A group of more than 20 leading funds is amplifying its call oil majors to reflect climate risks in their accounting better. The group with combined assets under management of £1.8 trillion ($2.2 trillion) will also target other industries with significant exposure to fossil fuels to pay more attention to material climate considerations.
The group sent letters to BP, Shell, and Total in November urging the oil majors not to overlook climate-related risks and warned of overstating performance and capital. Last week, BP reduced up to $17.5 billion from its asset value and slashed long-term estimated oil prices from $70/barrel to $55 /barrel until 2050. BP also said that the coronavirus pandemic had accelerated transition towards low-carbon energy.
It remains uncertain whether the letter played a significant role in BP’s decision. Total has not disclosed its response to the investors’ demand. At the same time, Shell said that it had comprehensively responded to similar requests, saying that it would achieve a net-zero energy company by 2050, or sooner.
The investor group has asked the Big Four accounting firms: Deloitte, EY, KPMG, PwC, to consider climate-related risks when auditing companies’ financial statements. The group also started lobbying building materials producer CRH and mining corporation Rio Tinto. Cement and steel industries are among the biggest emitters of greenhouse gasses.
Tags: AlwaysFree,Bio/Renewables,Crude Oil,English,Gas,World
Published on June 23, 2020 9:38 AM (GMT+8)Last Updated on June 23, 2020 9:38 AM (GMT+8)
