Enhancing transparency in the Latin American oil and gas sector
Published date: 21 March 2024
An analysis of opportunities and challenges in climate disclosure
Recent research has found that, while Latin American oil and gas companies are increasingly embracing sustainable business practices, improved climate reporting is needed to achieve progress toward Net Zero.
The study ‘Advances and Challenges of the Net Zero Report in the Oil and Gas Sector in Latin America’, commissioned by GRI from the environmental consulting firm ApiMetric, evaluated sustainability reports from 50 publicly listed companies reporting in accordance with GRI Standards, assessing disclosures on net zero targets, reduction and compensation mechanisms, and SDGs.
The research found there is consensus within Latin American companies about the importance of managing and reporting their greenhouse gas (GHG) emissions, but still room to improve wider disclosures on climate action and Net Zero:
- 90 % of companies identified as material at least one topic related with their emissions management, and 90% defined the coverage of these topics using GRI 305.
- While 92% of companies have commitments aligned with the SDGs, only 26% of companies report a solid Net Zero commitment.
For GRI, fostering awareness within this sector and others regarding their commitment to sustainable development is of paramount importance. Through our recent updates on disclosures pertaining to climate change, our mission is to enhance transparency levels. We aspire to assist companies in elevating their transparency and developing strategic pathways to attain their Net Zero goals.
Lina Camargo, Manager GRI LatAmThe oil and gas sector is a major contributor to climate change with significant impacts on the environment and people's livelihoods. In the global energy sector, GHG emissions have increased by approximately 60% since the signing of the UN Framework Convention on Climate Change in 1992, emphasizing why companies need to prioritize alternative energy sources to meet low-carbon targets.
Applying GRI standards such as GRI 11: Oil and Gas Sector 2021 and GRI 305: Emissions 2016 can support any oil and gas company to effectively disclose its most significant impacts, providing the information that stakeholders require to assess a company’s sustainability opportunities and risks. Meanwhile, to improve transparency on climate and energy issues, GRI recently published two draft standards that will be central to how organizations commit to greater accountability for their climate change impacts.
The new GRI Topic Standard for Climate Change and the updated GRI Energy Standard will widen reporting and contribute to ensure impact transparency for companies’ activities and operations, focusing on how organizations can cut their GHG emissions and reduce energy consumption to support a just transition. Find out more about the exposure drafts of these new standards.
Registration is now open for a launch event for the publication, which will be hosted by GRI LatAm on 25 April at 17:00 CEST (GMT+5). The presentation will be in Spanish with English translation provided.