Climate Change Data

Hess Corporation

Climate Impact & Sustainability Data (2015, 2021)

Reporting Period: 2015

Environmental Metrics

ESG Focus Areas

  • Economic Performance
  • Environmental Performance
  • Labor Practices and Decent Work
  • Human Rights
  • Society
  • Product Responsibility

Environmental Achievements

  • Purchased 135,000 Green-e Energy certified RECs for wind power, equivalent to at least 10 percent of net electricity used in operations.
  • Converted 25 vehicles in North Dakota fleet to lower emission fuels (CNG), representing approximately four percent of companywide vehicle fleet.
  • Completed full subsea decommissioning of two major assets in the United Kingdom sector of the North Sea: the Fife, Fergus, Flora and Angus fields (FFFA) and the Ivanhoe and Rob Roy fields (IVRR).

Social Achievements

  • Spent approximately $1.1 billion on local suppliers (15% of total supplier spend).
  • 100 percent completion rate for employee Code of Conduct training (including anti-corruption training).

Governance Achievements

  • Developed and adopted a set of corporate governance principles.
  • Established an Environmental, Health and Safety (EHS) subcommittee under the Audit Committee.

Climate Goals & Targets

Environmental Challenges

  • Climate change impacts and risks (financial implications)
  • Supply chain disruptions (not specified)
  • Data limitations for certain metrics (e.g., pay ratio, average training hours)
Mitigation Strategies
  • Enterprise risk management program including EHS & SR risks.
  • Environmental and social screening tools and impact assessments for major new projects.
  • Implementation of a new Contractor Management standard for ongoing monitoring of supplier environmental, health, and safety performance.

Supply Chain Management

Supplier Audits: Approximately 90% of current supplier contracts include human rights and social responsibility clauses.

Responsible Procurement
  • Ethical business practices, human rights, social responsibility, business integrity, search and seizure, quality and environment, health and safety requirements included in standard contract clauses.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001 (South Arne operations), OHSAS 18001 (South Arne operations)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:2,470,702 tCO2e
Scope 1 Emissions:2,470,702 tCO2e
Scope 2 Emissions:388,269 tCO2e (location-based), 0 tCO2e (market-based)
Scope 3 Emissions:43,395,589 tCO2e
Renewable Energy Share:100% (Scope 2, market-based)
Total Energy Consumption:7,431,375 MWh
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:0.0179 metric tons CO2e per BOE

ESG Focus Areas

  • Climate Change
  • Greenhouse Gas Emissions
  • Methane Emissions
  • Biodiversity

Environmental Achievements

  • Reduced flaring from 68 MMSCFD in 2019 to 31 MMSCFD in 2021, eliminating over 1.2 million tonnes of GHG emissions.
  • Achieved a methane intensity reduction rate of 0.18% in 2021, surpassing the 2025 target of 0.19%.
  • Purchased 869,928 RECs to offset 100% of Scope 2 emissions from purchased electricity.

Social Achievements

  • Not disclosed

Governance Achievements

  • Established an Environment, Health and Safety (EHS) Committee of the Board with oversight of climate-related issues.
  • Linked employee compensation to EHS and climate initiatives, including flare reduction.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero Scope 1 and 2 emissions by 2050 or sooner.
Medium-term Goals:
  • Reduce GHG emissions intensity of operated assets by 50% to 17 kg CO2e per BOE by 2025.
  • Reduce methane emissions intensity to 0.19% by 2025.
  • Achieve zero routine flaring at all operated assets by 2025.
Short-term Goals:
  • Reduce Bakken operations routine flaring to 5% in 2022.
  • Not disclosed

Environmental Challenges

  • Increased storm activity materially affecting Gulf of Mexico operations.
  • Increased stakeholder concern or negative stakeholder feedback.
  • Mandates on and regulation of existing products and services (fugitive methane emissions).
  • Carbon pricing mechanisms (EU ETS).
Mitigation Strategies
  • Maintains emergency response plans for severe weather events.
  • Implementing climate change strategy aligned with TCFD recommendations.
  • Established a global methane intensity reduction target of 0.19% by 2025.
  • Purchasing allowances to meet EU ETS requirements.

Supply Chain Management

Supplier Audits: 0.1% of suppliers by number; 20% of total procurement spend

Responsible Procurement
  • Collect climate change and carbon information annually from suppliers where emissions are directly attributable to Hess' operational footprint.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased storm activity
  • Changing precipitation patterns
Transition Risks
  • Increased stakeholder concern
  • Carbon pricing mechanisms
  • Regulation of fugitive methane emissions
Opportunities
  • Flare reduction
  • Wellsite natural gas capture
  • Energy efficiency improvements
  • Use of more efficient modes of transport

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Null

Third-party Assurance: ERM Certification and Verification Services Inc.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Natural gas (bridging fuel)

Awards & Recognition

  • CDP climate leadership for 13 consecutive years
  • DJSI North America for 12 consecutive years
  • Highest level rating (Level 4) from Transition Pathway Initiative