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Chevron sets short-term upstream emissions reduction goals

Supermajor Chevron Corp. set short-term goals for reducing upstream greenhouse gas emissions as the company works to move closer into alignment with the Paris Agreement on climate change, according to an Oct. 3 news release.

By 2023, the California-based Chevron intends to lower emissions from its oil operations by 5% to 10% and cut emissions from its natural gas projects by 2% to 5%, from 2016 levels. The reductions will occur from Chevron's operated and non-operated upstream assets.

"Global demand for energy continues to grow, and we are committed to delivering more energy with less environmental impact," Chevron Chairman and CEO Michael Wirth said Oct. 3.

In response to investor pressure, Chevron established reduction targets for its methane and flaring emissions in February, with those goals to be tied to executive pay and bonuses starting this year.

By 2023, Chevron plans to cut methane emissions intensity by 20% to 25% and flaring intensity by 25% to 30% from 2016 levels. These reductions will come from the major's owned and operated assets.

Chevron, like many other U.S.-based energy giants, has been slow to address climate change efforts, but shareholder activism has been on the rise at companies around the world as investors push for them to take more accountability and move into alignment with the goals of the Paris Agreement on climate change to keep global warming below 2 degrees Celsius.

In September 2018, Chevron joined the Oil and Gas Climate Initiative, a group that aims to increase the speed, scale and ambition of efforts to reduce emissions from the production and use of their fuels in power, heating, industry and transportation.

Chevron has also invested more than $1 billion in carbon capture and storage projects in Australia and Canada that are expected to reduce emissions by about 5 million metric tons per year, the company said.