Kinetik Holdings Inc. has published its sustainability-linked financing framework, which links its ESG commitments to the company’s broader financing strategy, the company announced on May 16.

“Together with our upcoming sustainability report to be released this summer, today’s announcement strengthens our commitment to positively impact climate change and build an even more diverse and inclusive culture in our workplace,” Jamie Welch, Kinetik's president and CEO, said in a statement. “We strongly believe that integrating sustainability initiatives into our business decisions and financing strategy is essential to creating value for our stakeholders and is quite simply good business."

The Framework outlines the principles Kinetik would follow in connection with the issuance of Sustainability-Linked Financing instruments, including sustainability-linked bonds, sustainability-linked loans or any other sustainability-linked instruments.

The following KPIs have been selected to measure progress against Kinetik’s environmental and social sustainability performance targets:

  1. Greenhouse gas emissions intensity
  2. Methane emissions intensity
  3. Female representation in corporate officer positions

These KPIs provide transparency and ensure meaningful progress is made towards Kinetik’s SPTs, which align with Kinetik’s long-term ESG initiatives and commitments. The designated SPTs are as follows:

  1. Reduce GHG emissions intensity by 35% by 2030, relative to the 2021 baseline.
  2. Reduce methane emissions intensity by 30% by 2030, relative to the 2021 baseline.
  3. Increase female representation in corporate officer positions to 20% by year end 2026.

Kinetik obtained an independent second party opinion from ISS ESG on the Framework and has confirmed its alignment with the International Capital Markets Association’s Sustainability-Linked Bond Principles and Loan Syndications & Trading Association’s Sustainability-Linked Loan Principles.

“We are proud of Kinetik’s achievements to date in emissions reductions and will continue to adopt and develop best practices to ensure future success,” said Matt Wall, COO of Kinetik. “We believe Kinetik has an integral role to play in addressing climate change and we recognize that we are uniquely positioned to drive progress within our industry. Transportation is a critical component in the energy value chain, and we aim to be a leader in reducing the emissions required to deliver natural gas to its end-markets. The goals and initiatives outlined in our Sustainability-Linked Financing Framework challenge our Company to make tomorrow’s natural gas cleaner than today’s.”

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