Taking Action on Climate Change
As we work to safely find and deliver energy to the world, addressing climate change-related issues is a high priority.
Our climate change strategy is designed to prepare the company to succeed in a world challenged to reduce greenhouse gas (GHG) emissions. We implemented a corporate climate change action planning process to put our strategy into action and manage GHG emissions as our production changes. The planning process also prompts planning for adaptation to physical changes in climate.
We consider a range of external insights as we evaluate and plan actions to address climate change issues in our businesses and functions. Examples include:
- Monitoring government actions on reporting and regulating greenhouse gas emissions. Globally governments are taking action on reporting and regulating greenhouse gas emissions, such as the European Union, the U. S. through the Clean Air Act, and some Canadian provinces. Many countries made commitments during recent international dialogues. However, there is considerable uncertainty given the timing, type and range of actions available to countries, coupled with the conditionality placed on a large number of the contributions made.
- Listening to stakeholders. Some stakeholders are concerned about the impact of fossil fuel production and use on GHG emissions. Research centers, universities and other stakeholders continue to provide information about climate change related risks and opportunities.
- Understanding investor concerns. Some investors have questions about the impact of increasing regulation and legislation on the company’s returns, valuation and business outlook. Investors also seek to understand how we are managing these issues to reduce risk and create opportunity.
Global Action Plan
Our plan is constructed of 5 focus areas:
Understanding Footprint – Mapping and measuring our emissions and improving the accuracy and consistency of recording and reporting.
Managing Operations and Projects – Assessing and implementing emissions reductions where it makes sense to do so, focusing our efforts on priority areas.
Managing Risk and Opportunity Exposure – Scanning for emerging issues and preparing the company to address climate change risks and opportunities.
Engaging Externally – Learning from stakeholders and communicating our position and actions on climate change issues, both corporately and within external organizations; and addressing the potential impact to our business.
Building Capacity – Building and sharing knowledge, developing skills, and resourcing appropriately for issues is key to managing them well. Building our capacity as a company is foundational to the work of our action plans.
Our Climate Change Action Plan is comprised of 72 specific detailed actions within the 14 major groupings shown above. These actions are being implemented across the company. Our annual Sustainability Report includes specific examples of our progress on these actions.
The comprehensive plan is refreshed annually as part of our long-range planning process. During the planning process, we assess risks and opportunities against several criteria, including commodity price forecasts, GHG price forecasts, and our climate change and sustainable development position statements.