Climate Change

Credible Path to Net Zero

Our role in confronting climate change remains a key point of focus when assessing how to advance our ESG strategy and allocate financial and human capital resources accordingly. In 2021, our Board approved a formal Climate Change Policy, reaffirming our commitment to a lower carbon future and the important role our company will play on the energy road ahead. As part of this policy, both short- and long-term executive incentive remuneration has been linked to the achievement of climate-related targets. Importantly, remuneration and incentives are not solely applicable to our executive team but also apply to certain members of our senior management team, ensuring we remain aligned on ESG issues at various levels within the organization.

As a U.S.-based energy company, we recognise the essential role we play given the need for global climate action, and we are committed to prudent operational practices alongside other businesses, governments and international regulatory bodies. Therefore, we are working hard to achieve our corporate commitments to positive U.S. climate action as well as to help drive forward a responsible, well-considered energy supply for the future generations. Our perspectives on climate action are clearly outlined in our Climate Change Policy, which includes a list of 11 action-principles designed to achieve, among other things, three primary targets and goals:

Emissions Targets
1. Reduce Scope 1 methane emissions intensity by 30% by 2026 (relative to 2020 baseline)
2. Reduce Scope 1 methane emissions intensity by 50% by 2030 (relative to 2020 baseline)
3. Achieve Scope 1 and 2 net zero green house gas emissions by 2040

Our Approach to GHG Emissions

Our emission reduction targets and goal require a holistic, multi-year, rigorous plan to deliver results. As such, we continue to invest heavily in time and attention, financial resources and technologies on our pathway to net zero. To meaningfully reduce our emissions, we have made it a priority area of focus in each project we consider and undertake. This consideration extends to future potential acquisitions by determining if the emissions profile and geographic location of the target assets is compatible with or beneficial to our portfolio and our climate goals for emissions reduction.

Climate Risk and Resilience

For further information on our management of climate-related risks and opportunities, please see our Climate Risk and Resilience Report. Addressing all recommendations set forth by the Taskforce for Climate-related Financial Disclosures this report provides a comprehensive assessment and disclosure of our Governance, Strategy, Risk Management and Metrics and Targets.