I am pleased to share with you the CNX Resources 2023 Corporate Sustainability Report.

Through past years, we have posited and debated the following question, and it warrants revisiting: is ESG truly a panacea for effective capitalism, or merely a well-marketed delusion? As we detailed over the last several years in this report and other company publications, and which has been confirmed across the news recently, the answer depends on the details.

ESG varieties found across corporate America today span the "good", "the bad", and "the ugly."

The bad and the ugly are what you would expect—cliches, greenwashing, and the superficial designed to promote ideology, curry political favor, or lure the quick money. Many are optically pleasing, yet hollow marketing facades; PR glitz lacking substance. Some are simply a deflection tactic to avoid or delay meaningful progress; look over here so we can keep on doing the same-old, same-old over there. And the worst of the bunch attempt to substitute virtue-signaling in place of focus on core business execution and risk management, leading to potential catastrophic outcomes for community, customers, employees, and owners.

Too much bad and ugly ESG has consequences. As rapidly and chaotically as the ESG complex rose, it now seems to be crashing down with equal haste. The tall claims about how ESG is risk-reducing and cash flow-increasing are not being confirmed by the data, despite loud claims to the contrary from self-proclaimed experts. Now some have dropped ESG entirely and some have rebranded to “transition investing,” revealing their true motives of forcing rigid climate ideology.

Not here, folks. The 160-year legacy of CNX is rooted in being thoughtfully different, and that has created our unique ESG effort. We embrace it to materially improve our business and our local communities. Good ESG is hard work and an endless pursuit of perfection. Authentic corporate responsibility goes beyond the PR. It comprises clinical, holistic thinking; ethical decision-making consistent with defined values; and a commitment to long termism. Questioning the status quo, challenging assumptions, and redefining success that extends beyond glossy reports are necessary ingredients.

"Authentic corporate responsibility goes beyond the PR. It comprises clinical, holistic thinking; ethical decision-making consistent with defined values; and a commitment to long termism."

As always, we extend our open invitation to engage in candid, civil dialogue. Let’s help dismantle the ESG stage props and reconstitute lasting corporate responsibility. Together, we can forge a path that transcends buzzwords—where good deeds and shareholder returns form a self-perpetuating virtuous circle. That’s exactly what CNX has been hard at work building over the last several years, culminating in 2023 with a blueprint for authentic, Impactful ESG.

At the heart of CNX’s strategy lies our hyper-local value creation model. We continue to deliver for all our stakeholders, especially the communities across the Appalachia region. Appalachia First is not just a slogan, it is part of our DNA. We believe that sustainable success requires progress for Appalachia while ensuring CNX’s resilience for generations to come. Our Appalachia First vision uniquely positions CNX in a differentiated ESG performance class. Our efforts to protect and improve the environment are revolutionary and unmatched. Our unique commitment to our communities dictates that we roll up our sleeves and attack the toughest of issues. The Tangible, Impactful, Local results of these efforts in 2023 are detailed throughout this report.

ESG the CNX way avoids the "bad" and "ugly" and embraces the good that Tangible, Impactful, Local focus brings to our employees, communities, and owners. Rest assured that results through meaningful action will remain top priority.

Thank you for your continued support as we work together to serve our communities, our employees, and our shareholders. CNX has established something special with our ESG effort—join us on the journey.


Nicholas Deiuliis