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The energy sector is one sector directly involved in ESG conversations. Top energy transition companies in the oil and gas sector, as well as those in the renewable energy industry, are involved in activities with ESG impact much more than organizations in other spaces. Pledges to cut greenhouse gas emissions have made the headline news lately and there are the breakdown of latest pledges.
Top Energy Transition Companies
BP (NYSE:BP) has pledged to be net-zero on all direct emissions by 2050. Cut the carbon intensity of all products by 50% but does not include BP’s stake in Rosneft, the Russian energy company which account for more than 40% of BP’s oil production and 15% of natural gas. BP has not made publicly how they are going to achieve the pledges.
Shell (NYSE:RDS) pledges to be net-zero by 2050 on all direct emissions and reduce carbon intensity of all products by 65% with interim target of 30% by 2035. It is unclear if they are using carbon removal technology or replacement by use of reforestation.
Chevron (NYSE:CVX) has committed to shorter timeline for carbon reduction but has not set a date to be net-zero. Chevron has pledged to cut carbon intensity of all direct emissions from oil production by 5% to 10% by 2023 and 2% to 5% from natural gas production.
Total (NYSE:TOTAL) pledges to be net zero on direct emission and all products sold in Europe by 2050. They also pledged to cut carbon intensity of its products sold worldwide by 60% with interim target of 15% by 2040 and 35% by 2040.
These are the top energy transition companies that have pledges carbon emission reductions and engaging in ESG activities is another sure path through which investors’ trust can be regained.
There are many questions with few answers on how these companies plan to reduce greed house gas emissions. In traditional method, energy companies have adopted reduction way in reforestation or carbon removal technology to cancel out emissions in which total emission can stay flat.
We will hear more when more announcements from industry to come.
ESG reports are strategic tools that guide ESG investing. Even passive investors will pay particular attention to the ESG scores and reports of companies in the energy sector. The role ESG reports play must be acknowledged and maximized in the energy industry. ESG plays a critical role in transitioning to the energy sector and should not be neglected.
ESG Enterprise is the all-in-one app to help energy companies on ESG branding, metrics and disclosures.
ESG in Energy Industry?
The call for clean and renewable sources of energy globally has made ESG investing particularly peculiar to the energy sector. Investors in the energy space are paying particular attention to the sustainability journey embarked on by the different companies.