On Monday, there is a “desire” to reduce or offset carbon emissions from businesses to zero by 2050 as investors and the public continue to pressure oil producers to respond to climate change. said.
The company also set targets for the first time to reduce the intensity of carbon emissions from fuels and other products, but did not set an absolute reduction target for those products.
About 61% of shareholders voted earlier this year in support of the company’s proposal to significantly reduce product emissions. It’s a stance that Chevron urged investors to refrain.
Other major oil companies have announced similar net-zero targets over the past two years as investors and activists have called for ESG, environmental, social and governance concerns.
Ronald Sugar, principal director of Chevron’s board of directors, said: “Our updated report sets out our goal to partner with multiple stakeholders to work towards a low-carbon future.”
Some analysts say the pressure to curb emissions in the future is hindering companies’ ability to invest more in fossil fuel production. US oil prices rose above $80 on Monday as traders value rising energy shortages around the world. However, large Western oil producers are sticking to tight budgets during a pandemic where many have dramatically reduced spending following a slump in demand.
Chevron’s Net Zero announcement on Monday was quickly criticized by environmental groups, and Follow-Dis, a group of shareholder activists, called it “disappointment tokenism.” Among other reasons, the group said the target was inadequate because it did not cover Chevron’s products, only emissions from its business.
“Chevron is like a tobacco company that promises to quit smoking while continuing to produce tobacco,” said Followdis, who presented a successful proposal at Chevron’s annual meeting. “Product emissions account for up to 90% of the total emissions of oil majors.”
Last year, BPPLC and Royal Dutch Shell Plc promised zero emissions from their assets, but US oil companies took time to make such a promise. axon mobile Ltd.
2020 CEO Darren Woods called Target a “beauty contest.” The Wall Street Journal reported in August that the oil giant is currently considering making a Net Zero pledge.
Chevron CEO Mike Worth previously said he would not set unplanned goals for the company. Monday’s announcement did not provide details on how the company would achieve Net Zero, as other companies do, and stopped promising to do so. Chevron said Desire expects advances in technology, policy, regulation and offset markets.
“Solution begins with problem solving, which is what the folks at Chevron have been doing and have excelled at for more than 140 years,” Wirth said in a statement.
Chevron on Monday promised it would reduce oil and gas production and product emissions by more than 5% by 2028. Such reductions typically mean reducing emissions of the amount of energy produced, but companies can still increase overall emissions. Overall, it produces more oil and gas. As a result, the measure has been criticized by many environmentalists.
Chevron said Monday that its new target will allow it to expand oil and gas production, provided carbon efficiency is increasing. The company also said it would invest in low-carbon businesses such as biofuels, hydrogen and carbon capture.
The Wall Street Journal previously said that earlier this year, Chevron executives met with representatives of the investment company Engine No. 1, which led the fight to win three seats on Exxon’s board. I reported. The magazine reported that hedge funds are again considering targeting large oil companies, and other investors are approaching it about forming a group to buy Chevron shares.
The magazine reported that Chevron studied the engine’s No. 1 campaign against Axon, and the defeat of its rivals embodied the urgency to communicate its energy conversion plans.
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Source Link Chevron sets target to reduce carbon emissions in operations rather than products