CDP 2017 Climate Change 2017 Information Request - ProgrammeResponseClimate Change...CDP CDP 2017 Climate Change 2017 Information Request Noble Energy, Inc. Module: Introduction Page:

CDP CDP 2017 Climate Change 2017 Information Request

Noble Energy, Inc.

Module: Introduction

Page: Introduction

CC0.1

Introduction

Please give a general description and introduction to your organization. Noble Energy, Inc. (“Noble Energy” or “Company”) is a leading independent energy company engaged in worldwide oil and natural gas exploration and production. Founded by Lloyd Noble in 1932, Noble Energy, a Delaware corporation, has been publicly traded on the New York Stock Exchange (NYSE) since 1980 under the ticker symbol NBL. Noble Energy has seven main operating areas: the Denver-Julesburg (DJ) Basin (onshore U.S.), the Marcellus Shale (onshore U.S.), the Permian Basin (onshore U.S.), the Eagle Ford Shale (onshore U.S.), the deepwater Gulf of Mexico (offshore U.S.), offshore West Africa, and offshore Eastern Mediterranean (Noble Energy divested its Marcellus Shale assets in 2017. Proved reserves are geographically balanced amongst the international and domestic operations, with 1,437 million barrels of oil equivalent (BOE) proved at the end of 2016. In 2016, sales volumes from continuing operations totaled 301 thousand BOE per day. This report only includes operations under Noble Energy and excludes operations under Noble Midstream Partners LP. Visit Noble Energy online at www.nblenergy.com .

CC0.2

Reporting Year

Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Fri 01 Jan 2016 - Sat 31 Dec 2016

CC0.3

Country list configuration

Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select country

United States of America

Equatorial Guinea

Israel

Falkland Islands

CC0.4

Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($)

CC0.6

Modules

As part of the request for information on behalf of investors, companies in the electric utility sector, companies in the automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector (FBT) should complete supplementary questions in addition to the core questionnaire. If you are in these sector groupings, the corresponding sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below in CC0.6.

Further Information

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

i) For reporting period 2016, Executive Vice President, Exploration, New Ventures, Frontier, EHSR and Business Innovation ii) The Executive Vice President, Exploration, New Ventures, Frontier, EHSR and Business Innovation at Noble Energy has the highest level of direct oversight for climate change within the organization for reporting period 2016. This individual provides periodic updates to the Board of Directors as frequently as quarterly. This process ensures responsibility and awareness for carbon management goes all the way up to the Chief Executive Officer (CEO) and Board of Directors.

CC1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from

these incentives?

The type of incentives

Incentivized performance

indicator

Comment

All employees Monetary reward

Emissions reduction project Efficiency project

Noble Energy’s EHSR department, partnering with Business Units in some cases, sets internal goals for specific projects, such as achieving greater emissions reduction and efficiency in operations. Evaluation of attaining these goals are considered in an overall company-wide EHSR factor that contributes to the calculation of the annual bonus compensation for all employees.

Further Information

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a

Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency

of monitoring

To whom are results

reported?

Geographical

areas considered

How far into

the future are risks

considered?

Comment

Annually

Board or individual/sub-set of the Board or committee appointed by the Board

Global > 6 years

Noble Energy is actively monitoring and anticipating climate change risks affecting its operations, including but not limited to, the impact of new legislation and regulations, application of international accords and the indirect consequences of regulation or business trends. For example, in 2015 Noble Energy provided comments to the EPA on New Source Performance Standards (40 CFR 60 Subparts OOOO/OOOOa) which set GHG emission standards in the form of methane emission limitations.

CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level

Noble Energy is subject to many significant risks, including operational, strategic, financial, and compliance/regulatory risks. Noble Energy strives to maintain a proactive enterprise risk management process to plan, organize and control activities in a manner intended to minimize the effects of risk on capital, cash flows and earnings. The EHSR department plays a key role in the risk management process, with the influence and help of higher level executives and Business Unit Managers. The Company’s process includes risk analysis associated with accidental losses, as well as financial, strategic, operational, regulatory, political, and others including risks related to climate change and GHG emissions. Noble Energy’s risk management process is designed to integrate with long-range plans, and is supportive of capital structure planning. Elements include, among others, cash flow at risk analysis, credit risk management, a commodity hedging program to reduce the impacts of commodity price volatility, an insurance program to protect against disruptions in our cash flows, a robust global compliance program, and government and community relations initiatives. The Company benchmarks its program against peers and other global organizations. At the asset level, risks are assessed and identified at Noble Energy sites. During the site feasibility stage, Noble Energy’s planning group identifies risks and mitigation opportunities that are specific to an asset or location. If well sites are close to developments and/or populous areas, risks specific to that location are identified and mitigation options are assessed, including whether to develop the site in that specific location. Asset and company level risk management work together to provide platforms to share lessons learned and gained knowledge across other Noble Energy assets.

CC2.1c

How do you prioritize the risks and opportunities identified?

Noble Energy’s EHSR Department performs a risk assessment twice a year in conjunction with the Business Units to identify and prioritize risks. These assessments role up to the Company’s Enterprise Risk Management process and are consistent with corporate goals. Opportunities related to climate change are prioritized by the feasibility of the opportunity being implemented within Noble Energy’s operations. Next, the Company evaluates whether a positive change can occur through implementation of the opportunity, such as an environmental or economic benefit and an acceptable period for return on investment.

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

Main reason for not having a process

Do you plan to introduce a process?

Comment

CC2.2

Is climate change integrated into your business strategy?

Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

i) Internal processes for collection/reporting information: For the 2016 reporting period, the Executive Vice President, Exploration, New Ventures, Frontier, EHSR and Business Innovation at Noble Energy provides periodic updates to the Board of Directors as frequently as quarterly. This process ensures responsibility and awareness for carbon management goes all the way up to the Chief Executive Officer (CEO) and Board of Directors. Data is collected at the field level by field personnel or environmental representatives. The environmental representatives are also responsible for reporting information to mandatory programs, such as the U.S. EPA’s mandatory GHG program, and voluntary programs such as the Carbon Disclosure Project and Noble Energy’s Sustainability Report. Relevant

information is then communicated to management for inclusion, as appropriate, in executive management discussions. ii) Aspects of climate change that influence the strategy: Noble Energy’s business strategy is influenced by applicable climate change-related regulations and its commitment to environmental stewardship and social responsibility. As part of Noble Energy’s risk management process, the Company monitors proposed and approved climate change regulations, such as the GHGRP and New Source Performance Standard OOOOa. Regulatory changes influence Noble Energy’s operations strategy because of compliance with existing rules and the potential of the impact of compliance with future regulations. Noble Energy’s approach to GHG management is to continually improve its methods to accurately calculate and reduce GHGs through business practices and emission reduction projects. iii) Short-term strategy: As part of the commitment to responsible operations and social responsibility, reducing GHG emissions is one of Noble Energy’s priorities. The Company’s GHG emissions reduction strategy includes maintaining an accurate emissions database, implementing operational enhancements, recovering or re-injecting natural gas that would otherwise be flared, proactively maintaining equipment, and reducing truck traffic. iv) Long-term strategy: Noble Energy’s long-term strategy is focused on identifying opportunities to increase operational efficiency and recovering otherwise wasted natural gas. The Company has shifted from individual vertical well sites to multi-well pads and horizontal drilling. This planning approach decreases emissions per production volume and reduces truck mileage and related emissions. Gas recovery efforts are increasing by greater use of vapor recovery units and leak detection and repair inspections. v) Strategic advantage: Working with governmental agencies to craft new GHG reduction legislation utilizing emissions reduction technology, Noble Energy obtains a competitive advantage on complying with new regulations since the Company is a) already implementing the technology and b) helped design the regulation. vi) Substantial business decisions made: In 2016, no substantial business decisions related to climate change were made pertaining to Noble Energy’s business strategy.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.2c

Does your company use an internal price on carbon?

