Pioneer Natural Resources

Pioneer has set a target of scope 1 and 2 emissions reduction by 100% by 2050 with an intermediate target of reducing scope 1 and 2 emissions intensity by 50% by 2030 compared to 2021. It does not intend to rely on carbon offsets. The ambition of this target is sufficient to align with the company’s 1.5°C pathway. The company is evaluating its scope 3 emissions but has not set related targets or other sufficient intermediate targets. Setting regularly spaced intermediate targets at gaps of no more than five years, will incentivise near-term actions on longer-term goals.

The company has not committed to stopping oil and gas exploration and expansion and recently acquired two oil and gas companies focusing on developing oil and gas reserves. This does not align with the International Energy Agency (IEA) Net-Zero by 2050 (NZE) scenario, which does not allow for any expansion of producing assets beyond those sanctioned earlier than 2022. The company is projected to exceed its 1.5°C carbon budget by more than 60% between 2022 and 2050.

As an upstream oil and gas company, Pioneer heavily relies on fossil fuel extraction. There is no evidence that the company develops new low-carbon business models that can lead to phasing out of oil and gas production.

Pioneer has set a target of net zero emissions by 2050, including scope 1 and 2 emissions. The company also aims to reduce scope 1 and 2 intensity by 50% and methane intensity by 75% by 2030, compared to 2019. It committed to zero routing flaring by 2025. Pioneer has not set scope 3 reduction targets.

The transition plan includes methane management, electrification of field operations and elimination of routine flaring. The plan lacks financial content and a timeline but contains a set of short-term actions, including electrifying drilling, completions and production operations; reducing diesel fuel combustion; reducing venting and flaring. Pioneer plans to pursue electrification of its operations and support the development of wind and solar power generation projects. However, there is no evidence that the company has plans to address its scope 3 emissions.

The company began to form partnerships to participate in the development of renewable energy projects for electrifying its own operations. It also reduces diesel fuel combustion, venting and flaring. There is limited evidence that Pioneer is investing in R&D of climate change mitigation. However, its expansion of oil production shows no sign of real transitioning to a low-carbon model.

Pioneer’s scope 1 and 2 emissions intensity significantly decreased in 2020, but increased in 2021. Its projected pathway does not align with the 1.5°C pathway. Pioneer is projected to exceed its 1.5°C carbon budget by more than 60% between 2022 and 2050.

Pioneer’s net-zero ambition does not include scope 3 emissions. As an oil and gas upstream company, Pioneer heavily depends on fossil fuel extraction. Recent acquisitions indicate the plans for oil and gas production expansion. The company plans to reduce scope 1 and 2 emissions by electrifying its operations and methane management, including zero routine flaring. The company does not report CapEx on low-carbon technologies.

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 action 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 training opportunities for workers and affected stakeholders. For instance, it works with a non-profit to provide training courses that meet the needs of local employers to individuals. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show that 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 International Labour Organisation (ILO) fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. No evidence was found of the company having a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. No evidence was found of a time-bound target for paying all workers a living wage. No evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses some indicators of workforce diversity, including the gender and race/ethnicity of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity.

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