Sustainability

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 sustainability strategy, we are proud of the progress we have made with our initiatives to date and are pleased to share our 2023 Sustainability Report (PDF).

Sustainability 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 sustainability goals build upon this legacy low carbon initiatives that position CRC to lead the energy transition in California and beyond.

These goals focus on providing local, responsibly sourced energy that meets or exceeds California’s unparalleled sustainability standards. They also underscore CRC’s commitment to helping build a vibrant, sustainable future for our diverse communities and reinforce the company’s leadership in the energy transition.

RESPONSIBLE NET ZERO

CRC is committed to transition in the energy sector. Building upon the company’s carbon management strategy, in May 2025, CRC adopted a Responsible Net Zero* goal to achieve at least an 80% reduction of absolute Scope 1 and 2 greenhouse gas (GHG) emissions and neutralize the remaining Scope 1 and 2 emissions to achieve Net Zero by 2045. Our near-term ambition is to achieve a 20% reduction in the average carbon intensity of all CRC oil and gas production by 2035, thereby reducing our customers’ Scope 3 emissions. 

This goal modifies our previously announced Full-Scope Net Zero goal. This change was primarily driven by the impact of the Aera merger, which nearly doubled the size of our asset base and impacted the overall carbon intensity of our operations. The continuing lack of regulatory clarity around the measurement of Scope 3 GHG emissions (including the impact of carbon capture and storage in such calculations) also contributed to this change.

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Methane reduction

CRC’s 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. 

CRC achieved our goal in 2024. Following the acquisition of Aera Energy, CRC is in the process of evaluating the impact of the transaction on this goal and is subject to change after this process is completed.

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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 achieved our goal in 2023. Following the acquisition of Aera Energy, CRC is in the process of evaluating the impact of the transaction on this goal and is subject to change after this process is completed.

CRC consistently produces more water for California water districts (approximately 4.7 billion gallons of treated, reclaimed water in 2024) 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.

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DIVERSITY OF BACKGROUNDS AND EXPERIENCES

CRC supports programs and policies that encourage representation and participation of people with diverse cultures, backgrounds, experiences, skills and expertise.

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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 more than $19 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.  

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Executive Pay

CRC’s Executive Pay Goal ties 30% of executive annual incentive pay related to company performance to sustainability metrics, among the highest weightings in the industry, underscoring the commitment of CRC’s leadership to achieving our sustainability 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.

CRC and its joint ventures operate exclusively in California. All of our properties, facilities and investments are located in California; and all of our oil, natural gas, natural gas liquids and electricity is produced in California. Working exclusively in California means that all of our operations are subject to California’s world-leading safety, labor, human rights and environmental standards and overseen by more than 20 federal and state agencies.

*Explanatory Notes

  • We use 2020 total Scope 1 and 2 GHG emissions (including those of Aera) as our baseline to measure progress towards our Responsible Net Zero goal. Our emissions are based on calculations reported to the California Air Resources Board (CARB).
  • The term “neutralize” as it relates to Scope 1 GHG emissions refers to the planned use of either carbon offsets generated and claimed internally or carbon offsets purchased and claimed through the third party carbon market (including California’s Cap-and-Trade Program). For Scope 2 GHG emissions, the term “neutralize” refers to the use of contractual instruments such as renewable energy certificates or carbon offsets.
  • The term “carbon offsets” refers to greenhouse gas emission reductions arising from third-party certified projects that remove, reduce, or avoid GHG emissions from the atmosphere.
  • References to UN Sustainable Development Goals (UN SDGs) refer primarily to goals regarding income inequality, biodiversity, corruption, Scope 1 and 2 GHG emissions carbon intensity, fair labor and gender treatment. Operating a business consistent with UN SDGs is inherently a subjective determination regarding which UN SDGs to prioritize, how to weigh such matters against commercial considerations and to what extent a business activity promotes or is consistent with a given UN SDG.
  • Future acquisitions and divestitures, as well as changes to methodology in accounting for carbon emissions or adjustments to historical carbon calculations as well as the use of third-party data or validation processes, could cause us to change our Responsible Net Zero goal.
  • Assumptions, estimates, goals and similar statements and concepts regarding our Responsible Net Zero Goal contain or assume forward looking statements within the meaning of federal securities laws and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. For a discussion of these risks and uncertainties, please refer to the “Risk Factors” and “Forward-Looking Statements” described in our Annual Report on our most recent Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the United States Securities and Exchange Commission.
visit Newsweek Article on America's Most Responsible Companies 2025