Climate Lobbying Overview: Cheniere Energy appears to have a mixed stance towards climate change policy. The company advocates for more stringent methane emission regulations in the oil and gas industry, however it appears to have limited engagement with other policy areas. Additionally, Cheniere Energy has consistently advocated for a continued role for natural gas in the energy mix.

Top-line Messaging on Climate Policy: Cheniere Energy appears to have mixed top-line communications on climate change. The company appears to support the goals of the Paris Agreement, specifically the well-below-2°C goal, and stated in its 2020 corporate responsibility report that reducing methane emissions is a critical component in achieving these goals. However, the company does not appear to explicitly support the more ambitious 1.5°C goal, or net-zero by 2050, in line with IPCC guidance and the Paris Agreement. The company considers the introduction of carbon pricing in its 2021 Climate Scenario Analysis: Transitional Risk report, but does not appear to explicitly support its implementation. The company’s position on the need for other forms of regulation is unclear.

Engagement with Climate-Related Regulations: Cheniere Energy appears to be strongly engaged on methane emissions regulations, with broadly positive positions. In its 2020 corporate responsibility report, Cheniere Energy states strong support for both domestic and international methane emissions regulations. This includes the U.S. Congressional Review Act effort “to restore federal regulation of methane emissions”, which was adopted in 2021 and removed a Trump-era rule that abandoned Environmental Protection Agency (EPA) rules on methane and volatile organic compound emissions. The company also supported the development of a European global methane measurement, reporting and verification framework, emphasizing the importance of increased transparency in emissions reporting. This was reiterated on Cheniere Energy’s Twitter account in February and 892106 April of 2021, wherein the company again stated support for domestic and international methane regulations, and the U.S. Congressional Review Act on methane emissions standards.

Positioning on Energy Transition: Cheniere Energy appears to strongly support a continued role for natural gas in the energy mix. The company expressed top-line support for a lower-carbon future on the company’s Twitter account in July 2021. However, the company pushes pro-gas messaging across multiple platforms, including its 2020 corporate responsibility report. In this report, the company stated that natural gas can support the adoption of renewables and that it is “projected to continue to play a significant role in the global energy mix”. In the same report, the company also supported the continuation of coal-to-gas displacement, which it states will be a major contributor to reaching the emissions reduction goals of the Paris Agreement. The company also supports emerging markets that are projected to drive economic growth and global natural gas demand, while stating on its corporate website that the company is well positioned to supply natural gas as a “cleaner” energy source globally. The company’s position on the energy transition is reiterated by Jack A. Fusco, the President and Chief Executive Officer of Cheniere Energy, in multiple quarterly investor meetings from 2019 to 2021. In a February 2020 investor meeting, Mr. Fusco supported coal-to-gas switching as a central mechanism in the energy transition. He then repeated his support in a November 2020 investor meeting wherein he said “natural gas is an affordable, reliable, cleaner burning global fuel source”, and that it would continue to play an increasingly important role in the energy transition.

Industry Association Governance: Cheniere Energy discloses a list of its memberships to industry associations in its ‘Memberships and Trade Associations’ document. However, the company does not disclose details on the company’s relationships with its industry associations, nor does it state alignment or misalignment with any one industry association’s stance on climate change policy. The company also did not publish a full audit disclosure on its alignment with its memberships and industry associations. The company is notably a member of the American Gas Association and the American Petroleum Institute, both of which have historically engaged negatively with climate-related policy, including consistent lobbying for the inclusion of fossil gas in the energy mix.