Environmental, Social and Governance
California Resources Corporation (CRC) is a different kind of energy company. We are dedicated to serving Californians by producing ample, safe and reliable energy and actively promoting conservation of water, habitat and energy as a responsible steward of natural resources. CRC is committed to environmental stewardship while safely providing local, responsibly produced energy. We are also focused on maximizing the value of our land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage (CCS) and other emissions reducing projects. As CRC continues to make strides on our ESG strategy, we are proud of the progress we have made with our sustainability initiatives to date and are pleased to share our 2023 Sustainability Report (PDF).
ESG Goals
Since the company’s founding, CRC has consistently set a high standard for environmental stewardship, safe, responsible operations, and community empowerment across California. CRC’s Environmental, Social, and Governance (ESG) goals build upon the company’s long-standing commitment to sustainability and investment in low carbon initiatives that position CRC to lead the energy transition in California and beyond.
CRC’s ESG goals focus on providing local, responsibly sourced energy that meets or exceeds California’s unparalleled sustainability standards – not only related to lowering greenhouse gas (GHG) emissions, but also to decreasing methane emissions; reducing freshwater consumption; prioritizing diversity, equity and inclusion; enhancing community engagement; and increasing accountability through linking executive compensation to ESG performance.
These ESG goals underscore CRC’s long-term commitment to helping our diverse communities across our state have a vibrant and sustainable future and demonstrate the company’s leadership position in the energy transition.
Emissions Reduction
CRC is committed to transition in the energy sector. Building upon the company’s carbon management strategy, in November 2021, CRC adopted a 2045 Full-Scope Net Zero goal for Scope 1, 2 and 3 emissions. Following the acquisition of Aera Energy, LLC, CRC is in the process of evaluating the impact of the transaction on our ESG goals and ambitions. The goals communicated throughout the website and other communications are subject to change after this process is completed.
Methane reduction
CRC’s updated Methane Emissions Reduction Goal commits the company to further reduce methane emissions by 30% from our 2020 baseline by 2030. This goal builds on our previous methane reduction goal to lower methane emissions by 50% from our 2013 baseline by 2030, which we surpassed in 2018, 12 years ahead of schedule. Because we have been able to achieve significant methane reductions to date, our updated methane goal significantly exceeds California’s own 2030 methane reduction goal.
Freshwater Usage Reduction
CRC’s Freshwater Usage Reduction Goal aims to reduce freshwater usage in our local, responsibly produced fuel production by 30% from our 2022 baseline by 2025 – exceeding California’s voluntary 15% water use reduction target.
CRC consistently produces more water for California water districts (approximately 4.75 billion gallons of treated, reclaimed water in 2023) than we consume for our own operations, which means we are a net water provider. Given the water challenges California faces, CRC will continue to provide water safely and reliably for the state while we advance our focus on further reducing our consumption.
DIVERSITY, EQUITY AND INCLUSION
Our Diversity, Equity and Inclusion (DE&I) Goal prioritizes increased efforts to support the advancement of all employees by 2030 and beyond:
- Our Advisory Council focuses on career development, promotion, recruitment and retention to help support our DE&I commitments
- We provide DE&I training for all employees
- We strive to ensure fair and competitive compensation for employees of all genders by maintaining an annual process to assess pay
CRC believes a diverse workforce is key to successfully leveraging all talent towards producing local, responsibly sourced energy.
Community Giving
CRC’s Community Giving Goal exceeds many of our sector peers on a donation per revenue basis and further gives back to local California communities where we produce local, responsibly produced energy and develop carbon management initiatives. Since 2015, CRC has provided nearly $17 million in cumulative contributions to local non-profits and organizations, and we are proud to continue investing in our communities where we live and work. Strong communities underwrite safe local production of fuel that is critical to California’s energy security and meeting the state’s climate goals.
Executive Pay
CRC’s Executive Pay Goal links 30% of executive annual incentive pay related to company performance to ESG metrics, among the highest ESG weighting in the industry, underscoring the commitment of CRC’s leadership to achieving our ESG goals.
Shared California Values
CRC proudly shares and endorses the state’s commitment to conserve our natural resources, mitigate climate change and protect our environment. We design and maintain our facilities throughout the state with our neighbors, communities and the environment in mind. At CRC, our values of Character, Responsibility and Commitment direct how we conduct our business, contribute to our communities, support local economies, protect the environment, and interact daily with our stakeholders. CRC increases our energy security by reducing the state’s chronic dependence on imports and helps California retain the value created by local energy production. CRC is dedicated to helping our diverse communities across our state have a vibrant and sustainable future.
