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New Energy World magazine logo
New Energy World magazine logo
ISSN 2753-7757 (Online)

Shades of green – colour coding the oil and gas company energy transition

22/11/2023

8 min read

Feature

Aerial overview of green forest canopy overlaid with computer generated icons relating to net zero Photo: Adobe Stock
Despite the express intention of the oil and gas companies to go greener, Sustainable Fitch finds there is wide disparity in their emission reduction plans, according to its colour-coded models

Photo: Adobe Stock

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.

 

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