Voluntary carbon offsets
Mitigating hard-to-abate emissions.
While operational emissions reductions will initially drive our progress toward our net-zero emissions ambition, ultimately offsets are likely to be required to mitigate residual, hard-to-abate emissions. Our voluntary offset strategy includes developing a diversified portfolio of offsets from third-party projects and funds, as well as considering the development of our own offset projects. Our preference is projects in countries and regions in which we operate. While we do not anticipate the need to utilize offsets to achieve our medium-term targets and have not retired any voluntary offsets to date, we are investing now to build a portfolio of offsets for potential use and retirement in the future.
Our portfolio includes both:
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- Nature-based offsets: Relating to forestry and land use, agricultural improvements and grasslands or soil enrichment.
- Technology-based offsets: Relating to energy efficiency, orphaned well management, refrigerant replacement and destruction of ozone depleting substances.
In 2023, we strengthened our offset project due diligence efforts including developer experience, technical frameworks and sustainability and stakeholder engagements.
We are looking closely at the progress of the Integrity Council for the Voluntary Carbon Market, an independent governance body that aims to set a global standard for high integrity in the voluntary carbon market. Their first announcements on project registries and protocols that meet their Core Carbon Principles were recently announced and we anticipate more announcements by year end.
Our commitments also include carbon offset funds such as Climate Asset Management’s Nature Based Carbon Fund (NBCF). Taking a landscape approach, the NBCF looks to invest in nature-based solutions projects that restore and conserve nature in developing economies. This provides long-lasting and verified positive impacts for biodiversity and communities and offers investors the carbon credits it procures. These project investments continue to diversify in Africa and the sub-continent, adding diversity outside our areas of operation.
California’s Voluntary Carbon Market Disclosure
Please refer to our published 2023 Sustainability Report and the following web pages for information regarding our emission reduction efforts:
On November 22, 2024, ConocoPhillips acquired Marathon Oil Corporation (Marathon). Prior to the close, Marathon voluntarily retired carbon offsets and renewable energy credits (RECs) in 2024. In accordance with California’s Voluntary Carbon Market Disclosure Act (AB 1305), the following information is provided:
