Climate Resilience Report
This Climate Resilience Report highlights the many strides Noble Energy is taking to better the future for people and society, while delivering on our commitment to our shareholders, employees and communities. We are committed to applying our demonstrated know-how, resiliency and adaptability to shifting environmental and business conditions by being proactive and efficient in our operations and strategic planning.
Our management of climate-related risks and opportunities is woven throughout the organization. This starts at the top with our Chairman, our full Board of Directors (whose selection includes consideration of environmental and risk management skills and experiences) and our Board’s committees, including our Safety, Sustainability and Corporate Responsibility Committee. Our executive leadership has the knowledge, tools and experience to actively manage climate issues.
Climate risk assessment is an important part of our multidisciplinary approach to Enterprise Risk Management. In considering how to best manage our business, we strive to identify climate-related risks; assess the relative likelihood, severity and mitigation opportunities associated with each; assign oversight responsibility; track management and mitigation efforts; and conduct regular auditing and follow up.
Our business and long-range strategic-planning groups analyze the key economic, policy and market trends along with other external information we collect. In our approach to planning, we test economic and financial assumptions regularly, and create pricing scenarios that inform capital allocation decisions. We have been analyzing these scenarios for decades and are working to more deliberately integrate climate considerations into our assessments.
Our demonstrated agility enables us to pivot quickly in our business strategy as risks and opportunities change. By retaining a high ratio of discretionary capital, focusing on strict operating cost management, identifying and monitoring external conditions and signposts, and using conservative financial practices, we have the ability to adjust and succeed in the future. We also invest in continuous operating improvements. These include approaches to emissions detection and reduction, installing condensate recovery and gas reinjection units and deployment of advanced production facilities that can reduce our surface footprint by over 99 percent in the areas deployed. We describe examples of our investments in innovation in this report, and we continue to seek opportunities across all our operations
To manage any risk, we must identify and understand it. To do this with respect to climate, we actively seek information from a wide variety of internal and external sources holding a broad spectrum of views. We engage our shareholders, stakeholders, think tanks, governmental bodies, industry specialists and consultants, policy-focused non-governmental entities and, of course, our employees, many of whom we recruit based on their expertise in strategic assessments, business planning and forecasting.