Carbon Performance assessment of oil and gas producers methodology note - version 4.0

The Carbon Performance assessment of oil and gas producers methodology note - version 4.0 outlines how oil and gas companies are evaluated against global climate goals, including the Paris Agreement. The methodology benchmarks companies’ emissions intensity against sector-specific decarbonisation pathways, allowing investors and other stakeholders to assess how aligned producers are with the transition to a low-carbon energy system.

Using the Sectoral Decarbonisation Approach (SDA) and modelling from the International Energy Agency (IEA), the framework compares companies’ emissions intensity, measured as lifecycle greenhouse gas emissions per unit of energy supplied with benchmark pathways for different climate scenarios. The assessment incorporates Scope 1, Scope 2 and Scope 3 emissions, including emissions from the use of sold products, which make up the majority of lifecycle emissions in the oil and gas sector.

The methodology also explains key technical aspects of the assessment, including how benchmark pathways are derived, how company emissions intensity is calculated, and how challenges such as incomplete disclosure of Scope 3 emissions are addressed. It provides transparency on data sources, emissions boundaries, and assumptions used in evaluating companies’ progress toward decarbonisation.

This 2023 methodology note represents an updated iteration of TPI’s Carbon Performance framework for oil and gas producers.