CDP launches new focus on energy sector
- Business & Industry ,
- Energy ,
- Reporting ,
The Carbon disclosure project (CDP) is to target oil and gas production companies since so few in the sector have emerged as leaders on climate change action.
The latest CDP list of global leaders on emissions reduction contains only six oil and gas production companies. Of these, only three have set absolute targets for emission reductions. To improve performance, the CDP said it will trial a sector-specific approach from next year.
The pilot project will involve consulting directly with investors and industry representatives to develop guidance to drive consistency of reporting among oil and gas comanies. The CDP will also establish sector-specific scoring to better assess companies’ level of ambition on addressing climate change, and how comprehensive the information they provide publicly.
The CDP is hoping that the work will help the oil and gas sector to produce data that is more meaningful to investors, incentivise transparency and catalyse action.
If the pilot is successful, the CDP hopes to roll it out to other sectors, which will be prioritised according to their dependence and impact on climate change, water and deforestation.
Several sectors, notably IT and finanical seervices, are much better represented on the CDP’s leadership list.
The CDP found that companies in the vanguard of taking action to mitigate climate change generate better returns for shareholders than those that are sluggish in their response. It commissioned investment advisers ECPI to compare the market performance of companies on its leadership list (CPLI) against both a broad market index and a global sustainability index between 2010 and 2014.
The comparator indices were the Bloomberg world index and the Dow Jones sustainability world index (DJSWI). Over the four-year period, the CPLI gained 37.53%, outperforming the Bloomberg world index, which gained 34.24%, and the DJSWI, which increased by 31.38%.
Paul Simpson, chief executive officer at the CDP, said: “The businesses that have made it on to our first global list of climate performance leaders are to be congratulated for their progress; they debunk economic arguments against reducing emissions.”
Demand for fossil fuels will peak by 2025 if all national net-zero pledges are implemented in full and on time, the International Energy Agency (IEA) has forecast.
The Green Homes Grant is set to deliver only a fraction of the jobs and improvements intended, leading to calls for more involvement from local authorities in future schemes.
COVID-19 recovery packages have largely focused on protecting, rather than transforming, existing industries, and have been a “lost opportunity” for speeding up the global energy transition.
Half of the world's 40 largest listed oil and gas companies will have to slash their production by at least 50% by the 2030s to align with the goals of the Paris Agreement, new analysis has found.
None of England’s water and sewerage companies achieved all environmental expectations for the period 2015 to 2020, the Environment Agency has revealed. These targets included the reduction of total pollution incidents by at least one-third compared with 2012, and for incident self-reporting to be at least 75%.
The UK’s pipeline for renewable energy projects could mitigate 90% of job losses caused by COVID-19 and help deliver the government’s ‘levelling up’ agenda. That is according to a recent report from consultancy EY-Parthenon, which outlines how the UK’s £108bn “visible pipeline” of investible renewable energy projects could create 625,000 jobs.
Billions of people worldwide have been unable to access safe drinking water and sanitation in their homes during the COVID-19 pandemic, according to a progress report from the World Health Organisation focusing on the UN’s sixth Sustainable Development Goal (SDG 6) – to “ensure availability and sustainable management of water and sanitation for all by 2030”.