According to Bloomberg reports, energy giant Chevron Corp. aspires to net-zero emissions from its operations in the next 29 years. This is coming as a major response to the various eco-criticisms from society and increasing pressure from its investors that the corporation plays a pivotal role in the energy transition to a minimal carbon future.
Chevron has set goals of reducing its carbon intensity by 5% from its 2016 levels by 2028. This target will also impact the full lifecycle of its products, the company disclosed in a Monday report. Targets cover Scope 3 emissions, or in other cases those of its customers. Stakeholders have been headstrong on the matter, and have defied the corporation’s board in May to vote in favour of reducing Scope 3 emissions.
Although, this promise may be behind when compared with those pledged by counterparts in Europe such as Royal Dutch Shell Plc and BP Plc. Reports say it is the first time the American corporation has actually presented a more strategic multi-decade commitment to reduce emissions. The aims close in on concerns like carbon intensity, the relative measure to the amount of energy produced rather than absolute levels of pollution. This means the company can still focus on overall production however it must adopt clean procedures to achieve such outcomes.
Room for Improvement
Just in September, Chevron’s CEO Mike Wirth said he was confident in a balanced carbon goal strategy that considered the world’s reliance on energy and the critical need to lower emissions. The shortage of natural gas and the fluctuations in oil and coal prices are just pointers to how heavily reliant the world is on fossil fuels.
On Monday, the world’s biggest exporter of liquefied natural gas, Qatar weighed in on the transition talks. For the exporter, having an effective plan for energy needs while committing to reducing carbon emissions was a more sustainable approach.
Wirth on the other hand is gearing Chevron’s climate mission with a strategy of ensuring financial returns while also securing the interests of shareholders and the environment. According to him, both of the subjects (shareholders and environment) worked together. Hence, the company is intentional about its oil and gas commitments for the long-term but is also making concerted efforts on several small-scale bets on new technologies like renewable natural gas that it believes can scale up transition for the future.
This method contrasts with that of its peers in Europe, which are making plans to switch towards more renewable alternatives over time.
Credit: Bloomberg, World Oil.