ESG Reliable, Safe Energy for California by Californians

CRC is committed to the transition in the energy sector. Building upon the company’s carbon management strategy, in Click to toggle expanded view November 2021, CRC adopted a 2045 Full-Scope Net Zero goal for Scope 1, 2 and 3 emissions. This goal places CRC among a select few industry peers to include scope 3 emissions in their Net Zero goal. In addition, CRC’s 2045 goal puts the company on a timeframe five years sooner than most other companies’ Net Zero goals and aligns CRC with the state of California’s 2045 net zero ambitions.

CRC defines Net Zero as achieving permanent storage of captured or removed carbon emissions in a volume equal to all of our Scope 1, 2, and 3 emissions by 2045. We intend to achieve this goal by prioritizing 50% of our free cash flow to invest in projects that reduce our direct and indirect emissions or achieve sequestration of carbon in volumes necessary to offset these emissions.

Scope 1 emissions are direct greenhouse gas (GHG) emissions associated with sources controlled or owned by an organization such as fuel combustion in boilers, furnaces, vehicles, etc. Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Although scope 2 emissions physically occur at a facility where they are generated, they are accounted for in an organization’s GHG inventory because they are a result of the organization’s energy use. Scope 3 includes all other indirect emissions that occur in a company’s value chain. This includes emissions from purchased goods or services, business travel, employee commuting, waste disposal, use of sold products, and transportation and distribution.

CRC is one of the best positioned companies in the energy sector. The company’s strong operational and financial performance enables it to produce stable, low-carbon fuel and invest meaningful ESG projects such as Carbon TerraVault I that will help California achieve its ambitious emissions reduction goals today and in the future. Click to toggle expanded view

CRC’s updated Methane Emissions Reduction Goal commits the company to further reduce methane emissions by 30% from our 2020 baseline by 2030. Click to toggle expanded view 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.

CRC’s Freshwater Usage Reduction Goal aims to reduce freshwater usage in our local, responsibly sourced fuel production by 30% from our 2022 baseline by 2025 Click to toggle expanded view – 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. Click to toggle expanded view

Our Diversity, Equity and Inclusion (DE&I) Goal prioritizes increased efforts to support the advancement of all employees by 2030 and beyond: Click to toggle expanded view

• 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. Click to toggle expanded view

CRC’s Community Giving Goal exceeds many of our sector peers on a donation per revenue basis and further gives back to our local California communities where we produce local, resonsibly sourced Click to toggle expanded view 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 GHG goals. A 100% California “field-to-fuel” strategy displaces foreign sources of fuel that have higher carbon intensity than local production, do not benefit local communities and do not meet California’s world-leading safety, labor, human rights and environmental standards. Click to toggle expanded view

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 Click to toggle expanded view of CRC’s leadership to achieving our ESG goals.

CRC’s 2045 Full-Scope Net Zero and updated methane, water, diversity, community giving and executive pay ESG goals are designed to meet or exceed California’s high standards for corporate and social sustainability. Our goals demonstrate CRC’s continued strong commitment to leading the energy transition while providing safe and reliable energy sources necessary to help ensure better human welfare and a more inclusive and equitable economy and society.

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