China National Offshore Oil Corporation (CNOOC Group)
China National Offshore Oil Company (CNOOC) is a publicly listed integrated oil and gas company headquartered in China, with majority state ownership. In 2019, it had USD 107.46 billion in revenue and a reported 19,436 employees in 2020*. CNOOC is one of the largest independent oil and gas exploration and production companies in the world. CNOOC has stated no quantified targets to reduce emissions.
Despite having published a low-carbon transition plan, which the company refers to as the ‘Green Development Action Plan’, CNOOC has stated no quantitative emission reduction targets beyond 2020. The company has provided a qualitative description of its ambition for 2050 when it aims to achieve international first-class clean energy production. However, it should develop quantitative targets to reduce its scope 1 and 2 and its scope 1, 2 and 3 emissions intensities and drive business strategy for a low-carbon transition aligned with its 1.5°C pathway.
Instead of reducing the emissions intensity of its sold energy products by switching to lower emissions intensity product offerings, the company is increasing its oil and gas sales volumes. In 2019, the company’s sold product mix comprised approximately 80% oil and 20% gas, with an almost negligible 0.01% of zero-carbon electricity. The company has not provided information on revenues from its low-carbon products, and although it states that if offers energy efficiency services, it fails to provide further information on these services.
CNOOC receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. This company lacks a robust transition plan with clear and measurable targets to achieve the low-carbon ambitions that the company aspires towards by 2050.
The company’s increasing oil and gas sales volumes, combined with the lack of evidence of a reduction in its scope 1 and 2 emissions, suggests that the company has increasing absolute greenhouse gas emissions. With no quantified emissions reduction targets and no clear plans for low-carbon business activities, the company is not on track to achieve a low-carbon transition aligned with its 1.5°C pathway.
Although CNOOC has published a low-carbon transition plan, which it calls its Green Development Action Plan, it has not made a public commitment to reduce emissions. The company also provides limited information on quantitative KPIs and targets for its planned emissions reduction rates.
CNOOC’s Green Development Action Plan is a forward-looking plan, which sets out the company’s qualitative ambitions for 2020, 2035 and 2050. However, this transition plan lacks clarity and does not provide concrete, quantitative information on how the company plans to develop low-carbon business activities.
CNOOC has reported increasing volumes of oil and gas extraction between 2014 and 2019. Furthermore, there is no evidence of a reduction in the company’s scope 1 and 2 emissions intensity, which leaves it with increasing absolute greenhouse gas emissions. In 2019, only 0.4% of the company’s capital expenditure (CapEx) was directed to low-carbon technologies.