Chevron ties executive pay to methane and flaring reduction targets

HOUSTON (Reuters) - Chevron Corp plans to set greenhouse gas emissions targets and tie executive compensation and rank-and-file bonuses to the reductions, the oil major said in its latest climate report released on Thursday.

The move is a first for a U.S. oil major and focuses on the company’s oil fields. More investors have been pressuring San Ramon, Calif.-based Chevron and other big oil companies to reduce emissions that contribute to climate change.

Chevron said that by 2023, it will reduce its methane and flaring intensity by 25 percent to 30 percent from 2016 levels, and said the goal would be added to the scorecard that determines incentive pay for around 45,000 employees.