No major fossil fuel energy firm has aligned its emissions pathway with limiting climate change to 2°C, says the Transition Pathway Initiative (TPI)
A new report published by the sustainable investment initiative claims all fossil fuel giants are still “aiming wide” of the 2°C mark, despite a raft of “attention-grabbing” climate commitments made by European oil and gas companies in recent months.
The TPI, which is backed by investors with around $22 trillion (£17tn) in assets, assessed 59 oil & gas and coal mining companies on carbon performance.
It found only seven have set targets aligned to the Paris Agreement – these firms are Glencore, Anglo American, Shell, Repsol, Total, Eni and Equinor.
However, the TPI highlights the United Nations Environment Programme believes these pledges are still insufficient to avert dangerous climate change and could still result in 3.2°C of warming – none of the 59 fossil fuel companies were found to be aligned to a level that would limit climate change to 2°C or below, although the TPI notes Shell, Total & Eni are approaching the level required to hit this benchmark.
The TPI also assessed 66 electric utility companies – more positively, 39 were aligned with the Paris Agreement, while 22 were aligned with the ‘below 2°C’ benchmark, largely as a result of more regulations and more readily-available and cost-effective clean technologies in the sector.
Transition Pathway Initiative Co-Chair Adam Matthews said: “Investors have witnessed a flurry of significant climate announcements by fossil fuel majors this year, so it is striking this independent research still shows those commitments do not yet align with limiting climate change to 2°C.
“There has been some movement, with seven European companies now aligned with the Paris pledges, and Shell, Total and Eni getting close to meeting the 2°C benchmark. But US fossil fuel giants have yet to take meaningful action to reduce their emissions and the gap with their European peers is stark.”