Oil and gas discussion paper - version 2.0

This discussion paper updates the previous March 2018 version 1.0 to refine the methodology and apply the method to the ten largest publicly listed oil & gas companies globally, including benchmarking against IEA climate scenarios.. This version moves from a conceptual proposal to full empirical application.

This updated discussion paper introduces a more comprehensive treatment of Scope 3 emissions, adding a new approach to estimating Scope 3 emissions from “use of sold products.” It also uses energy sales data to estimate these emissions consistently across companies. As Scope 3 (burning the fuels companies sell) is the dominant source of emissions for oil & gas companies, this update gives a more complete measure of Carbon Performance.

Actual carbon intensity estimates for major companies (e.g., Eni, Occidental etc.) and comparisons with Paris-aligned pathways have been added, whereas the original discussion paper only showed illustrative benchmarking for a few companies.

This version also includes expanded sections discussing investor interpretation of company targets, future carbon-intensity pathways and disclosure expectations for companies.