Oil and gas firms hide climate impacts in investments

A new study shows that oil and gas companies often fail to report emissions from their investments, obscuring the true climate impact of their operations.

Mathilde Augustin reports for Inside Climate News.

In short:

• Clarity AI found that accounting for investment-related emissions would increase the carbon footprint of the top 20 oil and gas companies by 24%.
• The study highlights that 90% of the world's largest oil companies do not report emissions from joint ventures, complicating accurate climate risk assessment for investors.
• Scope 3 emissions, which include emissions from a company's entire value chain, are 26 times greater than direct emissions, according to Boston Consulting Group.

Key quote:

"I'm a strong believer that traditionally, we have relied way too much on the data that companies are reporting."

— Patricia Pina, Clarity AI

Why this matters:

Accurate emissions reporting is crucial for investors to assess climate risks and make informed decisions. Without transparency, fossil fuel companies may not face enough pressure to transition to sustainable practices, delaying necessary action to combat climate change.