Absolute Impact: Why Oil and Gas Companies Need Credible Plans to Meet Climate Targets - Carbon Tracker Initiative

rjzimmerman:

KEY FINDINGS

Net zero goals alone are insufficient to reduce carbon emissions in line with Paris goals and curb corporate transition risk. We provide a relative ranking of the emission reduction targets of 15 of the largest listed oil and gas companies based on our “Hallmarks of Paris Compliance” (majors plus Equinor, Occidental, Repsol, Devon, EOG Resources, EQT, Suncor, and Pioneer).

  • Tier one includes those with absolute reduction targets including Scope 3 emissions
  • Tier 2 companies are those with scope 3 emissions reductions on an intensity-only basis.
  • Tier 3 includes companies with only operational intensity (Scope 1 & 2) emissions reduction goals.

Setting appropriate targets is just the first step; the approach to achieving emissions reductions must be credible to ensure that both stated reductions occur and that shareholders’ exposure to transition risks are not increased.

  • Asset divestments must not be used to justify continued investment in new fossil assets.
  • The ability of emissions mitigation technologies such as CCUS and “nature-based solutions” to deliver stated reductions must be scrutinised.
  • 3rd Party offsets may not actually lead to emissions reductions.

Absolute Impact: Why Oil and Gas Companies Need Credible Plans to Meet Climate Targets - Carbon Tracker Initiative