Green Rankings 2012: Energy

A large number of leading Energy companies are involved in implementing innovative projects for achieving large reductions of greenhouse gases, such as carbon capture and storage in depleted reservoirs to securely store carbon away from the atmosphere. In recent years companies have started adopting drilling standards that go beyond what is required by government regulations, and are pooling resources through industry initiatives to jointly address emergency spill situations. Yet hydrocarbon-release accidents continue at production and transport facilities—with often-devastating environmental consequences—indicating a need for a more proactive approach to spills. The industry must also improve its transparency on water issues, especially as operations frequently span into water-sensitive regions of the world. Many companies still fail to adopt comprehensive water-management systems supported by long-term targets and deadlines.

Key Impacts

• Greenhouse-gas emissions, waste generation and disposal, and other emissions (acid-rain precursors, smog precursors, etc.) together account for more than 86 percent of the total environmental footprint for Energy companies.

• The industry accounts for 13 percent of the total greenhouse-gas emissions of all the companies in the Green Rankings.

• The industry accounts for about 17 percent of the total environmental impact of companies ranked.

Critical Issue Profile: Unconventional Production

Addressing greenhouse gas emissions will require a drastic and sustained effort from the Energy industry to develop effective solutions, while concurrently meeting society’s growing need for energy. There has been a considerable shift in recent years toward more energy-intensive unconventional oil and gas, including oil sands and shale gas, as compared to conventional fuels extraction. Stronger risk management and more advanced equipment, technology, research and development are needed to lower the energy and greenhouse-gas intensity related to extraction of unconventional oil and gas. Companies such as Spain’s Repsol S.A. are proactively addressing this issue, implementing policies and management systems to track and monitor emissions, and creating reduction plans with short- and long-term targets and goals.

Industry Ranking: How U.S. Energy Companies Stack Up