Hess Corporation Publishes 26th Annual Sustainability Report
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- Committed to achieve net zero Scope 1 and 2 greenhouse gas emissions by 2050
- Made significant progress toward aggressive 2025 emissions reduction targets
- Announced one of the world’s largest private sector forest preservation agreements
- Invested in social programs to make a positive social impact in local communities
- Promoted a work environment based on diversity, equity and inclusion
- Recognized as an industry leader in ESG performance and disclosure
Hess Corporation announced publication of its annual sustainability report, which provides a comprehensive review of the company’s strategy and performance on ESG programs and initiatives.
“In keeping with our company’s purpose to be the world’s most trusted energy partner, we are focused on building a sustainable enterprise that helps meet the world’s growing energy needs in a safe, environmentally responsible, socially sensitive and profitable way,” CEO John Hess said. “Our strategy is to grow our resource base, deliver a low cost of supply and generate industry leading cash flow growth. As we continue to execute our strategy, our commitment to sustainability will remain a top priority throughout our company.”
Hess Corporation’s 2022 Sustainability Report shows how sustainable business practices are integrated into the company’s strategy, goals, metrics and daily operations for the benefit of all of its stakeholders. Highlights include:
- Aggressive greenhouse gas emissions reduction targets: Hess supports the aim of the Paris Agreement and has made a commitment to achieve net zero Scope 1 and 2 greenhouse gas emissions on an equity basis by 2050. After significantly outperforming its five year emissions reduction targets for 2020, Hess set new five year reduction targets for 2025 – to reduce operated Scope 1 and 2 greenhouse gas and methane emissions intensities by approximately 50% from 2017 and to achieve zero routine flaring from its operations. In 2022, Hess made significant progress toward these five year targets. As part of its voluntary commitments, the company is actively supporting industry efforts to adopt methane measurement, reporting and verification protocols and pursuing advancements in methane detection and measurement technologies.
- Major forest preservation agreement with Government of Guyana: In December 2022, Hess announced an agreement to purchase high quality, independently verified REDD+ carbon credits for a minimum of $750 million between 2022 and 2032 directly from the government of Guyana. The government of Guyana plans to direct 15% of the proceeds to Indigenous communities. Saving the world’s forests and the important role they play as natural carbon sinks is foundational to the Paris Agreement’s aim of limiting the global average temperature rise to well below 2°C and is one of the major commitments made at the COP26 climate summit, where more than 130 countries including Guyana pledged to end deforestation by 2030.
- Workforce safety engagement: The safety performance of contractors, who represent approximately 70% of total workforce hours on Hess sites, is critical to the achievement of Hess’ safety goals. To address an increase in occupational safety incidents and releases in its Bakken operations in 2022, Hess is collaborating with its contractors to deploy safety improvement plans and has accelerated implementation of advanced release detection technology.Hess also is working with contractors to screen emerging technologies and conduct pilot trials to further support safety processes and goals. In 2022, Hess’ Malaysian operations, with over 1,000 employees and contractors, safely completed two major platform turnarounds with zero loss time or recordable incidents over 1.8 million work hours.
- Community investments that make a positive, lasting impact: During 2022, Hess invested more than $20 million in social programs with a primary focus on education, healthcare and the environment. For example, Hess and the government of Guyana launched a national healthcare initiative in collaboration with the Mount Sinai Health System. The company announced a new apprenticeship program with the North Dakota Tribal College System to improve educational and employment opportunities for Native Americans across North Dakota. In Houston, Hess provided educational programs and support services through its Learning for Life Partnership that benefit 22 schools in three underserved communities.
- Advancing diversity, equity and inclusion: Hess has a longstanding commitment to diversity, equity and inclusion (DEI) in its workplace as well as in the communities where it operates. In 2022, the company continued to advance DEI in recruitment, career development, succession planning and benefit offerings. In the U.S., Hess performs a pay equity evaluation process based on gender and race; the results of the 2022 analysis are included in this year’s sustainability report.
- Sustaining top quartile ESG performance: In 2022, Hess earned a place on the Dow Jones Sustainability Index for North America for the 13th consecutive year and for the first time was included in the Dow Jones Sustainability World Index. The company achieved leadership status in CDP’s annual Global Climate Analysis for the 14th consecutive year and once again received a AAA rating in the MSCI ESG rating assessment. The Transition Pathway Initiative, which independently assesses companies on their efforts to support the transition to a low carbon economy and mitigate climate change in line with recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD), rated Hess as Level 4 status in its 2022 report, which is the highest level awarded to companies that demonstrably manage climate related risks and opportunities from a governance, operational and strategic perspective. For the third consecutive year, Hess earned a place on the 2022 Bloomberg Gender-Equality Index (GEI). The company also achieved a top score of 100% on the Human Rights Campaign’s (HRC) Corporate Equality Index for 2022 and earned the designation as one of the Best Places to Work for LGBTQ+ Equality.
Hess Corporation’s 2022 Sustainability Report was prepared in accordance with the Global Reporting Initiative (GRI) Standards, an independent organization that provides the world’s most widely recognized sustainability reporting and disclosure standards, and aligns with oil and gas industry metrics from the Sustainability Accounting Standards Board (SASB) and TCFD recommendations. The report has been third-party assured by ERM Certification and Verification Services.