Five key climate metrics for the oil and gas sector's next five years

The document argues that investors in the oil and gas sector should move away from non-standardized ratings and instead focus on five concrete metrics to distinguish industry leaders from laggards: methane intensity verified by measurement, flaring intensity with a goal of zero routine flaring by 2025, the proportion of capital allocated to zero or negative carbon assets, the number of funded trade associations that obstruct climate policy, and the linkage of executive compensation to science-based emissions targets.

• The authors suggest that investors should prioritize five key outcomes for the oil and gas sector by 2025 to drive environmental progress and shareholder value: eliminating methane emissions, ending routine gas flaring, decarbonizing capital allocation, ensuring responsible lobbying, and strengthening climate governance.
• To address methane emissions, the document recommends a 'gold standard' target of 0.20% methane intensity for upstream operations by 2025, emphasizing that this must be backed by actual measurement rather than unverified self-reporting.
• The document advocates for the total elimination of routine gas flaring by 2025, using flaring intensity as the primary metric for investor assessment.
• Regarding capital allocation and lobbying, the document suggests measuring the portion of total investment directed toward zero or negative carbon assets and tracking the number of funded trade associations that obstruct climate-related policy and regulatory action.
• Effective climate governance should be measured by whether boards link executive compensation to scenario planning and science-based emissions reduction targets, citing Repsol as an example for linking 40% of long-term executive bonuses to Paris-aligned objectives.

APA

Blanton, B. R. E. (2020). Five key climate metrics for the oil and gas sector's next five years. World Economic Forum. https://www.weforum.org/stories/climate-action/five-key-climate-metrics-for-the-oil-and-gas-sectors-next-five-years/

Chicago

Blanton, Ben Ratner, Erin. Five key climate metrics for the oil and gas sector's next five years. World Economic Forum, 2020. https://www.weforum.org/stories/climate-action/five-key-climate-metrics-for-the-oil-and-gas-sectors-next-five-years/.

Wikipedia

{{cite press release |last1=Blanton |first1=Ben Ratner, Erin |title=Five key climate metrics for the oil and gas sector's next five years |publisher=World Economic Forum |date=2 November 2020 |url=https://www.weforum.org/stories/climate-action/five-key-climate-metrics-for-the-oil-and-gas-sectors-next-five-years/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{blanton2020five, author = {Blanton, Ben Ratner, Erin}, title = {{Five key climate metrics for the oil and gas sector's next five years}}, publisher = {World Economic Forum}, year = {2020}, month = nov, url = {https://www.weforum.org/stories/climate-action/five-key-climate-metrics-for-the-oil-and-gas-sectors-next-five-years/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }