Oil & gas industry needs to do more

London : Sixty global investors yesterday called on the oil and gas industry to do more to tackle climate change, ratcheting up pressure on company boards ahead of several high profile annual shareholder meetings.

Companies needed to be more transparent about how they plan to change their operations as part of the global shift to a low-carbon economy, necessary to meet the terms of the 2015 Paris climate agreement to keep global warming below 2 degrees. “As long-term investors, representing more than $10.4 trillion in assets, the case for action on climate change is clear,” the investors said in an open letter published in the Financial Times newspaper.

“We are keenly aware of the importance of moving to a low-carbon future for the sustainability of the global economy and prosperity of our clients,” they said, adding related regulations would create additional costs to the industry.
Among leading investors to sign the letter were Aberdeen Standard Investments, AXA Investment Managers, Fidelity International, Legal & General Investment Management, Schroders and Kames Capital.

The oil and gas industry and its products account for 50 percent of global carbon emissions, and so the most effective strategy for companies to take was to reduce the carbon impact of its products, the letter said. “The capital allocation decisions they make today are important to determine how likely they are to survive that transition,” it added.