No, and we currently don't anticipate doing so in the next 2 years

CC2.2d

Please provide details and examples of how your company uses an internal price on carbon

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Direct engagement with policy makers Trade associations

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

Regulation of methane emissions

Support with minor exceptions

In 2015 Noble Energy submitted comments to the EPA on amendments to the New Source Performance Standards (40 CFR 60 Subparts OOOO/OOOOa) Amendments to the rule set GHG emission standards in the form of methane emission limitations. Noble Energy submitted comments to provide industry input and address potential concerns.

The new regulatory action, which was finalized in May 2016, sets a fixed schedule for monitoring leaks, typically done by optical gas imaging technology. It also phases in requirements for using the "green completion" process for hydraulically fractured oil wells. However in mid-June of 2017 the EPA has proposed a 2-year stay for the rule. This is on top of a 90 day stay finalized in early June 2017.

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on climate change consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund?

CC2.3e

Please provide details of the other engagement activities that you undertake

CC2.3f

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

Noble Energy’s process for tracking current and proposed climate change legislation and regulation is achieved through functions of two internal groups at the company: the Regulatory Policy group (a component of the EHSR Department) and the Government Relations group (a component of Noble Energy's Corporate Affairs Department). The Government Relations group, with input from the Regulatory Policy group, works to coordinate messaging and activities with various non-governmental organizations (NGOs), the public, trade associations and advocate with legislators or regulators where appropriate. The Regulatory Policy group manages the internal strategy and development of internal corporate environmental and regulatory policy. This internal policy development focuses on the Company’s global and domestic regional interests, and works with the various asset groups and their EHSR support functions to ensure that a company-wide perspective is used as we set standards when appropriate. Additionally, the Regulatory Policy group tracks developing regulation and sometimes legislation as it relates to environmental policy, which includes issues related to climate change. To ensure consistency of this process with Noble Energy’s climate change/greenhouse gas emissions strategy, regular meetings are held with EHSR regional support functions and business units and leadership as appropriate. The Company also participates actively in trade associations that follow environmental policy for the energy industry, including climate change related issues.

CC2.3g

Please explain why you do not engage with policy makers

Further Information

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year?

No

CC3.1a

Please provide details of your absolute target

ID

Scope

% of emissions in

scope

% reduction from base year

Base year

Base year emissions covered by

target (metric tonnes CO2e)

Target year

Is this a science-

based target?

Comment

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in

scope

% reduction from base

year

Metric

Base year

Normalized base year emissions covered by

target

Target year

Is this a science-based target?

Comment

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change anticipated in absolute Scope 1+2 emissions at

target completion?

% change anticipated in absolute Scope 1+2

emissions

Direction of change anticipated in absolute Scope 3 emissions at target

completion?

% change anticipated in absolute Scope 3

emissions

Comment

CC3.1d

Please provide details of your renewable energy consumption and/or production target

ID

Energy types

covered by target

Base year

Base year energy for energy type covered

(MWh)

% renewable

energy in base year

Target year

% renewable

energy in target year

Comment

CC3.1e

For all of your targets, please provide details on the progress made in the reporting year

ID

% complete (time)

% complete (emissions or renewable energy)

Comment

CC3.1f

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

Noble Energy does not currently have a forecast for specific emissions reductions for the next five years. Due to Noble Energy's ongoing divestitures and acquisitions it is difficult to forecast aggregate emissions because the properties are sold and purchased in discrete packages. Continual improvement of data gathering and calculation methodologies also make it difficult to predict the impact on emissions. Because of this, the Company does not currently have a specific emissions reduction target; however, we believe emissions will likely increase due to projected growth in the DJ Basin and Texas assets.

CC3.2

Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?

Yes

CC3.2a

Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Level of

aggregation

Description of product/Group of products

Are you

reporting low carbon

product/s or avoided

emissions?

Taxonomy, project or methodology used to classify product/s as

low carbon or to calculate avoided

emissions

%

revenue from low carbon

product/s in the

reporting year

% R&D in

low carbon

product/s in the

reporting year

Comment

Company-wide

As a producer of natural gas, Noble Energy increases the ability for end users to substitute higher GHG fossil fuels with cleaner-burning fuels. In addition to being cleaner sources of energy, compressed natural gas (CNG) and liquefied natural gas (LNG) produced by Noble Energy are affordable, domestic alternatives to imported oil. CNG and LNG can be used as fuels for road vehicles and other oil field applications, as well as for marine and railway transport. In 2013, Noble Energy committed $5 million over five years to Weld County school districts to support the conversion and purchase of new CNG school buses. This project helps the school districts replace aging buses, reduces emissions and expands the market for CNG produced by Noble Energy in the region. By the end of 2016 there were 38 CNG school buses operating, with 9 more ordered and set to be delivered in 2017/2018. The CNG school buses emit approximately 23% less GHG than diesel. Each CNG school bus reduces GHG emissions by approximately 4.78 metric tons CO2e per year.

Avoided emissions

Other: Emission factor differences of combusting natural gas compared to diesel fuel

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 1

To be implemented*

Implementation commenced*

Implemented* 2 778125

Not to be implemented

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency -

as specified in CC0.4)

Investment required

(unit currency -

as specified in

CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Process emissions reductions

Noble Energy installs Vapor Recovery Units (VRUs) at many of its newly constructed well pad facilities in the United States. VRUs are commonly used to capture fumes for further use, while reducing flaring and volatile organic compound (VOC) emissions. The Company has invested

707034 Scope 1

Mandatory

7306568 32425000 4-10 years

>30 years

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency -

as specified in CC0.4)

Investment required

(unit currency -

as specified in

CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

millions of dollars to install more than 200 VRUs in its US Onshore operations. Noble Energy continues to optimize its vapor recovery program to capture oil tank vapors and, with new designs in forward development areas, will exceed the regulatory requirement to reduce VOCs by 90 percent from tank batteries in Colorado. The lifetime of this project is expected to be as long as Noble Energy has operations in this area.

Fugitive emissions reductions

Proactively identifying maintenance opportunities can help reduce air emissions and costs, while increasing the quantity of natural gas available for sale. Noble Energy has a team of individuals that monitor work sites with infrared cameras to detect natural gas leaks (Scope 1 emissions) that cannot be seen with the naked eye. Most of the inspections are mandatory in the DJ Basin and Marcellus, but a small percentage are voluntary only in the Marcellus. With dedicated staff assigned to the program, the Company found and fixed approximately 8,000 leaks in 2016.

