The Transition Pathway Initiative Centre (TPI Centre)’s Net Zero Standards (NZS) assessments evaluate the transition planning of seven oil and gas (O&G) companies and five diversified mining (DM) companies. In this year’s NZS assessments, the TPI Centre included the DM sector for the first time.
The O&G and DM companies covered in this year’s NZS assessments had a combined market capitalisation of over $500 billion as of February 2025. They are some of the largest extractive companies globally. The O&G sector alone contributes to more than 50% of energy-related global emissions.
[1] Therefore, these are critical public companies for the investors to engage with to support the transition to net zero.
The
assessment data[2] suggest that transition planning comprehensiveness varies widely between companies, geographies and sectors. Key highlights of the assessments include:
- Companies in the O&G sector score on average 11% of NZS metrics while DM companies scored on 42% of NZS metrics.
- NZS scores exhibit a high degree of variation, ranging from 0-24% in the O&G companies and 16-62% in the DM companies.
- On average O&G companies score on 8% of metrics that assess alignment with the Paris agreement while DM companies score on 24% of metrics, indicating a large gap between corporate plans and Paris goals.
The assessment data for both sectors can be found
here.
Note:
- The TPI Centre at the London School of Economics and Political Science (LSE) is acting as the company assessor for the NZS and does not participate in investor engagement.
- Company disclosures or commitments made after 8 January 2025 have not been included in the company assessments.
- The TPI Centre’s Net Zero Standards for O&G assessments are based on the Net Zero Standard for Oil & Gas, which was originally designed by the Institutional Investors Group on Climate Change (IIGCC). The TPI Centre’s Net Zero Standards for DM assessments are based on the Net Zero Standard for Diversified Mining, which was originally designed by the Climate Action 100+ initiative.
[1] Source: https://www.iea.org/data-and-statistics/data-tools/greenhouse-gas-emissions-from-energy-data-explorer
[2] During the TPI Centre’s assessment, all metrics are assigned binary (“Yes/No”) scores based on available public disclosure. Sub-indicator percentages are calculated by summing the number of Yes scores (Yes = 1) and dividing them by the total number of metrics in the relevant section. The resulting data is colour-coded to enable investors to visually inspect areas of under- and out-performance.
