Building a Resilient Strategy for the Energy Transition

Managing Climate-Related Risks

In a world aiming for net-zero emissions, we have a framework that consists of the governance, strategic capability, risk management processes and disclosure to demonstrate resilience across a range of transition scenarios. Our current Climate Risk Strategy and actions for our oil and gas operations are aligned with the aims of the Paris Agreement while being responsive to shareholder interests for long-term value and competitive returns. 

2022 Performance Highlights

  • Published a progress report on our Plan for the Net-Zero Energy Transition to describe key milestones achieved throughout 2022 as we advance our efforts to manage through the energy transition and address the associated risks and opportunities. 
  • Developed a new net-zero scenario modelling the collective global government and societal actions that would be required to align with limiting warming to 1.5 degrees. 
  • Improved our Paris-aligned target framework with progress against our targets, including: 
    • Strengthening our previously announced operational GHG emissions intensity reduction target to 50-60% by 2030 on both a gross operated and net equity basis from a 2016 baseline. 
    • Achieving near-zero methane emissions intensity by 2030. This goal was set in response to meeting our 10% methane emissions intensity reduction target four years early, from a 2019 baseline. 
    • Achieving a target of zero routine flaring by 2025, five years sooner than the World Bank Initiative’s goal of 2030. 
  • Spent approximately $150 million on Scope 1 and 2 emissions reductions and low-carbon opportunities. 
  • Joined the Oil and Gas Methane Partnership (OGMP) 2.0 Initiative, a globally recognized initiative for methane emissions measurement and reporting
  • Compared to 2021, reduced our operational GHG emissions on both an intensity and absolute basis by 14%. 
  • Reduced both our methane intensity and flaring intensity (4% and 12% respectively) and decreased total flaring volumes by 13% compared to 2021. Routine flaring decreased 90% since 2021. 
  • Developed an implementation plan for our Scope 3 Supplier Emissions Strategy to address climate-related risks in our supply chain. 
  • Demonstrated active advocacy for an economy-wide U.S. carbon price that would directly address consumer demand for energy and end-use (Scope 3) emissions. Supported policy advocacy beyond carbon pricing to include other end-use emissions policy and regulatory action. 
  • Advanced several energy transition and low-carbon technologies efforts, including LNG and potential CCS and hydrogen projects. 

Climate Risk Framework

Net-Zero Ambition by 2050

Progress Report: Operationalizing Our Net-Zero Ambition

Climate Change Position

Our position guides our approach to managing climate-related risks.