Devon Energy

Devon Energy aims to achieve zero scope 1 and 2 emissions by 2050. It is unclear if Devon Energy will use offsets to achieve this target. The company has set an interim target of a 50% reduction in its scope 1 and 2 emissions intensity by 2030 compared to 2019. Though ambitious, it is not possible to assess if this interim target is aligned with the company’s 1.5°C pathway as the company does not report its use of offsets. The company should look to set interim targets no more than five years apart to ensure the achievement of its long-term goals. It should also look to set a scope 3 target aligned with a 1.5°C pathway to address the majority of its emissions.

Devon Energy’s CEO is on the board of directors and the executive committee of the American Petroleum Institute (API), a trade association reported to have opposed numerous climate policies in the US. API pledged itself to fighting the Biden Administration’s commitment to halt new oil and gas development on federal lands, as well as efforts to phase out gasoline and diesel fueled cars and trucks. Devon Energy does not have a policy in place to manage its engagement with trade associations on climate change issues.

Devon Energy’s scope 1 and 2 emissions intensity has significantly declined between 2018 and 2021. This is due to significant reductions in the company’s emissions from flaring. However, the company’s scope 1, 2 and 3 emissions intensity has increased between 2018 and 2021 due to the increased share of oil production relative to gas between 2019 and 2021. The company’s scope 1, 2 and 3 emissions intensity is projected to remain stable for the next five years, between 2021 to 2026. To align with its 1.5°C pathway, Devon Energy needs to reduce its scope 1, 2 and 3 emissions intensity by approximately 4% per year. The company is also projected to exceed its scope 3 carbon budget by at least 50% between 2022 and 2050.

Devon Energy aims to achieve zero scope 1 and 2 emissions by 2050. The company has set an interim target of a 50% reduction in scope 1 and 2 emissions intensity by 2030. The company also reports that it has reduced its methane emissions intensity by 58% since 2019 and aims to reduce these by 65% by 2030 compared to the 2019 baseline. The company does not have a target to reduce its scope 3 emissions.

Devon Energy plans to reduce methane leaks using optical gas imaging, on-site monitoring and remote detection using flyovers and satellites. It is currently conducting pilot projects which include laser-based monitoring. The company plans to develop hydrogen and CCS technologies but provides limited disclosure of these plans. The company has conducted studies into an internal carbon price and expects to use one within the next two years.

Devon Energy continues to focus on oil and gas, merging with WPX Energy in 2021 and entering a joint venture referred to as Matterhorn in 2022 to establish a new natural gas pipeline in the Permian Basin. The company does not disclose information on its research and development (R&D) for low-carbon or carbon removal technologies. Additionally, the company has not yet developed business models that contribute to transitioning its energy mix to low-carbon energy, to reducing energy demand or to developing CCS and negative emissions technologies (NETs).

The company’s scope 1 and 2 emissions intensity has significantly declined between 2018 and 2021 due to a significant reduction in emissions from flaring. However, Devon Energy’s scope 1, 2 and 3 emissions intensity has increased between 2018 and 2021 due to an increased share of oil production relative to gas between 2019 and 2021. The company’s locked-in emissions are projected to exceed its scope 3 carbon budget by at least 50% by 2050. The company needs to reduce scope 1, 2 and 3 emissions intensity by approximately 4% per year to align with its 1.5°C pathway.

Devon Energy acknowledges climate change as an issue and has a low-carbon transition plan. The company has increased its low-carbon investment from USD one million to 100 million in 2022 compared to 2020. However, this is the equivalent of just 4% of the company’s total capital expenditure (CapEx). Devon Energy also has no low-carbon business models, but it is exploring opportunities in renewables, hydrogen and CCS. The company has begun considering how to tackle climate change but must accelerate its transition to align with its 1.5°C pathway.

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 just transition planning to mitigate the social impacts of the low-carbon 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 actions 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 upskilling and training opportunities for workers and affected stakeholders. For instance, it established science, technology, engineering and mathematics (STEM) education programmes and provided fully equipped STEM centers in 134 Permian Basin elementary schools. 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 Camp Trivera, an urban STEM camp whereby girl campers learn STEM skills and get leadership opportunities. 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.

The company has a grievance mechanism available to workers and external stakeholders. However, no other policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

While the company commits to respecting the health and safety of its workers, it is unclear whether it expects the same commitment of its business relationships. No evidence was found of the company having 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 or its required working hours. The company discloses the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. Additionally, no evidence was found that the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and has a privacy statement regarding the collection, sharing and access to personal data. No relevant disclosure was found of the company’s global tax strategy and the corporate income tax it pays in each relevant jurisdiction. Furthermore, no evidence was found that the company has a policy prohibiting bribery and corruption and that it includes corresponding clauses in its business relationship contracts. While the company discloses its expenditure on lobbying activities, no evidence was found that the company has a lobbying and political engagement policy and that it does not make political contributions.