Investor groups ask industry to cut methane emissions
Three institutional investor groups called upon the oil and natural gas industry to reduce methane emissions from unconventional oil and gas activities, citing concerns about hydraulic fracturing.
Representing more than $20 trillion in assets, the June 14 joint request came from the North American Investor Network on Climate Risk (INCR), the European Institutional Investors Group on Climate Change (IIGCC), and the Australia-New Zealand Investor Group on Climate Change (IGCC).
The groups said they are working with industry and experts, in collaboration with the Carbon Disclosure Project, to develop a framework enabling investors to evaluate companies' progress in tackling methane leakage and reducing methane emissions.
INCR, IIGCC, and IGCC called upon industry and governments to minimize methane emissions, which the groups said could potentially accelerate climate change and increase long-term economic risk.
"As shareholders in oil and gas companies, investors are concerned with the regulatory and reputational risks associated with fugitive methane and the significant climate change concerns methane emissions raise," the groups said.
Under the framework being developed, the groups want companies to disclose methane emissions and their control plans. Companies also were urged to implement best practices proven to effectively eliminate most methane emissions.
Consultation on the draft disclosure framework is under way, with a final version due for publication in October.
The statement from the investor groups followed publication of the International Energy Agency's Golden Rules for a Golden Age of Gas and comes before the start of a United Nations Conference on Sustainable Development, where fracing was among the issues expected to be discussed.
Mindy Lubber, director of the $10 trillion INCR, said industry leaders have demonstrated that methane emissions can be managed effectively.
"That is why investors will continue to work closely with the oil and gas industry and regulators to limit risks, increase efficiency, and mitigate environmental impact by reducing emissions of this powerful greenhouse gas," Lubber said.
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Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.
