Expand Energy - 1792 Exchange

Rating Overview

Expand Energy is Medium Risk.

Expand Energy often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. Chesapeake Energy occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	High Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Lower Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

In 2024, Southwestern Energy merged with Chesapeake Energy to form Expand Energy (1). Chesapeake Energy’s HRC 2023-2024 CEI rating indicates the company recruits employees based on sexual identity. The company discriminates against vendors that do not promote divisive sex and gender policies, indicating it prioritizes sexual issues over merit (2)(3). Expand Energy integrates ESG into its business practices. From its 2024 Sustainability Report: “We tie our compensation to certain performance indicators,
including sustainability goals, to motivate our leadership and workforce to drive positive environmental and social outcomes alongside
financial successes” (4). The company promotes divisive sex and gender policies. Its Supplier Code of Conduct requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (5). However, Expand Energy has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (6).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

High

Rationale:

Chesapeake Energy’s HRC 2023-2024 CEI rating indicates the company will not donate to non-religious charities unless they embrace controversial sexual identity policies (1)(2). Expand Energy will not give to “Religious or partisan causes” (3).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

Chesapeake Energy’s HRC 2023-2024 CEI rating indicates the company a specific benefits guide with a comprehensive explanation of transgender services funded by the company (1)(2). Expand Energy and Chesapeake Energy have both offered DEI training to their employees (3)(4). The company appears to prioritize diversity over merit in its leadership composition. From its Nominating and Corporate Governance Committee Charter: “Seek to include diverse candidates in all director searches, taking
into account diversity of race, gender, age, culture, thought and
geography” (5). Expand Energy does not provide viewpoint protections for its employees (6).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Chesapeake Energy’s former CEO, Domenic Dell’Osso Jr., signed the CEO Action for Diversity & Inclusion pledge, which includes a commitment to promote DEI through bias education training in the workplace, strategize on DEI programs/initiatives with other signatories, and engage boards of directors when developing and evaluating DEI strategies (1)(2). Expand Energy is committed to net zero Scope 1 and Scope 2 GHG emissions by 2035 (3). The company supports DEI within its business practices. From its 2024 Sustainability Report: “We believe that this inclusion promotes collaboration and innovation
and removes barriers to productivity and individual contributions to
company success.
Diversity of ideas, geographic locations and experience are essential to
fostering a better working environment, along with the demographics
that make up the expert talent across our company” (4).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Lower

Rationale:

Expand Energy has not used corporate funds to advance ideological causes, organizations, or policies (1).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

Lower

Rationale:

Expand Energy has not used its PAC donations for ideological purposes and does not report on its lobbying at this time (1)(2)(3).