Wesley Johnson, Energy Knect.
The Oil & Gas industry is under increasing pressures to reduce its carbon footprint, not next month, not tomorrow, but now.
According to a Harvard Law School article, policymakers and society are pressing change, threatening the operator’s license to operate. Investors are increasingly conscious of environmental issues and are now pushing companies to disclose consistent, comparable, and reliable data. The events of the past year, as per a recent report by the International Renewable Energy Agency, shows that investors have sharpened their interests in sustainable and resilient assets, including renewables.
So where does this leave oil and gas companies and how do they pivot successfully whilst remaining competitive?
According to McKinsey, there are three key questions that leaders of oil and gas companies should consider as part of their transition strategy;
- How can we make our core hydrocarbon businesses more resilient?
- Should we expand into low-carbon businesses, and if so, how?
- How will our operating model need to change to flourish in a low-carbon world?
As imperative as the above-mentioned components are for a successful transition, environmental, social and corporate governance (ESG) programs are equally as important according to a recent article by Rigzone. Albeit, a very complex program, research suggests that maintaining strong relationships with the supply chain and local communities can also contribute as a key component for transition success.
One of many companies leaning into this challenge and addressing climate risks, by first and foremost, reducing their own emissions and, secondly, by adopting a system to be more flexible and resilient, is Duke Energy.
Duke Energy aims to reduce carbon dioxide (CO2) emissions from electricity generation at least 50 percent below 2005 levels by 2030 and to achieve net-zero CO2 emissions by 2050. According to their 2020 climate report, Achieving a Net Zero Carbon Future, Duke Energy 2020 Climate Report, they have already made significant progress towards their goals, reducing CO2 emissions by 39 percent since 2005, ahead of the industry average of 33 percent.
In their report they highlight that one of the key success recipes to build a path to net-zero is to work collaboratively with stakeholders and regulators in each of the states that you serve and to develop tailored plans that best suit their unique attributes and economies.
We welcome you to download Duke Energy’s 2020 Climate Report here for insights into their key strategies and achievements to date in their journey in becoming a net-zero business.
The more data and experiences we share the more efficient we will be. 😊