Targa Resources

Targa lacks any CO2 targets to reduce greenhouse emissions intensity or absolute emissions. Targa only has methane intensity reduction targets where ambition levels were found to be quite low. Without an emissions target for its scope 1, 2 and 3 emissions, the level of the company’s climate ambition cannot be assessed. To demonstrate commitment to the low-carbon transition and hold itself accountable for achieving ambitious emissions reductions, Targa should set intermediate and long-term targets aligned with a 1.5°C scenario pathway.

Targa lacks a detailed transition plan which includes the necessary changes required to align with a low-carbon economy. Its focus is on managing and reducing operational emissions through energy efficiency improvements and reducing methane leaks and flaring. There is no evidence that the company has considered plans to decarbonise in the long-term or has attempted to understand the risks of climate change to its business through scenario analysis. Targa needs to strengthen its efforts to understand its climate-related risks and opportunities, and develop a comprehensive plan linked to emission reduction targets.

Targa has not implemented any supplier engagement on climate change issues or greenhouse gas reductions through strategies, initiatives, or partnerships. To achieve the scale of value chain emissions reductions required by the low-carbon transition, it is imperative that midstream and downstream companies like Targa engage their upstream suppliers on this issue and create demand for low-carbon alternatives.

Targa does not undertake low-carbon business activities and there is no evidence that it plans to do so in the future to replace its dependency on fossil fuels. It is not investing in potential new sources of revenue through R&D or low-carbon CapEx. The company’s strategy is focused only on growing the volume of gas it processes. Targa has acknowledged the potential risks posed to the business by climate change and should look to develop alternative low-carbon revenue streams to reduce reliance on hydrocarbon activities.

Targa lacks any CO2 targets to reduce greenhouse emissions intensity or absolute emissions. Targa only has methane intensity reduction targets where ambition levels were found to be quite low. Its targets appear to include an undisclosed reliance on offsets.

Targa does not have a low-carbon transition plan and does not intend to develop one in the near future. The company only plans to take energy efficiency, preventative maintenance and optimisation efforts to decrease its methane intensity. Targa also does not show any signs of plans to develop new low-carbon business models.

Targa only has methane emissions reduction targets for its own operations. It is taking efficiency, preventive maintenance and optimisation efforts. It has also installed solar panel-powered metering stations at customer sites. It does not have any low-carbon products in its sold product mix. There is no evidence that Targa is investing in R&D or CapEx on low-carbon technologies. There is also no evidence that it is developing new business activities for a low-carbon future.

Targa’s scope 1 and 2 emissions intensity decreased between 2018 and 2021 and is projected to remain constant between 2021 and 2026. Targa’s past scope 1, 2 and 3 emissions intensity between 2018 and 2021 has slightly decreased. However, its scope 1, 2 and 3 emissions intensity is projected to increase between 2021 and 2026, meaning it is unlikely that the company will close the gap to its 1.5°C pathway. The company is required to annually decrease its emissions intensity by approximately 4% to align with its 1.5°C pathway.

Targa does not have a low-carbon transition plan and only has methane reduction targets in place. It lacks emission reduction targets for CO2, long-term planning and low-carbon activities, whilst continuing to incentivise direct growth of its hydrocarbon activities through executive compensation. Targa is not committed to or prepared for a low-carbon transition. A significant strategic and business model shift is required to align with a 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.

The company discloses the actions it takes to create jobs through recruiting graduates from universities and Technikons and providing them opportunities in the organisation for a three year period.. However, 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 reskilling and upskilling programmes, through launching a virtual learning programme called Udemy business. opportunities for workers and affected stakeholders. 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 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. However, it 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. However, no evidence was found of a time-bound target for paying all workers a living wage. The company does not disclose the proportion of its direct workforce covered by collective bargaining agreements, and no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including age and gender. However, no relevant disclosure was found of additional indicators of workforce diversity. Nevertheless, the company commits to gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax paid for each relevant jurisdiction. 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, and it specifies that it does not make political contributions. Yet, no relevant disclosure was found of the company’s expenditure on lobbying activities.