71091 Scope 1

Mandatory

511963 1324000 1-3 years

>30 years

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Compliance with regulatory requirements/standards

By complying with regulatory requirements, costly fines are avoided and operations are altered to be more efficient, thereby increasing production and revenue.

Employee engagement

Noble Energy has an environmental engineering group dedicated to implementing emission reduction activities and exploring new opportunities. The group works to reduce emissions at the corporate and field level to maximize the potential of the reduction activities. The group actively engages with field personnel to seek recommendations on possible emission reduction initiatives.

Partnering with governments on technology development

Noble Energy committed $5 million over five years to Weld County school districts to support the conversion and purchase of new CNG-fueled school buses. This project not only helps local school districts replace aging buses, it also helps the region expand the market for CNG. By the end of 2016 there were 38 CNG school buses operating, with 9 more ordered and set to be delivered in 2017/2018. The lower cost of CNG saves the districts an average of $3,500 per bus each year. Throughout this commitment, the Company will work with local and federal agencies to secure matching funds to convert as many buses as possible as well as support infrastructure development to enhance the ability of natural gas cars, trucks and vehicle fleets to grow in Colorado. A new CNG school bus fueling and maintenance station was also opened as part of this investment. The new station was funded in part by a grant from the Colorado Department of Local Affairs, and it will be available for public use and will support the district’s fleet of buses donated by Noble Energy.

CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Page: CC4. Communication

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Status

Page/Section reference

Attach the document

Comment

In mainstream reports (including an integrated report) but have not used the CDSB Framework

Complete 51-52, 65-66 https://www.cdp.net/sites/2017/95/13395/Climate Change 2017/Shared Documents/Attachments/CC4.1/2016_Noble Energy_Annual_Report.pdf

Annual Report includes information from SEC filings.

In voluntary communications

Underway - previous year attached

5-7, 23 https://www.cdp.net/sites/2017/95/13395/Climate Change 2017/Shared Documents/Attachments/CC4.1/NobleEnergy_Sustainability_Report_2015.pdf

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a

Please describe your inherent risks that are driven by changes in regulation

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Air pollution limits

Commercial risk to Noble Energy lies in the uncertainty of government-imposed climate legislation. Under the authority of the Clean Air Act, the EPA has finalized a new rule that will regulate methane emissions. The BLM has also proposed methane rules for waste (venting/flaring) on public lands. There is also various activity at the state level. All of these regulations could create a significant amount of risk as the full cost of compliance will not be known for some time.

Increased operational cost

1 to 3 years

Direct Virtually certain

Medium

Non-compliance with federal and state regulations can result in financial penalties. For example, Colorado’s Regulation 7 includes up to a $15,000 per day non-compliance penalty for leaking equipment or smoking flares.

Noble Energy has created an environmental engineering group that maintains an annual GHG inventory and drives efficiency and emission reduction projects. Additionally, this team has developed software for tracking and calculating GHG emissions as part of compliance with regulations. Furthermore, we have implemented an IR camera project in our DJ Basin and Marcellus Shale operating areas to identify and repair methane leaks in regards to passed and proposed regulation. In 2016, Noble Energy had 15

The costs of managing these risks include monitoring regulatory requirements and developments, and the costs of equipment and/or operational changes needed to comply. These annual costs will occur indefinitely.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

dedicated inspectors with infrared leak detection cameras that repaired leaks, saving over 71,000 metric tons of CO2e from entering the atmosphere.

Cap and trade schemes

The uncertainty of government-imposed climate legislation, including cap and trade schemes, poses a commercial risk to the exploration and production of fossil fuels. A regulation such as this may have an adverse impact on Noble Energy’s financial condition, operations and cash flows, and could reduce the demand for Noble Energy’s products.


3 to 6 years

Direct Unlikely Medium-high

Using a carbon price range from the U.S. EPA’s latest estimate of cost of carbon of $11 (5% discount rate) and $56 (2.5% discount rate) per metric tonne, and applying this to Noble Energy's Scope 1 emissions, could result in additional costs of $27M-$138M.

Noble Energy actively prepares to respond to current and proposed climate change legislation and expects that some combination of performance standards, taxes, tradable emissions credits and production limitations will become a reality in most areas where it operates in the U.S. To mitigate these risks, Noble Energy has created an environmental engineering group that maintains an

Noble Energy has a specific annual budget allocated for the management of GHG emissions. The budget in 2016 was approximately $520,000 to measure, monitor, calculate and report annual GHG emissions and these costs will occur indefinitely. The cost of meeting GHG requirements may have some impact on Noble Energy’s financial condition, results of operations and cash flows. In

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

annual GHG inventory and drives efficiency and emission reduction projects. For example, this team led an emissions reduction project to replace all high-bleed pneumatic devices with low-bleed pneumatic devices on all onshore locations in the U.S.

2016, Noble Energy has continued to report its GHG emissions for operations throughout the U.S. to the EPA in accordance with the GHGRP.

Emission reporting obligations

The uncertainty associated with government-imposed emission reporting obligations poses a commercial risk to the exploration and production of fossil fuels. An example includes the EPA GHGRP, to which Noble Energy has been working to comply.


Up to 1 year


Medium

The cost of meeting regulatory requirements may have an adverse impact on Noble Energy’s financial condition, operations and cash flows, and could reduce the demand for its products. There are also financial implications for non-compliance. For example,

To mitigate these risks, Noble Energy has created an environmental engineering group that maintains an annual GHG inventory and drives efficiency and emission reduction projects. A new software system, implemented in 2014, is used to more efficiently collect and manage GHG

Noble Energy has a specific annual budget allocated for the management of GHG emissions. The budget is approximately $520,000 to measure, monitor, calculate and report annual GHG emissions and these costs will occur indefinitely. The cost of meeting GHG requirements may have some impact

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

companies who do not report to the GHGRP could be fined up to $37,500 per day of non-compliance.

emissions. on Noble Energy’s financial condition, results of operations and cash flows. In 2016, Noble Energy has continued to report its GHG emissions for operations throughout the US to the EPA in accordance with the GHGRP.

CC5.1b

Please describe your inherent risks that are driven by changes in physical climate parameters

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Tropical cyclones (hurricanes and typhoons)

Physical risks are primarily related to extreme weather events, which may increase in

Reduction/disruption in production capacity

Unknown Direct Likely Medium-high

Extreme weather conditions increase the Company’s operating costs, and damages

Noble Energy has developed an Incident Management System (IMS) to facilitate the Company’s

Costs of the systems for managing this risk include the capital needed to develop and install the

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

intensity with rising global temperatures. Therefore, climate change may lead to increased storm or weather hazards affecting the Company’s operations, specifically offshore operations.

may not be fully insured. Any severe weather increase in areas of the Company’s operations could potentially impact its ability to conduct normal activities.

response to various natural disasters including hurricanes, tornadoes and other emergency situations. The Company plans to transition its emergency response planning to an All Hazard approach. This process will create a comprehensive preparedness, response and recovery architecture, using the National Fire Protection Administration (NFPA) 1600 – Standard on Disaster/ Emergency Management and Business Continuity Programs. Through this process, the Company will revise existing plans to conform

system and employee time. These costs will occur on an annual basis indefinitely.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

to a common response model based on the premises of the Incident Command System (ICS). Noble Energy is also exploring increased meta-ocean design criteria to operate under harsher storm conditions.

