Scope 1 and 2 GHG emissions

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Our targets
Climate Strategy: Scope 1 and 2 GHG emissions

Reduce our net equity Scope 1 and 2 GHG emissions

Woodside is targeting a reduction of net equity Scope 1 and 2 GHG emissions of 15% by 2025 and 30% by 2030, with an aspiration of net zero by 2050 or sooner.1

  • 15%

    by 20252

  • 30%

    by 20303

  • Net zero

    by 2050 or sooner

View our 2024 performance
Our approach - Decarbonisation Planning
Decarbonisation strategy

We have three ways to achieve our net equity Scope 1 and 2 GHG emissions reduction targets.

  • Avoid emissions

    avoiding emissions in the way we design facilities (‘design out’)

  • Reduce emissions

    reducing emissions in the way we operate (‘operate out’)

  • Offset

    offsetting the remainder by buying or originating carbon credits

Avoid and Reduce

Avoid and reduce GHG emissions 

Our priority is to avoid and reduce emissions. All Woodside operated assets and projects have an asset decarbonisation plan to identify the technical opportunities to reduce emissions at the facility.

The main opportunities include energy efficiency, methane reduction, flaring reduction and the use of renewables. These opportunities are assessed for engineering and commercial viability. These have identified some 28 Mt CO2-e (cumulative to 2050) of emissions reduction opportunities over the remaining life of assets, mainly at a cost below $80/t CO2-e.4

These are included in asset decarbonisation plans. Of these, 15 Mt CO2-e (cumulative to 2050) were implemented during the design phase of Scarborough and Trion. The remaining 13 Mt CO2-e (cumulative to 2050) are being pursued through around 80 projects.5

Projects which will deliver around 40% of these emissions reductions were completed or sanctioned at the end of 2024, and 100% completion is expected by the end of 2030. 6

A second way that we prioritise avoidance and reduction is to set executive remuneration targets on gross Scope 1 and 2 GHG emissions performance, which does not include the use of offsets.

Methane management plan

Methane management plan

Methane emissions management is an important part of global efforts to limit climate change because it has a higher global warming potential than carbon dioxide, especially in the near-term, and is estimated to have made the second largest contribution to human-induced climate change after carbon dioxide.

Woodside’s reported methane emissions are around 0.1% of production by volume. This calculation is supported by our improving ability to directly monitor and measure methane at our facilities. It is lower than the Oil and Gas Climate Initiative (OGCI) 2025 target of below 0.2%.7 It reflects our long standing focus on reducing methane leaks, which if they occur at sufficient volume would be a loss to our production and a potential safety hazard.

When we assess emissions reduction opportunities, we multiply our internal cost of carbon of $80/t CO2-e (real terms 2024) by 84 representing the higher global warming potential of methane in the near term. This results in an effective price for methane of $6,720/t emitted. 8,9

We continue to strive for further reductions on our assets, which aligns with our Methane Guiding Principles commitments. 2024 highlights include:

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Large scale abatement

Large scale abatement

Electrification, hydrogen fuelling and CCUS are all alternative methods for reducing emissions from our electrical and mechanical turbines.17 However, they are expensive to retrofit onto existing plant and equipment, with estimates in the range of US$200-500 tCO2-e,18 and we therefore pursue them at a company level through a large scale abatement plan. This involves continuing engineering assessment in order to reduce costs. In 2024, hydrogen fuelling of turbines emerged as the leading opportunity, with hydrogen generated from natural gas (steam methane reforming with CCS), but costs currently remain significantly higher than required for Woodside to support investment.

Emissions reduction opportunities that are estimated to cost more than US$80/t CO2-e (real terms 2024) are reviewed by our Executive Leadership Team.19 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.

Multiple opportunities have been identified that could reduce our equity Scope 1 and 2 GHG 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 Mt of additional cumulative Scope 1 and 2 GHG emissions reductions through to 2050.20,21

Emissions reduction opportunities

This chart shows an estimate of the GHG emissions from Woodside's current portfolio of producing assets and sanctioned projects* that we expect may require abatement to meet regulatory or corporate goals.22 It also shows the technology levers available to us and the relative contribution they may make.

large-scale-abatement

* This includes Scarborough, Trion and Beaumount New Ammonina Project as well as producing assets. Emissions and abatement opportunities at future investments can be added when a FID is taken and design is complete.

** Associated with the CO2 captured from Gippsland Basin Joint Venture gas, which is sold for reuse to Australian industries e.g. food, beverage, hospitality, manufacturing and medical.

  1. For the purposes of Woodside’s 2024 sustainability disclosures we determine which topics are material we classify the topics into three categories of material, significant or important. For these purposes, ‘material topic’ means a 2024 sustainability topic described in this report, determined as part of the 2024 materiality assessment process undertaken by Woodside. From 2025, we will only classify which topics are material. Classification of any topic as material, significant or important should not be read as a determination of whether that topic may necessarily rise to the level of materiality of disclosures required by law, including the laws of Australia, and the United States.
  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.
Carbon credits

Carbon credits

The use of carbon credits as offsets remains an important part of Woodside’s approach to Scope 1 and 2 greenhouse gas emissions. We both originate (i.e. invest in our own carbon projects) and acquire (i.e. through carbon markets) carbon credits, to maintain a diverse portfolio of carbon credits differentiated by underlying abatement method, geography and vintage.

Click on each of the following topics to view more about it.

Industry Initiatives

Industry Initiatives

In 2023, Woodside became the first Australian company to sign the Oil & Gas Decarbonization Charter (OGDC).37 During COP28, the COP28 presidency and the Kingdom of Saudi Arabia announced 50 oil and gas companies had joined the charter, a global industry initiative dedicated to high-scale impact, and accelerating climate action within the industry. 

The OGDC provides discrete commitments for members to progress. 

Woodside’s efforts to align with OGDC commitments

Woodside joined OGMP 2.0 in 2024. The OGMP 2.0 is the United Nations Environment Programme’s flagship oil and gas reporting and mitigation programme.38 OGMP 2.0 is the only comprehensive, measurement-based reporting framework for the oil and gas industry that improves the accuracy and transparency of methane emissions reporting. This is key to prioritising methane mitigation actions in the sector.

In 2024, Woodside matured its implementation plan whilst also preparing for our inaugural OGMP 2.0 submission in 2025.

In 2022, Woodside Energy became the first Australasian company to sign the Aiming for Zero Initiative.39 The initiative was launched by the Oil and Gas Climate Initiative (OGCI) to encourage the oil and gas industry to cut methane emissions to near-zero.40 It calls for an all-in approach that treats methane emissions as seriously as the oil and gas industry already treats safety: aiming for zero and striving to do what is needed to get there. Aiming for Zero acts as a complement for key initiatives such as MGP, OGMP 2.0 and the Global Methane Pledge.

In 2024, Woodside's methane performance (including Sangomar one-off emissions associated with start-up) was ahead of industry benchmarks and targets.41

Woodside joined the MGP in 2018.42 The MGP focus on five priority areas for action to reduce methane emissions across the natural gas supply chain. They were developed collaboratively in 2017 by a coalition of industry and civil society organizations.

The 5 priority areas are:
1. Continually reduce methane emissions
2. Advance strong performance across the gas supply chain
3. Improve accuracy of methane emissions data
4. Advocate sound policy and regulations on methane emissions
5. Increase transparency.

Launched in 2015, the World Bank’s Zero Routine Flaring by 2030 (ZRF) Initiative commits nearly 100 governments and oil companies, accounting for approximately 60 percent of total global gas flaring, to end routine flaring no later than 2030. Woodside committed to ZRF in 2017.43

 

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Footnotes

    Footnotes

      Sustainability links

      Click the links below to navigate through to more sustainability pages.

      Sustainability Strategy and Plan
      Sustainability governance
      Materiality for sustainability topics
      United Nations Sustainable Development Goals
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      Last updated: 24/02/2025 5:29:26 PM