Baig singled out a tendency in the industry to rely on the environmental metric of carbon intensity, whereby a company’s carbon footprint is measured as a percentage of the total.
“The problem is absolute emissions levels continue to rise,” he said. “This strategy of continuing to invest substantial sums in brownfield oil and gas sites, but then supplementing that with lower carbon solutions, in aggregate will take us further away from a Paris Aligned energy mix in the future.”
While it’s important to approach the subject of decarbonization “with a degree of realism,” the ESG industry needs to ask itself whether it’s done enough and at a fast enough pace, Baig said.
“I think we can all objectively say it hasn’t,” he said.
This article was provided by Bloomberg News.