greenhouse gas managementwe're taking steps to manage greenhouse gases

Chevron supports the Paris Agreement and views it as an important step toward global engagement and cooperation to address climate change. We are taking action to reduce the carbon intensity of the company’s operations. Chevron believes in taking prudent, practical and cost-effective actions to address climate change risks. 

We have robust risk management processes in place that we believe effectively address climate change-related risks. We consider greenhouse gas (GHG) emissions issues, climate change risks and carbon pricing risks in our strategies, business planning and risk management tools and processes.

Across our operations, the primary sources of our GHG emissions are combustion of fuels and, in some locations, flaring and venting of the natural gas (methane) that is extracted along with crude oil. 

We are committed to managing our GHG emissions by lowering carbon intensity cost efficiently, increasing renewables to support our business and investing in the future targeting breakthrough technologies. 

lower carbon intensity cost efficiently

lower carbon intensity
We take active steps to reduce our carbon footprint. Chevron has established goals to reduce equity net GHG emission intensity from Upstream oil and natural gas. We intend to lower Upstream oil net GHG emission intensity by 5–10 percent and Upstream natural gas net GHG emission intensity by 2–5 percent from 2016 to 2023. Further, we aim to reduce net methane emissions intensity by 20–25 percent and reduce net flaring intensity by 25–30 percent from 2016 to 2023. In addition, we tie GHG reduction metrics to compensation for executives and nearly all Chevron employees.

established four goals to reduce net greenhouse gas (GHG) emissions by 2023*

5-10%

lower oil net GHG intensity

2-5%

lower gas net GHG intensity

25-30%

lower flaring intensity

20-25%

lower methane emissions intensity

* Based on 2016 emissions levels

For more information about Chevron’s position on climate change, see our Climate Change page.

enhancing transparency with investors and stakeholders

Our strong governance practices provide a framework for enhancing transparency related to climate change. For example, in response to growing interest from our investors and stakeholders, Chevron voluntarily published three dedicated climate reports over the last three years, largely using the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD). These reports explain our strategic decision-making approach as it relates to climate change-related risks and opportunities, including our ongoing evaluations of our portfolio and future investments. As we’ve shared in our reports, these evaluations confirm that our mature and diverse portfolio is resilient in many scenarios and our asset mix enables us to be flexible in response to potential changes. You can find out more about our performance data on the Sustainability Reporting page.

energy efficiency

Using energy more efficiently helps preserve our natural resources, lower energy costs and reduce greenhouse gas emissions.

flaring reduction

To align employee—including management—incentives with achieving progress on climate-related issues, the Board of Directors set Upstream intensity reduction metrics of 25 to 30 percent for flaring and 20 to 25 percent for methane emissions for the 2016–2023 time period. These new performance measures are used to determine our annual variable pay program that affects approximately 45,000 employees.

Methane accounts for approximately 5 percent of Chevron’s total GHG emissions. Approximately a third of the 5 percent are considered fugitive emissions, or leaks from equipment and piping; of the remaining emissions, most are generated by flaring and venting.

Since 2013, Chevron has reduced flaring and associated emissions by 22 percent. We have developed internal country-specific plans to minimize gas flaring, and we are a member of the World Bank–led Global Gas Flaring Reduction Partnership. Chevron flares natural gas only when required for safety and operational purposes and in areas where pipelines and other alternatives for transporting gas do not exist.

For an in-depth look at Chevron's emissions data, refer to our Corporate Sustainability Report.

managing fugitive methane emissions

We continue to design, construct and operate our facilities with an eye toward reducing emissions from our operations and limiting fugitive emissions. We monitor and verify the integrity of our wells and production equipment with regular inspections and safety tests. To more efficiently track fugitive emissions, we use infrared cameras in select oil and gas operations to help pinpoint and remedy leaks. We continue to test and deploy new innovations to improve our capacity to detect and reduce emissions.

Our leadership in this area includes being a founding member of the American Petroleum Institute–led Environmental Partnership. We have retrofitted or replaced more than 1,000 continuous high-bleed pneumatic controllers from our onshore U.S. facilities with low-emitting or non-continuous-bleed technologies to reduce emissions. In addition to making operational commitments, Chevron has participated in workshops to share best practices with other operators and has taken action to implement the lessons learned from these workshops. 

In addition, Chevron provides financial and technical support to research efforts, including the Collaboratory to Advance Methane Science and the Oil & Gas Climate Initiative (OGCI). Chevron also continues to serve on the Industrial Advisory Board of the Methane Emissions Test and Evaluation Center (METEC), a Colorado State University and U.S. Department of Energy advanced research facility.

methane guiding principles

Consistent with our ongoing efforts to reduce methane emissions from our global operations, Chevron has joined other energy companies supporting the Oil and Gas Methane Partnership Guiding Principles. As part of our commitment to these Guiding Principles, we will strive to improve accuracy of methane emissions data, advocate sound policies and regulations on methane emissions and work to increase transparency. This commitment is aligned with our already strong environmental principles which guide how we develop energy in an environmentally responsible manner throughout the life of our assets in all countries where we do business.

Rebellion Phototonics
Chevron was an early partner of Rebellion Photonics in its efforts to develop and deploy innovative gas imaging technology, which currently is used primarily as an early warning system for gas loss of containment. In addition to being a customer, Chevron has provided Rebellion Photonics with technical expertise to help scale up its product, make it more reliable and improve the user experience. Chevron is currently working with Rebellion Photonics to apply its technology to methane detection, to enable further reductions in emissions.

carbon capture, utilization and storage (CCUS)

CCUS is part of a portfolio of emerging GHG-mitigation technologies that can help manage future emissions, although the economics of this technology remain challenging. According to the International Energy Agency (IEA), CCUS is an important tool for mitigating GHG emissions and meeting the goals expressed in the Paris Agreement. CCUS is one of the key focus areas for the OGCI’s $1 billion+ investment fund, which aims to invest in projects that demonstrate commercial viability and scalability.

Chevron has invested approximately $1.1 billion in CCUS projects, including Gorgon’s Carbon Dioxide Injection Project – one of the world’s largest integrated carbon capture and storage projects in operation. Once operational, these projects are expected to reduce GHG emissions by nearly 5 million metric tons per year, approximately equivalent to GHG emissions from annual electricity usage in 620,000 U.S. homes’ combined. In addition, Chevron has invested more than $75 million in CCUS research and development over the past decade.

increase renewables to support our business

We are increasing our use of renewables to power our operations.

invest in the future targeting breakthrough technologies

We invest in breakthrough technologies that can deliver cleaner energy on a global scale.

Climate Change Resilience cover
Read about the framework we use to think about climate change in relation to our industry and specifically in relation to our business.

download the report

This report highlights work we are doing to address climate change risks to our business and new opportunities we are pursuing.

download updated report

*CO2-equivalent, direct (Scope 1), operated basis. Transportation includes Chevron Pipe Line Company and Chevron Shipping Company. Power includes Chevron Power and Energy Management Company. Other includes Americas Products, International Products, Chevron Lubricants, Chevron Oronite Company, Chevron Building and Real Estate Services, Chevron Aviation Services, Chevron Environmental Management Company, and Chevron Information Technology Company.

**Process emissions, vented sources, combustion sources and fugitive sources are defined by API's Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2004, 2009); CO2-equivalent, direct (Scope 1), operated basis.