Primary Functions
- Find good practice guidance on how and what to report.
- Find guidance for oil and gas companies covering six areas of focus, including reporting processes, governance and business ethics, climate change and energy, environment, social impacts, and safety, healthy and security.
Detailed Description
The International Energy Agency (IEA) World Energy Outlook 2018 stated ‘Oil and natural gas are set to remain part of the energy system for decades to come’ predicting, that oil and gas together will provide 48% of the total final energy demand in 2040 (based on IEA’s Sustainable Development Scenario that includes delivering on the Paris Agreement). Thus, the industry is likely to continue to have a global role in supplying affordable, reliable energy that is essential for economic development, quality of life, healthy livelihoods and eradication of poverty. Equally, this role needs to support the transition to a lower carbon future.
Given this global role, there is increasing scrutiny of the way in which oil and gas companies adapt business models to align with a low carbon energy transition. Reflecting this growing interest, many companies are already reviewing the breadth and depth of their climate reporting within the context of their own business. Financial institutions – under pressure from their clients and regulators to demonstrate the climate-related impact and climate resiliency of their portfolios – are seeking access to consistent, transparent, comparable climate-related decision-useful information in reports.
In this edition of the Guidance, we have increased the focus on a number of climate-related areas. This includes increased emphasis on methane, recognizing its important role in responding to climate change risks in the short term. Other areas of growing importance include the transition to lower carbon energy sources, carbon capture and storage (CCS) application, the health of natural ecosystems, the application of offsets, fostering of energy efficiency and conservation, and the roles of natural gas and renewables.
Module 3 Climate change and energy supersedes and replaces the 2019 update of the IPIECA Climate change reporting framework by incorporating the 10 topics and constituent elements of the framework into the following key points and indicators.
