Chevron's greenhouse gas emission targets will be tied to executive pay and compensation, the American energy giant announced Thursday in a statement.
In response to investors who are putting pressure on major energy companies around the world to reduce emissions to prevent global warming, Chevron has acted to tie its emissions to executive pay - a first for a U.S. energy major.
The company said it aims to reduce methane emissions intensity by 20 to 25 percent and flaring intensity by 25 to 30 percent from 2016 to 2023.
'The Board established greenhouse gas emissions performance measures that will be a factor in determining compensation for executives and nearly all other employees beginning in 2019,' it said in the statement.
The company had more than 50,000 employees as of December 2017.
'We look forward to ongoing conversations on how we are managing climate risks to our business and taking on new opportunities to reduce greenhouse gas emissions and develop lower carbon energy,' Chairman and CEO Michael Wirth said in the statement.
Chevron said it joined the Oil and Gas Climate Initiative in 2018 - a global collaboration that focuses on the energy industry’s efforts to address climate change issues.
Some members of this initiative include global energy giants such as BP, China National Petroleum Corporation, ExxonMobil, Pemex, Petrobras, Royal Dutch Shell, Saudi Aramco and Total S.A.
Members of the initiative, which represent 30 percent of global oil and gas production, have made a total investment of $6.3 billion in low carbon technologies, research and development in 2017, according to its website.
Chevron said it would continue to invest in technologies to lower emissions and advance lower carbon business opportunities.
By Ovunc Kutlu