lowering carbon intensitywe’re taking action to reduce our carbon intensity
At Chevron, we believe the future of energy is lower carbon, and we use our unique capabilities, assets and expertise to deliver progress toward the global net zero ambitions of the Paris Agreement. We strive for actions that drive measurable progress toward a lower-carbon future and believe society and investors each want to see the results we are delivering today and our goals for the future.
We have robust risk management processes in place that we believe effectively address climate change-related risks. We consider climate-related issues 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 advancing a lower-carbon future by reducing the carbon intensity of our operations and assets, increasing the use of renewables and offsets in support of our business and investing in low-carbon technologies to enable commercial solutions.
emission reduction metrics
Our actions and progress are linked to virtually all employees’ compensation as part of the Corporate Scorecard, which determines a component of variable compensation through the Chevron Incentive Plan.
upstream production net greenhouse gas emissions intensity reduction metrics for 2028:
24 kg CO2e/boe
24 kg CO2e/boe
3 kg CO2e/boe
2 kg CO2e/boe
chevron's approach to scope 3 emissions
Chevron believes the world’s demand for oil and gas should be supplied by the cleanest and most efficient producers.
Chevron addresses Scope 3 emissions by: (1) supporting a price on carbon through well-designed policies; (2) transparently reporting Scope 3 emissions from the use of our products; and (3) enabling customers to lower their emissions through increasing renewable products, offering offsets, and investing in low-carbon technologies.
These contributions support a global approach to achieve the goals of the Paris Agreement as efficiently and cost-effectively as possible for society.
Scope 1 refers to direct emissions.
Scope 2 refers to indirect emissions from imported electricity and steam.
Scope 3 includes all other indirect emissions, such as the combustion of gasoline or diesel in cars and of natural gas in electricity generation and industrial use.
our approach to driving down GHG emissions intensity: good for the investor, good for society
Using Marginal Abatement Cost Curves (MACCs), we can enable visualization of abatement opportunities, showing their relative cost and abatement potential on a similar basis. In the first enterprise-wide effort to aggregate opportunities, we sourced opportunities from assets that represented approximately 70 percent of our equity GHG emissions. Most of our Scope 1 emissions are combustion-related, which can be addressed via energy efficiency measures, fuel switching to lower-carbon sources (e.g. from diesel to gas), CCUS, or offsets. Further out, we have additional MACC opportunities identified that have the potential to lower our upstream carbon intensity into the mid-teens. Significant technology advancements and the development of large offset markets could enable reductions to net zero by mid-century.
Methane accounts for approximately 5 percent of our CO2e emissions. Methane’s higher global warming potential relative to that of carbon dioxide makes it a key focus area. For our industry, methane comes from three main sources: (1) vents; (2) fugitive emissions; and (3) flares. We are actively addressing the reduction of methane emissions by using data, technology, and innovation to prioritize opportunities and execute the most efficient detection and reduction strategies. For example, we continue to field-test various detection technologies, including aerial and satellite technologies. As a part of our update to the methane target, we are deploying a methane detection campaign that will utilize proven and emerging detection technologies at assets representing 80 percent of our methane emissions.
Methane emissions detection and reduction and flare reductions should be a shared goal that industry works collaboratively and proactively to achieve. We work to share effective solutions, which include stronger regulation, technological innovation, and broad voluntary adoption of best practices.
We continue to design, construct, and operate facilities with an eye toward limiting fugitive emissions. For example, onshore U.S. operations have reduced fugitive methane and volatile organic compound emissions through leak detection and repair, low-/no-emissions pneumatic devices, and centralized field devices where practical. Since 2013, we have installed more than 1,000 lower-emitting pneumatic controllers in our onshore U.S. facilities to reduce GHG emissions by 81,000 tonnes per year. We were among the first in the industry to remove or retrofit all continuous high-bleed pneumatic controllers from U.S. onshore facilities, which are typically the largest contributor to methane emissions at these facilities. Recently, a pilot was completed for Angola LNG to optimize the gas for a deaeration unit, reducing methane venting from the process unit by approximately 70 percent.
flare management and avoidance
We flare natural gas only when required for safety and operational purposes and in areas where pipelines and other alternatives for transporting gas do not exist. We have developed internal country-specific plans to minimize gas flaring. Since 2013, we have reduced flaring and associated emissions by 22 percent. In the Permian Basin, we are an industry leader in reducing flaring because gas-takeaway availability is treated as a planning constraint, just like a permitting condition would be, so our engineers, commercial teams, and planners take it into account in development plans.
