Chevron has set out an aspiration to become net-zero by 2050; along with a new series of climate targets to reduce its overall carbon intensity. The company released today an updated climate change resilience report. It further details the company’s ambition to advance its lower-carbon future.
Firstly, the net-zero aspiration is for equity upstream Scope 1 and 2 emissions. As for Scope 3 emissions, the company is incorporating them into its greenhouse gas emission targets by establishing a Portfolio Carbon Intensity (PCI) target.
One of the first targets that the company aspires to achieve is a more than 5% carbon emissions intensity reduction from 2016 levels by 2028. However, the PCI targets are aligned with Chevron’s strategy. It allows flexibility to grow its traditional business while also pursuing growth in lower-carbon businesses.
Moreover, in the full report, the company claims that by 2028 it will allow GHG emissions reduction of around 30 million metric tons per year. Further reduction will be made with capital allocations of up to $2 billion for carbon reduction projects and $8 billion for carbon investments, both by 2028.
In addition, according to the report, the company sees reduction opportunities in key areas, such as energy management; methane management, consisting of venting, fugitives, and flaring reductions; CCUS; and carbon offsets. To tackle reduction in these areas, the company might switch to cleaner gases, reduce methane flaring and venting.
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Chevron to also increase renewable energy use through PPAs
Furthermore, Chevron has already identified nearly 100 GHG-abatement projects to advance executions of the targets; it also plans to spend more than $300 million in 2022 to execute those challenges.
About the relevance of the report, Michael Wirth, Chevron’s chairman, and CEO, said. “Solutions start with problem-solving, which is exactly what the people of Chevron do – and have excelled at for over 140 years. This report offers further insights about our strategy, how we are investing in lower-carbon businesses and why we believe this is an exciting time to be in the energy industry.”
On the other hand, Dr. Ronald Sugar, Chevron’s lead director, also remarked. “We regularly engage with stakeholders and investors to understand their views and to be responsive to their increasing expectations on all issues, including ESG. Our updated report demonstrates our goal to partner with many stakeholders to work toward a lower-carbon future.”
Finally, the company would increase its sourcing for renewable power. The report highlights that the company has 65-megawatts secured through power purchase agreements in the Permian Basin.