China National Offshore Oil Corporation (CNOOC Group)

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.

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’s previous five-year plan to reduce emissions by 1.3 million tonnes ended in 2020. The company lacks a long-term emissions reduction target aligned with its 1.5°C pathway.

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.

CNOOC is increasing its oil and gas sales volumes, instead of reducing the emissions intensity of its sold energy products by switching to product offerings with lower emissions intensity.