Environmental, Social and Governance

Our Statement of Corporate Responsibility

At Texas Pacific, integrating sustainability and Environmental, Social and Governance (ESG) objectives into our business strategy is a top priority and integral to the long-term value and longevity of our Company. Our approach allows us to operate with environmental awareness, social due diligence, and best governance practices. Texas Pacific has an unwavering commitment to operate responsibly in all aspects of our business, and we will continue to take purposeful actions to deliver this strategy.

- Tyler Glover, Chief Executive Officer

Guided by Our Core Values

Texas Pacific Land Corporation’s (“Texas Pacific,” “TPL,” or “the Company”) Core Values act as guiding principles underlying our business conduct and engagement with partners and stakeholders. Since 1888, when Texas Pacific was first established as a land trust, our commitment to long-term success has been dependent on adapting to dynamic market forces and doing what is right for all stakeholders.

Our ESG Strategy

Our Core Values align with our strategic and operational priorities, as well as to our Environmental, Social, and Governance (“ESG”) commitments. Our ESG strategy reflects our dedication to meet tactical business priorities while managing the environmental impacts of our operations, maintaining principles for social responsibility, and upholding a commitment to strong corporate governance.

Our ESG strategy is focused on the overarching priorities of environmental management, employee health and safety, workforce management and equality, community and landowner engagement, and strong corporate governance and ethics. We are committed to working towards a sustainable future and operating in a responsible manner across all of our operations and land management activities. We strive to uphold the highest standards of ethics, transparency, and accountability, and we foster the safe and responsible development of our lands. The long-term value and viability of our Company is dependent on these commitments.

Regular Assessment of Practices and Priorities

Our ESG disclosure has been prepared in accordance with the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) frameworks. Given the dynamic nature of ESG priorities and best practices, assessments and reviews of our metrics and disclosure policies will continue to be evaluated and, if necessary, adjusted on a regular basis.

As TPL does not produce oil or gas from the land in which our royalties revenue stream is derived, we developed our sustainability goals and partnership opportunities in consultation with the entities operating on those lands. We maintain strong relationships with these operators to encourage environmental best practices as it relates to their specific infrastructure and operational requirements. On the water solutions side of our business, we have developed a tailored ESG program that speaks to the ethical and responsible buildout of our water assets and management of water as a natural resource. Our continued goal is an integrated and iterative approach to sustainable and responsible resource management.

Our Partnership with Oil & Gas Lessees

  • Partnering to develop innovative technologies that support emissions management.
  • Partnering to develop renewable energy buildout across TPL’s land.
  • Electrification and energy efficiency projects that support the low-carbon goals of operators.
  • Water infrastructure buildout to support the mitigation and response to climate change.
  • Community-level engagements, social investments, and volunteering.
  • Partnerships with emergency responders in TPL communities.

If you have questions or comments, please contact us at IR@texaspacific.com.

Materiality Analysis

We conducted a materiality assessment to determine the ESG metrics that drive the most long-term business, environmental, and social value for TPL and our stakeholders. We assessed a long list of ESG issues derived from the SASB, GRI, and TCFD frameworks, our own priorities, oil and gas industry best practices, and current market drivers. TPL considered various impacts to the Company, including strategic business impact, direct financial impact, regulatory/ legislative and policy impact, brand impact, and opportunities for innovation. We also factored in the issues that are most important to our lessees, operators, and surrounding communities. The following ESG topics were determined the most material to our operations:

Environment

  • Ecological and Biodiversity
  • Energy Management
  • Spill Prevention
  • Water Management and Resiliency
View Our Environmental Efforts

Social

  • Employee Attraction and Retention
  • Employee Welfare and Human Rights
  • Landowner and Community Relations
  • Operational Safety and Emergency Preparedness
  • Workforce Health and Safety
  • DEI Program
View Our Social Efforts

Governance

  • Board Structure and Independence
  • Asset Integrity
  • Business Ethics and Transparency
  • Government Relations and Regulatory Strategy
  • Supplier and Contractor Engagement
View Our Governance

To build our ESG program, we partnered with an external ESG consulting firm to independently assess our operations, business practices and procedures, and cultural enablers. This allowed TPL to identify any gaps and opportunities to improve processes and incorporate best practices where possible.

TPL is positioned to proactively and holistically manage our ESG risks and opportunities, which in turn will provide our communities, stakeholders, shareholders, lessees, and operators the confirmation that our company is prioritizing what is necessary to generate long-term value and support sustainability excellence.

