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Methane Reporting Gap Widens in Oil and Gas Industry
As investors increasingly focus on the risk of climate change in their portfolios, a new report from Environmental Defense Fund (EDF) shows some oil and gas companies are exposing themselves to scrutiny by failing to adequately disclose meaningful information on emissions of methane, the heat-trapping pollutant that is drawing increased attention from the public.
The analysis demonstrates company reporting on methane has improved slightly, though unevenly, over the past two years since EDF first examined methane disclosure within the U.S. oil and gas industry in their report, Rising Risk. The quality of methane reporting has improved among the top companies, though 42 percent of the companies surveyed disclose nothing on their methane management practices.
Methane—the key component of natural gas and a greenhouse gas 84 times more potent than carbon dioxide—is responsible for more than a quarter of the warming we are experiencing today and represents a fast-emerging, highly-potent form of carbon risk for investors.
"As a long-term global investor, we recognize that methane emissions are one of the most financially significant environmental risks we face," said Brian Rice, Portfolio Manager at CalSTRS, California's second largest public pension fund. "While the oil and gas industry has taken some steps to address this issue, CalSTRS sees opportunities for the industry to enhance its methane risk management and reporting efforts that simultaneously reduce atmospheric emissions and capture more natural gas by phasing out methane-emitting equipment, increasing training and designing new emissions-free systems."
The report, The Disclosure Divide: Revisiting Rising Risk and Methane Reporting in the U.S. Oil & Gas Industry, examines the current state of voluntary reporting on methane in the U.S. oil and gas sector. The authors surveyed publicly disclosed data and found of the 64 top upstream and midstream companies surveyed, only four companies report quantitative methane targets. Only nine companies report comprehensively on their leak detection and repair (LDAR) programs.
The report does show that investor engagement improves reporting. Five of the seven companies newly reporting on methane were targets of methane-disclosure shareholder resolutions during the past two years. The report also shows 82 percent of companies in voluntary initiatives provide some disclosure on methane.
Just Monday, XTO Energy, a subsidiary of ExxonMobil and one of North America's largest oil and gas producers, called on governments to regulate and reduce methane emissions from the oil and gas industry. The analysis of company data includes public positions on methane regulation. With the addition of Exxon, there are now 10 companies, up from nine, who report a position.
Bright spots in the report include Southwestern Energy, which not only has a quantitative target, but is also committed to continuous improvement. Cimarex Energy received methane shareholder resolutions in 2016 and 2017, and has now started providing more transparent information about its methane management practices. And Noble Energy reports extensively on its LDAR program, and reports reducing over 1.5 billion cubic feet of methane in 2016.
Methane emissions from the oil and gas sector are viewed as a financially material issue for companies, and by extension, their investors. Every ton of methane allowed to escape represents not only a loss of sellable product, but also undercuts natural gas' climate benefits as a fuel source. A 2015 study by the Rhodium Group found that the sector loses $30 billion globally each year from leaked or vented methane at oil and gas facilities.
The International Energy Agency (IEA) is clear that the future of the oil and gas industry is dependent on how they manage the methane risk. IEA says the industry can feasibly reduce up to 75 percent of its current methane emissions.
The report suggests that all companies should report on basic metrics, including emissions data, LDAR programs, positions on regulation, and targets. Leading companies should continue to raise the bar by bringing continuous improvement in disclosure and methane management. And investors and other industry stakeholders should continue and expand engagement, where constructive conversation could help close the disclosure divide.
"Investors are increasingly looking to support leading companies who effectively manage material ESG issues," said co-author Sean Wright of EDF+Business. "Our report shows which companies are becoming more transparent about methane management, and which are not. Investors will take note of this when making decisions."
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A new multiyear study found that people living or working within 2,000 feet, or nearly half a mile, of a hydraulic fracturing (fracking) drill site may be at a heightened risk of exposure to benzene and other toxic chemicals, according to research released Thursday by the Colorado Department of Public Health and Environment (CDPHE)
The crowd appears to attack a protestor in a video shared on Twitter by ITV journalist Mahatir Pasha. VOA News / Youtube screenshot
Some London commuters had a violent reaction Thursday morning when Extinction Rebellion protestors attempted to disrupt train service during rush hour.
By Kristen Fischer
Though the science has shown sugary drinks are not healthy for children, fruit drinks and similar beverages accounted for more than half of all children's drink sales in 2018, according to a new report.
Farms with just one or a handful of different crops encourage fewer species of pollinating and pest-controlling insects to linger, ultimately winnowing away crop yields, according to a new study.
Up to half of the detrimental impacts of the "landscape simplification" that monocropping entails come as a result of a diminished mix of ecosystem service-providing insects, a team of scientists reported Oct. 16 in the journal Science Advances.
Monocrop palm oil plantation Honduras.
SHARE Foundation / Flickr / CC BY-NC 2.0
"Our study shows that biodiversity is essential to ensure the provision of ecosystem services and to maintain a high and stable agricultural production," Matteo Dainese, the study's lead author and a biologist at Eurac Research in Bolzano, Italy, said in a statement.
It stands to reason that, with declines in the sheer numbers of insects that ferry pollen from plant to plant and keep crop-eating pests under control, these services will wane as well. But until now, it hasn't been clear how monocultures affect the number and mix of these species or how crop yields might change as a result.
Aiming to solve these questions, Dainese and his colleagues pulled together data from 89 studies cutting across a variety of landscapes, from the tropics of Asia and Africa to the higher latitudes of northern Europe. They tabulated the number of pollinating and pest-controlling insects at these sites — both the absolute number of individuals and the number of species — along with an assessment of the ecosystem services the insects provided.
In almost all of the studies they looked at, the team found that a more diverse pool of these species translated into more pollination and greater pest control. They also showed that simplified landscapes supported fewer species of service-providing insects, which ultimately led to lower crop yields.
The researchers also looked at a third measure of the makeup of insect populations — what they called "evenness." In natural ecosystems, a handful of dominant species with many more individuals typically live alongside a higher number of rarer species. The team found as landscapes became less diverse, dominant species numbers dwindled and rare species gained ground. This resulting, more equitable mix led to less pollination (though it didn't end up affecting pest control).
"Our study provides strong empirical support for the potential benefits of new pathways to sustainable agriculture that aim to reconcile the protection of biodiversity and the production of food for increasing human populations," Ingolf Steffan-Dewenter, one of the study's authors and an animal ecologist at the University of Würzburg in Germany, said in the statement.
The scientists figure that the richness of pollinator species explains around a third of the harmful impacts of less diverse landscapes, while the richness of pest-controlling species accounts for about half of the same measure. In their view, the results of their research point to the need to protect biodiversity on and around crops in an uncertain future.
"Under future conditions with ongoing global change and more frequent extreme climate events, the value of farmland biodiversity ensuring resilience against environmental disturbances will become even more important," Steffan-Dewenter said.
Reposted with permission from our media associate Mongabay.
Ivory Coast's rainforests have been decimated by cocoa production and what is left is put in peril by a new law that will remove legal protections for thousands of square miles of forests, according to The Guardian.
By Karin Kirk
Greenland had quite the summer. It rose from peaceful obscurity to global headliner as ice melted so swiftly and massively that many were left grasping for adjectives. Then, Greenland's profile was further boosted, albeit not to its delight, when President Trump expressed interest in buying it, only to be summarily dismissed by the Danish prime minister.
During that time I happened to be in East Greenland, both as an observer of the stark effects of climate change and as a witness to local dialogue about presidential real estate aspirations, polar bear migrations and Greenland's sudden emergence as a trending topic.