Change in precipitation extremes and droughts

Physical risks, including floods, may be related to extreme weather events, which some research suggests may increase in intensity with rising global temperatures. Any severe weather increase in areas of the Company’s operations could potentially impact its ability

Inability to do business

Unknown Direct Unknown Medium-high

Extreme weather conditions increase the Company’s operating costs, and damages may not be fully insured. Potential increased meta-ocean design criteria to operate under harsher storm conditions could require more robust design of equipment. Additionally,

Noble Energy has developed an Incident Management System (IMS) to facilitate the Company’s response to various natural disasters including hurricanes, tornadoes and other emergency situations. The Company plans to transition its emergency response planning to an All Hazard approach. This process will

Costs of the systems for managing this risk include the capital needed to develop and install the system and employee time. These costs will occur on an annual basis indefinitely.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

to conduct normal activities.

any severe weather increase in areas of the Company’s operations could potentially impact its ability to conduct normal activities, which could negatively affect revenue.

create a comprehensive preparedness, response and recovery architecture, using the National Fire Protection Administration (NFPA) 1600 – Standard on Disaster/ Emergency Management and Business Continuity Programs. Through this process, the Company will revise existing plans to conform to a common response model based on the premises of the Incident Command System (ICS).

CC5.1c

Please describe your inherent risks that are driven by changes in other climate-related developments

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

Reputation

Within the oil and natural gas industry, the increase in shareholder resolutions related to climate change indicates there is an increasing awareness around climate change issues. There has also been an anti-hydraulic fracturing movement around the country, which poses reputational risk to the oil and natural gas industry. For example, communities have been voting on ballot measures to ban hydraulic fracturing in certain areas

Inability to do business

Up to 1 year


Medium-high

Noble Energy’s reputational risks associated with climate change could affect shareholder investments and the license to operate in various communities and areas.

These risks are mitigated by engaging a range of stakeholders and increasing Noble Energy’s brand awareness. Noble Energy has produced a number of materials to support this effort. The Company has also developed an ambassador program that has helped coach hundreds of employees on community outreach efforts. Additionally, the Company continues to become more involved in communities through sponsorships, advertising, etc. and maintain its efforts to be a responsible and involved corporate citizen. Noble Energy currently has radio and TV advertisements that discuss the importance of community and environmental responsibility.

Noble Energy has incurred costs associated with producing scientific and knowledge-based materials, such as pamphlets and commercials, to respond to the anti-fracking movement. These annual costs will occur indefinitely.

CC5.1d

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1e

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1f

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your inherent opportunities that are driven by changes in regulation

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

General environmental regulations, including planning

The burning of natural gas produces lower levels of GHG emissions than other readily available fossil fuels, such as oil and coal, and represents approximately 66% of the Company’s production portfolio. If all of Noble Energy’s customers were to be subject to

Increased demand for existing products/services

3 to 6 years

Direct More likely than not

Medium-high

Since natural gas is a cleaner-burning fuel alternative to other readily available fossil fuels, such as oil and coal, Noble Energy believes there are many opportunities for growth within the natural gas market that could positively affect revenue. In the last year, demand for natural gas has increased as power

Noble Energy is well-positioned for an increase in demand of natural gas. Should renewable resources, such as wind or solar power, become more prevalent, natural gas-fired electric plants may provide an alternative backup to maintain consistent energy

Costs for managing this opportunity are included as part of Noble Energy’s operating expenses budget. These annual costs will occur indefinitely.

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

regulations like the EPA Clean Power Plan in the United States, it could increase the demand for natural gas.

generation has been switching from coal to natural gas. According to the U.S. Energy Information Administration, the percentage of U.S. electricity being generated by coal fell from 33.2% to 30.4% from 2015 to 2016. While during that same time frame, natural gas generated electricity rose from 32.7% to 33.8%.

supply. We are taking action to increase the natural gas discoveries by Noble Energy to allow for GHG reduction through conversion of power plants from other fuels to natural gas. For example, Noble Energy is developing resources for Israel to switch from coal-fired to natural gas-fired electricity, creating a growing demand for its products.

Other regulatory drivers

New regulations aimed at reducing greenhouse gas emissions


3 to 6 years

Direct More likely than not

Medium-high

The opportunity exists in increased market demand that leads to increased

A critical barrier to converting vehicles to natural gas is the lack of

Costs for managing this opportunity are included as part of Noble

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

from the transportation sector are making natural gas a more attractive fuel choice and the market demand for natural gas may increase. Natural gas vehicles are cleaner than traditional gasoline or diesel vehicles, resulting in 20-30 percent less carbon dioxide emissions. This regulation could increase demand for natural gas, which makes up approximately 66% of Noble Energy's production portfolio.

revenue. From 2015 to 2016 the percentage of U.S. electricity generated from natural gas increased by 3.4% to a total of 33.8%, according to the U.S. Energy Information Administration.

necessary infrastructure. To address this, Noble Energy is actively working with our industry peers, trade associations, local governments and the public to advocate for infrastructure and vehicle conversion. As part of its commitment to expanding the use of CNG/LNG, Noble Energy opened a new school bus fueling and maintenance station in 2014. The new CNG station, funded in part by a grant from the Colorado Department of

Energy’s operating expenses budget. This cost is evaluated on a yearly basis but will likely occur indefinitely.

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Local Affairs, will be available for public use and will support the district’s fleet of next-generation school buses, which were donated by Noble Energy in 2013. It is a vital link in the CNG station network resulting from Weld County’s Smart Energy Plan. As of the end of 2016, 38 donated CNG school buses were operating in Weld County, with 9 more set to be delivered in 2017/2018.

CC6.1b

Please describe your inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Change in mean (average) temperature

With increasing global temperature, line freeze events and production equipment maintenance issues will decrease, causing a decrease in equipment downtime. Less downtime equates to increased production capacity for Noble Energy.

Increased production capacity

Unknown Direct Unknown Medium

Less equipment downtime, such as downtime for VRUs, would increase the amount of gas being recovered. This results in more gas being sold, as opposed to being routed to a backup flare when VRUs are down for maintenance purposes. In 2016, the use of VRUs allowed Noble Energy to experience savings of over $7 million.

In some instances, equipment downtime can mean a cessation in production. Less downtime would enable increased production and increased revenue. In 2016, Noble Energy invested approximately $32 million in the vapor recovery program . This results in more gas being sold, as opposed to being routed to a backup flare when VRUs are down for maintenance purposes. Because Noble Energy has implemented this at many sites, the Company has been able to reduce emissions and increase revenue. More than 200 VRUs have been installed in Noble Energy’s DJ Basin operations.

As part of Noble Energy's ongoing vapor recovery program, in 2016 approximately $32 million was invested in VRUs. Since many of the VRUs are rented, this is a cost that occurs annually and will continue to be a cost indefinitely.

CC6.1c

Please describe your inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Shifting consumer attitudes and increased education on hydrocarbon production and use as an energy source, and GHG emissions could present some broad opportunities to Noble Energy. For example, Noble Energy is currently educating consumers about the benefits of emissions reduction realized by changing fleets to CNG. This could lead to increased demand for natural gas.


