The world’s largest oil and gas majors are moving further away from alignment with the goals of the Paris Agreement, according to Carbon Tracker research. The think tank has assessed the sector’s climate progress in the wake of the re-election of US President Donald Trump and heightened geopolitical tensions, noting a “widening gulf” as firms “pivot away from green energy” and double down on fossil fuels. All assessed companies are planning to increase oil and gas production in the coming years, with their business strategies now incompatible with a 1.7°C temperature pathway. Some are even misaligned with a 2.4°C rise in temperatures above pre-industrial levels, the report said. “Most producers are ignoring peak demand and remain far from a Paris-aligned path,” said Carbon Tracker Analyst Rich Collett-White. “Investors – whether they have a climate mandate or not – should think twice about backing risky new production for short-term gain.” European oil and gas majors like BP, Eni and Shell have seen their scores decline since Carbon Tracker’s assessment last year, due to their longer-term production targets for fossil fuels. BP fell from its previous top spot with a ‘D’ grade – down to an ‘F’ this year – following its decision to abandon its target to wind-down fossil fuel production. Separately, changes proposed in the European Commission’s (EC) sustainable finance omnibus would exempt European oil and gas majors from reporting under the EU Taxonomy. In its Delegated Act proposal, the EC has proposed that companies with less than 10% taxonomy-relevant activities should no longer be required to report. A briefing by the World Wide Fund for Nature (WWF) suggests this would mean oil and gas companies are exempt, creating a “major data gap” for investors looking to assess the green performance or transition claims of these companies.
