Suncor, Exxon Mobil, Chevron and ConocoPhillips have been named the worst performers in the oil and gas sector when it comes to environmental performance, according to investor-backed environmental data body CDP.
The North American firms have secured the bottom positions in a league table of 11 oil and gas companies globally. They have been assessed based on their emissions performance, water resilience, governance and strategy, fossil-fuel asset mix and capital flexibility.
Statoil landed the top spot in the league table, with Italy’s Eni coming second, followed by Total, Shell & BG, BP, Occidental and Petrobas.
CDP highlights the contrast between the top five scorers – which are all based in Europe – and the bottom six, which are all based in the Americas (Canada, the US and Brazil).
“Our research shows that European companies have been more active in developing transition strategies for the coming decade,” said Tarek Soliman, Senior Analyst of Investor Research at CDP, adding that “oil and gas majors need to look at how they fit into an energy system which achieves the goals laid out in the Paris Agreement”.Meryam Omi, Head of Sustainability and Responsible Investment Strategy at Legal & General Investment Management, echoed Soliman’s call for oil and gas firms to align themselves with a 2°C scenario, saying L&G would use the report “to guide its overall engagement strategy with the sector”.
LGIM will use report to “guide its overall engagement strategy with the sector”.
She added that the report reveals a “divergence in [oil and gas companies’] commitments and transparency”.
The CDP claims Saudi Aramco, Rosneft and PetroChina did not respond to requests for information ahead of the report, urging investors in these companies to engage with them on “why they are not providing transparency on their carbon risks”. The absence more broadly of “robust data on probable and possible reserves” was also a stumbling block for investors seeking to compare risks and opportunities across peer companies, it said.