Deliver A Compelling ESG Narrative With New Oil And Gas Emissions Data

Delivering a compelling sustainability narrative, backed by data, has become imperative to access capital in today’s global investment market. 

Over $25 trillion in global assets are managed using strategies that integrate environmental, social, and governance (ESG) factors into the financial analysis of investments.1 ESG integration has become mainstream.

“ESG factors are routinely used to differentiate investments. The focus is on managing emissions and what strategies are in place to navigate the energy transition,” said Chris Wilson, managing director at Evaluate Energy. “Investors look for hard data that oil and gas companies are making progress on emissions reduction while maintaining sustainable returns on capital.”

Evaluate Energy this month launched new emissions performance data specific to oil and gas companies. The data includes Scope 1 and Scope 2 emissions in absolute and intensity measures.

The data is normalized and presented within the Evaluate Energy database alongside company financial and operating metrics and analysis. This provides a single-source platform to help illustrate how oil and gas operations, emissions and financial performance interact.

“This level of access enables users to connect the dots between operational metrics and emissions metrics, and how those metrics impact financial performance,” said Wilson. “This allows more reliable and complete benchmarking on individual performance over time, as well as a comparison of industry peers. These factors are all important when communicating with investors.”

View Evaluate Energy’s emissions data explainer video: https://vimeo.com/665683190

“Corporate leaders and analysts can connect operational metrics and emissions intensity data with financial metrics, like full cycle or half cycle supply costs, or free cash flow generation, to understand if an organization has the right asset mix to remain financially successful in a low cost, low emissions future.

“Being able to present the data behind your strategy provides investors with greater certainty that choices are well-thought out and backed with hard numbers. They also provide greater confidence to investors that companies will meet ESG targets while ensuring sustainable returns.”

Features and benefits of the emissions data sets are available here: https://www.evaluateenergy.com/esgsolutions.aspx

“There are a lot of operational factors that can impact emissions and ultimately financial performance,” said Mark Young, senior oil and gas analyst at Evaluate Energy. 

“Geology has a significant impact as assets located in areas with highly productive rocks often have much lower Scope 1 emissions intensity. Weather and geography also have a significant impact as operators working in remote, harsh environments may have higher Scope 1 emissions.”

A lack of infrastructure can also impact emissions. Regions without pipelines or processing facilities to manage associated gas in oilfields can lead to increased flaring. Operators with remote assets far from power grids have to fuel their own operations, adding to Scope 1 emissions. Those with access to grids would have higher Scope 2 emissions.

Added Wilson: “We can offer guidance and additional information for individual operators to better understand how operational factors influence their own emissions and their peer group emissions. This can help inform decisions on M&A activity, technology choices to reduce emissions, and where they can make the greatest operational impact in reducing emissions.”

For further information, contact the Evaluate Energy team at: energyinfo@evaluateenergy.com


1. Source: Global Sustainable Investment Alliance

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