API, the biggest U.S. oil and gas trade association, has started to shift its approach to climate change since President Joe Biden took office, including the endorsement of carbon pricing in March. (Source: Shutterstock.com)
The American Petroleum Institute (API) on June 24 unveiled new industry guidelines for energy companies to track and report greenhouse-gas (GHG) emissions in efforts to boost transparency around the sector’s carbon footprint.
“As an industry of engineers and problem-solvers, we measure and track progress in everything we do and aim to share relevant data transparently,” API President and CEO Mike Sommers said in prepared remarks to the Houston Economic Club.
API, the biggest U.S. oil and gas trade association, has started to shift its approach to climate change since President Joe Biden took office, including the endorsement of carbon pricing in March.
As part of its next step, the new API guidelines released June 24 will provide standardization for individual oil and gas companies to report and track GHG indicators, which Sommers said will enable for consistency and greater comparability in climate-related reporting.
“Working with our members, the financial community and throughout the supply chain, this reporting template builds on our robust sustainability efforts and elevates the consistency and comparability needed for tracking climate-related progress from company to company,” he said.
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API’s template standardizes the names of indicators, units of measure and the detailed definitions for reporting boundaries to prompt comparable reporting from one company to another.
The template prompts for data on Scope 1 and Scope 2 GHG emissions and consists of core GHG emissions indicators that companies can voluntarily report publicly. Additionally, the template includes indicators on a company’s efforts to mitigate GHG emissions and a place to indicate a company’s GHG targets and other climate reporting resources, as well as a section where a company can indicate its third-party verification of GHG reporting.
The GHG mitigation section contains indicators on the capture of CO₂ for utilization or storage, the purchase of credits for renewable energy, and total offsets retired by the company. This gives a foundational picture of a company’s work to mitigate emissions, according to a release from API.
API said it expects to update the reporting template periodically, in consultation with its members, the financial sector, policymakers, industry customers and other interested parties, to achieve continuous improvement, including additions later this year.
The guidelines follow plans by the U.S. Securities and Exchange Commission to introduce tougher climate disclosure requirements for the oil industry, which has faced backlash including from API and its members ConocoPhillips Co. and Chevron Corp.
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