Net equity Scope 1 and 2 emissions reduction targets2
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15% by 2025
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30% by 2030
Net equity emissions reduction targets with an aspiration of net zero by 2050 or sooner.
Climate
Woodside's climate strategy is integrated throughout our company strategy.
Material Topic
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 portfolio1
Our climate strategy contains two key elements:
- reducing our net equity Scope 1 and 2 greenhouse gas emissions and
- investing in products and services for the energy transition.
Each element of our strategy is supported by the detail in our Climate Transition Action Plan and 2023 Progress Report which is expected to continue to evolve over time, and will be updated in future disclosures.
Net equity Scope 1 and 2 emissions reduction targets
Scope 3 emissions targets
Investment Target3
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US$5 billion4
Investment in new energy products and lower carbon services by 2030
Emissions abatement target3
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5 Mtpa CO2-e
Take FID on new energy products and lower carbon services by 2030, with total abatement capacity of
2023 Progress update
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US$335 million
Cumulative total spend on new energy products and lower carbon services
Highlights1
- In 2023 we advanced our net equity Scope 1 and 2 emissions reduction to 12.5% compared to 11% in 2022.2
- We also used 13% fewer carbon credits as offsets than last year, due to the underlying emissions performance at our facilities.
- We completed the development of decarbonisation plans across our merged portfolio of operated assets, including identifying potential large scale opportunities to reduce emissions beyond 2030.
- Gross emissions intensity lower (better) than benchmark of a comparable energy portfolio – and improved further in 2023.6 - We established a Scope 3 Emissions Abatement Target, to complement our existing Scope 3 Investment Target. The target is to take FID on new energy products and lower carbon services by 2030, with a total abatement capacity of 5 Mtpa CO2 -e.5 The investment target tracks our work to develop these projects and bring them to market. The emissions abatement target will track their impact on customer emissions.
- Our spending on new energy products and lower carbon services increased over 135% in 2023 compared to 2022, building towards our target to invest US$5 billion by 2030.3,4
- We have also included additional information in the 2023 Annual Report and Climate Transition Action Plan and 2023 Progress Report about the progress of our Carbon Capture and Storage (CCS) and hydrogen projects, the risks to achieving our targets, such as securing profitable customer offtake, and what we are doing to address these risks.
- This section refers to highlights within a specific time period. Please note that the relevant year, where the activity applies, is stated where appropriate. Where we refer to our activities without reference to a previous calendar year or using present tense, the relevant content may be updated from time to time at our discretion but no reliance should be placed by the reader on this page being up-to-date. We also recommend checking our Announcements page regarding our most recent business activities.
Potential opportunities
The categories of potential climate-related opportunities include: resources efficiency, energy sources, products and services, markets and resilience.
Potential risks
The categories of potential climate-related risks include: transition risks such as policy and legal risks, technology, market, and reputation; physical risks such as acute, and chronic. See our 2023 annual report.
Our climate-related opportunities and risks are outlined below and also described in detail in section 5.0 of the Climate Transition Action Plan and 2023 Progress Report.
This includes detail of how these processes are integrated into Woodside’s overall risk management framework.
- For Woodside, a lower carbon portfolio is one from which the net equity Scope 1 and 2 greenhouse gas emissions, which includes the use of offsets, are being reduced towards targets, and into which new energy products and lower carbon services are planned to be introduced as a complement to existing and new investments in oil and gas. Our Climate Policy sets out the principles that we believe will assist us achieve this aim.
- Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2 -e which is representative of the gross annual average equity Scope 1 and 2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021. Net equity emissions include the utilisation of carbon credits as offsets.
- Scope 3 targets are subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities (which may or may not proceed). Individual investment decisions are subject to Woodside’s investment targets. Not guidance. Potentially includes both organic and inorganic investment.
- Includes pre-RFSU spend on new energy products and lower carbon services that can help our customers decarbonise by using these products and services. It is not used to fund reductions of Woodside’s net equity Scope 1 and 2 emissions which are managed separately through asset decarbonisation plans.
- Includes binding and non-binding opportunities in the portfolio, subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities (which may or may not proceed). Individual investment decisions are subject to Woodside’s investment targets. Not guidance.
- Woodside analysis, based on Woodside Scope 1 and 2 emissions data for 2022 and 2023 relative to a comparable portfolio of LNG, conventional shelf and deepwater assets, calculated from the 2023 emissions intensity of these primary resource themes reported in Wood Mackenzie’s Emissions Benchmarking Tool.
Our approach1
This is an abbreviated summary of our Climate Transition Action Plan and 2023 Progress Report (CTAP) which should be read in full.
Woodside has also provided more detail in our Response to investor feedback (expanding from CTAP pg.9).
- This section refers to current intentions, plans or stated targets (where applicable). It also outlines information regarding our Management System and relevant processes and procedures. Where we refer to our activities without reference to a previous calendar year or using present tense, the relevant content may be updated from time to time at our discretion but no reliance should be placed by the reader on this page being up-to-date. We also recommend checking our Announcements page regarding our most recent business activities.
Reduce our net equity Scope 1 and 2 greenhouse gas emissions
Woodside is targeting a reduction of net equity Scope 1 and 2 greenhouse gas emissions of 15% by 2025 and 30% by 2030, with an aspiration of net zero by 2050 or sooner.1 Our performance against these targets is highlighted in the highlights section.
Reducing our net equity Scope 1 and 2 greenhouse gas emissions is supported by three levers:
- avoiding emissions in design
- reducing emissions in operations and
- offsetting the remainder with carbon credits.
Woodside has a long standing focus on energy efficiency. Our first formal climate-related target was a 5% energy efficiency target over the period 2016-2020. We exceeded this target, achieving 8%.
- Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2 -e which is representative of the gross annual average equity Scope 1 and 2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021. Net equity emissions include the utilisation of carbon credits as offsets.
Click on each of the following topics to view more about it.
Invest in products and services for the energy transition
Investing in products and services for the energy transition is 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.
Click on each of the following topics to view more about it.
Our performance1
See the ‘highlights’ section above, and the Climate Transition Action Plan and 2023 Progress Report for more information.
- This section refers to our performance within a specific time period. Please note that the relevant year, where the activity applies, is stated where appropriate. Where we refer to our activities without reference to a previous calendar year or using present tense, the relevant content may be updated from time to time at our discretion but no reliance should be placed by the reader on this page being up-to-date. We also recommend checking our Announcements page regarding our most recent business activities.
