BAKU, Azerbaijan, Dec.22
By Leman Zeynalova - Trend:
Pressure on oil and gas industry is mounting from institutional investors, Trend reports with reference to “2021 SHAPING A NET-ZERO FUTURE" issued on Saipem website.
The company notes that awareness of climate change is putting increasing pressure on oil and gas players who are committing to Net-Zero targets, and on governments that support the Energy Transition through public investments/incentives.
Saipem believes that climate-related considerations are the main factors leading to exclusion from financial assets pertaining to sustainable investing (31 T$ assets), representing around 1/3 of total Asset Under Managements.
“Sustainable investments are also showing more resilience to COVID-19 impacts and are likely to continue growing. Pressure on oil and gas industry is mounting also from institutional investors. As a result, oil and gas companies are setting the target to become energy companies. Oil and gas majors increasingly spending on low carbon projects (from 3 percent in 2018 to around 7 percent of total capex in 2020), targeting around 10 percent returns from low carbon business. European IOCs drive the sector’s climate action, converging towards net-zero for Scope 1 & 2 and to around 50 percent intensity reduction for overall emissions. US IOCs and some NOCs begin to set long-term targets with few preliminary milestones. Oil and gas companies with severe decarbonisation targets still represent a limited share of the global oil production,” said the company.
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