(Reuters) – The largest U.S. oil and gas trading association on Thursday released new industry guidelines for energy companies to report greenhouse gas emissions in an effort to address the sector's carbon footprint.
American Petroleum Institute, which includes Exxon Mobil Corp. and Chevron Corp. said the framework aims to standardize how companies track emissions, including exhausted natural gas, and urges them to voluntarily disclose these details publicly.
Aaron Padilla, API's head of climate and ESG policy, said in an interview with reporters that the template "provides a basic picture of a company's work to mitigate greenhouse gas emissions", and also helps standardize reporting indicators to enable comparisons between companies.
The framework will, on the heels of plans by the US Securities and Exchange Commission, introduce new climate mitigation rules as it strengthens information on the environment, social and governance.
The five Ctions of the API's disclosure template include those for logging and disclosing data on greenhouse gases emitted directly from the company's assets and emissions from the energy companies use.
There are also sections for companies to report emission reduction measures through the use of renewable electricity. , carbon capture and other measures, as well as details on how companies independently verify their data.
The API's new guidelines exclude so-called Scope 3 emissions, which take into account greenhouse gas emissions from customers who use the oil and gas they have purchased for transport and other uses.
The trade group said that the template is not mandatory, but it expects companies to choose to use it. The first report is expected in 2022.
The guidelines follow the API's announcement earlier this year that it would support carbon dioxide pricing policy, facilitating its previous resilience to climate change regulatory measures amid a change in the oil industry's strategy and new US presidency.