NEW YORK and DENVER,
Climate change represents a long-term threat to society and the Energy sector faces increased scrutiny for its contribution to it. Many have called for divestment from the sector but avoiding the sector does little to improve the environment. The White Paper focuses on what the US E&P industry can do to materially lower the emissions intensity of producing oil and gas, how companies can align their environmental strategy with the Paris Agreement, and the role of corporate governance in effectuating change.
Kimmeridge will continue to advocate for change in the sector through its investments, urging companies to adopt the following five key principles with an eye towards making the E&P sector more sustainable and, once again, investable over the long-term.
- Eliminate routine flaring by 2025
- Reduce US methane intensity below 0.2% of gas production by 2023
- Reduce total upstream GHG intensity by 50% by 2030
- Pursue routine monitoring and independent verification of emission levels
- Align reporting with SASB standards and adopt all 11 TCFD recommended disclosures by 2022
To view more of Kimmeridge’s research and thought leadership, please visit http://kimmeridge.com/research-archive/.
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Nothing herein is designed to be a recommendation to purchase or sell any security, investment product or vehicle, including any investment products managed or sponsored by Kimmeridge or its affiliates. Investing in any sector or product, including the E&P sector, involves significant risks.
SOURCE Kimmeridge Energy