Chevron’s New Climate Efforts Will Still Mean It’s Dealing with a Tiny Fraction of its Damage in 2030 (1)

By Mathew Carr

Sept. 14, 2021 — Chevron is spotlighting its new climate-transition efforts later today.

The documents are already on its website.

One target is to increase carbon capture and offsets to 25 million metric tons per year “by developing regional
hubs in partnership with others”.

Should it achieve this, that is much better than the 6 million tons achieved last year, according to the company’s 2020 corporate sustainability report.

Yet, even after another decade of effort while the climate is falling apart, the company will still be dealing with less than half of its direct emissions (scope 1), which were 56 million tons last year.

Much more alarmingly, it’s a tiny 4% of end use (scope three) emissions, which were 588 million tons.

chevron’s efforts are too little too late:

I highlighted 2020 effort: net zero? https://chevroncorp.gcs-web.com/static-files/1ba3162e-f798-444b-9368-fc7b4ab7842a

(Adds Engine No. 1, chart)

NOTES

  1. Reuters: Activitist investor Engine No.1 held a stake worth about $600,000 in Chevron, as of June 30, according to regulatory filings.

The fund has been in touch with other investors about organizing a group to purchase Chevron shares, hinting at interest in launching a second major campaign, according to the report.
https://www.reuters.com/business/energy/chevron-braces-activist-challenge-meets-engine-no1-representatives-wsj-2021-09-03/#:~:text=Engine%20No.1%20held%20a,campaign%2C%20according%20to%20the%20report.

2. The Engine No. 1 ETF stake was $890,000 as of today, according to a spreadsheet downloaded from the Engine No. 1 website.

3. Seeking Alpha story: https://seekingalpha.com/news/3737219-engine-no-1-may-not-be-specifically-targeting-chevron-report

4. Relevant section of the Chevron presentations https://www.chevron.com/investors/events-presentations/2021-virtual-energy-transition-spotlight :

Establishes Growth Targets for Lower Carbon Businesses
Building on its strengths, the company set the following 2030 growth targets for new energy
businesses:
• Grow renewable natural gas production to 40,000 MMBtu per day to supply a network of
stations serving heavy duty transport customers;
• Increase renewable fuels production capacity to 100,000 barrels per day to meet
growing customer demand for renewable diesel and sustainable aviation fuel;
• Grow hydrogen production to 150,000 tonnes per year to supply industrial, power and
heavy duty transport customers; and
• Increase carbon capture and offsets to 25 million tonnes per year by developing regional
hubs in partnership with others.


To achieve this scale, the company expects to invest more than $10 billion between now and
2028, including $2 billion to lower the carbon intensity of Chevron’s operations. This is more
than triple the company’s previous guidance of $3 billion.

“Renewable fuels, hydrogen and carbon capture target customers such as airlines, transport
companies and industrial producers,” said Jeff Gustavson, President of Chevron New Energies.
“These sectors of the economy are not easily electrified, and customers are seeking lower
carbon fuels and other solutions to reduce carbon emissions.”

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