2045 Full-Scope Net Zero Goal

CRC is committed to the 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. 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.

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