This collaborative engagement, coordinated by the PRI, was set up in 2018 to address the risks faced by a global range of upstream oil and gas companies as part of a transition to a low-carbon economy.
The engagement asks companies how they are responding to risks being faced as a result of constraints to oil and gas use going forward. The initiative makes use of research by Carbon Tracker (see below for details) to gauge how companies are evaluating future capital expenditure and production, as well as the governance behind this decision making.
The PRI’s coordinated engagement on oil and gas is an affiliated sub-initiative under Climate Action 100+.
Group objectives
The objectives of this PRI-coordinated engagement are:
- To explore how companies are comprehensively assessing their exposure to climate-related transition risks.
- To ensure companies are planning appropriate actions in response to future policy and technological shifts which may limit their ability to exploit their assets (i.e. under a 2 degree scenario as per the Paris Climate Agreement).
- To better understand how companies are evaluating future capital expenditure and production, as well as the governance behind this decision making.
- To encourage improved disclosure aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) – especially with regards to scenario analysis.
Research and target companies
The companies under this engagement have been targeted based on their exposure to a range of carbon budgets. This research can be found at www.2degreeseparation.com and it provides investors with a detailed analysis of these companies’ alignment with a scenario where global warming is limited to 2˚C, 1.75˚C and 1.5˚C. It also includes estimates of the proportion of future capital expenditure and production that falls outside of these carbon budgets.
About the group
Status: wrapping up
Timeline: March 2018 – November 2020
PRI contact: [email protected]
View group on the Collaboration Platform
Members
| Lead investors | |
|---|---|
| Actiam NV Æquo Shareholder Engagement Services inc. Alphinity Investment Management AP7 Barrow, Hanley, Mewhinney & Strauss, LLC Boston Common Asset Management Christian Brothers Investment Services Church Commissioners for England Desjardins Global Assets Management First State Superannuation Scheme Ircantec |
Länsförsäkringar AB Makalani Management Company (Pty) Limited Miller Howard Investments NEI Investments Nordea Old Mutual Investment Group Rathbone Brothers Plc Regnan Governance Research and Engagement Pty Ltd Robeco Swedbank Robur |
| Supporting investors | |
| 1919 Investment Counsel Achmea AGF Investments AMP Capital ARC Fiduciary ASR Nederland NV ATP Avaron Asset Management Bayerische Versorgungskammer BPL Pensioen Candriam Investors Group ERAFP Evli Bank Federal Finance Gestion Fonds de Réserve pour les Retraites Jarislowsky, Fraser Limited |
Local Government Superannuation Scheme LocalTapiola Asset Management Meerschaert Asset Management MP Investment Management A/S National Employment Savings Trust (NEST) NN Investment Partners Ofi Asset Management Régime de Retraite de l’Université de Montréal Resona Bank Limited SKY Harbor Capital Management The Folksam Group Thomson Horstmann & Bryant, Inc. Unigestion Unipol Gruppo Finanziario S.p.A - UnipolSai Assicurazioni University Superannuation Scheme Varma Mutual Pension Insurance Company |
Engagement focus companies
| Company | |
|---|---|
| Apache Corporation BP plc Cabot Oil & Gas Corporation Canadian Natural Resources Limited Cenovus Energy Inc. Chesapeake Energy Corporation Chevron Corporation Continental Resources Inc Crescent Point Energy Corp. Ecopetrol S.A. Encana Corporation Energen Corporation Exxon Mobil Corporation Galp Energia, Sgps, S.A. Gazprom Pao |
Husky Energy Inc. Imperial Oil Lundin Petroleum Ab Oil Search Limited Origin Energy Limited Petroleo Brasileiro S.A. - Petrobras Repsol S.A. Royal Dutch Shell Plc Santos Limited Sasol Limited Suncor Energy Inc. Total SA Vermilion Energy Inc. Woodside Petroleum Ltd |
