Material investment

Module 2, material investment, assesses action to reduce emissions from the company’s operations. Emissions from oil and gas companies primarily occur when their products are combusted (i.e. scope 3 in-use emissions) but significant emissions are also generated during product extraction and processing (scopes 1 and 2). Comparing the company’s past and projected scope 1 and 2 emissions intensity trends with its 1.5° pathway provides a good measure of its transition progress. It is also important to assess the volume of scope 3 emissions expected from the company’s current and already approved extraction assets compared to the volume available under the company’s 1.5°C pathway. Comparing capital expenditure (CapEx) allocated to low-carbon technologies against the total CapEx also provides a good measure of action on transition.