Report: Chevron is Advancing a Lower Carbon Future
At Chevron, we believe the future of energy is lower carbon and we support the global net-zero ambitions of the Paris Agreement.
Affordable, reliable, ever-cleaner energy is essential to achieving a more prosperous and sustainable world. In this report, we outline our governance, risk management, strategy, portfolio, actions, and metrics.
higher returns, lower carbon
Our primary objective is to deliver higher returns, lower carbon, and superior shareholder value in any business environment. Chevron’s strategic and business planning processes bring together the Company’s views on long-term energy market fundamentals to guide decision making by executives and to facilitate oversight by the Board of Directors. The world’s energy demands are greater now than at any time in human history. Most published outlooks conclude that fossil fuels will remain an important part of the energy system over the coming decades, and that the energy mix will include increasingly lower-carbon sources. As part of our strategic planning process, we use proprietary models to forecast demand, energy mix, supply, commodity pricing, and carbon prices—all of which include assumptions about future policy, such as those that may be implemented in support of the Paris Agreement’s goal of “holding the increase in the global average temperature to well below 2° C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5° C above pre-industrial levels.”
In 2020, more than 60 percent of our total Scope 1 and Scope 2 equity greenhouse gas (GHG) emissions were in regions with existing or developing carbon-pricing policies.1 In this environment, and into a future likely to include additional lower-carbon policies, we seek to find solutions that are good for society and good for investors.
We use carbon prices and derived carbon costs in business planning, investment decisions, impairment reviews, reserves calculations, and assessment of carbon-reduction opportunities. We believe that our portfolio is resilient and that our asset mix enables us to be flexible in response to potential changes in supply and demand, even in lower-carbon scenarios like the International Energy Agency’s Sustainable Development Scenario or under higher-emissions scenarios like the Intergovernmental Panel on Climate Change’s Representative Concentration Pathway 8.5 to model the potential upper bound of physical risks.
success in a lower-carbon future
Our intent is to deliver affordable, reliable, ever-cleaner energy that enables human progress and delivers superior stockholder
value. Our actions are focused on (1) lowering our carbon intensity cost-efficiently, (2) increasing renewables and offsets in support of our business, and (3) investing in low-carbon technologies to enable commercial solutions.
We believe the future of energy is lower carbon and we support the net-zero ambitions of the Paris Agreement. Our Board of
Directors provides reliable and disciplined oversight; we assess and manage risks related to climate change; we intend to deliver
higher returns and lower carbon; and we are advancing a lower-carbon future through our three action areas.