Chevron Responds to Investor Climate Demands with Value Chain Emissions Reduction Targets
Energy giant Chevron announced today the publication of its climate change resilience report, including new climate goals encompassing the company’s full value chain emissions.
The company’s new goals include an aspiration to achieve net zero upstream Scope 1 and 2 emissions by 2050. Chevron has also established a Portfolio Carbon Intensity (PCI) target to cut carbon emissions intensity across its full value chain – including Scope 3 emissions – by more than 5% by 2028. Scope 3 emissions include those not owned or controlled by the company, including emissions arising from use of the company’s products.
Michael Wirth, Chevron’s Chairman and CEO, said:
“Solutions start with problem solving, which is exactly what the people of Chevron do – and have excelled at for over 140 years. 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.”
The publication of the report follows Chevron’s AGM in May, which saw a majority of shareholders vote for a resolution mandating the company to reduce Scope 3 emissions.
Chevron is one of several major oil and gas companies facing increasing investor and regulatory pressure to act on climate change, and prepare for the energy transition. Climate-focused activist investors recently won board seats at energy giant Exxon, and a Dutch court issued a ruling against Shell, requiring the company to cut emissions by 45% by 2030.
Last month, the company announced plans to significantly ramp its investments its low carbon businesses to over $10 billion by 2028 – more than 3x its prior guidance of $3 billion – with investments in key areas including carbon capture and offsets, hydrogen, renewable fuels, and greenhouse gas (GHG) reduction projects.
Chevron stated that it will publish a PCI methodology document and online tool to enable third parties to calculate PCI for energy companies.
Dr. Ronald Sugar, Chevron’s lead director, said:
“We regularly engage with stakeholders and investors to understand their views and to be responsive to their increasing expectations on all issues, including ESG. Our updated report demonstrates our goal to partner with many stakeholders to work toward a lower carbon future.”
Click here to view Chevron’s climate change resilience report.