Energy Impact Report - Hydrocarbons Edition

In our latest quarterly review of corporate sustainability impacts, risks and opportunities, we find that hydrocarbon firms are intensifying efforts to curb Scope 3 emissions, which represent approximately 80-90% of total emissions for oil and gas companies. The report highlights divergent approaches, with BP targeting net-zero GHG emissions by 2050 and reducing estimated Scope 3 emissions to 322 MtCO₂ in 2024, an 11% reduction, while ExxonMobil has no target for reducing product emissions, arguing it would increase global emissions. Companies are implementing low-carbon shipping fuels, carbon capture technologies, and diversification strategies to address both financial materiality and impact materiality considerations throughout their value chains.

This report analyses thousands of sustainability disclosures from 20 leading entities in the industry, including Saudi Aramco, ExxonMobil and Shell. Published in Q225 as part of a quarterly series, it also includes disclosures from Global South entities like PetroChina, Reliance Industries and Petrobras. The global nature of this analysis makes it an ideal source of external evidence for sustainability accounting and disclosure, particularly for organisations implementing the Oil and Gas Decarbonization Charter and integrating ESG objectives into carbon capture initiatives and diversification strategies while pursuing compliance with CSRD reporting requirements.