Chevron plans for its equity upstream Scope 1 and 2 greenhouse gas emissions to hit net-zero by 2050 and to invest $10 billion by 2028 to advance its lower-carbon future.

The US supermajor will spend $8 billion on low-carbon investments and a further $2 billion on carbon-reduction initiatives over the next seven years.

Its aim is to achieve an upstream carbon intensity (Scope 1 and 2 emissions) of 24 kilograms of carbon dioxide equivalent per barrel of oil equivalent in 2028.

The company also has ambitious plans to achieve renewable fuels production of 100,000 barrels per day and hydrogen production of 150,000 tonnes per annum in 2030. It is eyeing its carbon capture and offsets to total 25 million tpa by the end of this decade.

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Chevron’s Task Force on Climate-Related Financial Disclosures-aligned report released on Monday describes how it is incorporating Scope 3 emissions into its greenhouse gas emission targets by establishing a Portfolio Carbon Intensity (PCI) target inclusive of Scope 1, 2 and 3 emissions from the use of its products.

Problem solving

“Solutions start with problem solving, which is exactly what the people of Chevron do — and have excelled at for over 140 years,” Chevron chief executive Michael Wirth said.

“This report offers further insights about our strategy, how we are investing in lower-carbon businesses and why we believe this is an exciting time to be in the energy industry.”

Chevron’s new PCI target assists with transparent carbon accounting and the company’s comparisons from publicly available data. The target covers the full value chain, including Scope 3 emissions from the use of products.

Also, the company confirmed a greater than 5% carbon emissions intensity reduction target from 2016 levels by 2028. This target is aligned with Chevron’s strategy that allows flexibility to grow its traditional business, provided it remains increasingly carbon efficient, and to pursue growth in lower-carbon businesses.

Chevron added it plans to publish a PCI methodology document and online tool to enable third parties to calculate PCI for energy companies.

The company said its 2050 equity upstream scope 1 and 2 net-zero aspiration builds on its disciplined approach to target setting and action. The path to this net-zero aspiration anticipates partnerships with multiple stakeholders and progress in technology, policy, regulations and offset markets.

“We regularly engage with stakeholders and investors to understand their views and to be responsive to their increasing expectations on all issues, including ESG [environmental, social and governance],” Chevron’s lead director Ronald Sugar said.

“Our updated report demonstrates our goal to partner with many stakeholders to work toward a lower carbon future.”