Oil and gas companies all undermining Paris Agreement
No major oil and gas firms are aligned with the Paris Agreement’s ambition to limit global warming to 2°C, a study by the $15trn-backed Transition Pathway Initiative (TPI) has uncovered. After assessing the carbon performance of 50 oil and gas companies, the TPI also found that just two are aligned with the pledges – Royal Dutch Shell and Repsol.
The study also involved assessment of climate risk corporate governance, finding that coal is the worst-performing sector; 14 companies failed to recognise climate change as a relevant risk.
Of all the energy firms studied, 22% fall into the bottom ranking for climate risk governance. Of these, 14 are in the coal sector, six in oil and gas, and nine electric utilities.
The TPI is a global initiative led by asset managers. It warned that investors are increasingly concerned that the energy sector is failing to respond quickly enough to climate change.