Investor Engagement Guidance On Methane

Due to their climate and health impacts, methane emissions have drawn increasing scrutiny from the public, environmental and health groups, and global policymakers. Unfortunately, a dearth of accurate emissions disclosure, conflicting policy stances and variable operational quality of methane management by the industry interfere with investors’ efforts to gain clarity on climate risks within their portfolios. Without better reporting, investors are unable to discern which operators are prepared for a shifting energy future and which are not, creating an uncertain investment landscape

Understanding the performance of companies on these complex issues can be difficult given the interrelated nature of asks. Additionally, the lack of a goal framework hinders the investor’s ability to assess a company’s progress on methane management and conduct a comparison with other companies. This document aims to tackle these problems by providing guidance to investors in structuring engagements with companies through a framework that tracks cumulative goalposts towards better methane management in three areas – “Targets and Emissions Data”, “Policy” and “Operations, Technology and Innovation”. 

Published in 2020.