Tuesday, 21st November 2023 – Climate Action 100+, the world’s largest investor engagement initiative on climate change, has announced the list of 10 companies to be assessed against the Net Zero Standard for Oil & Gas (NZS O&G).
The NZS O&G, published by IIGCC in April 2023, provides a comprehensive sector-specific assessment framework for investors to assess oil and gas companies’ disclosures and the alignment of their transition plans with a 1.5oC climate scenario.
10 companies that will be assessed publicly against the NZS O&G in early 2024 include: Exxon Mobil, Shell plc, Chevron, TotalEnergies SE, ConocoPhillips, BP, Occidental Petroleum, Eni S.p.A, Repsol S.A. and Suncor Energy.
Pilot assessments for a limited number of companies from other regions will also be conducted privately to test the applicability of the metrics. Companies will receive their preliminary assessments in early December. Assessments will be carried out by the Transition Pathway Initiative (TPI) Centre.
The NZS O&G metrics have been designed to complement the Disclosure Framework of the Climate Action 100+ Net Zero Company Benchmark. The initiative also recently announced the launch of the Net Zero Standard for Diversified Mining (NZS DM). Both Standards are designed to support and complement Global Sector Strategies engagement, as outlined in Climate Action 100+’s phase two strategy.
About the Net Zero Standard for Oil and Gas
The NZS O&G was developed to help inform investors’ corporate engagement priorities and escalation strategies, whilst helping them better understand the transition risk in their portfolios.
Its development followed a two-year consultation process led by IIGCC with support from Transition Pathway Initiative Centre (TPI Centre), investors and regional investor groups. Provisional indicators were published in September 2021 and subsequently tested in a pilot study covering five major oil and gas companies.
This project remains a pilot for the oil & gas sector, and the expansion of assessments to more companies and/or other sectors is not guaranteed. Further work on sector standards and Climate Action 100+ linked assessments is dependent on the strategic priorities and resources of the initiative, as well as relevant data providers.
The initiative’s full disclaimer can be found here.