The Institutional Investors Group on Climate Change (IIGCC) has published guidance outlining how investors can address methane emissions in their investment portfolios. “Where the Kyoto Protocol defines six greenhouse gases, all are not created equal in their atmospheric and warming impacts,” said Roger Lewis, Head of Sustainability and Responsible Investing at investment manager Downing LLP. Some – carbon – get almost all the attention, but the others also trap heat and can be concentrated in certain sectors and countries [so] these definitely deserve attention from investors.” The IIGCC has outlined engagement frameworks for addressing methane emissions from oil and gas and coal operations, and for engaging with the wider ecosystem on related risks – including banks, policymakers and fossil fuel value chains. In addition, the paper considers the climate science of methane and the existing regulatory and reporting landscape. “Methane is a major source of global warming that has been underappreciated by the financial sector – especially since a significant share of methane emissions can be eliminated at a reasonable cost,” said Andrew Howell, Senior Director for Sustainable Finance at Environmental Defense Fund. “IIGCC’s new methane paper is a timely and much-needed contribution to the conversation the investor community needs to be having around methane from oil and gas and coal mining.”
