................................................................................................................................................. 28 3. Governance ................................................................................................................................................................................................................... 29 4. Risk Oversight & Management ......................................................................................................................................................................... 30 5. Strategy ............................................................................................................................................................................................................................ 32 6. Scenario Analysis ....................................................................................................................................................................................................... 34 7. Our Approach to Air Quality ................................................................................................................................................................................. 37 8. Emission Reduction Efforts ................................................................................................................................................................................. 37 9. Partnerships/Collaborative Initiatives .......................................................................................................................................................... 39 10. Air Quality Performance & Climate Risk Metrics .................................................................................................................................. 39 CONCHO RESOURCES | 2020 SUSTAINABILITY REPORT 2 FOREWORD GOVERNANCE ENVIRONMENTAL SUSTAINABILITY SOCIAL IMPACT APPENDIX Water Stewardship .......................................................................................................................................................................................................... 40 1. Overview .......................................................................................................................................................................................................................... 40 2. Protecting Water Resources ............................................................................................................................................................................... 40 3. Concho's Water Use .................................................................................................................................................................................................. 41 4. Optimizing Water Reuse ........................................................................................................................................................................................ 42 Land Stewardship & Biodiversity ........................................................................................................................................................................... 43 1. Overview .........................................................................................................................................................................................................................
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