CPC Corporation, Taiwan - Oil and Gas Benchmark

CPC Corporation is a state-owned integrated oil and gas company headquartered in Taiwan, China. In 2019, it had USD 33.71 billion in revenue and a reported ... Skiptocontent Thissitemakesuseofthird-partycookiesforanalytics.Bycontinuingtousethesite,youaccepttheuseofcookies. Ourprivacystatement Accept CPCCorporationisastate-ownedintegratedoilandgascompanyheadquarteredinTaiwan,China.In2019,ithadUSD33.71billioninrevenueandareported15,836employees*.Itsbusinessareasincludeoilandgasexplorationandproduction,refining,petrochemicals,lubricants,solventsandchemicals.CPCiscommittedtosustainabilityandisamemberoftheWorldBusinessCouncilforSustainableDevelopment. Summary CPCCorporation,Taiwan(CPC)ranks22ndwithanACTratingof2.4D-.CPCreportsonitslow-carbontransitionusingtheTaskForceonClimate-relatedFinancialDisclosures(TCFD)framework.Thecompanyhassetitselfatargettoreducescope1and2emissionsintensityby30%by2030comparedtoits2005level.However,itdoesnotprovideits2005baselinevalue.Thecompanyalsolacksintermediatetargetstill2030,whichlimititfromholdingitsmanagementaccountabletotheshort-termactionsneededtoachieveitslong-termtarget. AlthoughCPChasstartedachievingadecreaseinitsscope1and2emissionsintensitybetween2014and2019,itneedstofurtherdeveloplow-carbonandcarbonremovaltechnologiestoalignwithits1.5°Cpathway.Thecompanywillneedtomakeadditionalinvestmentsingreenenergyandcarbonremovaltechnologiesinthenext1-2yearstoremainontrackwithitstargetedemissionsreduction. *Employeefigureasreportedin2020.Thisfiguremayincludefull-andpart-timeemployeesandworkers,dependingonthecompany’sreportingpractice. Rankingposition #22/100 Totalscore 17.6/100 Performancescore 2.4/20 NarrativeScore ABCDE TrendScore Trendlineisup Trendlineisequal Trendlineisdown Performancemodulename Performancemodulescore Rank(0-100) Performancemodulename Targets Performancemodulescore 0.0 /100 Rank(0-100): #38 Performancemodulename MaterialInvestment Performancemodulescore 34.5 /100 Rank(0-100): #4 Performancemodulename IntangibleInvestment Performancemodulescore 1.4 /100 Rank(0-100): #15 Performancemodulename Soldproducts Performancemodulescore 10.8 /100 Rank(0-100): #13 Performancemodulename Management Performancemodulescore 29.4 /100 Rank(0-100): #55 Performancemodulename SupplierEngagement Performancemodulescore 10.0 /100 Rank(0-100): #40 Performancemodulename ClientEngagement Performancemodulescore 0.0 /100 Rank(0-100): #53 Performancemodulename PolicyEngagement Performancemodulescore 20.0 /100 Rank(0-100): #47 Performancemodulename BusinessModel Performancemodulescore 0.0 /100 Rank(0-100): #52 Noleadingpracticeswereidentifiedforthiscompany. Targets CPChassetatargettoreduceitsscope1and2emissionsintensityby30%by2030comparedto2005.However,itdoesnotprovideits2005baselinevalue,sotheambitionofthistargetcannotbeassessedagainstthecompany’s1.5°Cpathway.Thecompanyhassetnointermediatetargetstill2030,whichalsolimititfromholdingitsmanagementtoaccountontheshort-termactionsneededtoachieveitslong-termtarget. Trendinpastscope1,2and3emissionsintensity