Category Units 2018 2019 2020
Spills (1)
Produced water spills - number # NC 0 0
Other spills* - number # NC 0 0
Produced water spills - volume Barrels NC 0 0
Other spills* - volume Barrels NC 0 0
Produced water spills - volume in Unusually Sensitive Areas Barrels NC 0 0
Other spills*- volume in Unusually Sensitive Areas Barrels NC 0 0
Produced water spills- volume recovered Barrels NC 0 0
Other spills* - volume recovered Barrels NC 0 0
Energy Management- TPWR Operations (2)
Total energy consumed Gigajoules (GJ) Energy tracking initiated in 2020 317,912
Percentage grid electricity Percentage (%) 54%
Percentage renewable energy Percentage (%) 13%
Percentage diesel Percentage (%) 33%
Ecological Impacts (3)
Percentage of land owned, leased, and/or operated within areas of protected conservation status or endangered species habitat Percentage (%) Less than 1% Less than 1% Less than 1%
Percentage of total land disturbed Acres (ac) 0.024% 0.029% 0.0002%
Percentage of impacted area restored Percentage (%) 0% 0% 0%
Other Environmental Indicators (4)
Percentage of total capital spent on electrification Percentage (%) 2.7% 6.2% 3.3%
Capital spent on electrification Dollars $1,200,000 $1,875,000 $150,000
Safety Incidents (5)
Fatalities - Employees # 0 0 0
Fatalities - Contractors # 0 0 0
Employee and Contractor Total Recordable Incident Rate (TRIR)
*TPWR employees only for 2018
Per 200,000 hours worked 4.87 0.65 0.00
Employee and Contractor Lost Time Incident Rate
*TPWR employees only for 2018
Per 200,000 hours worked 4.87 0.65 0.00
Average hours of Health, Safety, and Emergency Response Training for Employees Hours/ Employee 9.22 11.06 22.14
Operational Safety and Emergency Preparedness
Number of reportable water pipeline incidents # 0 0 0
  Percentage significant Percentage (%) 0% 0% 0%
Cyber Security
Number of breaches # 0 0 0
Cybersecurity training hours Hours/ Employee NC 1 hour, 36 minutes 2 hours, 4 minutes
Completed Training- employees Percentage (%) NC 100% 99%
Employee Attraction and Retention (6)
Employee Turnover Rate Percentage (%) Annually 16% 12% 4%
Workforce Diversity and Equal Opportunity (7)
Percentage of female employees Percentage (%) 42% 46% 44%
Percentage female in:
  Executives and Senior Officers Percentage (%) 2% 1% 2%
  First and Mid-Level Managers Percentage (%) 14% 16% 15%
  Professionals and Other Percentage (%) 27% 29% 27%
Employees by Age Group
  Under Age 30 Percentage (%) 28% 24% 25%
  Age 30-50 Percentage (%) 56% 60% 56%
  Over Age 50 Percentage (%) 16% 16% 19%
Charitable Contributions
Dollars contributed to local community investments Dollars ($) $20,885 $385,148 $160,000
Board of Directors
Number of members of the Board of Directors # TPL was a Trust until 2021-- 2021 Board information in Governance Section
Independent Board members #
Female members of the Board Percentage (%)
Minority members of the Board Percentage (%)
Ethics and Compliance Training
Employee completion of mandatory training Percentage (%) NC 97% 100%

Notes:
NC: Not collected or Not Available
∆ (1) TPWR operations did not track in 2018, and the company had no reportable produced water spills in 2019 or 2020.
∆ (1)** Other *--> Stored materials in secondary containment including chemicals, lubricants and fuels
∆ (2) Based on company's 233 total sites
∆ (3) Total acreage: of 880,000 acres. Of disturbed acreage, none fall under 'endangered or areas of conservation status'. Disturbed is defined as changing the original state of the land by putting equipment or infrastructure on that area of land
∆ (4) These numbers come from capital budget costs--  primary power infrastructure builds divided by total capital spend as reported in 10K.
∆ (5) Average hours of training = in person and online
∆ (6) 2018 Total employees: 64; 2019 Total Employees: 94; 2020 Total Employees 102
∆ (7) First and Mid-Level Manager = TPL's Supervisor- Director; Executives and Senior Officers = TPL's VP and Above