OilPrice.com - Why Oil Investors Should Keep An Eye On ESG Scores

July 30, 2022 – OilPrice.com

Why Oil Investors Should Keep An Eye On ESG Scores

By David Messler

By 2020 most energy companies had sophisticated platforms for adhering to and beating Paris climate goals, in some cases by 20 years in 2030. Key among the GHGs that are to be controlled or minimized are carbon dioxide and methane. An article discussed on RBN Energy’s blog, noted,

“The primary focus is on reducing emissions of carbon dioxide (CO2) and methane –– CO2 because it is by far the most prevalent GHG and methane because of the intensity of its impact in the first several years after it is emitted into the atmosphere. GHGs are generated at pretty much every step in the production, delivery, processing/refining, and (especially) consumption of fossil fuels.”

As noted above, GHG emissions have been divided by regulators into three buckets: Scope 1 (GHGs directly caused by the facilities and equipment that a company owns or controls), Scope 2 (“indirect” GHGs from the electricity a company buys), and Scope 3 (all other indirect GHG emissions that occur in the company’s entire value chain, including the emissions generated when end products like gasoline, diesel, propane, and natural gas are consumed).

Read the full article here: https://oilprice.com/Energy/Energy-General/Why-Oil-Investors-Should-Keep-An-Eye-On-ESG-Scores.html