Released today: in depth look at climate-related financial disclosure across four major oil and gas companies

Published: 19 Jul 2018
Type: News

Geneva, Switzerland, 19 July 2018: Today, on behalf of the Task Force on Climate-related Financial Disclosures (TCFD) Oil and Gas Preparer Forum, the World Business Council for Sustainable Development (WBCSD), released “Climate-related financial disclosure by oil and gas companies: implementing the TCFD recommendations.”  

This report provides an in-depth description of the current state of climate-related financial disclosure and effective disclosure practices among leading oil and gas companies Eni, Equinor (formerly Statoil ASA), Shell and Total. 

Twenty years ago, companies were challenged to calculate and report greenhouse gas emissions. Since then, the focus has shifted to the strategic implications of climate change. Today, the emphasis is on including financial disclosures in financial filings and more forward-looking analysis.  

“The TCFD will impact corporate governance around the world through its key recommendations. This report, and our Preparer Forums in general, aim to help companies implement the TCFD’s climate-related financial disclosure recommendations in priority sectors” said Peter Bakker, President and CEO at WBCSD. 

The report released today provides more detail for the oil and gas sector - specifically, outlining challenges and opportunities associated with responding to the TCFD recommendations. The report also showcases examples of effective disclosure practice across governance, strategy, risk management, metrics and targets, and perspectives from users. 

Highlights include examples on:  

  • Integration of climate-related risks and opportunities into enterprise risk management and governance processes 
  • Measures of business resilience such as portfolio development and optimization as well as capital discipline and flexibility 
  • Key quantitative parameters associated with scenario analysis 
  • The progression from operational to more financial measures and metrics associated with climate change 

Support from Forum members:  

“As Eni has been a member of the TCFD since day one, it was a privilege to be part of the Forum. Its work shows significant progress toward the effective implementation of the TCFD’s recommendations and it will encourage wider discussions on how to make even further progress. I now look forward to wider and deeper dialogue within the oil and gas industry and with other interested organizations,” said Stefano Goberti, Executive Vice President of Planning and Control at Eni. 

“Equinor’s ambition is to develop our business in support of the goals of the Paris Climate Agreement. We welcome the TCFD’s work to drive transparency and convergence of approaches to climate-related financial disclosure. Participating in the TCFD Oil and Gas Forum has given us the opportunity to identify that our existing climate disclosures are well aligned with the recommendations and how we can further develop them over time. Equinor’s Climate Roadmap outlines our pathway towards 2030 including strategy, targets and disclosures,” said Hilde Røed, Vice President Corporate Sustainability, Equinor. 

 “We strongly support the TCFD’s recommendations, not only as a structured way of disclosing information about Shell’s resilience to climate change and the energy transition, but also because they should help to increase transparency around the long-term resilience of all companies. We’ve welcomed the opportunity to share examples of our existing disclosures, which are aligned with the TCFD’s recommendations, and to explore challenges associated with presenting forward-looking information and measures of resilience in an uncertain world,” said Martin ten Brink, Group Controller, Royal Dutch Shell. 

“Total is integrating climate into its strategy. We therefore welcome the TCFD’s recommendations and the emphasis on disclosures that explain whether and how climate-related risks and opportunities are integrated into overall risk management and governance approaches. We are committed to the transparency that the TCFD’s recommendations seek to achieve so that investors and other stakeholders can understand how we are responding to climate-related risks and opportunities,” said Ladislas Paszkiewicz, Senior Vice President Strategy and Climate, Total. 

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