ConocoPhillips

Climate Change Strategy

Environmental team at work

​Integrating Carbon Risk Management into Strategic Planning

The objective of our climate change strategy is to prepare the company to succeed in a world challenged to reduce greenhouse gas (GHG) emissions. This includes managing risk, optimizing opportunities and equipping the company to evolve our strategic approach to respond to changes in key uncertainties, including government policies around the world, technologies for emission reduction and alternative energy technologies.

We are aware that some stakeholders are concerned that at some point, the use of fossil fuels could be restricted in order to limit GHG concentrations in the atmosphere in an effort to limit changes in global temperatures. This concept is being called “carbon asset risk” or “unburnable carbon.” The issue appears to be that some stakeholders are concerned that some reserves may not be developed and that their contribution to company valuations may create a “carbon bubble.”