Performance metrics and targets

In 2020, we adopted a climate-related risk framework with an ambition to reduce our operational greenhouse gas (GHG) emissions to net-zero by 2050. To that end, we calculate key metrics and use targets to estimate and monitor our performance and progress in managing climate-related risks and opportunities in line with our strategy and risk management process. These include: 

• GHG emissions intensity target. 

• Scope 1 and Scope 2 emissions. 

• Metrics for methane, flaring and water. 

We believe these metrics and targets are the most useful in managing climate-related risks and opportunities and monitoring performance. Our 2023 emissions increased compared to 2022 (on a gross operated basis) due to the integration of methane emissions data improvements,¹ including corrected pneumatic equipment counts and classifications, and classification as well as the expansion of flare downtime monitoring: 

• Scope 1 and Scope 2 GHG emissions intensity increased to 25.3 kg CO₂e/BOE. 

• Methane intensity increased to 4.8 kg CO₂e/BOE. 

• Flaring intensity increased to 31.8 MMCF/MMBOE (total flaring volume per total production).  

Despite the increase in emissions in 2023, we are still on track to achieving our 2030 GHG and methane emissions intensity reduction targets. 

We have committed to near, medium and long-term targets for reducing operational (Scope 1 and Scope 2) emissions over which the company has ownership. Our targets are: 

• Ambition to reach net-zero emissions for Scope 1 and Scope 2 emissions by 2050. 

• Reduce GHG emissions intensity to 50-60% by 2030 on both a gross operated and net equity basis from a 2016 baseline. 

• Achieve near-zero methane emissions intensity by 2030.  

• Reduce methane emissions intensity by 10% by 2025 from a 2019 baseline. 

• Achieve a target of zero routine flaring by the end of 2025, five years sooner than the World Bank initiative’s goal of 2030.

Our ambition for net-zero operational emissions by 2050 is set on an absolute emissions basis, while the rest of our target framework for near and medium-term targets is set on an intensity basis. Intensity targets better apply to the exploration and production sector’s dynamic business environment where plans, technology, prices, industry structure and costs all change rapidly. Intensity targets are more durable and allow a company to change plans to maintain a competitive portfolio without also having to repeatedly reset targets.  

Our targets inform internal emissions reduction efforts at the business unit level and support innovation on efficiency, emissions reduction, GHG regulatory risk mitigation and climate-related risk management throughout the lifecycle of our assets.  

Beyond 2030, many uncertainties influence our ability to set specific future commitments and progress toward our net-zero operational emissions ambition. Examples include: 

• Pace of development of currently undeveloped technologies. 

• Country-driven climate policy. 

• Permitting and regulatory changes that may impair ability to execute current or future plans. 

• Pricing, verifiability and availability of offsets; offset market developments. 

• Potential revisions to emissions estimates and reduction goals as measurement technologies advance. 

• Success and rate of return of nascent low carbon investments, technologies and markets. 

• The size and composition of transition demand driven by the world’s population and their per capita energy consumption. 

Scenario modeling and analysis helps to identify key uncertainties to be managed. We also recognize that future government policy and regulatory efforts may supersede company net-zero targets as governments set and refine their own Nationally Determined Contributions. As such, we recognize that our pathway and targets may not be the same as other companies due to differences in asset mix, geographies, risks and opportunities. 

All data presented herein is from January 1 to December 31, 2023. Footnotes to our performance metrics outline the scope and methodologies of our data reporting. The minimum boundary for reporting on environmental priorities is the assets we operate. Current and updated targets and ambitions are outlined in near, medium and long-term timeframes, followed by examples of emissions reduction projects in our business units. Our progress to date has not included the use of voluntary offsets. 

Read more about the principles surrounding our approach to target setting.