Assessment of oil and gas companies’ climate strategy

The methodology focuses on indicators with a 2030 horizon to align with the Paris Agreement's 1.5°C goal. It evaluates companies across five main dimensions: current energy production (using a fossil fuel equivalence method to compare renewables and fossil fuels), cash-flow allocation (analyzing CAPEX for exploration versus low-carbon solutions), fossil fuel strategy (assessing upstream expansion and production overshoot relative to the IEA Net Zero Emissions scenario), diversification strategy (projecting 2030 energy mixes), and emission targets (calculating carbon intensity excess and reliance on CCUS and offsets). The analysis covers 6 European companies (BP, Eni, Equinor, Repsol, Shell, TotalEnergies), 2 US companies (Chevron, ExxonMobil), and 4 National Oil Companies (ADNOC, Petrobras, QatarEnergy, Saudi Aramco).

• The assessment focuses on a 2030 horizon because, to limit global warming to 1.5°C, greenhouse gas emissions must be reduced by at least 43% by that date.
• Reclaim Finance uses a 'fossil fuel equivalence method' to make renewable electricity and hydrogen production comparable to oil and gas by multiplying them by a coefficient based on thermal power plant efficiency.
• The methodology identifies exploration Capital Expenditure (CAPEX) as a key risk, noting that according to the IEA's Net Zero Emissions (NZE) scenario, no new oil and gas upstream projects should be sanctioned for development.
• The IEA has established a benchmark that oil and gas companies must allocate more than 50% of their CAPEX to clean energy by 2030.
• The analysis evaluates 'production overshoot' by comparing a company's 2030 production targets or current portfolio against the theoretical production levels allowed under the IEA NZE scenario.
• The methodology assesses the feasibility of carbon offsets by translating CCUS targets into the number of required capture centers and Nature-Based Solutions (NBS) targets into equivalent land area.

APA

Reclaim Finance (2024). Assessment of oil and gas companies’ climate strategy. https://reclaimfinance.org/site/wp-content/uploads/2025/05/Reclaim-Finance_Oil-and-gas-Climate-Strategy-methodology_Update_202405.pdf

Chicago

Reclaim Finance. Assessment of oil and gas companies’ climate strategy. 2024. https://reclaimfinance.org/site/wp-content/uploads/2025/05/Reclaim-Finance_Oil-and-gas-Climate-Strategy-methodology_Update_202405.pdf.

Wikipedia

{{cite report |author=Reclaim Finance |title=Assessment of oil and gas companies’ climate strategy |date=April 2024 |url=https://reclaimfinance.org/site/wp-content/uploads/2025/05/Reclaim-Finance_Oil-and-gas-Climate-Strategy-methodology_Update_202405.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reclaimfinance2024assessment, author = {{Reclaim Finance}}, title = {{Assessment of oil and gas companies’ climate strategy}}, institution = {Reclaim Finance}, year = {2024}, month = apr, url = {https://reclaimfinance.org/site/wp-content/uploads/2025/05/Reclaim-Finance_Oil-and-gas-Climate-Strategy-methodology_Update_202405.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }