At Range, we view climate change as an environmental, economic, and social reality with potential impacts for our world, our industry, and our communities. We believe that the production and use of natural gas plays an integral role in addressing the risks associated with climate change and transitioning to a lower-carbon economy. With this opportunity, we remain committed to responsible production in an economic and safe manner, while continuing to achieve industry-leading emissions reductions as part of our operations.
Our approach to climate change is guided by the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and formalized by our recently released Environmental Policy. Our Environmental Policy details our Environmental Management System, the involvement of all of our employees in this process, and our environmental stewardship objectives and goals. Our Environmental Policy represents Range’s commitment to continuously improving and deploying industry-leading environmental standards during the transition to a lower-carbon economy.
The Range Board of Directors includes climate change considerations in its oversight responsibilities, as climate change issues relate to business development decisions, risks, and opportunities that the Board reviews and acts upon as part of the regular course of fulfilling its duties. Environmental risks and opportunities associated with climate change are a core responsibility and area of focus for the full Board. In May of 2021, the Board added an ESG and Safety Committee, which will supplement that oversight. The Committee provides guidance and reviews reports on ESG topics including climate change and other environmental topics.
The Board receives quarterly updates from several sources regarding information related to our environmental initiatives and progress towards our goals, including climate-related risks and opportunities. For example, the Environmental Compliance Department reports to the Board with information about our progress on our sustainable performance metrics, including climate-related indicators like GHG emissions and water usage. Likewise, our Legal Department and Government Affairs Department inform the Board about regulatory developments including climate change issues, such as state, federal, and global regulatory actions and initiatives that may be relevant to both Range and our industry. The Risk Management Committee, the cross-functional body which comprises managers and executives from multiple business departments (Environmental Compliance, Finance, Investor Relations, Accounting, Operations, Health and Safety, Legal, and Government Affairs) regularly provides information on all manners of risks to the Audit Committee including those related to climate change.
Our Board regularly reviews macroeconomic trends and forecasts in relation to the natural gas market from our Marketing Department including long-term projections of commodity prices, which include assumptions that incorporate climate change impacts. The Board, guided by the ESG and Safety Committee, includes all climate change-related information that it receives into their discussions and decision-making processes with regard to the development and the approval of Range’s business plans and risk management policies. Our goals and objectives, in relation to climate resilience and sustainability, affect capital allocation decisions, including capital expenditures, acquisitions, and divestitures.
Climate change risks and opportunities are by nature interdisciplinary and, to that end, our management team applies the oversight and management of emissions reductions efforts through multiple channels. This comprehensive approach provides leadership a 360-degree view of how several aspects of our business are impacted by climate-related issues, including our efforts to reduce emissions, preserve and protect water, meet other environmental compliance responsibilities, our capital expenditure decisions and future investments, the markets for our products and services, the impact of legislative and regulatory developments, and our relations with our shareholders and investors.
Range’s Senior Management Team establishes the expectations for the Company’s efforts in assessing and managing climate-related issues. The various teams and departments responsible for monitoring and managing of climate-related risks and opportunities report directly to or are led by members of the Senior Management Team.
The risks and opportunities that come with climate change policy are top of mind for our Senior Management Team, who understand its potential impacts for our business. The team incorporates its assessment of these risks in the daily management of the Company and its long-term business planning decisions. Our Legal Department and Government Affairs Department also regularly monitor issues associated with regulatory action or political advocacy.
As directed by the Board and Senior Management, the Environmental Compliance Department is responsible for developing policies, procedures, and field guides for operations, providing training and education for employees, creating channels of communication, internal reporting of performance, and monitoring and auditing environmental practices. A committee of officers and senior managers work across the business to manage enterprise level risk and identify emerging risks, including climate change-related risks. Finally, our Finance Department and Marketing Department assess the impact of climate change on commodity prices when reviewing macroeconomic trends and projections that affect our industry.
At Range, we recognize and understand our responsibility to act as a steward of the environment, and that understanding guides everything we do. Our approach to climate change management is an integral part of our broader business strategy, which includes the following elements:
Climate-change and other macroeconomic factors can impact the price of the natural gas we sell. Range focuses on operating responsibly and as efficiently as possible in order to manage the risk of changing natural gas prices.
By continuing to be on the lower end of the industry supply cost curve, Range is able to reduce the risk from lower prices relative to peers.
In order to operate in a clean and safe manner, we have invested and implemented substantial GHG reduction programs and water management initiatives as part of our environmental stewardship strategy.
Natural gas is a cleaner and safer alternative to other fossil fuels and is projected to outpace oil and coal as a source of energy. As a producer, we understand the inherent opportunity natural gas production provides us and our stakeholders. Our focus on natural gas and NGL production in the Appalachian basin in Southwestern Pennsylvania grants us some of the lowest production costs in North America, while operating under some of the highest state and local environmental and safety regulatory standards.
Our emphasis on maintaining a long-life drilling inventory and low decline reserve base reflect our long-term focus and strengthen our resilience in maintaining our cost advantage, while marketing our products to a broad customer base reaffirms our belief in natural gas’ long-term advantage as a reliable and clean energy source with significant global demand potential. Finally, in order to adapt to the challenges before us, we maintain operational and financial flexibility and are fully committed to the continued reduction of our GHG emissions footprint, positioning Range as a leader in the industry.
From 2011 to 2020, we have reduced our direct GHG production emissions intensity by 84 percent, while reducing our absolute direct emissions by 66 percent in just the last three years. As technology allows us to improve efficiency and production techniques, our methane intensity will improve. Additionally, we work to upgrade older well sites with newer, more advanced technology. By utilizing improved technology, we are reducing overall emissions.
Range has expanded our emissions goal by committing to net zero Scope 1 and Scope 2 GHG emissions by 2025. The EPA defines Scope 2 emissions as indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. We view those emissions part of our GHG inventory and this added commitment strengthens our sustainability goals.
Emissions reductions are an integral part of our strategy implementation, and we have set several short-term, medium-term, and long-term objectives specifically related to GHG emissions. Our medium-term goals focus on achievements by 2025, including net zero Scope 1 and Scope 2 GHG emissions through absolute reductions in emissions, the use of carbon offsets including reforestation and improved forest management, and further reducing our GHG emissions intensity by 15 percent relative to 2019 levels by 2025.