Our objective is to manage climate-related risk, optimize opportunities and equip the company to respond to changes in key uncertainties, including government policies around the world, technologies for emissions reduction and alternative energy technologies. In 2020, we updated our climate risk framework with the objective of implementing a coherent set of choices designed to facilitate the success of our existing exploration and production business through the energy transition. Given the uncertainties remaining about how the energy transition will evolve, the strategy must be robust across a range of potential future outcomes.
The strategy is comprised of four pillars:
Our target framework consists of a hierarchy of targets - from a long-term ambition that sets the direction and aim of the strategy, to a medium-term performance target for GHG emissions intensity, to shorter-term targets for flaring and methane intensity reductions. These performance targets are supported by lower level internal business unit goals to enable the company to achieve the company-wide targets.
We expanded our Marginal Abatement Cost Curve process to provide a broader range of opportunities for emission reduction technology.
We continued to integrate climate-related risk into our portfolio decision-making by incorporating carbon pricing into our planning case for jurisdictions without a carbon price and by addressing the risk of stranded assets by prioritizing major projects with a fully loaded cost of supply less than $40/BOE.
Our external engagement aims to differentiate ConocoPhillips within the oil and gas sector with our approach to managing climate-related risk. This includes participation in climate-related initiatives like the World Bank Zero Routine Flaring by 2030, which we endorsed in 2020. It also includes being a leading voice in the Climate Leadership Council to advocate for a price on carbon in the U.S. and by working with our trade associations to ensure alignment with our climate change position.
Read more about our energy transition and climate related strategy.
World Energy Outlook Scenarios.
Understanding a range of risks.
Short, Medium & Long-Term Risks
Time horizons for climate-related issues.
Climate Change Action Plan
Addressing priority risks.
Impact on Business and Strategy
Areas for potential impact.
Effect on financial planning.