Oil and gas discussion paper - version 1.0
14 March 2018
Proposal of a methodology to assess the Carbon Performance of oil and gas producers
This discussion paper proposes an early version 1.0 framework for evaluating oil and gas producers against global climate goals, including those associated with the Paris Agreement. The paper introduces a methodology to benchmark companies based on the lifecycle carbon intensity of the energy they supply, helping investors assess how aligned oil and gas companies are with the transition to a low-carbon energy system.
The framework suggests measuring companies’ emissions intensity as greenhouse-gas emissions per unit of energy supplied, covering operational emissions and emissions from the use of sold products. Using company disclosures and example assessments of firms such as Shell, Total and Petrobras, the discussion paper demonstrates how oil and gas producers can be compared with low-carbon transition pathways consistent with international climate targets.
As a discussion paper, the report explores key methodological challenges such as data availability and the treatment of Scope 3 emissions and helped inform the development of later Carbon Performance methodologies for oil and gas producers.