Swedish state pension fund AP7 has blacklisted EOG Sources Inc. and MEG Power Corp. accusing them of extracting fossil fuels on a big scale with out power transition plans.
It has now excluded 110 firms from its funding portfolio. AP7 expanded its blacklist standards, which additionally targets corporations concerned in nuclear weapons, in December 2016 to incorporate the Paris Settlement. The COP 2015 accord, which took impact November 2016, goals to restrict the rise within the international temperature to 1.5 levels Celsius relative to pre-industrial ranges.
EOG has been added to the blacklist for “appearing towards the targets of the Paris settlement by means of large-scale oil operations with out transition plans”, AP7 mentioned in a web-based assertion.
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The Houston, Texas-based oil and fuel exploration and manufacturing firm had confirmed reserves of 4.5 billion barrels of oil equal (boe) as of yearend 2023, largely within the U.S. Trinidad and Tobago accounted for 51 million boe, based on EOG’s annual report. It is usually concerned in Australian exploration.
MEG has been added for “appearing towards the targets of the Paris settlement by means of oil sand operations with out transition plans”.
The Calgary, Alberta-based producer held about 1.94 billion barrels of confirmed and possible reserves as of December 2022, based on on-line information from the corporate. Working within the Athabasca area, it says it’s the greatest pure-play in situ thermal oil producer in Canada.
Neither EOG nor MEG responded to requests for remark emailed by Rigzone. EOG and MEG have set net-zero targets by 2040 and 2050 respectively.
In the meantime in AP7’s newest blacklist replace, Japanese tools producer Hitachi Zosen Corp., renamed Kanadevia Corp. this 12 months, and German producer of carbon-based options SGL Carbon SE have been faraway from the blacklist as a consequence of “the dearth of verified details about ongoing violations by the businesses”, AP7 mentioned.
AP7’s climate-related blacklist initially targeted on coal firms. “In 2022, the necessities have been tightened with the blacklisting of firms with out transition plans with large-scale coal operations or oil sands extraction”, it mentioned. “Throughout 2024, AP7 has continued to evolve the criterion to incorporate the most important oil firms with out transition plans, that are thus deemed to behave in violation of the Paris Settlement.
“In 2025, the overview might be prolonged to cowl extra oil firms”.
The pension fund defined, “AP7 invests within the firms that in an appropriate method act based on the necessities of the worldwide conventions that Sweden has signed, and that are expressed within the UN International Compact’s ten ideas, which describe firms’ accountability for human rights, working situations, the setting and anti-corruption”.
“The blacklisting is an engagement instrument in collaboration with different engagement instruments resembling firm dialogues and voting at common conferences”, it mentioned.
To contact the writer, e-mail jov.onsat@rigzone.com
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