Seeking and listening to shareholder feedback

Building relationships with our shareholders helps Devon anticipate and manage issues that influence our long-term success. We’ve learned through years of active shareholder outreach that our sustainability-related performance is a key component of stockholders’ assessment of the company. Insights from our shareholder engagements each year inform our plans for safety and environmental targets, shape our sustainability and public advocacy programs, impact our compensation structure and focus our reporting.

Based in part on our ongoing engagements, we’ve strengthened our governance structure and practices to more effectively manage the risks and opportunities of climate change, corporate culture and other sustainability issues of interest to our shareholders. The Governance, Environmental and Public Policy (GEPP) Committee of our board of directors oversees the company’s work in setting strategy, establishing goals and integrating sustainability into our business activities. Our EHS and sustainability teams coordinate related efforts internally and regularly update the executive committee, GEPP Committee and the full board on our progress.

Our vice president, corporate governance, secretary and associate general counsel leads Devon’s efforts to communicate directly with shareholders to understand their interests. Devon senior leaders and subject matter experts on sustainability topics — including executive compensation, field environmental practices, environmental targets and cybersecurity — often join the shareholder meetings to share our strategies and plans. They report what they learn to Devon senior management and our board, who appreciate shareholder feedback.

Responding to shareholder feedback

We value shareholder feedback and use it to evaluate the strength of our programs and practices. We understand that minimizing the environmental impact of our operations is critically important. To reflect our focus, we set our first methane intensity reduction target in 2019. We redoubled our environmental stewardship ambitions in 2021 when we adopted goals for net zero operational GHG emissions, GHG and methane emissions intensity reductions, flaring reductions and water conservation.

To demonstrate our commitment to transparency and reporting, we published Climate Change Assessment Reports in 2018, 2020, 2021 and 2023. The 2023 report is consistent with the core elements of the Task Force on Climate-related Financial Disclosures (TCFD) framework. We seek to align with TCFD because many of our investors and other stakeholders prefer this international, multi-industry-led initiative for voluntary disclosure of climate-related risk. We continue to share our tactics to meet our decarbonization targets, as well as information about our water use, biodiversity, land reclamation and other environmental topics.

To further reflect our environmental focus, Devon included a standalone emissions reduction goal with a 15% weighting on our 2024, 2023 and 2022 corporate performance scorecards. Our environmental and health and safety goals combined accounted for 30% of our corporate performance scorecard in 2024. In comparison, our 2021 emissions goal made up a portion of the EHS goal that had a cumulative weighting of 20%. We believe that setting challenging goals for EHS performance encourages alignment around an objective that motivates our employees and fosters the right behavior and culture to keep our people and the environment safe. Our goal-setting and performance have led to broad support for our compensation programs, with approximately 64% of voting stockholders casting ballots “for” Devon’s say on pay vote in 2025.

Benchmarking our progress

Devon participates in third-party sustainability-focused surveys and assessments that help stakeholders benchmark our progress. Our scores are ranked in the top tier of our peer groups by Sustainalytics, ISS, RobecoSAM and CPA-Zicklin Index.

These assessments also allow us to gauge the information that our investors value and improve our sustainability performance. We regularly evaluate surveys and additional public disclosures we could make to target our reporting on the information that is most meaningful for shareholders and other stakeholders.