09.05.2024
Hess recently provided a comprehensive review of the company’s 2023 performance and progress on environmental, social and governance (ESG) programs and initiatives. The 2023 review shows how sustainable business practices are integrated into the company’s strategy, goals, metrics and daily operations for the benefit of all of its stakeholders.
“Our commitment to sustainability is a top priority throughout our company,” said Alex Sagebien, Vice President, Environmental, Health and Safety. “We remain focused on building a sustainable enterprise that helps meet the world’s growing energy needs in a safe, environmentally responsible, socially sensitive and profitable way.”
The 2023 sustainability review is available on the company’s website at www.hess.com/sustainability. Key Sustainability Metrics were assured by ERM Certification & Verification Services Incorporated (ERM CVS) as described in its Independent Limited Assurance Report. This external review helps to ensure consistent and objective data collection and reporting of the company’s sustainability performance. Hess Corporation will not publish a separate 2023 Sustainability Report in light of the company’s pending merger with Chevron.
Highlights from 2023 include the following:
Workforce safety engagement: In 2023, Hess achieved a 32% reduction in its severe and significant incident rate, a 16% reduction in its workforce total recordable incident rate and a 30% reduction in its workforce lost time incident rate compared with 2022. The safety performance of contractors, who represent approximately 70% of total workforce hours on Hess sites, is critical to the achievement of Hess’ safety goals. In 2023, the company continued its collaboration with contractors to share learnings, deploy asset specific safety improvement plans and reinforce safety expectations, culture and procedures across operations, which supported the year over year improvement.
Aggressive greenhouse gas emissions reduction targets: Hess supports the aim of the Paris Agreement and has made a commitment to achieve net zero Scope 1 and 2 greenhouse gas emissions on an equity basis by 2050. In 2023, Hess made significant progress and is on track to outperform its aggressive five-year emissions reduction targets for 2025 – to reduce operated Scope 1 and 2 greenhouse gas and methane emissions intensities by approximately 50% from 2017 and to achieve zero routine flaring from its operations. As part of its voluntary commitments, the company is actively supporting industry efforts to adopt methane measurement, reporting and verification protocols and pursuing advancements in methane detection and measurement technologies.
Investing in nature-based climate solutions: Saving the world’s forests and the important role they play as natural carbon sinks is foundational to the Paris Agreement’s aim of limiting the global average temperature rise to well below 2°C. In December 2022, Hess announced an agreement to purchase high quality, independently verified REDD+ carbon credits for a minimum of $750 million between 2022 and 2032 directly from the government of Guyana. The government of Guyana plans to direct 15% of the proceeds to Indigenous communities. Hess also funds innovation with the potential to mitigate societal emissions. In 2023, Hess announced that it will donate $50 million over the next five years to the Salk Institute’s Harnessing Plants Initiative (HPI), which aims to combat climate change by developing plants’ natural ability to capture and store potentially billions of tons of carbon per year from the atmosphere.
Community investments that make a positive, lasting impact: During 2023, Hess invested approximately $41 million in social programs with a primary focus on education, healthcare and the environment. For example, Hess and the government of Guyana in partnership with the Mount Sinai Health System made significant progress in a multi-year national initiative to modernize Guyana’s healthcare system. In Houston, Hess provided educational programs and support services through its Learning for Life Partnership, a $9-million, three-year education investment in Houston that benefits 22 schools in three underserved communities. For the sixth consecutive year, Hess donated Hess Toy Trucks along with STEM curriculum guides to all elementary schools in North Dakota in partnership with the North Dakota Department of Public Instruction.
Advancing diversity, equity and inclusion: Hess has a longstanding commitment to diversity, equity and inclusion (DEI) in its workplace as well as in the communities where it operates. In 2023, the company continued to advance DEI in recruitment, career development, succession planning and benefit offerings and to invest in communities through education and work skill development. Hess also continued to source from and increase spending with diverse suppliers. Hess reports DEI-related metrics including employee demographic data, promotions data and adjusted pay gaps in Key Sustainability Metrics and in the U.S publishes its U.S. Equal Employment Opportunity Commission EEO-1 Report to enhance transparency.
Sustaining top quartile ESG performance: In 2023, Hess achieved leadership status in CDP’s annual Global Climate Analysis for the 15th consecutive year and once again received a AAA rating in the MSCI ESG rating assessment. The company also earned a place on the Dow Jones Sustainability Index for North America for the 14th consecutive year and for the second time was included in the Dow Jones Sustainability World Index. The Transition Pathway Initiative, which independently assesses companies on their efforts to support the transition to a low carbon economy and mitigate climate change in line with recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD), rated Hess as Level 4 status in its 2023 report, which is the highest level awarded to companies that demonstrably manage climate related risks and opportunities from a governance, operational and strategic perspective. Hess was highly ranked on the Human Rights Campaign’s (HRC) Corporate Equality Index for 2023-2024 for LGBTQ+ workplace inclusion, and for the fourth consecutive year earned a place on the 2023 Bloomberg Gender-Equality Index (GEI).