New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Shades of green – colour coding the oil and gas company energy transition
22/11/2023
8 min read
Feature
Sustainable Fitch has developed a model to analyse the diverging pathways between various oil and gas companies on the path towards a low-carbon economy. Marina Petroleka, Global Head of Research at Sustainable Fitch, explains how the model works, highlighting wide disparities.*
Not all corporate low-carbon transition plans are of equal robustness, credibility and impact. There is a gap in the market where investors need nuance in their understanding of ostensibly similar pledges from companies in the same industry. While net zero and decarbonisation targets cover an ever-expanding swathe of the corporate landscape, there is a lack of visibility, scrutiny and, ultimately, credibility around the emission reduction action plans needed.
Notably, scrutiny of the recent net zero stocktake by Zero Tracker found that nearly 1,000 of the largest 2,000 companies have net zero targets. However, only 4% have a comprehensive plan in place covering all scoped emissions, with clarity on the use of offsets, short, medium and long-term roadmaps, and annual reporting.
These are the issues Sustainable Fitch’s Transition Assessment (TA) aims to address.