Our Climate Change Action Plan addresses the significant/ high risks from our SD Risk Register and includes milestones over several years. Actions within the plan address individual risks identified by our business units or global/regional risks identified by our central corporate staff. For example, both chronic and physical climate-related impacts are more likely to apply to a single business unit, given the specific local nature of the risk and geographical location of our assets. Actions relate to specific business units unless indicated as “global.” 

Climate Change Action Plan

Risks 2022 Mitigation Actions and Milestones
GHG Policy
Climate change policy,
including carbon taxes
  • Review global emerging issues with Sustainability and Public Policy Executive Council on a regular basis.
  • Work with Climate Leadership Council and API Climate Working Group to develop U.S. carbon tax framework; advocate for a carbon price through the Climate Leadership Council/Americans for Carbon Dividends as well as the Carbon Pricing Leadership Coalition.
  • Directly engage governments on evolving climate policy and monitor policy developments.
  • Engage in industry working groups to provide input to federal consultation on border carbon adjustment policies.
  • Use carbon price in base case long-range planning and forecasting; elevate GHG forecasting guidelines to a company practice.
  • Support effective incentives for emissions reductions, including tax and production credits and protocols for use of carbon credits and offsets.
Low carbon technologies activities 
  • Implement global corporate position and strategy on carbon offsets purchases.
  • Assess opportunities to reduce Scope 2 emissions with low carbon technology and electricity grid connection opportunities.
  • Explore novel technology and investments through Low Carbon Technologies organization.
  • Explore implementing CCS technology in project design.
  • Consider partnering with future renewable energy project developers to power our operations where operationally and economically feasible and monitor new opportunities.
Emissions and Emissions Management
GHG emissions regulations
  • Support enactment of cost-effective federal methane regulations on new and existing sources that would preserve a state’s ability to adapt implementation to local conditions.
  • Explore new technology solutions and facility improvements to meet methane and flaring reduction targets.
  • Continue regulatory advocacy efforts around methane and flaring.
  • Work with industry trade groups and task forces to respond to proposed GHG regulations.
GHG emissions reductions
  • Design and develop new facilities with lower emission footprints. Focus on operational efficiency globally to reduce GHG intensity.
  • Execute U.S. flare reduction plans including revising commercial agreements to incorporate flare reduction incentives. Consider developing additional flaring reduction targets.
  • Continue implementation of corporate Climate Risk Strategy including energy transition plan with updated targets. Continue integration of BU Climate Risk Strategy and development.
  • Improve GHG data collection efforts and advance MACC emissions reduction projects, plans and low-carbon ideas. Continue to assess transformational technology pilots.
  • Continue to grow emissions monitoring program. Advance methane mitigation measures through leak detection surveys, source testing and tank monitoring.
Physical Climate-Related Impacts
Acute and chronic physical risks Assessment
  • Continue to include physical climate risk in SD risk management process.
  • Develop global physical risk assessment guidelines for business units and continue with ongoing review cycle.
  • Initiate asset-specific climate risk assessments.
Fresh water constraints
  • Increase application of mitigation measures (fresh water use minimization) in project design phase and adjust project execution timing based on water availability.
  • Investigate alternative sources for water (e.g. pipelines, desalination, etc.).
  • Monitor stream flow and use forecast exercises to identify potential water availability concerns in upcoming development.
  • Alter well completion schedule as required or needed.
Permafrost thaw
  • Continue assessment of risk of permafrost thaw for construction of new infrastructure and implementation of mitigation measures. Use remote sensing to detect landscape change patterns.
  • Investigate effective approaches for monitoring permafrost thaw and thaw degree days.
  • Continually review and update engineering and design specifications, including equipment and site maintenance.
Wildfire
  • Participate in desktop regional wildfire annual risk assessment and mitigation planning efforts.
  • Execute emergency response plan exercises, drills and training for wildfire threats.
  • Integrate development of planning with regional forest company’s harvest timeline to enable landscape-scale resource management which could reduce forest fuel near the asset.
  • Implement and execute safety barriers and controls to enable facility and personnel protection in the case of fire and advance warning of potential wildfire threats.