Energy Majors Announce Transition Principles

Several energy majors revealed Thursday that they have agreed to apply six principles as they play their part in the energy transition.

The principles – which have been accepted by BP (NYSE: BP), Eni (NYSE: E), Equinor (NYSE: EQNR), Galp, Occidental (NYSE: OXY), Repsol, Royal Dutch Shell (RDS.A) and Total (NYSE: TOT) – comprise the following:

• Public support for the goals of the Paris Agreement
• Industry decarbonization
• Energy system collaboration
• Development of carbon sinks (e.g. carbon capture, utilization and storage technology)
• Transparency
• Reporting information about memberships of main industry and trade associations and their alignment with key climate advocacy and policy positions.

“Meeting the challenge of tackling climate change requires unprecedented collaboration between energy companies, governments, investors and other stakeholders,” the chief executive officers of the energy majors listed above said in a joint statement.

“The principles will act as a framework for actions leading energy companies are taking together, as well as a platform for collaborating with wider stakeholders,” they added in the statement.

Adam Matthews, the chair of the Climate Action 100+ European Investor Working Group on a Net Zero Standard said, “this is an important foundational commitment”.

“It represents a significant consolidation of the progress that has been made in Europe whilst also seeing the first U.S. oil and gas company joining with their European peers,” he added.

“As CA100+ investors we are in extensive and detailed dialogue with the oil and gas sector and it is extremely helpful to have a position from these companies that unifies around core principles including on scope 3 emissions and corporate lobbying amongst others,” Matthews went on to say.

Climate Action 100+ is an investor led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change, the organization’s website states.

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