Five of the world’s six largest listed oil companies risk wasting more than 30% of possible spending on upstream projects that are high-cost and surplus to supply needs in a 2⁰C world, with ExxonMobil most exposed.

That’s according to a new report by Carbon Tracker, produced collaboratively with the PRI and institutional investors.

It is the first report to rank the oil and gas industry company by company and identify where shareholders’ money could be most exposed to the low-carbon transition. It finds that US$2.3 trillion of projects is inconsistent with international objectives to limit climate change to a maximum of 2⁰C and rapid advances in clean technologies reducing demand.

2 degrees of separation analyses upstream investment plans of 68 of the largest publicly traded oil companies plus Saudi Aramco up to 2025 and reveals wide variations between companies.

It is a vital tool to help investors challenge companies on their approach to climate risk.

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