Report shows only 9% of top oil and gas companies report Scope 3 emissions from investments
Published by Poppy Clements,
Assistant Editor
Hydrocarbon Engineering,
The report examines and quantifies GHG emissions from all physical assets that these companies own, including their minority investments, as well as key reporting and disclosure trends, leveraging data from Climate TRACE, a global non-profit coalition to independently track GHG emissions globally.
“While reporting and disclosure remain a foremost priority for organisations throughout the business world, data quality, transparency, and completeness continue to be a noticeable problem area for businesses and regulators alike,” said Patricia Pina, Head of Product Research and Innovation at Clarity AI. “This is particularly true within the oil and gas industry as it relates to Scope 3 emissions, whereby reporting and data gaps lead to chronic underreporting of portfolio carbon footprints and provide a distorted view of how companies compare on carbon intensity."
Less than 10% of companies report Scope 3 investment emissions data
While all publicly traded oil and gas companies listed in the MSCI All Country World Index (ACWI) report their Scope 1 and Scope 2 GHG emissions, only 9% of these companies report Scope 3 emissions from their investments, according to Clarity AI’s analysis based on 2023 CDP questionnaire. The study found the same pattern among the top 20 companies in the industry, with only one currently reporting emissions from assets the company owns an interest in but which it does not control.
Accounting for 'missing emissions' of investments causes a significant carbon footprint rise
Per the study, if these 'missing investment emissions' are accounted for, a portfolio consisting of investments in these top 20 oil and gas companies would have a 24% higher carbon footprint than if these emissions are not accounted for – a significant discrepancy in overall carbon impact.
Investment emissions reporting reorders carbon footprint leader board of top 20
According to the study, accounting for the investment emissions also has a significant impact on how these top 20 companies are ranked according to their GHG emissions intensity. For example, when accounting for these investment emissions, seven out of 20 companies would fall in the rankings vs if they were not accounting for these emissions – with one company falling as many as six places from the ninth spot to 15th.
“The impacts of not reporting investment Scope 3 data are incredibly stark and underline the importance of having a comprehensive and transparent view of an organisation’s emissions footprint,” said Patrica Pina of Clarity AI.
Read the article online at: https://www.hydrocarbonengineering.com/refining/18072024/report-shows-only-9-of-top-oil-and-gas-companies-report-scope-3-emissions-from-investments/
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