There are several steps to consider before engaging with an oil and gas company on methane to ensure a successful and impactful dialogue.
1. Build knowledge on methane
Review the Rising Risk report, this guide, and other relevant literature to understand the business case for the company to measure, report and reduce their methane emissions. Next, talk with subject matter experts to expand your knowledge on methane. EDF and PRI are happy to be considered key resources.
2. Conduct company-specific research
Use existing public company material, external benchmarks and research (for example: CDP oil and gas sector supplement responses, Société Générale research on methane, and Disclosing the Facts) to understand what, if anything, a company is doing to manage and report on methane emissions.
3. Conduct gap analysis
Using the company research, determine the areas for improvement. The beginner, intermediate and advanced indicators under each section in this guide can help establish the current level of company methane performance.
4. Develop an engagement plan
Identify the objectives of the engagement using the gap analysis. The performance indicators in this guide can help determine actionable next steps for company improvement (for example, to move from beginner to intermediate). Work with the company to develop a plan for continued improvement over time.
5. During and after engagement
Track and evaluate the engagement progress made against the objectives set and company performance within a specified timeline. Plan to re-engage or develop an escalation strategy if progress is not evident as agreed.
Collaboration with investors sends a unified, aligned and effective signal to a company that methane is a material risk. This approach can help investors leverage knowledge and skills of the group, engage in a more efficient manner and increase the weight of the business case for action and engagement asks. Collaborative engagements on methane are facilitated by the PRI Collaboration Platform, which connects investors globally on engagement initiatives.