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September 2023 - Oil and Gas

Survey finds that almost no progress has been made by oil and gas companies to phase out fossil fuels: A piece of research by The World Benchmarking Alliance and CDP - a not-for-profit charity that runs the global disclosure to manage environmental impacts - has found that even though the median scores result has improved since last year's study, oil and gas companies have made "almost no progress towards the Paris Agreement goals since 2021". 

Not one of the 99 benchmarked oil and gas companies is set to cut its overall emissions "at a rate sufficient to align with a 1.5°C pathway over the next five years", said the CDP -- although some have proposed longer-term plans.

The Oil and Gas Benchmark has been developed with CDP and uses the ACT (Assessing low Carbon Transition) Oil & Gas methodology and WBA social and just transition indicators. This approach, says the WBA, “provides a holistic assessment of companies’ efforts to achieve a low-carbon transition that is just and equitable.” The purpose of the Benchmark is to assess and rank oil and gas companies around the world on their low-carbon transition and social impact.

This is the second Oil and Gas Benchmark, with the research finding that just 25% of companies disclose the amount of capital investment they have put in to low carbon technologies, and amongst those that do, their investment falls short according to the CDP. Just 12 companies have reduced their scope 1 and 2 emissions in line with their 1.5 degree pathway, and Finnish company Neste stands alone in investing enough to limit an increase in global temperatures to 1.5˚C, found the research.

Of the 99 companies assessed, Neste ranked top with a total score of 56 out of 100 -- the only company to score over 50 - followed by Engie with a total score of 49.6 and TotalEnergies (45.3) in third. Making up the top five was Naturgy Energy (43.9) and Eni (41.8). The findings revealed that 40 companies scored less than 10, whilst the average score in the 2023 survey was 15.2 out of 100.

The study also found that just 35% of the companies assessed are committed to social dialogue with workers and affected stakeholders, with 46% disclosing the share of their workforce covered by collective bargaining agreements.

It also revealed that while over half of the companies assessed have a human rights policy, just 12% demonstrate effective human rights due diligence in order to benefit people whose human rights are at risk.

Amir Sokolowski, CDP’s Global Director, Climate said:

“This assessment of the oil and gas sector is critically timed before COP28, it must be used to re-enforce current cries that it is not possible for us to limit warming to 1.5 degrees and avert the worst impacts of climate change if we do not start to hold this vital sector to account."

Take a look at the full rankings here or skip to the full report

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