Hess Corporation Publishes 26th Annual Sustainability Report

Rhea-AI Summary

Hess Corporation (NYSE: HES) has published its 2022 Sustainability Report, outlining its commitment to achieve net zero greenhouse gas emissions by 2050, significant progress toward 2025 emissions reduction targets, and one of the world's largest private sector forest preservation agreements. The report also highlights investments in social programs, diversity, equity, and inclusion, and the company's recognition as an industry leader in ESG performance and disclosure.

Positive

• Hess is committed to achieving net zero Scope 1 and 2 greenhouse gas emissions by 2050, aligning with the aim of the Paris Agreement.
• The company has made significant progress toward aggressive 2025 emissions reduction targets, demonstrating its commitment to sustainability.
• Hess announced one of the world’s largest private sector forest preservation agreements, investing in social programs to make a positive social impact in local communities.
• The company has been recognized as an industry leader in ESG performance and disclosure, earning top scores in various sustainability and equality indices.
• The safety performance of contractors is critical to Hess' safety goals, and the company is actively working to improve safety processes and goals.
• Hess invested over $20 million in social programs during 2022, focusing on education, healthcare, and the environment, making a positive, lasting impact in the communities where it operates.

Negative

• None.

Key 2022 highlights:

• Committed to achieve net zero Scope 1 and 2 greenhouse gas emissions by 2050
• Made significant progress toward aggressive 2025 emissions reduction targets
• Announced one of the world’s largest private sector forest preservation agreements
• Invested in social programs to make a positive social impact in local communities
• Promoted a work environment based on diversity, equity and inclusion
• Recognized as an industry leader in ESG performance and disclosure

NEW YORK--(BUSINESS WIRE)-- Hess Corporation (NYSE: HES) today announced publication of its annual sustainability report, which provides a comprehensive review of the company’s strategy and performance on environmental, social and governance (ESG) programs and initiatives. Hess Corporation’s 2022 Sustainability Report is available on the company’s website at www.hess.com/sustainability/sustainability-reports.

“In keeping with our company’s purpose to be the world’s most trusted energy partner, we are focused on building a sustainable enterprise that helps meet the world’s growing energy needs in a safe, environmentally responsible, socially sensitive and profitable way,” CEO John Hess said. “Our strategy is to grow our resource base, deliver a low cost of supply and generate industry leading cash flow growth. As we continue to execute our strategy, our commitment to sustainability will remain a top priority throughout our company.”

Hess Corporation’s 2022 Sustainability Report shows how sustainable business practices are integrated into the company’s strategy, goals, metrics and daily operations for the benefit of all of its stakeholders. Highlights include:

• Aggressive greenhouse gas emissions reduction targets: Hess supports the aim of the Paris Agreement and has made a commitment to achieve net zero Scope 1 and 2 greenhouse gas emissions on an equity basis by 2050. After significantly outperforming its five year emissions reduction targets for 2020, Hess set new five year reduction targets for 2025 – to reduce operated Scope 1 and 2 greenhouse gas and methane emissions intensities by approximately 50% from 2017 and to achieve zero routine flaring from its operations. In 2022, Hess made significant progress toward these five year targets. As part of its voluntary commitments, the company is actively supporting industry efforts to adopt methane measurement, reporting and verification protocols and pursuing advancements in methane detection and measurement technologies.

• Major forest preservation agreement with Government of Guyana: In December 2022, Hess announced an agreement to purchase high quality, independently verified REDD+ carbon credits for a minimum of $750 million between 2022 and 2032 directly from the government of Guyana. The government of Guyana plans to direct 15% of the proceeds to Indigenous communities. Saving the world’s forests and the important role they play as natural carbon sinks is foundational to the Paris Agreement’s aim of limiting the global average temperature rise to well below 2°C and is one of the major commitments made at the COP26 climate summit, where more than 130 countries including Guyana pledged to end deforestation by 2030.

