Climate Change Position
We, at Murphy, take our role as stewards of the environment seriously and are proud of our record of performance in this area. As the world explores ways of transitioning our energy economy to address concerns relating to climate change, we are committed to doing our part. The world has a growing need for affordable, reliable energy, and we will continue to play a role in providing it. We seek to do so in ways that are protective of the environment and climate. We endeavor to:
Provide strong internal oversight and governance
- Our Board of Directors and Health, Safety, Environment and Corporate Responsibility (HSE&CR) Board Committee oversee and guide our climate change strategy.
- Our executive management Environmental, Social and Governance (ESG) and HSE committees develop and oversee the execution of the climate change strategy, and report progress to the Board and HSE&CR Board Committee.
- Our compensation is tied to, among other metrics, the achievement of our environmental targets.
Communicate with transparency
- We clearly articulate our role in the energy transition to a lower carbon economy.
- Assess our operations across a range of climate and environment-related metrics, including emissions, waste management and water consumption.
- Measure, minimize and mitigate through goals for the reduction of operationally controlled emissions from methane, flaring and combustion.
- Report progress on our efforts at least annually through the publication of our sustainability report.
- Align our reporting to the Task Force on Climate-related Financial Disclosures (TCFD).
Further integrate risks and opportunities into our strategy and business planning cycle
- Leverage our enterprise risk management system to manage climate change risks.
- Test the resilience of our strategy, at least annually, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.
- Incorporate outcomes into the business planning cycle and capital allocation process.
Promote operational excellence to minimize impact to the environment
- Strive to operate safely and reliably to improve efficiencies, reduce our impact on air, water, land and biodiversity, and conserve natural resources.
- Design systems, train our people and assess effectiveness as part of continuous improvement.
Collaborate with stakeholders and promote responsible policy solutions
- Work with our peers, suppliers and other stakeholders, including the communities in which we live and work, to ethically deliver practical, sustainable climate change solutions in the oil and natural gas upstream industry.
- Actively participate in industry organizations, government task forces, and non-government groups to help shape policies and industry practices.
- Encourage the adoption of policies that are consistent across the globe and stable over time.
- We believe that the key to carrying out a workable solution to the climate change challenge is a predictable policy environment that aligns the economic interests of energy producers and consumers with the need to limit GHG accumulations in line with the best science available.
We will review this climate change position periodically with our executive team and HSE&CR Board Committee.
Climate Change Risks & Opportunities
We work to assess our governance, strategy, risk identification, and management and measurement of climate risks and opportunities in order to remain in alignment with the Task Force on Climate-related Financial Disclosures (TCFD) core elements.
In 2020, as part of our annual goal setting process, we set an intensity-based emissions target focused on direct (Scope 1) gross emissions under our operational control. By 2030, we intend to reduce our emissions intensity by
15 to 20 percent using 2019, excluding Malaysia, as a baseline. We believe our continued focus on intensity is the most effective metric to enhance the sustainability of our business. Additionally, in 2021, we set a goal of achieving zero routine flaring by 2030.