An integrated approach to operations promotes gathering and takeaway systems that operate reliably, efficiently, and in coordination with production teams, resulting in some of the lowest methane intensities among those operating in the Permian Basin.
Angola LNG contributes to the elimination of gas flaring in the country and has reduced annual flare volumes in Upstream production by more than 70 percent since 2016.
chevron engages in industry partnerships to promote the reduction of flaring and methane emissions
world bank's zero routine flaring initiative
In 2021, we became signatories of the World Bank Zero Routine Flaring Initiative, which brings together governments, oil companies, and development institutions who agree to cooperate to eliminate routine flaring no later than 2030.
world bank’s global gas flaring reduction public-private partnership (GGFR)
We are an active participant in the World Bank’s GGFR voluntary standard. The GGFR recently partnered with the Payne Institute for Public Policy at the Colorado School of Mines to develop a transparent web platform to support real-time mapping and tracking of global gas flaring data. We supported a $1 million commitment to this partnership through our membership in the Oil and Gas Climate Initiative (OGCI).
oil and gas climate initiative
OGCI member companies, including Chevron, have a methane-intensity target to reduce collective average upstream methane intensity to below 0.25 percent as a share of marketed gas, with the ambition to achieve 0.20 percent by 2025. As of October 2020, member companies’ collective methane intensity was 0.23 percent.
the environmental partnership
We are a founding partner of The Environmental Partnership, an industry initiative aimed at accelerating the adoption of practices that reduce methane emissions. To date, companies in this initiative have conducted more than 184,000 leak detection surveys and replaced more than 13,000 pneumatic controllers with lower- or non-emitting technologies. In December 2020, The Environmental Partnership adopted a program to advance best practices that reduce flare volumes, promote beneficial use of associated gas, improve flare reliability and efficiency when flaring does occur, and collect data to calculate flare intensity as the key metric to gauge progress from year to year.
project ASTRA: advancing next generation methane innovation
In 2020, we joined Project ASTRA, a partnership led by the University of Texas at Austin that aims to demonstrate a novel approach to measuring methane emissions from oil and gas production sites, using advanced technologies to help minimize releases into the atmosphere. Project ASTRA will establish a sensor network that will leverage advances in methane-sensing technologies, data sharing, and data analytics to provide near-continuous monitoring.
collaboratory to advance methane science (CAMS) and methane emissions test and evaluation center (METEC)
In 2018, we became a founding member of CAMS, a joint industry project to conduct peer-reviewed research around methane emissions. We also serve on the Industrial Advisory Board of the METEC, a facility that provides realistic oil field settings to test new methane detection and abatement technologies and supports the Methane Guiding Principles.
carbon capture, utilization and storage (CCUS)
We are leveraging existing and building new commercial relationships with technology companies, pipeline companies, power providers, refiners, and other emitters to advance CCUS in key geographies.
Over the past decade, we have invested more than $1 billion in CCUS research, development, and deployment opportunities to reduce our GHG-emissions intensity. Project investments were primarily in Canada and Australia and include the Gorgon CO2 injection project, one of the world’s largest integrated CCUS projects. These projects are expected to reduce GHG emissions by nearly 5 million tonnes per year, approximately equivalent to the GHG emissions from the average annual electricity usage in 660,000 U.S. homes. Learn more about our CCUS projects and partnerships.
2020 corporate sustainability report
2021 climate change resilience report
2019 corporate sustainability report
2019 update to climate change resilience report
2018 climate change resilience 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.