Chevron Corporation has released an updated climate change resilience report that further details the company’s ambition to advance its lower carbon future, including the adoption of a 2050 net zero aspiration for upstream Scope 1 and 2 emissions.
The Task Force on Climate-related Financial Disclosures (TCFD)-aligned report also describes how Chevron is incorporating Scope 3 emissions into its greenhouse gas emission targets by establishing a Portfolio Carbon Intensity (PCI) target, inclusive of Scope 1 and 2 as well as Scope 3 emissions* from the use of its products.
Michael Wirth, Chevron’s chairman and CEO said: “This report offers further insights about our strategy, how we are investing in lower-carbon businesses and why we believe this is an exciting time to be in the energy industry.”
Chevron’s new PCI target assists with transparent carbon accounting and company comparison from publicly available data.
The company has set a greater than 5 per cent carbon emissions intensity reduction target from 2016 levels by 2028. This target allows Chevron flexibility to grow its traditional business, provided it remains increasingly carbon-efficient, and pursue growth in lower-carbon businesses. Chevron plans to publish a PCI methodology document and online tool to enable third parties to calculate PCI for energy companies.
Chevron’s 2050 equity upstream Scope 1 and 2 net zero aspiration builds on the company’s disciplined approach to target setting and action. The path to this net zero aspiration anticipates partnerships with multiple stakeholders and progress in technology, policy, regulations, and offset markets.
“We regularly engage with stakeholders and investors to understand their views and to be responsive to their increasing expectations on all issues, including ESG,” said Dr Ronald Sugar, Chevron’s lead director. “Our updated report demonstrates our goal to partner with many stakeholders to work toward a lower carbon future.”
The full report is online here.
* Scope 1 includes direct emissions of the six Kyoto Protocol greenhouse gases (GHG)–carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulfur hexafluoride, perfluorocarbons, and hydrofluorocarbons. Scope 2 includes indirect GHG emissions from imported electricity and steam. Scope 3 includes other indirect emissions, including use of products. The PCI includes Scope 3 emissions from the use of products. More information is available in Chevron’s updated climate change resilience report, which is aligned with TCFD.