Chevron Corp plans to set greenhouse gas emissions targets and tie executive compensation and rank-and-file bonuses to the reductions, the oil major said in its latest climate report released on Thursday.
The move is a first for a U.S. oil major and focuses on the company’s oil fields. More investors have been pressuring San Ramon, Calif.-based Chevron and other big oil companies to reduce emissions that contribute to climate change.
Chevron said that by 2023, it will reduce its methane and flaring intensity by 25 percent to 30 percent from 2016 levels, and said the goal would be added to the scorecard that determines incentive pay for around 45,000 employees.
“It’s about the mindset and the culture of the company,” said Chevron Vice President Mark Nelson, noting that including most of its global workforce would “harness” ideas from all employees.
Among other oil companies, London-based BP and France’s Total have set short-term targets on reducing carbon dioxide emissions from to their own operations.
Royal Dutch Shell in December announced it would link executive compensation to reducing carbon dioxide emissions starting in 2020, including so-called Scope 3 emissions from fuels sold to customers around the world.
Chevron’s report said it does not support establishing Scope 3 targets.
Exxon’s latest climate report includes a goal of reducing methane emissions from operations by 15 percent and flaring by 25 percent by 2020 compared with 2016 levels, as well as reducing greenhouse gas intensity at its Canadian oil sands facilities by 10 percent by 2023.
BP starts oil project that will help double its U.K. output
Global fund managers hold back investment in exploration as U.S. shale oil flood market
Global energy investment declines 12% in 2016 as power sector leapfrogs oil and gas
Crude prices will rise in 2018, says Iraq's oil minister
Oil trades near three-year high as doubts emerge over rally
Nigeria's Trans-Forcados oil pipeline shut due to leak -source
Qatar eyes Germany's energy, finance sectors with €10bn investment
NLNG responsible for 65% decline in gas flaring- Attah
Oil prices rebound, helped by weak dollar, Saudi supply cuts
DisCos, TCN mismatch causing low electricity suppy- NERC