A study of CDP Scores on Climate Change of Oi...

A study of CDP Scores on Climate Change of Oil & Gas sector companies of India

Author Name : Prof (Dr.) Chandra Prakash Verma, Dr. Jitendra Kumar Singh, Khyali Singh Chaudhary

ABSTRACT

Along with the continuous growth of global population and increase in economic activities, the demand for energy also increases which ultimately lead to increasing concentration of carbon dioxide causing global warming as a serious threat to the earth’s environment. It is in this context that reduction of carbon emissions and their voluntary disclosures by companies in more transparent manner to the investors and the society about their actions to tackle global warming and achieve the commitments towards Paris Agreement and sustainable development goals.

This paper attempts to examine the CDP scores of Oil and Gas sector companies of India with specific reference to climate change for period of 2020 and tries to find out the position of Indian companies with respect to all 224 Oil and Gas sector companies as per latest CDP List 2020. The study concludes that none of the Indian companies have been able to find its place in List A companies of CDP from Oil and Gas sector in disclosing information on climate change. Only one company has attained Management Level and another company is at Awareness Level while remaining 8 companies have been awarded with “F” score which implies that these companies have failed to disclose the desired information on emission and climate change. It has been found that the company which has disclosed higher percentage of information on climate change and all types of emission (Scope 1, Scope 2 & Scope 3) has achieved a higher disclosure level than the one which has not disclosed lesser information on climate change and carbon emissions to CDP. An emission assurance from the companies also helps improve their CDP scores. This study also shows that Oil and Gas companies of India have to go a long way in attaining Leadership Level to confirm their commitment for reduction of carbon emissions and take necessary steps for reducing global temperature by 1.5 Deg C to pre-industrial level under the Paris Agreement.

Keywords: Carbon Disclosure Project (CDP), Oil and Gas (O&G), Climate Change, Assessing Low Carbon Technology (ACT), Sustainable Development (SD), Green House Gases (GHG)