Investors and financial regulators are increasingly asking companies for decision-useful disclosure and analysis of climate risk under 2°C scenarios, given the targets of the Paris Agreement. The analysis compared the climate reports of the oil majors according to four key themes—the 2°C scenario modelling, scenario outputs, market risk, and carbon pricing. The main findings in Carbon Tracker’s analysis include clear inconsistencies in the current use of scenario analysis, as companies take different approaches to different scenarios, and this impedes comparability. Robert Schuwerk, executive director North America and lead author of the report said, ‘Little quantification of financial risk flowing from the scenario analysis is provided. Several companies, including Oil Search, much smaller than BP, have produced more robust and detailed 2°C scenario analysis than BP’s.

Source: Forbes May 23, 2018 13:07 UTC