In 2020, we adopted a Paris-aligned climate-related risk framework with an ambition to reduce our operational greenhouse gas (GHG) emissions to net-zero by 2050. To that end, we calculate key metrics and use targets to measure and monitor our performance and progress in managing climate-related risks and opportunities in line with our strategy and risk management process. These include:

• GHG emissions intensity target.
• Scope 1 and Scope 2 emissions.
• Metrics for methane, flaring and water.
• Internal proxy GHG pricing and the financial impact of existing GHG pricing on our businesses across the globe.

We believe these metrics and targets are the most useful in managing climate-related risks and opportunities and monitoring performance. Highlights of our 2021 performance compared to 2020 (on a gross operated basis) include:

• Scope 1 and 2 GHG emissions intensity declined 22% to 26.9kg CO₂e/BOE.
• Methane intensity declined 24% to 2.6kg CO₂e/BOE.
• Flaring intensity declined 8% to 1.81% (total flaring volume as a percent of gas produced). 

While our intensity metrics show an improvement in the carbon efficiency of our production, our absolute emissions increased to 18.7 million tonnes CO₂e, primarily driven by the acquisition of additional Permian assets.

We have also committed to near-, medium- and long-term targets for reducing operational (Scope 1 and 2) emissions over which the company has ownership and control. These targets include:

• Achieving our stated ambition to become a net-zero company for Scope 1 and 2 emissions by 2050.
• Strengthening our previously announced operational GHG emissions intensity reduction target to 40-50% by 2030 and expanding it to apply to both a gross operated and net equity basis to ensure active engagement in our non-operated investments.
• Meeting a further 10% reduction target for methane emissions intensity by 2025 from our 2019 baseline, building upon the 65% reduction we have made since 2015.
• Achieving near-zero methane emissions intensity by 2030.
• Achieving a target of zero routine flaring by 2025, five years sooner than the World Bank initiative’s goal of 2030.