Investors group outlines transition blueprint for big oil

A coalition of investors managing $10.4 trillion (€8.8 trillion) published on Wednesday an ambitious blueprint for energy companies who want to tackle climate change, laying out the minimum expectation whether its cuts to greenhouse gas emissions or reducing oil and gas production.

The Institutional Investors Group on Climate Change (IIGC)  published  the Net Zero Standard for Oil and Gas which details 10 required standards to help compare companies' strategies and understand whether they are aligned with United Nations-backed efforts to reduce global carbon emissions to net zero by 2050.

“In order for investors to play their role, we need to be able to meaningfully compare different company strategies whilst recognising that there is no one size fits all approach. Assessing the credibility and adequacy of company transition plans is a technically complex task.” explains Adam Matthews, Chair of the Investor-Company process to develop the Standard and Chief Responsible Investment Officer, Church of England Pensions Board.

Oil and gas companies such as BP and Royal Dutch Shell have published targets and strategies aimed at tackling climate change, but comparisons have been difficult for investors. The blueprint will “outlines the actions that oil and gas companies should be taking and how they should be reporting on those actions so that investors have a level playing field to effectively evaluate their progress.