Global investors face significant environmental, social and governance risk stemming from a vast network of commercial oil and gas projects owned by the companies they hold shares in but which are controlled by third-parties, according to a new paper released by Environmental Defense Fund (EDF) and Rockefeller Asset Management.
The analysis, “Emission Omission: A Shareholder Engagement Guide to Uncovering Climate Risks from Non-Operated Assets in the Oil and Gas Industry” evaluates production exposure, methane disclosure and target coverage of nine Oil and Gas Climate Initiative (OGCI) companies. Building on EDF’s 2018 report, the Next Frontier, the paper offers technical guidance for investors to constructively engage companies to reduce ESG/climate risk.
“Climate risks from non-operated assets may have risk-and-return implications for oil and gas investors as companies continue to finance natural gas infrastructure,” said Meredith Block, Senior computer science vs computer engineering salary Analyst and Senior Vice President, Rockefeller Asset Management. “Now is the time for investors to call companies to action and encourage them to establish methane targets that cover 100% of their production volumes, across all of their assets.”
OGCI companies reviewed in the analysis include bp, Chevron, Equinor, Eni, ExxonMobil, Oxy, Repsol, Shell and Total. Their non-operated assets range from 19% to 66% of company production, with five of the nine companies deriving more than half their output from facilities run by third-parties.
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