Climate

Our climate-related opportunities and risks are outlined below and also described in detail in section 5.0 of the Climate Transition Action Plan and 2023 Progress Report.

This includes detail of how these processes are integrated into Woodside’s overall risk management framework.

1. For Woodside, a lower carbon portfolio is one from which the net equity Scope 1 and 2 greenhouse gas emissions, which includes the use of offsets, are being reduced towards targets, and into which new energy products and lower carbon services are planned to be introduced as a complement to existing and new investments in oil and gas. Our Climate Policy sets out the principles that we believe will assist us achieve this aim.
2. Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO₂ -e which is representative of the gross annual average equity Scope 1 and 2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021. Net equity emissions include the utilisation of carbon credits as offsets.
3. Scope 3 targets are subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities (which may or may not proceed). Individual investment decisions are subject to Woodside’s investment targets. Not guidance. Potentially includes both organic and inorganic investment.
4. Includes pre-RFSU spend on new energy products and lower carbon services that can help our customers decarbonise by using these products and services. It is not used to fund reductions of Woodside’s net equity Scope 1 and 2 emissions which are managed separately through asset decarbonisation plans.
5. Includes binding and non-binding opportunities in the portfolio, subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities (which may or may not proceed). Individual investment decisions are subject to Woodside’s investment targets. Not guidance.
6. Woodside analysis, based on Woodside Scope 1 and 2 emissions data for 2022 and 2023 relative to a comparable portfolio of LNG, conventional shelf and deepwater assets, calculated from the 2023 emissions intensity of these primary resource themes reported in Wood Mackenzie’s Emissions Benchmarking Tool.

Our approach¹

This is an abbreviated summary of our Climate Transition Action Plan and 2023 Progress Report (CTAP) which should be read in full.

Woodside has also provided more detail in our Response to investor feedback (expanding from CTAP pg.9). 

1. This section refers to current intentions, plans or stated targets (where applicable). It also outlines information regarding our Management System and relevant processes and procedures. Where we refer to our activities without reference to a previous calendar year or using present tense, the relevant content may be updated from time to time at our discretion but no reliance should be placed by the reader on this page being up-to-date. We also recommend checking our Announcements page regarding our most recent business activities.

Reduce our net equity Scope 1 and 2 greenhouse gas emissions

Woodside is targeting a reduction of net equity Scope 1 and 2 greenhouse gas emissions of 15% by 2025 and 30% by 2030, with an aspiration of net zero by 2050 or sooner.¹ Our performance against these targets is highlighted in the highlights section.

Reducing our net equity Scope 1 and 2 greenhouse gas emissions is supported by three levers:

• avoiding emissions in design
• reducing emissions in operations and
• offsetting the remainder with carbon credits.

Woodside has a long standing focus on energy efficiency. Our first formal climate-related target was a 5% energy efficiency target over the period 2016-2020. We exceeded this target, achieving 8%.

1. Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2 -e which is representative of the gross annual average equity Scope 1 and 2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021. Net equity emissions include the utilisation of carbon credits as offsets.

1. Woodside’s assumptions on carbon cost pricing include a long-term carbon price of US$80/ tonne of emissions (real terms 2022). Woodside continues to monitor the uncertainty around climate change risks and will revise carbon pricing assumptions accordingly.
2. Indicative only, not guidance. Graphic outlines future decarbonisation options currently being considered. Opportunities may or may not eventuate. Please refer to section 7.6 “Disclaimer, risks, emissions data and other important information” for important cautionary information relating to forward looking statements.
3. Indicative only. Scope 1 and 2 estimates are based on equity share of current portfolio of operating and sanctioned projects.
4. See announcement titled “Woodside to sell 15.1% Scarborough interest to JERA” (23 February 2024) at woodside.com. Greenhouse gas emissions data including charts and estimates of future abatement plans in this Climate Transition Action Plan have not been updated to reflect changes in Woodside’s equity share of the Scarborough Joint Venture as a consequence of the sale of 15.1% interest to JERA.

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Invest in products and services for the energy transition

Investing in products and services for the energy transition is supported by three levers:

• assessing investments for their resilience to the energy transition
• diversifying our products and services and
• supporting our customers and suppliers to reduce their emissions.

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Large Scale Abatement

Emissions reduction opportunities that are estimated to cost more than US$80/t CO₂-e are reviewed by our Executive Leadership Team.¹ They are subject to more engineering, cost reduction or technology maturation in a company-wide large scale abatement plan, as depicted in the chart below.

If they can be matured to an appropriate level, they will be reassessed by the Executive Leadership Team and progressed where appropriate. The proposed Woodside Solar project is an example of a project likely costing more than US$80/t CO₂-e that is progressing.

Multiple opportunities have been identified that could reduce the Scope 1 and 2 emissions from our current portfolio. LNG facilities are the source of the majority of our emissions. They arise from reservoir CO₂, power generation, mechanical turbines and our flaring system. Electrification (using renewable or lower carbon power), CCS and hydrogen fuelling of turbines are all options that could reduce these emissions, creating choices in the optimal mix. We estimate these large scale opportunities could potentially deliver approximately 35 million tonnes of additional cumulative Scope 1 and 2 emissions reductions through to 2050.^2,3

For further information, see page 20 of our  Climate Transition Action Plan and 2023 Progress Report.