Verdantix finds variations in GHG disclosures among oil and gas industry
Research from independent analyst firm Verdantix has found huge variations in the greenhouse gas data disclosures, metrics and reduction plans among some of the largest oil and gas players in the industry.
"Oil and gas majors that shape industry thinking have not yet created a standard framework for GHG management," said Will Mullins a Verdantix analyst.
"A leading group composed of BP, Chevron, Concoco Philips, Exxon Mobil, Shell and Total has invested in people, processes and technology to disclose accurate GHG emissions data across scopes 1, 2 and 3 for their global operations. But other global players in the oil and gas sector such as LUKOIL, PetroChina, Saudi Aramco and Sinopec disclose very little GHG data. Eni, Gazprom, Petrobras and Statoil have started on their GHG emissions disclosure journey but have further to go," he said.
Verdantix found such variations as:
- Only Chevron, Eni, Exxon Mobil, Shell and Total disclose reduction targets and none of these targets apply to 100% of total GHG emissions for the 2011 period.
- None of the 14 oil and gas firms in the research use the same baseline year for calculating GHG reduction targets and only five have set a baseline year.
- Reduction targets, where they exist, have often lapsed with end dates set in the past, and no new targets being disclosed with end dates in the future.
"Oil and gas majors should adopt industry frameworks for GHG management developed by [recognized] trade associations…Laggards can learn from the more mature strategies of firms like Chevron, Exxon Mobil and Shell," said David Metcalfe, Verdantix CEO.
He added that, "Technology for GHG data collection, reporting and analysis is ready to go. Five firms in the benchmark use the energy and emissions management software platform from IHS and one has deployed Enablon's software. Ten of the oil and gas majors invest in assurance of their data with independent third parties, primarily with Ernst & Young but also with KPMG and LRQA."
Only mandatory reporting rules will put sufficient pressure on oil and gas majors to measure and disclose global GHG emissions, Verdantix concludes.
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