NorthAmOil: Chevron to aim for net zero by 2050

Chevron announced this week that it would pursue net-zero greenhouse gas (GHG) emissions by 2050. The company described the target as an “aspiration”, and while it fell short of the more aggressive net-zero goals set by European rivals such as Royal Dutch Shell and BP, it marks the first such move by one of the two US super-majors.
In an updated climate change resilience report, Chevron outlined plans to aim for net-zero Scope 1 and Scope 2 emissions – those stemming directly from its operations and indirectly from the power used for its operations respectively. Scope 3 emissions – those stemming from the use of Chevron’s products by its customers – were not part of the net-zero aspiration, but the company said it would still seek to incorporate Scope 3 emissions into its targets. To this end, Chevron will establish a Portfolio Carbon Intensity (PCI) target inclusive of Scope 1 and 2 and Scope 3 emissions.
The super-major said it would publish a PCI methodology document and online tool to enable third parties to calculate the PCI for energy companies. It has also set an interim target to reduce carbon emissions intensity by more than 5% compared with 2016 levels by 2028.
The new targets come after Chevron’s shareholders voted for the company to reduce its Scope 3 emissions, in defiance of its board. Chevron’s CEO, Mike Wirth, had previously resisted committing the company to any target that he said might be unrealistic or undeliverable, and the super-major’s insistence on describing the new goal as an aspiration illustrates its ongoing caution on this.