The report, which compares the climate actions of oil companies, praises Neste’s renewable fuels business as exemplary. As a whole, the oil industry is holding back the achievement of climate goals.
Oil companies are polluting the world’s climate goals, according to a report published by the World Benchmarking Alliance (WBA).
By continuing their current operations, oil companies will emit so much carbon dioxide that the industry’s carbon budget for 2050 will be exceeded 13 years ahead of schedule. Thus, the oil industry would prevent the world from reaching the strict 1.5 degree global warming target.
According to the report, comprehensive and comparable climate reporting is not carried out in the oil industry at all.
The report compares the responsibility measures of the world’s 100 largest oil and gas companies in relation to climate targets. Finnish Neste rises to the top in the comparison as the most climate-responsible oil company.
The top ten companies in the comparison are all European. After the liquid, the French Engie, the Spanish Naturgy Energy, the Italian Eni and the British company BP are in the lead.
From Holland the striving Royal Dutch Shell is ranked tenth. In May, the court ordered the company to reduce its emissions and held that the company is partly to blame for climate change.
Shell needs to reduce its CO2 emissions by 45 percent from 2019 levels by 2030.
Oil giant Exxon Mobil, on the other hand, ended up in 50th place, which is a few places lower than Russian Gazprom. Sustainability activist fund Engine No.1 received new blood for Exxon’s Board of Directors and, among others, a former Finnish leader in Neste’s biofuel business Kaisa Hietalan.
The fund believes that Exxon has not taken sufficient account of the risks posed by climate change in its business in the past. Therefore, the fund seeks to change the company’s operations against the will of its management.
The worst in the comparison was the US-based PBF Energy, which has six oil refineries in the United States and no climate targets at all. According to the report, it appears that the company is not aware of climate change at all.
About the liquid report states that the company’s “profitable biofuel business demonstrates that oil and gas companies can build a successful low-carbon business”.
Neste has really made renewable fuels a successful business while the demand for fossil fuels has plummeted and the oil companies based on it have made big losses.
The corona pandemic further accelerated development.
Last year, 35 percent of Neste’s net sales came from renewable fuels. Compared to other oil companies, Neste also has ambitious goals to further grow its renewable business.
Neste also supports the climate work of decision-makers. According to the company The EU Commission’s climate package is “Necessary to overcome the climate crisis”. The targets of the climate package for road and air transport and renewable fuels could Ilkka Räsänen be even more ambitious.
The WBA report states that despite this, Neste’s recent and projected short-term emissions trend is not in line with the 1.5 degree target.
The WBA is a non-profit organization that conducts comparisons and evaluations of companies ’performance against the UN Sustainable Development Goals. In the comparison of oil companies, the partners have been the French Environment and Energy Management Agency and the Carbon Disclosure Project, which collects climate data on companies.