Unknown Indirect (Supply chain)

More likely than not

Medium-high

Natural gas will be an economically feasible bridge fuel until renewable sources can be deployed over the next several decades. If consumer attitudes shift and realize the benefits of natural gas, Noble Energy may financially benefit from increased revenues due to the increased demand of natural gas during this transition period. From 2015 to 2016 the percentage of U.S. electricity generated from natural gas increased by

Noble Energy engages with consumers and suppliers about the lower emissions associated with natural gas. For example, Noble Energy works with certain suppliers to support conversion of fleet trucks to run on CNG, reducing their emissions and creating demand for natural-gas fueled vehicles. Additionally, Noble Energy communicates the benefits of natural gas in the Company’s annual Sustainability Report, website and other publicly available communications intended to engage with stakeholders. For

Costs include employee time and resources in monitoring, researching, and educational activities. These annual costs will occur indefinitely.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

3.4% to a total of 33.8%, according to the U.S. Energy Information Administration.

a quick reference, in last year's Sustainability Report, Noble Energy discussed the benefits of CNG on page 6.

CC6.1d

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1f

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 1 Sun 01 Jan 2012 - Mon 31 Dec 2012

2078600

Scope 2 (location-based) Sun 01 Jan 2012 - Mon 31 Dec 2012

61630

Scope 2 (market-based) Sun 01 Jan 2012 - Mon 31 Dec 2012

0

CC7.2

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

US EPA Mandatory Greenhouse Gas Reporting Rule

American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

CC7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CO2 IPCC Fourth Assessment Report (AR4 - 100 year)

CH4 IPCC Fourth Assessment Report (AR4 - 100 year)

N2O IPCC Fourth Assessment Report (AR4 - 100 year)

CC7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy

Emission Factor

Unit

Reference

Natural gas 37.3 Other: scf/hour/component high continuous bleed pneumatic device

Subpart W

Natural gas 13.3 Other: scf/hour/component pneumatic pumps Subpart W

Further Information

Page: CC8. Emissions Data - (1 Jan 2016 - 31 Dec 2016)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

2520114

CC8.3

Please describe your approach to reporting Scope 2 emissions

Scope 2, location-based

Scope 2, market-based

Comment

We are reporting a Scope 2, location-based figure

We have no operations where we are able to access electricity supplier emissions factors or residual emissions factors and are unable to report a Scope 2, market-based figure

CC8.3a

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, location-based

Scope 2, market-based (if applicable)

Comment

23011

CC8.4

Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Yes

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of

Scope 1 emissions from

this source

Relevance of location-

based Scope 2 emissions from this

source

Relevance of market-based

Scope 2 emissions from this source (if

applicable)

Explain why the source is excluded

Noble Energy's rented office space in Canonsburg, PA

No emissions excluded

Emissions are relevant but not yet calculated

No emissions from this source

Noble Energy could not acquire electricity information for this facility.

Dilley, TX field office No emissions excluded



Electricity information was not acquired for reporting year 2016, but will be included in reporting year 2017.

Pecos, TX field office No emissions excluded



Electricity information was not acquired for reporting year 2016, but will be included in reporting year 2017.

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope

Uncertainty range

Main sources of

uncertainty

Please expand on the uncertainty in your data

Scope 1 More than 10% but less than or equal to 20%

Data Gaps Assumptions Metering/ Measurement Constraints

Uncertainties can arise due to estimates in certain field-level data. Counts in components of equipment are sometimes estimated. Operating hours of some equipment can be estimated, or just assumed to run all year. Capturing 100% of all event data is also a challenge and leads to uncertainty in the data.

Scope 2 (location-based)

More than 20% but less than or equal to 30%

Data Gaps Assumptions

In some areas, electricity data was not completely available. Electricity data for some of the multi-tenant buildings is provided as a building sum and estimated among Noble Energy-occupied floors.

Scope 2

Scope

Uncertainty range

Main sources of

uncertainty

Please expand on the uncertainty in your data

(market-based)

CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

No third party verification or assurance

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Verification or

assurance cycle in place

Status in the

current reporting year

Type of verification or

assurance

Attach the statement

Page/section reference

Relevant standard

Proportion of reported Scope 1 emissions

verified (%)

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emission Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7

Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures


CC8.7a

Please provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements

Location-based or

market-based figure?

Verification or


Status in the


Type of verification

or assurance



Relevant standard

Proportion of

reported Scope 2 emissions verified

(%)

CC8.8

Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data points verified

Comment

Additional data points verified

Comment

No additional data verified

CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

Further Information

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC9.1

Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region

Scope 1 metric tonnes CO2e

United States of America 1486605

Equatorial Guinea 864947

Israel 159921

Falkland Islands 8643

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By activity

CC9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


Latitude

Longitude

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity


Combustion 1572573

Flaring 543249

Fugitive 120502

Mobile 28871

Venting 254920

Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC10.1

Do you have Scope 2 emissions sources in more than one country?

Yes

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region

Scope 2, location-based (metric

tonnes CO2e)

Scope 2, market-based (metric tonnes CO2e)

Purchased and consumed

electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or

cooling accounted in market-based approach (MWh)


18717 0 27581 0

Israel 4295 0 5826 0

Equatorial Guinea 0 0 0 0

Falkland Islands 0 0 0 0

CC10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By business division

CC10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division

Scope 2, location-based (metric tonnes CO2e)


Corporate Offices 7343

Field Offices/Operations 15668

CC10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility



CC10.2c

Please break down your total gross global Scope 2 emissions by activity

Activity



Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5%

CC11.2

Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

MWh

Heat 0

Steam 0

Cooling 0

CC11.3

Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

6141022

CC11.3a

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels

MWh

Aviation gasoline 8764

Motor gasoline 24795

Distillate fuel oil No 2 496012

Natural gas 5609504

Liquefied Natural Gas (LNG) 1947

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Basis for applying a low carbon emission factor

MWh consumed associated with low

carbon electricity, heat, steam or cooling

Emissions factor (in units of metric

tonnes CO2e per MWh)

Comment

No purchases or generation of low carbon electricity, heat, steam or cooling accounted with a low carbon emissions factor

CC11.5

Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total electricity consumed

(MWh)

Consumed

electricity that is purchased (MWh)

Total electricity produced

(MWh)

Total renewable

electricity produced (MWh)

Consumed renewable

electricity that is produced by company (MWh)

Comment

33407 33407 0 0 0

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Increased

CC12.1a

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason

Emissions value

(percentage)

Direction of change

Please explain and include calculation

Emissions reduction activities

1.27 Decrease Associated gas flaring decreased in Noble's Texas operations from 2015 to 2016, resulting in a decrease of 28,426 tonnes CO2e. This value divided by last year's gross global emissions of 2,245,928 tonnes CO2e resulted in a reduction of 1.27%. (28,426/2,245,928)*100 = 1.27%

Divestment .51 Decrease There were several divestitures in 2016 from certain properties in Noble's DJ Basin and Eagleford

Reason

Emissions value

(percentage)

Direction of change

Please explain and include calculation

properties. The Bowdoin property in northern Montana was also divested. Due to the difficulty of calculating the exact decrease of divested properties from larger business units, the 0.51% decrease is calculated only from the Montana divestment. A decrease of 11,383 tonnes CO2e resulted in a 0.51% decrease. (11,383/2,245,928)*100 = 0.51%

Acquisitions 4.4 Increase Noble Energy acquired the Thunder Hawk platform in the Gulf of Mexico in 2016. The added emissions (99,273) divided by last year's total (2,245,928) gave us a 4.4% increase. (99,273/2,245,928)*100 = 4.4%

Mergers 0 No change Noble Energy reported no mergers in 2016.

