Measurement, reporting and verification

Our environmental and social performance metrics and disclosures undergo various internal and external audit, assessment and assurance processes. We have engaged in assurance practices for our sustainability disclosures for more than a decade, and we use third-party verification for external, independent, limited assurance of our metrics. We perform reasonable assurance for GHG emissions at select operated assets where it is required by country-level regulation. Measurement, reporting and verification of our climate efforts and GHG data is critical for establishing credibility and accountability around our targets and actions. 

Each of our business units is responsible for quantifying emissions and reporting the information to our corporate center for compilation and internal quality assurance. Our GHG emissions estimation methodologies use the rules, emissions factors and thresholds for regulatory emissions reporting with the following amendments: We use a reporting threshold of 25,000 tonnes of CO₂e per year for an asset and/or emissions source category unless the regulatory reporting threshold is lower. In our corporate reporting system, we include GHG emissions based on direct sources of emissions (Scope 1 emissions) and indirect sources of emissions from imported electricity and steam (Scope 2 emissions). 

The method of data collection at each individual source can range from continuous emissions monitoring to emissions estimations. Our estimating approaches meet applicable regulatory reporting requirements or industry guidance, as appropriate. The quality of estimating methodologies, measurements and calculations is assessed internally by our corporate Environmental Assurance group.  

We report GHG emissions on both a gross operated and net equity basis. GHG emissions from non-operated assets are included for affiliated companies and joint ventures in which ConocoPhillips owns greater than or equal to 20% working interest or when our share of GHG emissions (based on working interest) is greater than or equal to 25,000 tonnes of CO₂e per year. We request GHG emissions data from our partners on an annual basis. In certain cases, we obtain the required information from regulatory reports. Additionally, we calculate emissions based on asset-specific emissions intensities and our equity share. Net equity is calculated using working interest ownership for non-operated international and Alaska assets. For Lower 48 non-operated assets, net equity emissions are estimated based on the combined working interest of the wells in which ConocoPhillips has interest, the comparable basin and GHG emission intensity and the BOE production of those wells. 

Reporting to authorities and regulators is the responsibility of business units and we report our operated emissions in the following regions, countries and provinces in accordance with regulations: 

• Alberta, Canada: Emissions Management and Climate Resilience Act: Specified Gas Reporting Regulation, Alberta Regulation 251/2004. 

• Australia: The National Greenhouse and Energy Reporting Act 2007 (NGER Act) and the National Greenhouse and Energy Reporting (Measurement) Determination 2008. 

• British Columbia, Canada: Greenhouse Gas Industrial Reporting and Control Act: Greenhouse Gas Emission Reporting Regulation, British Columbia Reg. 249/2015. 

• European Union: EU Emissions Trading System, Monitoring and Reporting Regulation Council Directive 2003/87/EC, as amended by Council Directive 2009/29/EC. 

• Norway: Greenhouse Gas Emission Trading Act of 17 December 2004. 

• United Kingdom: UK Emissions Trading Scheme established through the Greenhouse Gas Emissions Trading Scheme of 2020. 

• United States: 40 CFR 98 Subparts C, MM, PP, UU, W, and Y. Stationary Combustion Sources; Suppliers of CO₂; Suppliers of Petroleum Products, Injection of CO₂; Petroleum and Natural Gas Systems; Petroleum Refineries. 

Data quality improvements 

We have a long legacy of tracking and reporting GHG emissions. However, as technology advances and new information is available, we recognize there are opportunities to improve the accuracy of our data. In 2022, we developed a multiyear environmental data management strategy focused on operated greenhouse gas emissions.  

This strategy supports our company environmental reporting data principles that are based on the World Resources Institute Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. It focuses on enhancing the level of empirical data used for emission estimates, and the controls and systems in place to manage data at an enterprise-wide level. We anticipate as we make changes to improve the accuracy of data, we will experience some fluctuations year over year as part of this multiyear journey.  

These are important changes in support of managing climate risks and preparing the company for evolving disclosure requirements.

Internal audits and assessments 

In addition to the third-party assurance process, our Internal Audit group performs independent internal assurance of our nonfinancial sustainability reporting following the International Standards for the Professional Practice of Internal Auditing. The first review, completed in 2019, evaluated governance practices, control processes, risk management and metrics reporting practices. To continuously improve disclosure processes and controls, in 2022, Internal Audit reviewed sustainability monitoring and reporting practices, standards, and processes under the direction of our Board of Directors Audit and Finance Committee. Internal Audit also provided limited assurance over the 2023 environmental and social disclosures before issuance of this year's Sustainability Report. 

We continue to advance our internal processes and controls, and evaluate methods to continuously improve the quality, consistency and transparency of our GHG data in order to meet external expectations and evolving regulatory requirements.  

Elevating assurance of GHG emissions 

Over time we plan to elevate assurance of our Scope 1 and 2 emissions for all operated assets from limited assurance to reasonable assurance.¹ To prepare for this, we are conducting readiness pre-assessments within individual business units with the aim of eventually defining the actions, timeline and resources required to move to a global level of reasonable assurance, while also considering proposed regulatory disclosure requirements and timelines. We want to execute our plan at a pace that is manageable for the business and positions us well for potential future compliance obligations.  

Climate-related risk disclosures governance 

With increasing expectations for assurance of environmental, social and governance (ESG) data, potential for future integrated reporting, and in response to proposed climate-related regulatory requirements, we further reviewed our internal process and controls for climate-related risk disclosures relative to those already in place for financial disclosures. This exercise included conducting a pre-assessment of data, processes, systems and controls used to report Scope 1 and 2 emissions and comparing those against proposed regulatory requirements. It also included conducting a gap assessment between proposed SEC rules and our current climate-related disclosures in public filings and reports such as our Proxy Statement, 10-K and Sustainability Report. We continue to collaborate cross-functionally within ConocoPhillips to evaluate how to best manage the broadening governance of ESG disclosures and leverage skill sets gained through designing and maintaining financial assurance processes.  

See our most recent assurance statement and read more about our internal quality assurance and third-party verification.