Chevron is joining the net zero bandwagon. The oil giant became the latest energy company Monday to take steps to shrink its carbon footprint.
The oil giant set a target of cutting operational emissions to net zero by 2050. That includes upstream emissions from its own operations as well as indirect emissions such as those from power generation. Chevron also said it aims to cut carbon emissions intensity by over 5% by 2028 from 2016 levels.
But it stops short of its European peers by not including greenhouse gases from all fuel products they sell. Spain’s Repsol and Norway’s Equinor aim to slash or eliminate all emissions by 2050.
Still, investors welcomed the pledge, driving its shares higher in early trading Monday.
Chevron is pivoting toward its low-carbon business - which include renewables, carbon capture technology and hydrogen - in its bid to achieve its target.
The company’s move comes investors and governments amp up pressure on energy companies to fight against climate change. A hedge fund forced its rival, Exxon Mobil, to add new board members who could help the company better confront the risk of global climate change – an issue that investors say Exxon has long been reluctant to address.