Leading investor climate action group, Climate Action 100+, criticizes the low-carbon transition plans of major oil and gas companies in Europe and North America.
The assessment, conducted using the Net Zero Standard for Oil & Gas framework, highlights deficiencies in companies’ readiness to address climate risks.
Despite commitments to net-zero emissions by 2050, lack of detail on carbon capture technology and reluctance to curtail fossil fuel production poses significant challenges.
Evaluation Criteria and Industry Performance
Companies such as Exxon Mobil, Shell, and Chevron were evaluated based on disclosure, alignment with climate ambitions, and investments in climate solutions.
Results indicate that companies met only 19% of the Net Zero Standard metrics. European firms outperformed their North American counterparts, with TotalEnergies, BP, and Eni leading the pack.
However, concerns persist regarding the industry’s preparedness for the low-carbon transition, with significant gaps in disclosure and strategic planning.
Path Forward Through Engagement
The analysis aims to guide engagement efforts by asset managers with company boards, especially as the season for annual general meetings approaches.
Jared Sharp, Project Lead for Net Zero Standards at the TPI Centre, underscores the urgent need for companies to enhance their climate strategies.
While some companies demonstrate progress, the industry remains inadequately prepared for the transition to a low-carbon future, signalling the imperative for concerted action and accountability.
