APA Corporation

APA has not set robust targets. It has aims to reduce upstream flaring by 40% in Egypt by 2022and reduce scope 1 emissions intensity by 10-15% by 2030 compared to 2021. These targets are not sufficient to align with APA’s 1.5°C decarbonisation pathway. The company should set short, medium and long-term targets covering scopes 1, 2, and 3 to incentivise continual action. APA has set a target to eliminate more than 1 million tonnes of carbon dioxide equivalent (CO2e) emissions by year-end 2024, however this target cannot be assessed since it is unclear if this is linked to direct reduction or offset of emissions.

APA has donated over USD1.5 million to trade associations found to hold climate-negative positions. While the company does disclose the amount paid to trade associations, it does not have a process to review the climate positions of trade associations or a process to engage with these trade associations. APA can increase its credibility by committing to withdraw support and funding from trade associations that hold climate-negative positions.

APA has not developed any low-carbon business models, and is completely reliant on oil and gas for its revenue. The company also has not invested into any low-carbon technology, and states it does anticipate transitioning to an alternative energy producer. To transition away from oil and gas, APA should develop alternative low-carbon business units.

APA do not intend to transition to a low-carbon energy producer, instead retaining and expanding its oil and gas exploration and production activities. The company has set short-term emissions reduction targets to achieve a 40% reduction in upstream flaring in Egypt by 2022, and to eliminate more than 1 million tonnes of CO2e by 2024. In 2023, the company set a new target to reduce scope 1 emissions intensity by 10-15% by 2030 compared to 2021.

APA does not have a transition plan and explicitly states it will not develop one. It plans to reduce operational emissions through reducing gas leaks and flaring, but does not plan to reduce scope 3 emissions. The company does not plan to invest in low-carbon or climate-change mitigation technology, the company does not plan to diversify its business to include any low-carbon business segments.

Currently, APA is focussing on operational emissions reductions. It has a leak detection and repair program and is planning to expand its real-time monitoring of methane emissions at its facilities to improve its data, but does not outline the steps to achieve emissions reductions. It is not investing in low-carbon technology.

APA set a target to eliminate routine flaring across its US onshore operations by 2021, and to reduce its overall flaring intensity to less than 1% of associated gas per barrel of oil produced, both of which it achieved. APA has not made any investments into low-carbon technologies or alternative business units.

APA recognises climate change, but does not have a transition plan and does not have an intention to set one. The company plans to remain wholly reliant on upstream oil and gas activities with no investment or expansion into low-carbon technologies which it requires to be 1.5°C aligned. APA focuses mainly on operational methane emissions, and does not report scope 3 emissions.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it sponsors a two-year master’s program to help Surinamese nationals establish technical careers in the oil and gas industry. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through the Apache Women’s Network which focuses on providing learning opportunities to its female workforce. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

While the company commits to respecting human rights and the International Labour Organisation (ILO) fundamental rights at work, no evidence was found that it expects its business relationships to respect the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. No evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. No evidence was found of a time-bound target for paying all workers a living wage. Moreover, no evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses some indicators of workforce diversity, including the gender of its workforce by employee category. However, no relevant disclosure was found of the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data. Moreover, no relevant disclosure was found of the company’s global tax strategy and the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. The company has a lobbying and political engagement policy. However, no evidence was found that it does not make political contributions.