Chevron plans to reduce its carbon emissions intensity by 5% and invest up to $8 billion in low-carbon efforts by 2028.
The company released a report detailing its net zero aspirations, which it hopes to hit by 2050. The targets include addressing Scope 1 and 2 emissions as well as including Scope 3 emissions into its overall goals by establishing a portfolio carbon intensity (PCI) target.
The company says the PCI will help with transparent carbon account and company comparison from publicly available information. The target covers Chevron’s full range of operations, the company says, including the Scope 3 emissions from its products.
Scope 3 emissions come from items not owned or operated by the company and are essentially those of Chevron’s customers. Bloomberg reported that in May Chevron’s investors defied the company’s board and voted to reduce Scope 3 emissions on an absolute basis, not jut intensity.
Oil and gas executives are facing mounting pressure to make changes in their carbon footprints. A report from S&P Global Ratings earlier in 2021 said executives could lose their jobs and companies could face legal consequences if changes weren’t made.
In addition to Chevron’s investors revolting against emissions standards, ExxonMobil’s did so as well and the Netherlands won a court battle to make Shell cut its emissions by 45% over the next decade, according to the Guardian.
Investors have also called for stronger emissions regulations in the US.
The growing intensity to address these concerns makes mitigating emissions problems even more important in the industry.
Chevron says it wants to be net zero in Scope 1 and 2 emissions by 2050. It will also invest $2 billion in carbon-reduction projects by 2028 by focusing on its overall carbon intensity, its upstream carbon intensity and its refineries.
Some of the $8 billion low-carbon investments include renewable fuels, hydrogen and carbon capture and offsets, Chevron says.
The company announced a partnership earlier this year with Cummins to develop hydrogen and other alternative energy resources. Chevron also announced plans on carbon offsets this year, after it exceeded 2023 targets early.
Chevron says it will publish its PCI methodology and an online tool to help third parties calculate PCI for energy companies.
Chevron says this plan will allow it flexibility to grow its traditional business as long as it continues to increase its carbon efficiency as well as grow lower-carbon businesses. The company plans to partner with multiple stakeholders and advance technology, policy and regulation to hit its net zero goals.