Change in output 1.72 Decrease The 1.72% listed here represents the reduction in venting from the Neptune Spar platform in offshore Gulf of Mexico. The reason for the reduction was less input into the facility, which resulted in a decrease of 38,562 tonnes CO2e. (38,562/2,245,928)*100 = 1.72%.

Change in methodology

1.11 Decrease In our Texas operations, the run-time for intermittent pneumatic devices was adjusted to more accurately reflect the actual run-time as opposed to the default of 8760 hours. This resulted in a decrease of 24,820 tonnes CO2e. (24,820/2,245,928)*100 = 1.11%.

Change in boundary

7.08 Increase

Due to an EPA rule change in 2016, a new industry segment, Onshore Petroleum and Natural Gas Gathering and Boosting, came into effect and caused an increase in Noble Energy's emissions. The largest change occurred in Texas where several large facilities that were exempt last year became applicable. This resulted in an increase of 202,967 tonnes CO2e. Also in 2016 Noble was no longer actively drilling in offshore Falkland Islands, although there was some remaining marine vessel usage. This resulted in a decrease of 44,007 tonnes CO2e. [(202,967-44,007)/2,245,928]*100 = 7.08%.

Change in physical operating conditions

8.09 Increase

There were several changes in operating conditions that resulted in the overall increase of 5.67%. Compressor use in the DJ Basin increased resulting in an increase of combustion emissions (125,142 tonnes CO2e). Due to the low oil and gas price environment there was a reduction in activity at Noble's Marcellus operations (52,181 tonnes CO2e). Flaring increased in Equatorial Guinea (110,618 tonnes CO2e). There was also slighlty less venting from Noble's Eastern Mediterranean operations (1,919 tonnes CO2e). [(125,142-52,181+110,618-1,919)/2,245,928]*100 = 8.09%.

Unidentified 0 No change Noble Energy had no unidentified changes.

Other 1.76 Decrease

Other various decreases are represented here and include lower counts of pneumatic devices and pumps, lower count of liquid unloadings, and lower tank emissions in our Texas operations due to the varied nature of liquid samples used to simulate tank flash emissions. These various decreases amounted to 39,503 tonnes CO2e. (39,503/2,245,928)*100 = 1.76%

CC12.1b

Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

Location-based

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator:

Unit total revenue

Scope 2 figure used

% change from

previous year

Direction of change from

previous year

Reason for change

0.00073 metric tonnes CO2e

3491000000 Location-based

2.34 Decrease

Although emissions rose from 2015 to 2016, revenue increased enough to result in a small decrease in intensity. The revenue increase was due to higher sales volumes in 2016.

CC12.3

Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator

Metric

denominator: Unit total

Scope 2 figure used

% change from

previous year

Direction of change from previous year

Reason for change

.013 metric tonnes CO2e

barrel of oil equivalent (BOE)

178691277 Location-based

18.2 Increase The intensity figure rose mostly due to the increase in emissions explained in CC12.1a.

Further Information

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period?

No

CC13.2a

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits canceled

Purpose, e.g. compliance

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of

emissions calculated using data obtained

from suppliers or value chain

partners

Explanation

Purchased goods and services

Relevant, not yet calculated

Capital goods Relevant, not yet calculated

Fuel-and-energy-related activities (not included in Scope 1 or 2)


Upstream transportation and distribution


Waste generated in operations


Business travel Relevant, calculated

3434.93 EPA Climate Leaders Guidance

100.00%

Employee commuting Relevant, calculated

9240.29 EPA Climate Leaders Guidance

0.00%

Upstream leased assets


Downstream transportation and distribution


Processing of sold products


Use of sold products Relevant, calculated

35125181

GHG Protocol Category 11: Use of Sold Products. EPA Subpart W Combustion

0.00%

This was calculated by taking the natural gas sold value from the 2016 Annual Report and assuming it was all combusted by downstream customers. Methodology for the actual calculation was used from EPA Subpart W combustion

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of

emissions calculated using data obtained

from suppliers or value chain

partners

Explanation

section.

End of life treatment of sold products

Not relevant, explanation provided

Noble Energy investigated the relevance of this Scope 3 source and concluded this source is not relevant due to the fact that GHG life cycle assessments of petroleum fuels do not include an “end-of-life treatment of sold products” stage, as our products are consumed during use.

Downstream leased assets

Not relevant, explanation provided

Noble Energy does not have any downstream leased assets at the current time.

Franchises Not relevant, explanation provided

Noble Energy does have any franchises at the current time.

Investments Not evaluated

Other (upstream) Not relevant, explanation provided

There are no activities upstream of Noble Energy and any work done on its operated site is included in the Scope 1 emissions inventory. Therefore, any emissions from hydraulic fracturing, drilling, or workover operations conducted by contractors are included in the Noble Energy Scope 1 inventory.

Other (downstream) Relevant, not yet calculated

CC14.2

Please indicate the verification/assurance status that applies to your reported Scope 3 emissions


CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Verification or


Status in the


Type of

verification or assurance



Relevant standard

Proportion of

reported Scope 3 emissions verified (%)

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of

Scope 3 emissions

Reason for change

Emissions value

(percentage)

Direction of

change

Comment

Sources of

Scope 3 emissions

Reason for change

Emissions value

(percentage)

Direction of

change

Comment

Business travel Change in physical operating conditions

56.5 Decrease Business travel decreased in part due to the end of the Falkland Islands drilling campaign.

Employee commuting

Unidentified 6.5 Increase There was a slight increase in employee commuting emissions, , but the employee count decreased from 2015 to 2016. Due to the survey being voluntary, employee participation can vary from year to year.

Use of sold products

Change in output 18.0 Increase The increase was due to higher sales volumes in 2016 from the Marcellus, Texas, and offshore international operations.

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliers

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success

CC14.4b

To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Type of

engagement

Number of

suppliers

% of total

spend (direct

and indirect)

Impact of engagement

Active engagement

17 42.5%

Where possible, Noble Energy works with its supply chain to promote the use of CNG and LNG. Noble Energy gives preference to suppliers with lower GHG emitting technologies. In 2013, the Company began including information in some of its Request for Proposals (RFPs) requiring a response to the applicant’s commitment to natural gas and weighted this response when evaluating potential new suppliers. Noble Energy prioritizes supplier engagements by fuel usage and/or the ability to take trucks off the road all together. In 2016, Noble Energy has continued to work closely with the water haulers Renewable Fiber and Dillon Transport, where financing was provided for CNG trucks . Due to the Renewable Fiber and Dillon Transport partnerships, approximately 50 percent of all water in the DJ Basin is hauled by natural gas vehicles, a number the Company is proud of and will work to maintain and/or improve upon. These trucks help the companies reduce costs and emissions. Natural gas vehicles are cleaner than traditional gasoline or diesel vehicles, resulting in 70-90 percent less carbon monoxide, 75-95 percent less nitrogen oxide, and 20-30 percent less carbon dioxide emissions. Additionally, natural gas is significantly less expensive: on average, natural gas is over one-third less expensive than gasoline and between 25-42 percent less expensive than diesel. As a note, the number of suppliers and % of total spend in this table is from Noble Energy's DJ Basin operating area. The Company will look to broaden the scope of this reporting to other Business Units in the future.

