The World Resources Institute has released what it says is the first-ever methodology to measure and report potential emissions from oil, gas and coal reserves.
No fossil fuel companies disclose potential emissions from their reserves, even though they value these reserves as financial assets, according to WRI, which says up to 37 percent of fossil fuel emissions come from extraction and production.
Investors are increasingly asking for information on emissions, and this new tool will help companies calculate the full lifecycle emissions of their reserves and report them, writes WRI’s Stephen Russell in a blog post.
“In light of the climate challenge and government commitments to address it, disclosure requirements are on the rise as investors want to know more about their investments, especially in the fossil fuels arena,” Russell writes. He cites analysis by Reuters shows that 48 percent of the world’s 4,400 largest companies report their emissions to investors and stakeholders.
The methodology comes as a task force convened by the G20’s Financial Stability Board says corporations should disclose the financial impacts of climate change on their business and how they are managing these risks.
The Task Force on Climate-Related Financial Disclosures last week published a report that outlines a set of voluntary recommendations for companies to include in their public financial filings. It also says oil and gas is one sector most likely to be affected by climate change.