Active Ownership
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Engagement campaign: Methane engagement, 2023 update
Methane is a powerful greenhouse gas, estimated to account for as much as 25% of the global warming we’re experiencing today. It’s a short-lived climate pollutant that is 86 times as potent a greenhouse gas as carbon dioxide over a 20-year period, but it doesn’t stay in the atmosphere for as long as CO2 does. This means that methane has not only had a huge impact on global warming to date, but also that reductions offer a critical near-term opportunity, as reductions achieved today will be felt in as little as 10 years.
The engagement In July 2022, we initiated, in collaboration with the largest asset managers from Europe and North America with combined assets under management of approx. EUR 3.34 trillion, the first phase of a collaboration with selected partners and clients to engage with 15 companies in the oil and gas industry on the disclosure and mitigation of their methane emissions. Our pri- mary engagement ask is for investee companies with methane emissions to join the Oil and Gas Methane Partnership (OGMP) 2.0 framework. OGMP is the gold standard in methane mea- surement, reporting and target setting. In addition to joining the OGMP, investee companies are asked to identify the actions being taken to reduce methane emissions and to share the cost/benefit analysis of these actions in engagement meetings.
Our results in 2023 We are proud to share that at the end of 2023, we were engag- ing with 63 companies about joining the Oil and Gas Methane Partnership 2.0 and reducing their methane emissions to near zero. The engagement focus is on oil and gas companies and utilities, and during 2023, nine companies in the engage- ment joined the OGMP 2.0 – Aker BP, Coterra Energy, Chesa- peake Energy, Diamondback Energy, EOG Resources, INPEX, KazMuynayGas, Petrobras and PPT E&P. For us, this is a great achievement as it can often take a year or more for companies to work through the changes they need to make to join the program. Parallel to our engagement activities, our Methane Campaign extends to industry best practice initiatives. For instance, we participated to the Canada Methane Mitigation summit in September 2023, where our Senior Climate Analyst, Harry Granqvist, moderated a session on investor expectations on methane, covering topics such as methane data quality and reporting, and its evolution in the future.
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