Our SD risk management process ensures that a Climate Change Action Plan is developed to track mitigation activities for responding to significant and high climate-related risk included in the corporate SD Risk Register. This plan includes details about our commitments, related responsibilities, resources and milestones over several years.
Actions within the plan address individual risks identified by our BUs or global/regional risks identified by our central corporate staff. For example, some chronic and physical climate-related impacts are more likely to apply to a single business unit, given the specific local nature of the risk and geographical location of our assets.
As part of annual updates to the register, we evaluate the action plan and its effectiveness and make decisions to continue mitigation measures, add new measures or simply monitor the risk for further developments.
Read more about our Risk Management Process.
Climate Change Action Plan
| Risk Topics |
Mitigation Actions and Milestones |
| Climate change policy, including carbon taxes |
- Review global emerging issues with the Sustainability and Public Policy Executive Council (SPEC) on a regular basis.
- Work with Climate Leadership Council and API Climate Working Group to develop U.S. carbon tax framework; advocate for a carbon price. Engage in other industry working groups to provide input to federal consultation on border carbon adjustment policies.
- Directly engage governments on evolving climate policy and monitor policy developments.
- Use carbon price in base case long-range planning and forecasting; maintain GHG forecasting practice.
- Support effective incentives for emissions reductions, including tax and production credits and protocols for use of carbon credits and offsets.
- Maintain diversified portfolio of offsets and monitor market convergence.
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| GHG emissions regulations |
- Continue regulatory advocacy efforts around methane and flaring, and support enactment of cost-effective federal methane regulations on new and existing sources that would preserve a state’s ability to adapt implementation to local conditions.
- Explore new technology solutions and facility improvements to meet methane and flaring reduction targets.
- Work with industry trade groups and task forces to respond to proposed GHG regulations.
- Determine European Union Methane Rule requirements for global oil, natural gas and LNG markets. Create compliance plan and methodology guidelines, and pilot a model to validate emission estimates.
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| GHG emissions reductions and business opportunities |
Overall GHG
- Design and develop new facilities with lower emission footprints. Focus on operational efficiency globally to reduce GHG intensity.
- Continue implementation of corporate Climate Risk Strategy and continue integration of BU emissions reduction approaches.
- Improve GHG data collection efforts and advance MACC emissions reduction projects. Continue to assess transformational technology pilots.
Methane and flaring
- Continue emissions monitoring program while prioritizing emissions abatement.
- Participate in OGMP 2.0 Methane Partnership to mitigate emissions.
- Execute U.S. flare reduction plans.
Electrification
- Increase internal engagement on electrical and grid power needs across the company to manage electricity-related planning, including power availability.
- Evaluate geographic-based power profiles to optimize infrastructure strategy, such as substation expansions and new construction.
- Engage with industry and legislative regulatory groups to communicate anticipated grid needs.
Technologies
- Explore carbon mitigation pathways through novel technology and investments.
- Consider partnering with future zero-carbon energy project developers to power our operations where operationally and economically feasible and monitor new opportunities.
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| Acute and chronic physical risks |
Assessment
- Continue to include physical climate risk in SD risk management process.
- Develop global physical risk assessment guidelines for BUs and continue with ongoing review cycle.
- Implement guidelines to asset-specific climate risk assessments.
Fresh water constraints
- Build infrastructure to increase water storage and supply.
- Conduct streamflow forecasting and monitoring, including influence of temperature on flow.
Permafrost thaw
- Continue assessment of risk of permafrost thaw for construction of new infrastructure and implementation of mitigation measures.
- Investigate effective approaches for monitoring permafrost.
- Continually review and update engineering and design specifications, including equipment and site maintenance.
Wildfire
- Participate in desktop regional wildfire annual risk assessment and mitigation planning efforts and execute emergency response plan exercises, drills and training for wildfire threats.
- Implement and execute safety barriers and controls to enable facility and personnel protection in the case of fire and advance warning of potential wildfire threats.
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