Full Title: The Missing GHG Emissions: How Satellite Data Can Quantify the Real Climate Risk of Oil & Gas Companies
Author(s): Patricia Pina and Renato Coelho
Publisher(s): Clarity AI
Publication Date: July 10, 2024
Full Text: Download Resource
Description (excerpt):
While a growing number of companies disclose sustainability-related information, there are still challenges around data completeness, consistency, and transparency. For example, all publicly traded Oil and Gas companies listed in the MSCI All Country World Index (ACWI) report their greenhouse gas (GHG) emissions. Still, over 90% of these companies do not incorporate the Scope 3 emissions from their investments in their reports.
Leveraging their collaboration with Climate TRACE, Clarity AI has analyzed the largest 20 companies in the Oil & Gas industry, quantifying GHG emissions from all physical assets, including their minority investments. Their research found that the relative ranking of these companies in terms of carbon intensity is significantly affected by the inclusion or exclusion of the assets they own but don’t operate.
Additionally, the authors assessed the impact of these “missing emissions” on the carbon footprint of a theoretical portfolio investing in the largest 20 Oil & Gas companies — the carbon footprint increases by 24% when emissions from these assets are included.