How products are used is often beyond the control oil and gas companies
Investors take harder line on scope three
ESG asset managers have focused mostly on scope one and two greenhouse emissions but are increasingly scrutinising companies on the more challenging scope three data
While ESG investors have focused mainly on scope one and two greenhouse gas (GHG) emissions, scope three emissions are often the most significant part of an energy company’s total GHG output. For oil and gas companies, scope three emissions can be up to 80pc of their overall emissions, and tracking them is therefore an essential part of their transition path to net zero. Special consideration must be made as to how these are measured, as how products are used is beyond the control of the producer. “In order to make informed decisions on carbon emissions from a company’s activities, scope three emissions data is essential” Somel, M&G Climate Solutions Fund The three different
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