CC14.4c

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name

Job title

Corresponding job category

Steven Broadaway Environmental Engineer Environment/Sustainability manager

Further Information

Module: Oil & Gas

Page: OG0. Reference information

OG0.1

Please identify the significant petroleum industry components of your business within your reporting boundary (select all that apply)

Exploration, production & gas processing

Further Information

Page: OG1. Production, reserves and sales by hydrocarbon type - (1 Jan 2016 - 31 Dec 2016)

OG1.1

Is your organization involved with oil & gas production or reserves?

Yes

OG1.2

Please provide values for annual gross and net production by hydrocarbon type (in units of BOE) for the reporting year in the following table. The values required are aggregate values for the reporting organization

Product

Gross production

(BOE)

Net production

(BOE)

Production

consolidation boundary

Comment

Conventional non-associated natural gas Associated natural gas Shale gas Tight gas

134263000

Operational control

Natural gas condensate Light oil Medium oil

70225000

Operational control

OG1.3

Please provide values for reserves by hydrocarbon type (in units of BOE) for the reporting year. Please indicate if the figures are for reserves that are proved, probable or both proved and probable. The values required are aggregate values for the reporting organization

Product

Country/region

Reserves (BOE)

Date of assessment

Proved/Probable/Proved+Probable



296000000 Sat 31 Dec 2016

Proved

Conventional non-associated natural gas Associated natural gas


473000000 Sat 31 Dec 2016

Proved

Product

Country/region

Reserves (BOE)

Date of assessment

Proved/Probable/Proved+Probable

Shale gas Tight gas

Natural gas liquids (NGL)


207000000 Sat 31 Dec 2016

Proved


Equatorial Guinea

34000000 Sat 31 Dec 2016

Proved

Associated natural gas

Equatorial Guinea

81000000 Sat 31 Dec 2016

Proved


Equatorial Guinea

12000000 Sat 31 Dec 2016

Proved


Israel 3000000 Sat 31 Dec 2016

Proved

Conventional non-associated natural gas

Israel 330667000 Sat 31 Dec 2016

Proved

OG1.4

Please explain which listing requirements or other methodologies you have used to provide reserves data in OG1.3. If your organization cannot provide data due to legal restrictions on reporting reserves figures in certain countries, please explain this

Reserves data presented in OG1.3 is extracted from Noble Energy’s 2016 Annual Report. Specifically, the “Proven Oil and Gas Reserves” table in the Form 10-K report.

OG1.5

Please provide values for annual sales of hydrocarbon types (in units of BOE) for the reporting year in the following table. The values required are aggregate values for the reporting organization

Product

Sales (BOE)

Comment


46529000

Conventional non-associated natural gas Associated natural gas Shale gas Tight gas

85185800


21825000

OG1.6

Please provide the average breakeven cost of current production used in estimation of proven reserves

Hydrocarbon/project

Breakeven cost/BOE

Comment

OG1.7

In your economic assessment of hydrocarbon reserves, resources or assets, do you conduct scenario analysis and/or portfolio stress testing consistent with a low-carbon energy transition?

OG1.7a

Please describe your scenario analysis and/or portfolio stress testing, the inputs used and the implications for your capital expenditure plans and investment decisions

OG1.7b

Please explain why you have not conducted any scenario analysis and/or portfolio stress testing consistent with a low-carbon energy transition

Further Information

Page: OG2. Emissions by segment in the O&G value chain - (1 Jan 2016 - 31 Dec 2016)

OG2.1

Please indicate the consolidation basis (financial control, operational control, equity share) used to report the Scope 1 and Scope 2 emissions by segment in the O&G value chain. Further information can be provided in the text box in OG2.2

Segment

Consolidation basis for reporting Scope 1 emissions

Consolidation basis for reporting Scope 2 emissions

Exploration, production & gas processing Operational Control Operational Control

OG2.2

Please provide clarification for cases in which different consolidation bases have been used and the level/focus of disclosure. For example, a reporting organization whose business is solely in storage, transportation and distribution (STD) may use the text box to explain why only the STD row has been completed

Noble Energy is only involved in the exploration and production segment of the oil and gas industry, and the operational control consolidation basis makes the most sense since it aligns with the U.S. EPA mandatory greenhouse gas rule consolidation basis.

OG2.3

Please provide masses of gross Scope 1 carbon dioxide and methane emissions in units of metric tonnes CO2 and CH4, respectively, for the organization’s owned/controlled operations broken down by value chain segment

Segment

Gross Scope 1 carbon dioxide emissions (metric tonnes CO2)

Gross Scope 1 methane emissions (metric tonnes CH4)

Exploration, production & gas processing 2004933 20361

OG2.4

Please provide masses of gross Scope 2 GHG emissions in units of metric tonnes CO2e for the organization’s owned/controlled operations broken down by value chain segment

Segment

Gross Scope 2 emissions (metric tonnes CO2e)

Comment

Exploration, production & gas processing 23011

Further Information

Page: OG3. Scope 1 emissions by emissions category - (1 Jan 2016 - 31 Dec 2016)

OG3.1

Please confirm the consolidation basis (financial control, operational control, equity share) used to report Scope 1 emissions by emissions category

Segment

Consolidation basis for reporting Scope 1 emissions by emissions category

Exploration, production & gas processing Operational Control

OG3.2

Please provide clarification for cases in which different consolidation bases have been used to report by emissions categories (combustion, flaring, process emissions, vented emissions, fugitive emissions) in the various segments

There are no cases where different consolidation bases have been used.

OG3.3

Please provide masses of gross Scope 1 carbon dioxide and methane emissions released into the atmosphere in units of metric tonnes CO2 and CH4, respectively, for the whole organization broken down by emissions category

Emissions category

Gross Scope 1 carbon dioxide emissions (metric tonnes CO2)

Gross Scope 1 methane emissions (metric tonnes CH4)

Combustion 1500223 2742

Flaring 477018 2639

Process emissions 0 0

Vented emissions 593 10173

Fugitive emissions 375 4805

OG3.4

Please describe your organization’s efforts to reduce flaring, including any flaring reduction targets set and/or its involvement in voluntary flaring reduction programs, if flaring is relevant to your operations

Noble Energy attempts to reduce flaring as much as economically and feasibly possible. In our Equatorial Guinea operations, turbine compressors are used to re-inject produced gas that would otherwise be flared.

Further Information

Page: OG4. Transfers & sequestration of CO2 emissions - (1 Jan 2016 - 31 Dec 2016)

OG4.1

Is your organization involved in the transfer or sequestration of CO2?

