Climate
Woodside's climate strategy is integrated throughout our company strategy.
On this page
Material Topic
Our approach
Climate change and the energy transition are both a strategic risk and opportunity for Woodside. The energy transition requires investment in energy supply and we expect sustained demand for LNG, as customers seek to maintain energy security, affordability and lower emissions.
CORE
PRINCIPLES
PRINCIPLES
Supply Energy Responsibly
Meet global energy demand through the reliable supply of energy our customers need
Invest for Resilience and Long-Term Value
Integrate climate considerations into investment decisions and maintain competitiveness
Focus on Performance and Delivery
Focus on cost-competitive emissions reduction, operational excellence and transparent reporting
WHAT WE DELIVERED
Climate Transition Action Plan 2024–2026
- Achieved our 2025 net equity Scope 1 and 2 GHG emissions reduction target and on track to deliver our 2030 net equity target1,2
- Implemented asset decarbonisation plans, improved energy efficiency and strengthened methane measurement, management and reduction capability
- Developed carbon credit origination capability, de-risking access for regulatory compliance
- Strengthened investment decision-making through transition-case analysis and climate resilience assessment
- Expanded technical, commercial and analytical capability across oil, gas and new energy, enabling Woodside to evaluate and respond to risks and opportunities across a broad range of transition pathways
WHAT HAS CHANGED
External context
- Growing global recognition that the energy transition must balance energy security, affordability and emissions reduction, and will be complex, regionally divergent and non-linear3
- Long-term outlooks indicate sustained LNG demand across a range of transition pathways3
- Scope 1 GHG emissions regulation is diverging across jurisdictions
- Hydrogen, ammonia and CCS demand has grown more slowly than anticipated, in part reflecting policy and market settings
OUR PRIORITIES AND ACTIONS
Climate Transition Plan
- Portfolio resilience and opportunity through the energy transition
- Apply disciplined capital allocation incorporating climate-related risks and opportunities
- Optimise marketing to balance risk, resilience and opportunity, including climate-related risk
- Focus on Scope 1 and 2 GHG emissions performance
- Focus on cost competitive abatement at facilities
- Work to reduce abatement technology costs
- De-risk access to carbon credits where they are needed for regulatory compliance
- Monitor technology developments and advocate for policy and market settings that support commercially viable, market-led products and services
Our plan
Portfolio resilience and opportunity through the energy transition
Our plan is to:
Apply disciplined capital allocation
investments, incorporating climate-related risks and opportunitiesMaintain an LNG-led portfolio
informed by evidence-based analysis of long-term demand3Strengthen portfolio resilience
to evolving demand through scale, cost competitiveness, reliability and customer relationshipsMaintain capability and selectively participate in technology
development to support new products as commercially viable demand emerges
Focus on Scope 1 and 2 GHG emissions performance
Our plan is to:
Focus on avoiding and reducing GHG emissions
at our facilities with cost-competitive decarbonisation plansAdvance the viability of GHG emissions reduction technologies
that can be applied to our portfolioDe-risk and preserve access to carbon credits
where they are needed for regulatory compliance
Informed
by evidence, including market, policy and stakeholder insights
Engage
to shape policy, market and investment conditions
Governance
with accountability from the Board through to asset-level delivery
Our targets
Our targets4
2030
NEAR TERM
2035
MEDIUM TERM
2050
LONG TERM
2030
NEAR TERM
Absolute GHG emissions reduction target
Reduce our net equity Scope 1 and 2 GHG emissions by 30% by 2030 relative to the gross annual average equity Scope 1 and 2 GHG emissions over 2016-20205
2035
MEDIUM TERM
GHG emissions intensity target
Reduce our net equity Scope 1 and 2 GHG emissions intensity by 30% by 2035 relative to 2025 gross equity emissions intensity baseline6
2050
LONG TERM
Net zero aspiration
Aspiration to achieve net zero Scope 1 and 2 GHG emissions by 2050 or sooner7
Our performance
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 2025.2,8
- 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.9 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 and 2 GHG 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.
Footnotes
Footnotes
