AP7 has blacklisted EOG Assets Inc. and MEG Power Corp. for extracting fossil fuels on a big scale with out vitality transition plans, the Swedish state pension fund stated.
It has now excluded 110 firms from its funding portfolio, 53 of that are fossil gas firms together with giants Exxon Mobil Corp., Gazprom PJSC, Saudi Arabian Oil Co. (Aramco) and Shell PLC.
AP7 expanded its blacklist standards, which additionally targets companies concerned in nuclear weapons, in December 2016 to incorporate the Paris Settlement. The COP 2015 accord, which took impact November 2016, goals to restrict the rise within the international temperature to 1.5 levels Celsius relative to pre-industrial ranges.
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EOG has been added to the blacklist for “performing in opposition to the targets of the Paris settlement by large-scale oil operations with out transition plans”, AP7 stated in a web-based assertion.
The Houston, Texas-based oil and gasoline exploration and manufacturing firm had confirmed reserves of 4.5 billion barrels of oil equal (boe) as of yearend 2023, principally within the U.S. Trinidad and Tobago accounted for 51 million boe, based on EOG’s annual report. It’s also concerned in Australian exploration.
MEG has been added for “performing in opposition to the targets of the Paris settlement by oil sand operations with out transition plans”.
The Calgary, Alberta-based producer held about 1.94 billion barrels of confirmed and possible reserves as of December 2022, based on on-line knowledge from the corporate. Working within the Athabasca area, it says it’s the largest pure-play in situ thermal oil producer in Canada.
Neither EOG nor MEG responded to requests for remark emailed by Rigzone.
EOG and MEG have set net-zero targets by 2040 and 2050 respectively however these don’t cowl Scope 3 emissions, much like Aramco, added in June for having “large-scale oil operations with out transition plans”. Aramco has solely dedicated to net-zero Scope 1 and a pair of emissions throughout its wholly-owned and operated property by 2050.
ExxonMobil is blacklisted for “involvement within the opposition to local weather change regulation within the USA”. Gazprom is blacklisted for “involvement in fossil gas manufacturing within the Russian Arctic”, whereas Shell is blacklisted for “involvement within the violation of environmental norms and human rights in oil extraction operations in Nigeria”.
In the meantime in AP7’s newest blacklist replace, Japanese tools producer Hitachi Zosen Corp., renamed Kanadevia Corp. this 12 months, and German producer of carbon-based options SGL Carbon SE have been faraway from the blacklist as a result of “the shortage of verified details about ongoing violations by the businesses”, AP7 stated.
AP7’s climate-related blacklist initially targeted on coal firms. “In 2022, the necessities had been tightened with the blacklisting of firms with out transition plans with large-scale coal operations or oil sands extraction”, it stated. “Throughout 2024, AP7 has continued to evolve the criterion to incorporate the most important oil firms with out transition plans, that are thus deemed to behave in violation of the Paris Settlement.
“In 2025, the evaluate can be prolonged to cowl extra oil firms”.
The pension fund defined, “AP7 invests within the firms that in a suitable approach act based on the necessities of the worldwide conventions that Sweden has signed, and that are expressed within the UN International Compact’s ten ideas, which describe firms’ duty for human rights, working situations, the setting and anti-corruption”.
“The blacklisting is an engagement instrument in collaboration with different engagement instruments equivalent to firm dialogues and voting at basic conferences”, it stated.
To contact the creator, e mail jov.onsat@rigzone.com
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