The hydrocarbon sector is far from having started a “ serious transformation » to contribute to the fight against climate change. This is confirmed by a report from Carbon4 Finance – published on January 12 – which analyzed the strategy of more than 150 oil and gas companies.
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The hydrocarbon production volumes of these companies, which represent 86% of the market capitalization of the sector, which emit high levels of greenhouse gases, even increased by 31% between 2016 and 2021. The consultancy firm Carbon4 Finance also looked at the strategy for the coming years and gave poor marks.
Little relevant strategy
An irrelevant transition strategy, or even no strategy at all. More than half of companies are in this situation. Around 5% achieved full marks. Adriaan Rademaker, one of the authors of the study underlines: “ The rare companies that can be described as a little more ambitious, perhaps, on the climate subject will be mainly in Europe. But this remains in its infancy, completely insufficient. »
Especially since some have reduced their ambitions in this area. But how can we reduce the sector’s emissions – including those linked to the use of the products sold? “ These companies are either forced to diversify very strongly, or to die, from a climatic point of view “, says Adriaan Rademaker again. However, according to a count from the International Energy Agency (OUCH) in 2020, less than 1% of investments in the sector go to renewables.
Short term
A short-term calculation that could turn against them warns Virginie Wauquiez, managing director of Carbon4 Finance: “ It must be said that these companies are highly exposed to transition risk. And if they do not act today, they risk having assets stranded in several years and this will also be reflected in the valuation of the company. “. Because some investors have long-term horizons, pension funds for example.
However, the IEA has reminded since 2021 that we must no longer launch new oil and gas projects if the world wants to have a chance of limiting global warming below the limit of +1.5°C compared to the pre-industrial era, set by the Paris Agreements.
Chronicle of raw materialsIn France, we have a little oil, but its days are numbered