Our Climate Risk Strategy is intended to enable us to responsibly meet the global demand for energy, deliver competitive returns on and of capital and work to meet our previously established operational emissions-reduction targets. First, meeting global energy demand requires a focus on delivering production that will best compete in any energy demand scenario. This production will be delivered from resources with a competitive cost of supply and low greenhouse gas (GHG) intensity, as well as portfolio diversity by market and asset type. Next, our focus is on delivering superior returns through the cycles based on our foundational principles of balance sheet strength, peer-leading distributions and disciplined investments. Finally, to drive accountability for the emissions that are within our ownership, we are progressing toward our Scope 1 and Scope 2 emissions intensity targets and we have a longer-term operational emissions net-zero ambition.

Key elements of the Climate Risk Strategy include:

• Strategic flexibility and portfolio composition
  • Building a resilient asset portfolio with a focus on low cost of supply and low GHG intensity to meet global energy demand.
  • Committing to capital discipline through use of a fully burdened cost of supply, including cost of carbon, as the basis for capital allocation.
  • Testing our portfolio against future energy demand scenarios through a comprehensive scenario planning process that helps us assess the resilience of our corporate strategy to climate risk.
• Scope 1 and Scope 2 emissions targets and reductions
  • Setting targets for emissions over which we have ownership and control.
  • Reducing emissions through the marginal abatement cost curve process.
• Business opportunities
  • Building an attractive LNG portfolio as an important component of responsibly meeting global energy demand due to LNG's opportunity to displace higher-emissions fuels such as coal for electricity generation.
  • Evaluating potential investments in emerging alternative energy sources and low-carbon technologies.
• External engagement
  • Advocating for a well-designed, economy-wide price on carbon and engaging in development of other policy and legislation to address end-use emissions.
  • Working with our suppliers and commercial partners to reduce emissions along the value chain. Read more about our Climate Change Position, our company governance and our approach to net-zero.