As investor pressure, regulatory action and shifts in demand push oil and gas companies to reduce their greenhouse gas emissions, two distinct camps have emerged. Roughly half of the 39 integrated, exploration and production, and refining and marketing companies we analyzed have yet to set targets to reduce their Scope 1 and 2 emissions. For the other half, transition strategies are increasingly ambitious, with leaders aiming for net zero. Only five companies, including Eni, Total and Woodside Petroluem, have set targets putting them in-line with the International Energy Agency's Sustainable Development Scenario, in our view.
Just eight companies established targets to reduce their Scope 3 emissions, suggesting others may face significant risk as the economy shifts away from carbon-intensive energy.
