The Institutional Investors Group on Climate Change (IIGCC) has launched a framework for investors to assess alignment of oil and gas companies’ transition plans with a 1.5oC climate scenario.
According to the IIGCC, the framework will help inform investors’ corporate engagement priorities and escalation strategies, and help them to better understand the transition risk in their portfolios.
In total, there are 90 metrics used in IIGCC’s oil and gas framework, ranging from measurement of short term emissions targets, a comprehensive decarbonisation strategy, and disclosures in areas such as methane emission.
The framework is designed to complement the sector-neutral Climate Action 100+ Company Benchmark, with the IIGCC publishing the standard’s initial public assessments of the largest oil and gas companies across Europe and North America expected in late 2023.
The publication of the standard follows a two year process led by IIGCC with support from the Transition Pathway Initiative, investors and regional investor groups. Provisional indicators were published in September 2021 and subsequently tested in a pilot study covering five major European oil and gas companies; BP, Eni, Repsol, Shell and TotalEnergies.
