This Net Zero Asset Owner Alliance’s Position on the Oil and Gas Sector underscores the Alliance’s stance that it is necessary for the global economy to transition away from activities that contribute to climate change, such as the combustion of oil and gas.
Recognising that numerous challenges of transitioning to a low-carbon economy can only be mitigated by a concerted effort of the key stakeholders, the Position is expressed in the form of expectations for investors, companies, and policymakers.
For investors, the Position includes clear requirements that members shall incorporate into their individual internal policies in 12 months following the publication. However, all investors – even beyond the Alliance – should consider implementing these guidelines. The expectations for companies and policymakers are directed to these actors as well as to Alliance members, who may use them as guidelines for engagement.
In total, the position covers over 20 expectation, which are summarised as per below and further covered in the Q&A document.
- Members are expected to develop and align individual oil and gas policies with this position and cover portfolio allocation, stewardship programmes, and policy engagement.
- Oil and gas producers and their customers are expected to set science-based, absolute- and intensity-oriented emissions targets covering Scope 1, 2, and 3 GHG emissions that are aligned with 1.5°C no or limited overshoot scenarios.
- The Alliance calls for increased policy ambition to rapidly reduce oil and gas demand and increase the supply and availability of renewable alternatives.