Scope 3 GHG emissions are an estimate of the indirect GHG emissions that are neither generated by Pioneer’s operations (Scope 1) nor by the energy purchased by the company (Scope 2). Scope 3 GHG emissions occur from sources owned or controlled by other entities in the company’s value chain, both upstream and downstream. The bulk of Scope 3 GHG emissions are created from the transportation, processing and end-use of a company’s products and are outside the company’s direct control. Nonetheless, we recognize that Scope 3 GHG emissions are an important consideration for many of our stakeholders. Therefore, we have decided to disclose our emissions in categories 9, 10 and 11 as they make up the majority of our Scope 3 GHG emissions inventory.
| Scope 3 Emissions Categories Million Tonnes CO2e | Million Tonnes CO2e |
| 9 Downstream Transportation and Distribution | 13 |
| 10 Processing of Sold Products | 31 |
| 11 Use of Sold Products | 118 |
Following GHG Protocol and International Petroleum Industry Environmental Conservation Association (IPIECA) guidance, we use an operational control approach, consistent with our Scope 1 and Scope 2 accounting, to determine Scope 3 GHG emissions. Following this approach, Pioneer’s Scope 3 GHG emissions for categories 9, 10 and 11 are estimated to be 162 million tonnes CO2e in 2022. We estimate that these categories comprise approximately 98% of our total Scope 3 GHG emissions.
Evaluating a company’s Scope 3 GHG emissions can be challenging due to inconsistent reporting methodologies, potential duplication and the inaccuracies that may occur when estimating emissions that are the result of activities within the value chain, but not owned by the reporting organization. Pioneer engaged the services of a leading environmental consultant to advise on best practices in quantifying Scope 3 GHG emissions.
Because Pioneer’s influence over Scope 3 GHG emissions is limited, we exclude these emissions from our intensity targets. Nonetheless, Pioneer is taking the following steps to reduce GHG emissions:
- Collaborating with industry peers to promote alignment on climate policies, such as the elimination of routine flaring and increased field electrification
- Investing in select energy transition technologies that drive efficiency and support future emission reductions
- Incorporating ESG data into our supplier onboarding process, helping us identify business partners whose core values align with our own
In addition, Pioneer’s Scope 3 GHG emissions are Scope 1 and Scope 2 GHG emissions of other entities (like Pioneer) which are committed to reducing those emissions over time.
Additional details on Scope 3 GHG emissions are provided in Pioneer’s Methodologies and Definitions.