environmentchevron supports well-designed climate policy

To reduce emissions, we believe a price on carbon is the most efficient mechanism for public policy because it harnesses market forces. For example, our Eastern Mediterranean business unit supported Israel’s adoption of a price on carbon as the primary policy tool for fulfilling the state’s carbon reduction goals. By adopting a market-based approach to carbon reduction, Israel has shown it’s at the forefront of countries around the world in addressing global climate change.

Global engagement: Climate change requires global engagement and action. We believe market-based mechanisms applied across the broadest possible coverage of emissions are the most effective and efficient way to reduce emissions. As a member of the International Emissions Trading Association (IETA), Chevron has supported IETA’s mission to be the trusted business voice on market-based climate solutions. Through IETA and other business groups, Chevron remains engaged as official observers to the United Nations Framework Convention on Climate Change, which seeks to build global consensus on cooperative approaches between governments, NGOs, research organizations and other stakeholders to achieve the long-term goals of the Paris Agreement.

Research and innovation: Well-designed climate policy supports research, development and early-stage deployment of promising technologies. At the federal level in the United States, Chevron supported the Bipartisan Infrastructure Investment and Jobs Act’s inclusion of critical provisions encouraging development of carbon capture, utilization and storage and hydrogen technologies.

Balanced and measured policy: A balanced and measured approach aims to meet long- term economic, environmental and energy-security needs. It allocate costs in an equitable way and considers both GHG mitigation and climate change adaptation. As a California-based company with significant operations and investment in the state, we have a long history of engagement and advocacy both directly and through our trade associations. This has included engagement and advocacy regarding California’s cap-and-trade program, the first economywide carbon-pricing program in the United States. This program uses several key design elements of balanced and measured climate policy by covering all sectors of the economy, leveraging carbon pricing and crediting additional emissions offsets outside its cap.

Transparency: We believe transparent data and policies enable consumer choice and the most efficient GHG reductions. We have voluntarily reported our greenhouse gas emissions for nearly two decades. In 2018, Chevron was among the first oil and gas companies to publish a report aligned with the Task Force on Climate-related Financial Disclosures, and we issued a fourth update in 2021. In 2021 we also introduced a portfolio carbon intensity metric that represents the carbon intensity associated with bringing products to market. In collaboration with Pavilion Energy and Qatar Energy we also jointly developed a liquefied natural gas carbon-footprinting methodology for delivered cargoes. This methodology is expected to improve accuracy and build stakeholder confidence in data reliability.