Publication of the latest Carbon4 study which examines the ability of large players in the oil and gas sector to align with the Paris agreements.

The independent consulting firm Carbon4 published its latest study on the oil sector by applying their Carbon Impact Analytics (CIA) methodology aimed at measuring companies’ exposure to transition risk via an overall score (ranging from A + to E-) and various sectoral indicators.

This methodology makes it possible to rank companies in the petroleum industry according to their degree of exposure to transition risk. Thus Carbon4 was able to observe the historical trends of their absolute emissions (Scope 1, 2 and 3), and to assess the strategies put in place to align with the decarbonization objectives of the world economy.

The analysis entitled “The oil industry: ready for the climate challenges? ” summarizes the results of the CIA analysis campaign conducted from June to September 2020 on a sample of around 100 companies in the oil and gas industry.

It highlights the failure to report scope 3, which represents 85% of total emissions, reminding to the oil and gas sector of the urgency of raising awareness of their real impact.

Let’s recall that for the O&G sector, Scope 3 emissions correspond only to downstream emissions related to the combustion of products managed by the players. Carbon4’s methodology is based on an added value study, which assigns a sort of share to each actor in the chain, in order to separate emissions and avoid duplication.

« In terms of absolute emissions, the player for which the largest amount of downstream GHG emissions has been calculated is Gazprom, the Russian gas giant. Indeed, with 3,574 million tonnes of CO2, its Scope 3 emissions represent almost 30% of the Scope 3 emissions in the sample. Note that Gazprom is responsible for around 12% of global gas production, and also has many gas pipelines in Europe. »


Another important point of this study: 1 in 3 companies saw their absolute emissions increase in 2019 compared to 2014, which goes against decarbonization efforts to meet the 2030 agenda; As for those who have reduced their emissions, the players do not yet seem to be guided by the desire to transform their activity and reduce their impact.

« Nothing allows us to link these reductions to a real desire to mitigate its climate impact over time.These reductions are mainly linked to the search for short-term profitability and financial stability, or to structural changes within markets in which the players operate. An overview of the price of crude can help understand the variations observed. »


It is the Indian company ONGC Videsh which emerges as the best student of this study with an encouraging result between the ratio of its emissions and its production over the last 5 years, of its product mix composed of half of gas (52%), and of its associated gases into value-added derivatives, thus meeting the requirements set by the United Nations to promote a circular economy.

Overall, in terms of transition risk, the 5 best placed companies are ENI, NESTE, REPSOL, TOTAL, and EQUINOR, which are adopting long-term carbon reduction strategies, by reorienting their investments towards activities less dependent on fossil resources.

An analysis of the O&G sector to discover here

Article: Joana Foglia – Oil &Gas sector Carbon4