Scope 3 GHG emissions

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Our approach
Climate Strategy: Scope 3 GHG emissions

Invest in products and services for the energy transition

Our Scope 3 GHG emissions approach include the introduction of new energy products and lower-carbon services into our portfolio, like hydrogen and CCS which can help our customers avoid or reduce their Scope 1 and 2 GHG emissions, where they are market-led, value-accretive and aligned with strategy.

We have three ways we plan to manage exposure to Scope 3 emissions

  • Assess

    assessing investments for their resilience to the energy transition

  • Diversify

    diversifying our portfolio by investing in new energy products and lower-carbon services that can avoid or reduce customer emissions

  • Support

    supporting our customers and suppliers to reduce their emissions and reach their Scope 1 or 2 targets

promoting consistent global measurement and reporting emissions.

Investing in products and services for the energy transition

Investing in products and services for the energy transition

Woodside expects sustained demand for natural gas through the energy transition in the decades ahead, as countries invest in meeting increased energy demand while pursuing emissions reduction goals.

We take a thoughtful and analytical approach taking into account demand, climate and other factors. Each new investment is tested against the hurdle rates in our Capital Allocation Framework. Analysis includes explicit consideration of the resilience of an investment to the energy transition – including scenario analysis, risks and opportunities, and Scope 1, 2 and 3 GHG emissions.

We further inform this analysis through direct engagements with customers. We have representative offices in Japan, China, Korea, Singapore and the United Kingdom. The engagement led by these offices includes discussions with our climate and sustainability counterparts, and monitoring government policies. In 2025, the themes we heard from our customers included:

  • Decarbonisation remains an important priority and has to be delivered alongside energy security and affordability.
  • LNG and natural gas are a key linkage between energy security and decarbonisation goals.
  • Markets for new energy products and lower carbon services are taking longer to develop than originally anticipated.
  • Each region has its own set of unique opportunities and challenges through the energy transition.
  • Energy policy and market settings need to contribute to the reliability and long term security of LNG supply.

Our analysis of this expected demand is a driver for our recent LNG investments, including Scarborough Energy Project and Louisiana LNG, as well as our Beaumont New Ammonia Project, which achieved first ammonia production in December 2025, and is targeting commencement of lower-carbon ammonia production in 2027.1,2

Markets for emerging lower-carbon opportunities, including hydrogen, ammonia and carbon capture and storage, have developed more slowly than anticipated and remain dependent on policy support, customer demand and broader value-chain development. Woodside believes investment in these opportunities is best guided by customer demand, commercial returns, favourable policy settings and disciplined capital allocation.

Woodside will pursue, assess and progress opportunities that are market-led, value-accretive and aligned with strategy.

Industry initiatives

Industry initiatives

In 2025, we extended our membership of the Qantas Sustainable Aviation Fuels Coalition (SAF Coalition) which we joined in 2022. The SAF Coalition supports the purchase by Qantas of SAF, reducing Qantas Scope 1 GHG emissions and also business air travel Scope 3 GHG missions by around 0.6 kt CO2-e for each member.3

Woodside and the Japan Organisation for Metals and Energy Security (JOGMEC) signed a memorandum of understanding (MOU) centred on their joint interest in methane emissions management.4,5 Titled Methane Emissions Technology Reduction and Innovation Collaboration (METRIC), the MOU will see JOGMEC introduce Woodside to Japanese organisations looking to collaborate on technology development related to the detection and quantification of methane emissions.

Over the three-year term of the MOU, Woodside will seek to deliver on METRIC’s aims, furthering knowledge on methane emissions management, and developing possible options for future digital or technology commercialisation collaborations.

Footnotes

    Footnotes