Oil Companies Withdraw Support for Worldwide Initiative Advocating ‘Net Zero’ in Energy Sector

Major Energy Companies Withdraw from Climate Advisory Group

According to recent reports, several prominent energy firms have decided to exit the advisory group that advocates for corporate climate goals after questions were raised about its integrity. Notably, Shell, Aker BP, and Enbridge have all stepped away from the Science-Based Target Initiative (SBTI), as noted by the Financial Times. This initiative collaborates with organizations like the United Nations, advising businesses on reducing greenhouse gas emissions to achieve net-zero emissions by 2050.

In their statements, these companies expressed concerns over the guidance provided by the SBTI, suggesting it didn’t adequately consider the feedback they had submitted. They emphasized the need for a more adaptable approach to achieving net-zero, one that takes into account the complexities of energy security, among other factors. They also reiterated their commitment to climate targets, despite leaving the SBTI.

Reportedly, SBTI staff communicated to advisors their intention to limit work on climate standards for oil and gas, following criticisms around the group’s direction. One employee indicated that the group’s focus could be hindering progress, particularly for larger oil companies.

An Enbridge spokesperson affirmed the company’s ongoing commitment to its 2050 Net-Zero Emissions goals, referencing their sustainability report for details on their emission reduction strategies.

They noted the importance of applying a science-based methodology for setting goals in the oil and gas sector, advocating for sufficient flexibility to navigate economic and social changes while aiming for a net-zero status by 2050. The spokesperson also confirmed that Shell officially withdrew from the SBTI in October 2024.

Meanwhile, Aker BP’s representatives voiced concerns about their influence within the SBTI, asserting that their limited capacity to affect oil and gas standards led to their departure. They maintained, however, that this decision does not signal a withdrawal from climate action commitment. Aker BP continues to emphasize its 2050 net-zero target, despite acknowledging the ongoing significance of oil and gas beyond that date.