Hess

Hess’ scope 1 and 2 emissions intensity decreased at a rate faster than required by the company’s 1.5°C pathway between 2016 and 2021, which requires it to reduce its scope 1 and 2 emissions intensity by about 6% per year between 2021 and 2026. Hess invested less than 0.1% of its total capital expenditure (CapEx) in carbon removal and carbon capture technologies in 2022, along with its projected CapEx in carbon removal and carbon capture technologies for 2023 to 2025. Hess discloses its total planned CapEx for the next five years, but does not include the proportion of this dedicated to low-carbon and mitigation technologies.

Hess’ research and development (R&D) investments focus on operational scope 1 and 2 emissions through funding the Salk Institute’s Harnessing Plants Initiative research and development program. The Salk Institute’s Harnessing Plants Initiative aims to enhance natural carbon storage solutions, such as the CO2 Removal on a Planetary Scale (CRoPS) and Coastal Plant Restoration (CPR) programs. But it is unclear what proportion of its total R&D expenditure this investment accounts for. To meet the sectoral-level expectation, at least 77% of the company’s total R&D investments should be dedicated to low-carbon technologies.

Hess’ scope 1, 2 and 3 emissions intensity decreased annually between 2016 and 2021. However, this decrease does not align with the company’s 1.5°C pathway, which requires it to reduce its scope 1, 2 and 3 emissions intensity by about 4% per year between 2021 and 2026. Hess does not report the provision of any low-carbon products, as such no associated revenue is reported. The company does not disclose its expected revenue over the next 5 years, or projections of its future share of revenues originating from low-carbon products.

There is no evidence that Hess is developing business activities that would enable the company to decouple financial results from greenhouse gas emissions. A low-carbon future will require the company to diversify its energy mix to include renewables and low-carbon fuels or manage the close of its oil and gas business.

Hess has set a target to reduce its scope 1 and 2 emissions by approximately 50% by 2025, compared to 2017. Along with a target to reduce its scope 1 and 2 emissions by 100% by 2050. Hess aims to reduce its 2017 methane emissions intensity by about 50%, to an intensity of 0.19%. Furthermore subsidiary, Hess Midstream, has set targets to reduce its performance methane emissions for gathering and boosting and processing by 2025, but not from its terminals and export operations.

Hess’ short-term strategy aims to set annual greenhouse gas (GHG) emissions reduction targets, purchase renewable energy certificates (RECs) and offsets to mitigate its scope 2 and business travel-related scope 3 emissions alone, and improve its operational efficiency. Hess’ medium-term strategy aims to set interim targets, continue purchasing RECs and offsets, evaluate opportunities to apply technical innovations and engage with its stakeholders on low GHG pathways.

In 2021, Hess achieved its targeted methane intensity rate, for 2025. Hess is purchasing RECs to implement its short- and medium-term strategy to purchase renewable energy and offsets to its Scope 2 emissions. Hess has not developed any low-carbon business models. In 2022, Hess invested USD 2.5 million in research and development (R&D) via the Salk Institute’s Harnessing research programs, focusing on the natural storage of carbon, equating to less than 0.1% of Hess’ total CapEx.

Between 2016 and 2021, Hess’ scope 1, 2 and 3 emissions intensity decreased annually. To align with its 1.5°C pathway, Hess needs to decrease its scope 1, 2 and 3 and emissions intensity by about 4% annually. Additionally, Hess is projected to exceed its 2022 to 2050 carbon budget by about 140%, due to significant expansion in production from its operations in Guyana.

Hess has emissions reduction targets in place and targets to reduce its methane emissions intensity. Despite this, Hess is reliant on the use of both RECs and offsets to reduce its scope 2 and 3 category 6 emissions, but does not consider its more impactful scope 3 category 11 emissions, and lacks any low-carbon business models. Hess does not disclose its low-carbon technologies and that less than 0.1% of its total CapEx was invested in carbon removal and carbon capture technologies.

No evidence was found of the company’s commitment to social dialogue or the disclosure 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.

The company discloses the actions it takes to create jobs, including apprenticeship hiring schemes. It also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. In particular, it works with recruiting at historically black colleges and universities and has programs aiming to diversify the job applicants. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, 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 has programs for college students, and works to educate its staff. 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 targeted training for women and partnerships to provide education to children in underserved communities. 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 re- or up-skill.

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 commits to respecting human rights and the ILO fundamental rights at work. Additionally, the company discloses some information about the assessment of human rights risks. However, the company can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Additionally, the company discloses some information about the diversity of its workforce. However, the company can strengthen its disclosure on these subjects as well as on its living wage and working hours practices.

The company discloses its global tax strategy and board accountability for the strategy. Additionally, the company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. Furthermore, the company has a lobbying and political engagement policy. However, the company can strengthen its disclosure on these topics and other ethical business topics including personal data protection.