Targa Resources is a publicly listed semi integrated oil and gas company headquartered in the USA. In 2020, it had USD 8.26 billion in revenue and a reported 2,500 employees*. Targa is mainly engaged in gathering, processing and distributing natural gas. It shows no long-term commitments for a low-carbon transition and is actively pursuing opportunities to process natural gas from shale resources.
Targa lacks any target to reduce greenhouse gas emissions intensity or absolute emissions. Without emissions reduction targets for its scope 1 and 2 and scope 1, 2 and 3 emissions, the level of the company’s climate ambition cannot be assessed. To demonstrate commitment and hold itself accountable to the low-carbon transition, Targa should set intermediate and long-term targets aligned with a 1.5°C scenario.
Targa lacks a detailed transition plan to align with a low-carbon economy. Its focus is on managing and reducing its scope 1 and 2 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 emissions reduction targets.
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 CapEx in low-carbon technologies. The company’s strategy is focused only on growing the volume of gas it processes. Targa has acknowledged the potential risks that climate change could pose to its business. To prepare for these it should look to develop alternative low-carbon revenue streams to reduce reliance on natural gas and oil activities.
Targa Resources receives a trend score of -. If Targa were reassessed in the near future, its score would likely decrease. The company shows no indication that it plans to reduce the gap between its current emissions performance, which has remained stable due to no changes in its gas processing fuel mix, and its 1.5°C pathway. Its strategy is to grow the its hydrocarbon activities through construction of facilities and acquisitions from third parties. Targa does not have plans for any significant low-carbon business activities.
Although Targa has acknowledged transitional and physical climate-related risks, it has not announced a long-term transition plan to decarbonise. It has no emissions reduction targets and does not undertake low-carbon activities. Its focus is on implementing improvements in its operations to reduce emissions.
Targa’s investment strategy focuses on growing its gathering, processing and logistics and transportation business segments. There is no indication that it is investing in low-carbon technologies. The company has completed constructing or is in the process of constructing three cryogenic natural gas processing plants.
Targa’s gas processing volume doubled between 2014 and 2019, raising its absolute emissions. However, due to no significant changes in its fuel mix or sold product mix, the company’s scope 1 and 2 and scope 1, 2 and 3 emissions intensities remained unchanged.
Targa demonstrates no commitment towards a low-carbon transition. It lacks emissions reduction targets, long-term transition planning and low-carbon activities. At the same time, it continues to incentivise direct growth of its hydrocarbon activities through executive compensation.