• Workforce safety engagement: The safety performance of contractors, who represent approximately 70% of total workforce hours on Hess sites, is critical to the achievement of Hess’ safety goals. To address an increase in occupational safety incidents and releases in its Bakken operations in 2022, Hess is collaborating with its contractors to deploy safety improvement plans and has accelerated implementation of advanced release detection technology. Hess also is working with contractors to screen emerging technologies and conduct pilot trials to further support safety processes and goals. In 2022, Hess’ Malaysian operations, with over 1,000 employees and contractors, safely completed two major platform turnarounds with zero loss time or recordable incidents over 1.8 million work hours.

• Community investments that make a positive, lasting impact: During 2022, Hess invested more than $20 million in social programs with a primary focus on education, healthcare and the environment. For example, Hess and the government of Guyana launched a national healthcare initiative in collaboration with the Mount Sinai Health System. The company announced a new apprenticeship program with the North Dakota Tribal College System to improve educational and employment opportunities for Native Americans across North Dakota. In Houston, Hess provided educational programs and support services through its Learning for Life Partnership that benefit 22 schools in three underserved communities.

• Advancing diversity, equity and inclusion: Hess has a longstanding commitment to diversity, equity and inclusion (DEI) in its workplace as well as in the communities where it operates. In 2022, the company continued to advance DEI in recruitment, career development, succession planning and benefit offerings. In the U.S., Hess performs a pay equity evaluation process based on gender and race; the results of the 2022 analysis are included in this year’s sustainability report.

• Sustaining top quartile ESG performance: In 2022, Hess earned a place on the Dow Jones Sustainability Index for North America for the 13th consecutive year and for the first time was included in the Dow Jones Sustainability World Index. The company achieved leadership status in CDP’s annual Global Climate Analysis for the 14th consecutive year and once again received a AAA rating in the MSCI ESG rating assessment. The Transition Pathway Initiative, which independently assesses companies on their efforts to support the transition to a low carbon economy and mitigate climate change in line with recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD), rated Hess as Level 4 status in its 2022 report, which is the highest level awarded to companies that demonstrably manage climate related risks and opportunities from a governance, operational and strategic perspective. For the third consecutive year, Hess earned a place on the 2022 Bloomberg Gender-Equality Index (GEI). The company also achieved a top score of 100% on the Human Rights Campaign’s (HRC) Corporate Equality Index for 2022 and earned the designation as one of the Best Places to Work for LGBTQ+ Equality.

Hess Corporation’s 2022 Sustainability Report was prepared in accordance with the Global Reporting Initiative (GRI) Standards, an independent organization that provides the world’s most widely recognized sustainability reporting and disclosure standards, and aligns with oil and gas industry metrics from the Sustainability Accounting Standards Board (SASB) and TCFD recommendations. The report has been third-party assured by ERM Certification and Verification Services.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on the company is available at www.hess.com.

Cautionary Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, natural gas liquids and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects; and future economic and market conditions in the oil and gas industry.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward- looking statements: fluctuations in market prices of crude oil, natural gas liquids and natural gas and competition in the oil and gas exploration and production industry; reduced demand for our products, including due to perceptions regarding the oil and gas industry, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic and other events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, public health measures or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of limitations on investment in oil and gas activities, rising interest rates or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission.

As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230719212972/en/

Investor Contact:

Jay Wilson

(212) 536-8940

jrwilson@hess.com

Media Contact:

Lorrie Hecker

(212) 536-8250

lhecker@hess.com

Source: Hess Corporation

FAQ

What are Hess Corporation's greenhouse gas emissions reduction targets?

Hess aims to achieve net zero Scope 1 and 2 greenhouse gas emissions by 2050 and has set aggressive 2025 emissions reduction targets.

What major forest preservation agreement did Hess announce?

Hess announced one of the world’s largest private sector forest preservation agreements, investing in social programs to make a positive social impact in local communities.

What recognition has Hess received in ESG performance and disclosure?

Hess has been recognized as an industry leader in ESG performance and disclosure, earning top scores in various sustainability and equality indices.

How much did Hess invest in social programs during 2022?

Hess invested over $20 million in social programs during 2022, focusing on education, healthcare, and the environment, making a positive, lasting impact in the communities where it operates.