CPC Corporation, Taiwan

CPC has set a target to reduce its scope 1 and 2 emissions intensity by 30% by 2030 compared to 2005. However, it does not provide its 2005 baseline value, so the ambition of this target cannot be assessed against the company’s 1.5°C pathway. The company has set no intermediate targets till 2030, which also limit it from holding its management to account on the short-term actions needed to achieve its long-term target.

From 2015 onwards, CPC has stopped using the emissions-intensive coking technology for its petroleum refining in favour of using lower-intensity cracking technology instead. The company has also shifted its upstream oil extraction to regions with typically lower emissions intensities. Together, these changes have aided in CPC achieving a decreasing scope 1 and 2 emissions intensity trend between 2014 and 2019.

The scope 1, 2 and 3 emissions intensity of CPC’s sold product portfolio has decreased between 2014 and 2019. However, CPC has not increased its third-party sales of renewable electricity. As a result, the company’s overall reduction in scope 1, 2 and 3 emissions intensity is less steep than the reduction in its scope 1 and 2 emissions. CPC needs to increase its low-carbon product sales to at least 7% of its total sales by 2025, 12% by 2030 and 46% by 2050, to align with its 1.5°C pathway.

CPC will need additional investments in low-carbon technologies in the next 1-2 years to remain on track with its emissions reduction target. The company does not provide details on future capital expenditure (CapEx) plans for low-carbon and carbon removal technologies. Under the 1.5°C scenario there is no room for any new oil and gas extraction assets across the whole sector. However, even with no new extraction assets, CPC’s cumulative locked-in emissions from its oil and gas extraction activities between 2019 and 2050 are projected to exceed its total carbon budget for the period by nearly 35%.

CPC has committed to low-carbon transition publicly in its sustainability report. It aims to reduce its scope 1 and 2 emissions intensity by 30% by 2030 compared to 2005. The company reports on its low-carbon transition using the TCFD framework.

According to CPC’s TCFD-based disclosures, it has started using low-carbon energy at its operations but is increasing its use of low-carbon energy. It plans to increase revenues from smart green energy, high value-added materials, and circular economy and service, though it has not shared details on the expected growth in revenue share from such products.

CPC’s scope 1 and 2 emissions intensity decreased between 2014 and 2019. However, the company still needs more investments in low-carbon and carbon removal technologies in the next 1-2 years to remain on track with its 1.5°C pathway.

From 2015, CPC stopped using the more emissions-intensive coking technology for its petroleum refining. The company has shifted its upstream oil extraction to less emissions-intensive regions. The scope 1, 2 and 3 emissions intensity of the company’s sold product portfolio has also decreased from 2014 to 2019.

CPC has taken actions and decreased it scope 1 and 2 emissions intensity. In 2019, just under 0.5% of the company’s sales revenue came from low-carbon products. This represents a good start, but to be ready for a 1.5°C scenario, the company needs to increase its low-carbon sales.