Hess Corporation Provides Review of 2023 Sustainability Performance and Progress
Hess recently conducted a thorough review of its 2023 performance and advancements in environmental, social, and governance (ESG) initiatives. This review highlights how the company integrates sustainable practices into its overall strategy, objectives, metrics, and daily operations for the benefit of its stakeholders.
“Our commitment to sustainability is a top priority throughout our company,” stated Alex Sagebien, Vice President of Environmental, Health and Safety. “We remain focused on building a sustainable enterprise that meets the world's growing energy needs in a safe, environmentally responsible, socially sensitive, and profitable manner.”
Key sustainability metrics have been verified by ERM Certification & Verification Services Incorporated (ERM CVS), as outlined in their Independent Limited Assurance Report. This external review ensures consistency and objectivity in the data collection and reporting of the company’s sustainability performance. Due to the pending merger with Chevron, Hess will not issue a separate 2023 Sustainability Report.
Key Highlights from 2023 Include:
- Workforce Safety Engagement: In 2023, Hess reported a 32% reduction in its severe and significant incident rate, a 16% decrease in total recordable incidents, and a 30% drop in lost time incidents compared to 2022. Since contractors account for about 70% of workforce hours at Hess sites, the company continued its collaboration with them to share best practices and improve safety measures.
- Greenhouse Gas Emissions Reduction Targets: Hess supports the Paris Agreement and is committed to achieving net-zero Scope 1 and 2 greenhouse gas emissions by 2050. In 2023, the company made significant progress, aiming to reduce operated Scope 1 and 2 emissions by approximately 50% from 2017 levels by 2025, while also targeting zero routine flaring. Hess is actively involved in adopting methane measurement, reporting, and verification protocols.
- Investment in Nature-Based Climate Solutions: Recognizing the importance of forests in carbon sequestration, Hess announced an agreement to purchase high-quality, independently verified REDD+ carbon credits for a minimum of $750 million from the government of Guyana between 2022 and 2032, with 15% of proceeds benefiting Indigenous communities. Additionally, Hess pledged $50 million over five years to the Salk Institute’s Harnessing Plants Initiative, which aims to enhance plants' natural carbon capture abilities.
- Community Investments: In 2023, Hess invested approximately $41 million in social programs focusing on education, healthcare, and environmental initiatives. Notable efforts included a partnership with the government of Guyana to modernize its healthcare system and a $9 million educational investment in Houston benefiting 22 schools in underserved areas. Hess also donated STEM curriculum guides and toy trucks to elementary schools in North Dakota.
- Advancing Diversity, Equity, and Inclusion: Hess maintains a strong commitment to diversity, equity, and inclusion (DEI) in its workforce and communities. In 2023, the company continued to enhance DEI in recruitment, career development, and supplier diversity, while reporting DEI-related metrics to improve transparency.
- Top Quartile ESG Performance: Hess achieved leadership status in CDP’s Global Climate Analysis for the 15th consecutive year, received a AAA rating from MSCI, and was included in both the North America and World Dow Jones Sustainability Indices. The company was recognized for its efforts to manage climate-related risks and opportunities, and it ranked highly on the Human Rights Campaign’s Corporate Equality Index for LGBTQ+ inclusion, as well as on the Bloomberg Gender-Equality Index.
Overall, Hess's 2023 review underscores its ongoing commitment to sustainability and responsible business practices.