Big Oil’s climate planning not good enough, investors say By Reuters


It’s Simon Jessop

LONDON (Reuters) – Current plans among 10 European and North American oil and gas companies are not good enough to assess potential risks, the world’s leading weather forecasting group said on Wednesday.

Climate Action 100+ said companies including Exxon Mobil records (NYSE:), Shell (LON:) and Chevron (NYSE:) was evaluated using the Net Zero Standard for Oil & Gas framework by the independent Transition Pathway Initiative (TPI) Center.

Other companies included in the analysis were TotalEnergies (EPA:), ConocoPhillips (NYSE:), BP (NYSE:), Occidental Petroleum (NYSE:), Eni, Repsol (OTC:) and Suncor Energy (NYSE:).

Each was assessed using indicators and sub-indices under three broad headings – Disclosure, where companies are paid for providing information about their operations; Reconciliation, which measures the climate’s longing; and Climate Solutions, which tracks investments in green products.

The purpose of the Net Zero Standard for Oil & Gas (NZS) is to allow for the assessment of how the disclosures and procedures of the companies in the group comply with the Paris Agreement on climate change.

Overall, these companies met only 19% of all NZS metrics. European companies performed best, led by TotalEnergies, BP and Eni, while North American companies were weak in all three categories.

Shell and ConocoPhillips declined to comment on the findings. Other companies did not immediately respond or could not immediately comment on the report.

Although several companies are targeting net zero emissions by 2050, the lack of detail in their use of carbon capture technology made it difficult to determine how they would get there, CA100+ said.

In the case of fossil fuel production, which the International Energy Agency says must also be supported to meet the world’s climate goals – which were agreed at the COP28 talks in Dubai in November – few companies agreed.

Among the smaller demonstrations, none of the companies agreed on “the need to cut back on large-scale production across the industry”. Of the 10, only Repsol and TotalEnergies control long-term oil, gas or their combined production.

None of the companies provided the required details on their greenfield capital investment plans, the report added.

“The initial assessment of the Net Zero Standard for Oil and Gas provides a clear message: while some companies are showing appreciable steps towards climate change, the market as a whole is still very ill-prepared for this change,” said Jared Sharp (OTC:), Project. Lead for Net Zero Standards, TPI Center.

The hope is that the analysis will help inform asset managers and corporate boards, as the annual general meeting season gets into full swing in the coming weeks, Sharp said.

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