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How ambitious are oil and gas companies’ climate goals?

Author

Listed:
  • Dietz, Simon
  • Gardiner, Dan
  • Jahn, Valentin
  • Noels, Jolien

Abstract

The oil and gas (O&G) industry faces an existential threat from the transition to a low-carbon economy. Companies are increasingly responding by setting greenhouse gas (GHG) emissions targets, which are presented as being compatible with this transition. Many stakeholders, including investors that own O&G companies, want to understand how ambitious these targets are. In this paper, we present a forward-looking method of estimating the life-cycle carbon emissions intensity of O&G producers based on their public disclosures, and we use it to compare companies’ targets with international climate goals. The sector is not on track. Recent trends in emissions intensity have been mostly flat. Nearly half the companies we assess have yet to set emissions targets or provide sufficient clarity on them. Of those that have set targets, most are either too shallow or too narrow. Two companies have set targets that would bring their GHG intensity below international climate goals by mid-century.

Suggested Citation

  • Dietz, Simon & Gardiner, Dan & Jahn, Valentin & Noels, Jolien, 2021. "How ambitious are oil and gas companies’ climate goals?," LSE Research Online Documents on Economics 112536, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:112536
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    File URL: http://eprints.lse.ac.uk/112536/
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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