Each of the six integrated European oil and gas companies, which has a Scope 3 emission target, has developed its own ratio, making it difficult to make comparisons. To enable this comparison, TPI has developed a standardized methodology that allows us to reconcile companies` emissions targets according to a common methodology. Chart 2 shows that the pathways for integrated European oil and gas companies are not as ambitious. The study was conducted by the Transition Pathway Initiative, a global program that assesses climate risks and the willingness of companies to adopt a low-carbon economy. A “critical mass” of companies are now inserting scope 3 emissions – produced by their consumers – into their plans, while none did so three years ago, adam Matthews, co-chair of the initiative and director of the Church of England`s Pensions Council, said in an interview. We believe that the principle of integrating energy transition into annual accounts and audit processes is a positive development. We hope that in the years to come, climate constraints will be more widespread and more integrated into business practices. European oil companies have made great strides in developing plans to reduce greenhouse gases, according to a report by fund managers who monitor more than $19 trillion, but they are not enough to meet the paris climate agreement targets. For more than 20 years, the thinking of the Shell scenario has integrated climate change.
The Sky scenario is part of two previous Shell scenarios, the mountains and oceans, which saw rapid decarbonization but did not exceed the paris Agreement targets. To achieve the objectives of the Paris Agreement, the Sky scenario is based on a complex combination of mutual strengthening of society, markets and governments. It takes an approach based on current economic and political development mechanisms, but gradually becomes “targeted” to achieve the company`s zero net emissions ambitions by 2070. At Shell, we hope this is a useful contribution to one of the world`s toughest challenges. They can put pressure on all three scenarios on www.shell.com/Scenarios investors and civil society groups to be much more transparent about their spending plans and abandon projects that are not climate-friendly. The company`s carbon budgets in this report can be used to help investors and companies using fossil fuels set targets. Mike Coffin, oil and gas analyst at Carbon Tracker and author of the report, said: “If companies and governments try to develop all their oil and gas reserves, either the world will miss its climate targets, or assets will be “blocked” in the energy transition, or both. The industry is trying to get its cake and eat it — to reassure shareholders and support Paris while producing even more fossil fuels. This analysis shows that companies that really want to reduce financial risks and be part of the climate solution need to reduce their production. In 2019, BP`s accountants, Deloitte, expressly indicated that current impairment prices were not in line with the Paris targets, based on a comparison with third-party scenarios.
Although BP considered its strategy to be “in line with the objectives of the Paris Agreement.” In the second quarter of 2020, BP then changed its assumptions. Shell`s auditors also discussed their assumptions of relevance, both with respect to the energy transition and the company`s decarbonization commitments.