Hess’ Climate Change Position
Climate change is a significant global challenge that requires governments, businesses and civil society to work together on cost-effective policies.
We believe climate risks can and should be addressed while also providing the safe, affordable and reliable energy necessary to ensure human welfare and global economic development in the context of the United Nations (U.N.) Sustainable Development Goals.
Hess supports the aim of the Paris Agreement to limit global average temperature rise to well below 2°C. Hess’ Board of Directors and senior leadership have set aggressive targets for greenhouse gas (GHG) emission reductions, and over the past 11 years our company has reduced our Scope 1 and 2 equity GHG emissions by approximately 64 percent.
Hess is committed to developing oil and gas resources in an environmentally responsible and sustainable manner. Our Board is climate change literate and actively engaged in overseeing Hess’ sustainability practices, working alongside senior management to evaluate sustainability risks and global scenarios in making strategic decisions. We are committed to transparency, and our strategy is closely aligned with the recommendations of the G20 Financial Stability Board’s Task Force on Climate- Related Financial Disclosures (TCFD).
We have tested the robustness of Hess’ portfolio under the energy supply and demand scenarios from the International Energy Agency (IEA), including the ambitious GHG reductions assumed within the IEA’s Sustainable Development scenario. Our strategy aligns with the energy transition needed to achieve the Sustainable Development scenario, wherein oil and gas will continue to be essential to meeting the world’s growing energy demand. Our current asset portfolio is resilient, and our pipeline of intended forward investments provides strong returns under the Sustainable Development scenario.
See the results of our portfolio-specific scenario planning exercise.
Our business planning includes actions we will undertake to continue reducing our carbon footprint consistent with the findings of the U.N. Intergovernmental Panel on Climate Change and the aim of the Paris Agreement. We will continue to take steps to monitor, measure and reduce our GHG emissions through the following actions:
- Setting and disclosing our targets to reduce the carbon intensity of our operations
- Applying technological innovation and efficiency to decrease energy use and GHG emissions across our operations
- Accounting for the cost of carbon in significant new investments
- Incorporating carbon risk scenario analysis into our business planning cycle
- Working with government and industry partners to advance the development of a range of low-GHG emissions pathways, including technological advancements