The oil and gas industry faces a new imperative—address climate change while also meeting global demand for energy today and into the future. To address this imperative, SLB has announced its commitment to achieve net-zero greenhouse gas (GHG) emissions by 2050. This commitment follows 18 months of extensive analysis of SLB's carbon footprint in close collaboration with climate experts. With minimal reliance on offsets, SLB's net-zero targets cross all of Scope 1, 2, and 3 emissions, thus covering the entire company value chain—a first in the energy services industry.
SLB's net-zero commitment is aligned with the 1.5 degree Celsius target of the Paris Agreement. Leveraging its history and culture rooted in science, the company is utilizing a science-based approach to climate change, and views technology as a key enabler to create change. To ensure transparency along its net-zero journey, SLB has aligned with the Task Force on Climate-related Financial Disclosures (TCFD) and Sustainability Accounting Boards (SASB).
The company is focusing its net-zero commitment on three key elements: operational emissions, technology-use emissions, and carbon negative actions. Operational emissions constitutes 25% of the company’s baseline footprint, whereas technology use comprises 75% of the baseline footprint. The third component, carbon negative actions such as bioenergy with carbon capture and storage, will help to ensure minimal reliance upon offsets.
SLB's net-zero journey initially began in 2019 when it committed to setting a science-based target to reduce its GHG emissions—the first company in upstream E&P services to do so. SLB set a target to reduce Scope 1 and 2 emissions by 30% by 2025—a target which the company is on track to meet earlier than anticipated.
Using 2019 as its baseline year, the company’s net-zero commitment is supported by near-term emissions reduction roadmap and interim targets:
To eliminate Scope 1 and 2 emissions, SLB is addressing its own operations and footprint. Digital innovation, for example, is enabling unprecedented levels of automation and remote work. Reducing the number of people required for field operations, supplemented via automation or remote workers, significantly reduces miles traveled and waste produced. Utilizing low-carbon and electrification solutions provides opportunities to reduce energy consumption and emissions. Ongoing facility rationalization, including retrofitting buildings to be more energy efficient and converting to green energy utilization where possible, also provide significant opportunities to reduce waste and power consumption. SLB is also addressing its heavy and light vehicle fleet by converting to low-carbon fuels, and converting to electric over time, which will contribute to decreasing CO2 emissions and energy use.
Core to addressing Scope 3 emissions, SLB is looking to its own supply chain in addition to working with customers to help them achieve their sustainability objectives. Customer use of SLB technology accounts for 75% of SLB's baseline GHG footprint. To address this, SLB has introduced its Footprint Reduction portfolio that is designed to help customers reduce their emissions, while in turn enabling SLB to meet its Scope 3 emissions target. The portfolio will address industry emissions related priories, such as fugitive emissions, flaring reduction, electrification, well construction emissions, and full field development solutions. The Footprint Reduction portfolio is comprised of proprietary technologies and solutions that help to reduce direct and indirect emissions along with other environmental attributes, while simultaneously driving efficiency, reliability and performance.
SLB is leveraging its capabilities as a technology leader and culture grounded in science to address the new industry imperative. In addition to identifying various ways reduce its own emissions, the company’s Footprint Reduction portfolio will help its customers achieve their own decarbonization objectives. SLB is on track to meet its near-term emissions reduction target of 30% by 2025 for Scope 1 and 2 emissions, and its commitment to achieve net-zero operations by 2050 further advances its decarbonization agenda.