Chevron to follow BP on climate change pay

Oil major Chevron has published an update describing the company’s approach to managing climate change risks and will follow BP in linking results to executive pay.

In response to discussions with investors, the company is providing greater insight on both its stance on climate change and governance. Including how directors and executive leadership exercises its responsibilities with respect to climate change.

“This update highlights work we are doing to address climate change risks to our business and new opportunities we’re pursuing. It incorporates responses to some of the thoughtful insights stockholders have shared with us during our engagements,” said Michael Wirth, Chevron’s chairman and chief executive officer. “We look forward to ongoing conversations on how we are managing climate risks to our business and taking on new opportunities to reduce greenhouse gas emissions and develop lower carbon energy.”

Greenhouse gas emissions performance measures will now be a factor in determining compensation for executives, and other employees. The metrics aim to reduce methane emissions intensity by 20 to 25 per cent and flaring intensity by 25 to 30 per cent from 2016 – 2023, aligned with the timing of milestones in the Paris Agreement.

In 2018, the company joined the Oil and Gas Climate Initiative, the industry collaboration focused on efforts to address climate change issues.

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