Integrated European majors lead on preparedness for a low-carbon world

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European oil companies, including Total, Galp, Equinor, BP and Royal Dutch Shell lead a group of the 39 most publicly-traded oil and gas companies in preparedness for a low-carbon world, according to Bloomberg’s Climate Transition Scores.

These companies have ranked highly due to ambitious climate targets and deep transition-related investments in an industry heavily exposed to transition risks in the face of widespread climate action. For example, these five oil majors own some 11GW, or 78 per cent, of the renewable energy assets held by the 39 scored companies.

The Climate Transition Scores are a new offering from Bloomberg, providing users with accessible insights into a company’s climate preparedness to support their decision-making processes. These scores illustrate the challenges oil and gas companies face in positioning themselves for a net-zero world.

The Climate Transition Scores represent the average of two underlying scores, proprietary to Bloomberg’s two research teams. Carbon Transition Scores, produced by Bloomberg Intelligence, look at where a company is today, is planning to be and should be with respect to carbon performance.

Business Model Transition Scores, from BloombergNEF (BNEF), cover a company’s current business model and actions taken to adapt to a low-carbon future.

Patricia Torres, global head of sustainable finance solutions at Bloomberg, commented: “The transition to a low-carbon economy in the oil and gas sector is a complex undertaking, requiring considerable change and a shift away from fossil fuels-based business models. The Bloomberg Climate Transition scores, combined with Bloomberg’s research, provide insight into how prepared companies are for a net-zero world and are a supplement to Bloomberg’s broader environmental and social scores.”

Jonas Rooze, head of sustainability research at BloombergNEF, said: “When it comes to deploying low-carbon technologies, these companies do a lot of marketing, but their disclosure is limited and patchy, making comparison impossible. What makes these scores unique is that the bottom-up BNEF datasets shine a light on what these companies are actually doing – or not doing – to develop new low-carbon business models.”

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