Investors have set a net zero standard for the oil and gas sector

In collaboration with the Institute for Climate Change (IIGCC) and Transition Road Initiative (TPI), more than 20 international investors, including BP, LL and Total, are engaged in leading oil and gas companies. The oil and gas sector by adjusting to zero.

Published today, ‘Net Zero Standard for Oil and Gas’ outlines the steps that oil and gas companies should take to evaluate their growth and how they should report those actions.

Many companies in the oil and gas sector have set zero zero targets and have developed transition plans, highlighting significant changes in the scope and scope of these obligations in TPI and other analyzes.

Climate change and the International Energy Agency’s (IEA) Analysis of the current IPCC report on the road to oil and gas companies are facing urgent deadlines, and investors are looking for companies to show clear and credible net zero plans and strategies. Evaluate their eligibility for inclusion in the net zero portfolio.

“In order for investors to play their role, we need to be able to compare different company strategies in a meaningful way,” said Adam Matthews, chairman of the Investment Company, to develop a standardized and responsible investment officer in the UK Retirement Board. Recognizing that there is no one size fits all ”

Assessing the reliability and adequacy of a company’s transition plans is a “technically complex task,” he said.

The Investors Group – which has a joint venture of 10.4trn (€ 8.8trn) – believes that improving the net zero level of the oil and gas sector will encourage reporting consistency.

“It also identifies strategies that oil and gas companies can incorporate into their net zero transition plans,” Matthew said.

He added, “Ultimately, this is intended to create an equal playing field in the transition plan report so that we can understand, compare, compare and work harder on our assets as long-term stewards.”

The investor team has identified a number of options for effective planning, including:

  • Distribution of renewable energy to new business areas, especially
  • Working with customers to transition to low carbon energy;
  • Develop technology and solutions to reduce emissions; And
  • Discontinue the search and return down existing assets to return cash to investors.

He said the standard provides a better framework for investors to compare the various strategies pursued by oil and gas companies, particularly in areas such as aspirations, targets, decarbonation strategy, capital expenditure, management and transparency.

As part of the Climate Action 100+ Net-Zero Company Benchmark is designed to meet the economic framework, with special guidance for the oil and gas sector.

“Over the past 18 months, many leaders in the oil and gas sector have expressed a desire for improved climate change, with many suggesting that their target is in line with” zero zero. ” However, the analysis shows that many still have a long way to go to achieve the net zero by 2050 and the goals of the Paris Agreement, ”said the IIGCC CEO.

He said the standard would give investors and oil and gas companies a “restart time” to reverse the common understanding that should be included in the transition plan for effective comparisons. Reviews.

EOS Managing Director Bruce Duguid strongly supports the efforts of Federal Hermes and Paris-level oil and gas to help industry investors better understand the various strategies and different types of targets and performance metrics.

Following the publication of the standard, IIGCC and leading investors are now moving forward with a pilot program to work with major oil and gas companies, including BP, Annie, Reposol, LL and Total, and plan to expand. The sector.

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