Scope 3 emissions targets

Woodside’s Scope 3 approach includes the introduction of new products and services like hydrogen and carbon capture utilisation and storage (CCUS) into its portfolio. These products and services can help Woodside’s customers avoid or reduce their Scope 1 or 2 emissions and therefore reduce the life cycle (Scopes 1, 2 and 3) emissions intensity of the company's portfolio.

In 2023, Woodside continued to review its approach to Scope 3 targets in response to investor feedback and decided to supplement its existing investment target with a new complementary emissions abatement target.

The investment target tracks Woodside's work to develop these projects and bring them to market. The emissions abatement target will track their impact on customer emissions.

 Woodside has two complementary Scope 3 targets¹:

• Invest US$5 billion in new energy products** and lower-carbon services* by 2030.²
• Take final investment decisions on new energy products and lower carbon-services by 2030, with a total abatement capacity³ of 5 Mtpa CO₂-e.^{4, 5}

Understanding emission 'scopes'
The Greenhouse Gas Protocol Corporate Standard classifies a company’s greenhouse gas (GHG) emissions into three ‘scopes’. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.⁶

While companies don’t directly manage Scope 3 GHG emissions, this information provides companies with an understanding of where potential emissions and associated risks and opportunities lie in the value chain. Scope 3 emissions occur inside Woodside's value chain but outside its operations. For example, the emissions from a supplier’s activities when providing Woodside with goods and services, or from a customer’s activities when they are using the company's products.

For energy companies like Woodside, most of its Scope 3 GHG emissions come from when its oil and gas is used (e.g. to generate electricity).

For an iron ore mining company, most Scope 3 GHG emissions are likely to come from converting the iron to steel.

For a food company, Scope 3 GHG emissions might primarily come from agriculture or transport and packaging.

Examples of estimated company Scope 3 GHG emissions in 2023, as reported in the respective company’s annual reports, are stated below.

Woodside Energy⁷ – 72.83 Mt CO₂-e.

BP⁸ – 315 Mt CO₂-e.

Shell⁹ – 1,147 Mt CO₂-e.

Fortescue Metals Group¹⁰ – 267.61 Mt CO₂-e.

BHP¹¹ – 370.5 Mt CO₂-e.

Rio Tinto¹² – 578.1 Mt CO₂-e.

Coca-Cola¹³ – 4.83 Mt CO₂-e.

Telstra¹⁴ – 1.87 Mt CO₂-e.

It is important to note that there may be differences in the way third parties calculate or report GHG emissions compared to Woodside. The data above is sourced directly from each company’s reports and readers should familiarise themselves with the calculation methods and reporting boundaries employed by these companies when reporting greenhouse gas emissions.

To learn more about Woodside's approach to Scope 3 GHG emissions and Scope 3 targets, visit Woodside’s Climate Transition Action Plan and 2023 Progress Report, the climate page and the Sustainability Report on the sustainability page of the Woodside website. 

^{* Woodside uses this term to describe technologies, such as carbon capture, utilisation and storage (CCUS) or offsets that could be used by customers to reduce their net greenhouse gas emissions.}

^{** Woodside uses this term to describe energy technologies, such as hydrogen or ammonia, that are emerging in scale but which are expected to grow during the energy transition due to having lower greenhouse gas emissions at the point of use than conventional fossil fuels. May include new energy products that have been manufactured from fossil fuels.}

^{6 Greenhouse Gas Protocol FAQ.}

^{7 Woodside’s Climate Transition Action Plan and 2023 Progress Report. For more information on the calculation methodologies, assumptions, categories and key references used in the preparation of GHG emissions data refer to the data table on page 73.}

^{8 BP Annual Report 2023. For more information on the calculation methodologies, assumptions, categories and key references used in the preparation of GHG emissions data refer page 49 and 68.}

^{9 Shell’s Annual Report and Accounts 2023. For more information on the calculation methodologies, assumptions, categories and key references used in the preparation of GHG emissions data refer to data table on page 107.}

^{10 Fortescue’s FY23 Climate Change report. For more information on the calculation methodologies, assumptions, categories and key references used in the preparation of GHG emissions data, refer to data table on page 14.}

^{11 BHP’s Annual Report 2023. For more information on the calculation methodologies, assumptions, categories and key references used in the preparation of GHG emissions data refer to data table on page 59.}

^{12 Rio Tinto’s Annual Report 2023. For more information on the calculation methodologies, assumptions, categories and key references used in the preparation of GHG emissions data refer to data table on page 55.}

^{13 Coca-Cola Europacific Partners Integrated Report and Form 20-F 2023. For more information on the calculation methodologies, assumptions, categories and key references used in the preparation of GHG emissions data refer to data table on page 60.}

^{14 Telstra 2023 Sustainability Report. For more information on the calculation methodologies, assumptions, categories and key references used in the preparation of GHG emissions data refer to data table on page 60.}