We see climate change as one of the greatest scientific challenges of the 21st century. We believe climate risks can and should be addressed while at the same time 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. We support the aim of the Paris Agreement, as well as a global ambition to achieve net zero emissions by 2050. Governments, businesses and civil society must work together on cost effective policies. We support a carbon price to encourage the investments needed to accelerate decarbonization across all sectors of the economy while keeping energy affordable. We believe that a market based mechanism will drive innovation for new technologies and lead to a more efficient end use of hydrocarbon products.
Our business planning includes actions we will undertake to continue reducing our carbon footprint consistent with the aim of the Paris Agreement to limit global average temperature rise to well below 2°C. Our climate change actions, which are aligned with the recommendations from the Task Force on Climate-Related Financial Disclosures, are detailed on page 40 of our 2020 Sustainability Report.
For additional information on Hess’ climate change position, strategy and progress, please see our 2020 Sustainability Report
Hess’ Engagement in Industry Discussions
Hess is a member of many associations, organizations and collaborative working groups. We recognize that our positions do not always align with all formal positions of the groups in which we participate. While climate change is a material sustainability issue for Hess, these organizations often provide broader value to our company in the form of industry environmental, health and safety standards, along with opportunities to promote ongoing emissions reductions and transparency through industry led voluntary programs.
Organizations and Issues Reviewed
To assess alignment with our major advocacy organizations on climate-related issues, we chose to evaluate those organizations that have historically received more than $50,000 from Hess per year. We evaluated the public policies and statements of those organizations (which are included verbatim in the table below), along with our own assessment of each organization’s activities, to determine whether their climate positions are consistent with the following Hess positions: (1) acknowledgement of the science of climate change; (2) support for the Paris Agreement’s aim to limit global average temperature rise; (3) acknowledgement of the need to accelerate GHG emissions reductions through technological innovation; and (4) support for a carbon price applied to emitters across all sectors.
Hess will review the positions of our major advocacy organizations on an ongoing basis. In the event that organizations’ positions are inconsistent with Hess’ position on climate change, we will use our influence in those organizations to promote a change in policy direction, where appropriate. If our participation cannot effectuate a change in position, we will further assess our membership and take appropriate actions, balancing the broader value that Hess realizes from participating in these organizations.
We did not include IPIECA in this benchmarking analysis, although we are an active member of IPIECA on sustainable development issues such as climate change. Unlike many of the organizations that we have reviewed below, IPIECA is not a lobbying organization. IPIECA instead represents its members by engaging with stakeholders and governments on climate change and other sustainability topics and by providing a forum for encouraging continuous improvement of industry performance.
All of the organizations we analyzed acknowledge the science of climate change and support GHG emissions reductions through technological innovation, whereas two of the organizations have not publicly supported the aim of the Paris agreement nor a carbon price and thus are identified as “somewhat inconsistent” with Hess’ positions on these issues.
The table below summarizes the overarching results of our review as of May 2021.