No

OG4.2

Please indicate the consolidation basis (financial control, operational control, equity share) used to report transfers and sequestration of CO2 emissions

Activity

Consolidation basis

OG4.3

Please provide clarification for cases in which different consolidation bases have been used (e.g. for a given activity, capture, injection or storage pathway)

OG4.4

Using the units of metric tonnes of CO2, please provide gross masses of CO2 transferred in and out of the reporting organization (as defined by the consolidation basis). Please note that questions of ownership of the CO2 are addressed in OG4.6

Transfer direction

CO2 transferred – Reporting year

OG4.5

Please provide clarification on whether any oil reservoirs and/or sequestration system (geological or oceanic) have been included within the organizational boundary of the reporting organization. Provide details, including degrees to which reservoirs are shared with other entities

OG4.6

Please explain who (e.g. the reporting organization) owns the transferred emissions and what potential liabilities are attached. In the case of sequestered emissions, please clarify whether the reporting organization or one or more third parties owns the sequestered emissions and who has potential liability for them

OG4.7

Please provide masses in metric tonnes of gross CO2 captured for purposes of carbon capture and sequestration (CCS) during the reporting year according to capture pathway. For each pathway, please provide a breakdown of the percentage of the gross captured CO2 that was transferred into the reporting organization and the percentage that was transferred out of the organization (to be stored)

Capture pathway in CCS

Captured CO2 (metric tonnes CO2)

Percentage transferred in

Percentage transferred out

OG4.8

Please provide masses in metric tonnes of gross CO2 injected and stored for purposes of CCS during the reporting year according to injection and storage pathway

Injection and storage pathway

Injected CO2 (metric tonnes CO2)

Percentage of injected CO2 intended for long-term (>100

year) storage

Year in which injection began

Cumulative CO2 injected and stored (metric tonnes CO2)

OG4.9

Please provide details of risk management performed by the reporting organization and/or third party in relation to its CCS activities. This should cover pre-operational evaluation of the storage (e.g. site characterization), operational monitoring, closure monitoring, remediation for CO2 leakage, and results of third party verification

Further Information

Page: OG5. Emissions intensity - (1 Jan 2016 - 31 Dec 2016)

OG5.1

Please provide estimated emissions intensities (Scope 1 + Scope 2) associated with current production and operations

Year ending

Segment

Hydrocarbon/product

Emissions intensity (metric

tonnes CO2e per

thousand BOE)

% change

from previous

year


Reason for change

2016 Exploration, production & gas processing

Conventional non-associated natural gas Associated natural gas Natural gas condensate

13 18 Increase The intensity figure rose mostly due to the increase in emissions detailed in CC12.1a.

Year ending

Segment

Hydrocarbon/product

Emissions intensity (metric

tonnes CO2e per

thousand BOE)

% change

from previous

year


Reason for change

Shale gas Tight gas Light oil Medium oil

OG5.2

Please clarify how each of the emissions intensities has been derived and supply information on the methodology used where this differs from information already given in answer to the methodology questions in the main information request

The emission intensity is calculated from total emissions from the production segment of Noble Energy's operations divided by the total production in MBOE.

Further Information

Page: OG6. Development strategy - (1 Jan 2016 - 31 Dec 2016)

OG6.1

For each relevant strategic development area, please provide financial information for the reporting year

Strategic development area

Describe how this

relates to your business strategy

Sales generated

EBITDA

Net assets

CAPEX

OPEX

Comment

OG6.2

Please describe your future capital expenditure plans for different strategic development areas


CAPEX

Total return expected from CAPEX investments

Comment

OG6.3

Please describe your current expenses in research and development (R&D) and future R&D expenditure plans for different strategic development areas


R&D expenses – Reporting year

R&D expenses – Future plans

Comment

Further Information

Page: OG7. Methane from the natural gas value chain

OG7.1

Please indicate the consolidation basis (financial control, operational control, equity share) used to prepare data to answer the questions in OG7

Segment

Consolidation basis

Exploration, production & gas processing Operational Control

OG7.2

Please provide clarification for cases in which different consolidation bases have been used

Noble Energy is only involved in the exploration and production segment of the petroleum industry.

OG7.3

Does your organization conduct leak detection and repair (LDAR), or use other methods to find and fix fugitive methane emissions?

Yes

OG7.3a

Please describe the protocol through which methane leak detection and repair, or other leak detection methods, are conducted, including predominant frequency of inspections, estimates of assets covered, and methodologies employed

Noble Energy follows the leak detection and repair protocol set by Colorado's Regulation 7 for the DJ Basin's operations. Depending on the site's VOC emissions, monitoring requirements are either monthly, quarterly, or annually. Approximately 98% of Noble Energy's assets in the DJ Basin have been inspected by IR camera. A smaller program in the Appalachian Basin also is in effect based on local regulations.

OG7.3b

Please explain why not and whether you plan on conducting leak detection and repair, or other methods to find and fix fugitive methane emissions

OG7.4

Please indicate the proportion of your organization’s methane emissions inventory estimated using the following methodologies (+/- 5%)

Methodology

Proportion of total methane emissions estimated with methodology

What area of your operations does this answer relate to?

Direct detection and measurement 5% to <10% All

Engineering calculations >75% All

Source-specific emission factors (IPCC Tier 3) >75% All

IPCC Tier 1 and/or Tier 2 emission factors >0% to <5% All

OG7.5

Please use the following table to report your methane emissions rate

Year ending

Segment

Estimate total methane emitted expressed as % of natural gas production or

throughput at given segment

Estimate total methane emitted expressed as % of total hydrocarbon production or throughput

at given segment

2016 Exploration, production & gas processing

.15% .11%

OG7.6

Does your organization participate in voluntary methane emissions reduction programs?

No

OG7.6a

Please describe your organization’s participation in voluntary methane emissions reduction programs

OG7.7

Did you have a methane-specific emissions reduction target that was active (ongoing or reached completion) in the reporting year and/or were methane emissions incorporated into targets reported in CC3?

No

OG7.7a

If you have a methane-specific emissions reduction target that is not detailed as a separate target in CC3, please provide those details here, addressing all of the metrics requested in table CC3.1a or CC3.1b (for an absolute or intensity target, respectively)

OG7.7b

If methane emissions were incorporated into targets reported in CC3 (but not detailed as a separate target), please indicate which target ID(s) incorporate methane emissions, and specify the portion of those targets that is comprised of methane

OG7.7c

Please explain: (i) why you do not have a methane-specific emissions reduction target or do not incorporate methane into your targets reported in CC3; and (ii) forecast how your methane emissions will change over the next five years

Noble Energy does not currently have a forecast for specific methane emissions reductions for the next five years. Due to Noble Energy's ongoing divestitures and acquisitions it is difficult to forecast aggregate methane emissions because the properties are sold and purchased in discrete packages. Continual improvement of data gathering and calculation methodologies also make it difficult to predict the impact on methane emissions. Because of this, the Company does not currently have a specific methane emissions reduction target; however, we believe emissions will likely increase due to projected growth in the DJ Basin and Texas assets.

Further Information

CDP 2017 Climate Change 2017 Information Request