From2015onwards,CPChasstoppedusingtheemissions-intensivecokingtechnologyforitspetroleumrefininginfavourofusinglower-intensitycrackingtechnologyinstead.Thecompanyhasalsoshifteditsupstreamoilextractiontoregionswithtypicallyloweremissionsintensities.Together,thesechangeshaveaidedinCPCachievingadecreasingscope1and2emissionsintensitytrendbetween2014and2019. Soldproductperformance Thescope1,2and3emissionsintensityofCPC’ssoldproductportfoliohasdecreasedbetween2014and2019.However,CPChasnotincreaseditsthird-partysalesofrenewableelectricity.Asaresult,thecompany’soverallreductioninscope1,2and3emissionsintensityislesssteepthanthereductioninitsscope1and2emissions.CPCneedstoincreaseitslow-carbonproductsalestoatleast7%ofitstotalsalesby2025,12%by2030and46%by2050,toalignwithits1.5°Cpathway. Low-carbonandmitigationtechnologyCapEx CPCwillneedadditionalinvestmentsinlow-carbontechnologiesinthenext1-2yearstoremainontrackwithitsemissionsreductiontarget.Thecompanydoesnotprovidedetailsonfuturecapitalexpenditure(CapEx)plansforlow-carbonandcarbonremovaltechnologies.Underthe1.5°Cscenariothereisnoroomforanynewoilandgasextractionassetsacrossthewholesector.However,evenwithnonewextractionassets,CPC’scumulativelocked-inemissionsfromitsoilandgasextractionactivitiesbetween2019and2050areprojectedtoexceeditstotalcarbonbudgetfortheperiodbynearly35%. CPCreceivesatrendscoreof-.Ifthecompanywerereassessedinthenearfuture,itsscorewouldlikelydecrease.CPChasstartedtoachieveadecreaseinitsscope1and2emissionsintensity.However,itneedstomakemoreeffortsandinvestmentstowardsdevelopinglow-carbonandcarbonremovaltechnologies.Theoverallreductioninthecompany’sscope1,2and3emissionsintensityislesssteepthanthereductioninitsscope1and2emissionsintensity.Thecompanyisnotyetontracktoachievingalow-carbontransitionalignedwithits1.5°Cpathway. Commitment CPChascommittedtolow-carbontransitionpubliclyinitssustainabilityreport.Itaimstoreduceitsscope1and2emissionsintensityby30%by2030comparedto2005.Thecompanyreportsonitslow-carbontransitionusingtheTCFDframework. Transitionplan AccordingtoCPC’sTCFD-baseddisclosures,ithasstartedusinglow-carbonenergyatitsoperationsbutisincreasingitsuseoflow-carbonenergy.Itplanstoincreaserevenuesfromsmartgreenenergy,highvalue-addedmaterials,andcirculareconomyandservice,thoughithasnotshareddetailsontheexpectedgrowthinrevenuesharefromsuchproducts. Present CPC’sscope1and2emissionsintensitydecreasedbetween2014and2019.However,thecompanystillneedsmoreinvestmentsinlow-carbonandcarbonremovaltechnologiesinthenext1-2yearstoremainontrackwithits1.5°Cpathway. Legacy From2015,CPCstoppedusingthemoreemissions-intensivecokingtechnologyforitspetroleumrefining.Thecompanyhasshifteditsupstreamoilextractiontolessemissions-intensiveregions.Thescope1,2and3emissionsintensityofthecompany’ssoldproductportfoliohasalsodecreasedfrom2014to2019. Consistency CPChastakenactionsanddecreaseditscope1and2emissionsintensity.In2019,justunder0.5%ofthecompany’ssalesrevenuecamefromlow-carbonproducts.Thisrepresentsagoodstart,buttobereadyfora1.5°Cscenario,thecompanyneedstoincreaseitslow-carbonsales. Moreaboutthecompany Headquarters Kaohsiung,Taiwan,China Grouprevenue (2019)TWD1,014.108034billion(USD33.71billion) Ownershipstructure Stateowned Numberofemployees 15,836 Scopeofactivity Integrated Website http://www.cpc.com.tw