Our Approach to Climate Change-Related Risks
With global energy demands and the concern about climate change rising, the need for low-carbon, accessible, reliable and affordable energy is as strong as ever. Chesapeake is a leader in an industry that day in and day out meets this need while improving the economy, the environment and communities across the globe. We are fueling the lives of millions of people and so much of the future, opportunity and innovation for our planet. We are proud to produce the natural gas and oil that will continue to meet global demand and improve quality of life around the world while focusing on innovation and continuous improvement to ensure we are achieving this efficiently and responsibly.
Our commitment to fostering the stewardship of our assets and the environment is strong and is reflected in our transparency and accountability for our Environmental, Social and Governance performance. In December 2018, Chesapeake released a Climate-Related Risk Analysis. Within this report, we provide analysis of the company's projected performance in a carbon constrained future and highlight the company's actions to manage and reduce emissions. This analysis follows reporting guidance suggested by the Task Force on Climate-Related Disclosures and utilizes third-party research for greater accuracy. The assessment determined that even with the potential of a low-carbon future, we are well positioned due to our strong resource portfolio. Our assets — domestic and unconventional — have short-duration development cycles with more efficient cost structures as compared to long-term international or deepwater developments. And, our history of producing more with less in our operating areas is yet another advantage contributing to the resiliency and future of our reserves.
Leading a responsible energy future is foundational to Chesapeake's success. Our core values and culture demand that we continuously improve our environmental, social, and governance performance across all facets of our company.
Our path to leading a responsible energy future begins with our pledge, announced in February 2021, to achieve net-zero direct greenhouse gas emissions by 2035. To meet this challenge, we have set meaningful initial steps including:
- Eliminate routine flaring from all new wells completed from 2021 forward, and enterprise-wide by 2025
- Reduce our methane intensity(1) to 0.09% by 2025
- Reduce our GHG intensity(2) to 5.5 by 2025
(1) volume methane emissions/volume gross gas produced
(2) tCO2e/gross boe produced
Chesapeake's strong culture of continuous improvement has led to its strong emissions management and reduction practices. In any scenario, our commitment remains — to be constantly improving stewards of our assets and the environment.