Climate
Woodside's climate strategy is integrated throughout our company strategy.
Our approach
Climate change and the energy transition are both a strategic risk and opportunity for Woodside. Energy markets and regulations will continue to evolve. We expect sustained demand for our core product, natural gas, as customers seek to maintain energy security and affordability alongside emissions goals.
View our Climate Policy
Woodside’s aspiration to thrive through the energy transition with a low-cost and lower-carbon, profitable, resilient and diversified portfolio.1
2025 Performance
- Woodside delivered its 2025 net equity Scope 1 and 2 GHG emissions reduction target. Achievement of the target reflected a combination of underlying emissions performance at our facilities and the use of carbon credits. These net equity GHG emissions were 15% below the starting base for the 12-month period ending 31 December 2025.2,3
- Gross equity Scope 1 and 2 GHG emissions were 6,616 kt CO2-e, 2.5% fewer than in 2024 despite higher production. Gross equity Scope 1 and 2 emissions do not include the use of carbon credits as offsets.
- Woodside’s gross equity Scope 1 and 2 GHG emissions intensity, which measures our GHG emissions performance per unit of production and without the use of carbon credits as offsets improved year on year following start up of Sangomar in 2024, and remains better than a comparable benchmark.4 This reflects the quality of our resources and assets and our focus on GHG emissions management, as well as the achievement of stable operations at Sangomar.
- As a result of this strong underlying GHG emissions performance, our use of carbon credits to offset GHG emissions was 5% lower in 2025 than in 2024 – a 64 kt CO2-e carbon credit reduction. This reduction comes after an increase in 2024 which had been necessary to offset one-off emissions increases associated with the start up of the Sangomar facility. This shows why the use of carbon credits is an important tool to effectively manage emissions performance through year on year operational variations.
- Highlights of our Scope 1 & 2 emissions management work in 2025 included the award of “Gold Standard Pathway” status by the United Nations Environment Programme (UNEP) as part of our Oil and Gas Methane Partnership (‘OGMP2.0’) plan. This plan includes a target of maintaining methane emissions intensity below 0.2% at operated assets, which is consistent with our existing “near-zero” methane commitments.
- Cumulative expenditure against our Scope 3 investment target reached US$2.6 billion at the end of 2025, up from US$2.46 billion at the end of 2024.5,6 This is due to expenditure on Neosmelt, Beaumont New Ammonia Phase 2 assessment, and select CCS opportunities in Asia Pacific. The completion payment for Beaumont New Ammonia of approximately 20% of total value has not yet been included, as it was not made within the calendar year, but when made will increase Woodside’s progress against the target to over $3 billion.
Woodside is targeting a reduction of net equity Scope 1 and 2 GHG emissions of 30% by 2030, with an aspiration of net zero by 2050 or sooner.7,8
Woodside’s climate strategy is integrated throughout our company strategy: our aspiration to thrive through the energy transition with a low-cost, lower-carbon, profitable, resilient and diversified portfolio.9
Our climate strategy contains two key elements:
- Reducing our net equity Scope 1 and 2 GHG emissions; and
- Investing in products and services for the energy transition.
Reducing our net equity Scope 1 and 2 GHG emissions is supported by three levers: avoiding emissions in design; reducing emissions in operations; and offsetting the remainder with carbon credits.
We have set two related Scope 3 targets. The first, to invest US$5 billion in new energy products and lower-carbon services by year end 2030 (investment target). The second, to take FID on new energy products and lower-carbon services by year end 2030, with total abatement capacity of 5 Mtpa CO2-e (emissions abatement target).10,11,12 The investment target tracks our work to develop these projects and bring them to market. The emissions abatement target will track their potential impact on customer emissions.
Investing in products and services for the energy transition is also supported by three levers: assessing investments for their resilience to the energy transition; diversifying our products and services; and supporting our customers and suppliers to reduce their emissions.
These levers are further supported by our work to promote global measurement and reporting – including our own publication of transparent disclosures.
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Footnotes
Footnotes
