Press Release

IIGCC publishes Net Zero Standard for Oil & Gas


  • The Standard outlines investor expectations and corporate engagement priorities for oil and gas companies.
  • The Standard sets out a comprehensive assessment framework for investors to assess the alignment of oil and gas companies’ transition plans with net zero.
  • The framework is designed to complement the sector-neutral Climate Action 100+ Company Benchmark, with initial public assessments of oil and gas companies expected in late 2023.

IIGCC has published a Net Zero Standard for Oil & Gas, a new framework for investors to assess alignment of oil and gas companies’ transition plans with a 1.5oC climate scenario. The framework will help inform investors’ corporate engagement priorities and escalation strategies, and help them to better understand the transition risk in their portfolios.

The publication follows a two year collaborative process led by IIGCC with support from the Transition Pathway Initiative (TPI), investors and regional investor groups. Provisional indicators were published in September 2021 and subsequently tested in a pilot study covering five major European oil and gas companies.

Results from the pilot study showed increasing transparency over decarbonisation plans, including disclosures on the contribution of offsets to targets and guidance on production plans1. However, the pilot study also showed the need for continued improvement in several areas, in particular the alignment of all targets and plans with relevant 1.5oC scenario benchmarks.

Adam Matthews, Chair of the process for the Oil & Gas Net Zero Standard & Chief Responsible Investment Officer for the Church of England Pensions Board, said: “This is intentionally a demanding yet practical Standard that ensures investors will have the transparency they need to differentiate between companies that are genuinely transitioning and those that are not. It levels the disclosure landscape.”

“We recognise it will not be easy to meet the Standard from day one, but we are inviting companies to unequivocally commit to disclose against the Standard and to set out a timeline to do so over the coming year.”

Supporting investors’ corporate engagement and understanding of transition risk   

Based on the two objectives of enhancing investors’ corporate engagement and improving understanding of the transition risks of underlying investments, the Net Zero Standard for Oil & Gas was developed following a growing interest amongst investors to better understand the increasing differences in company transition plans and to capture sector-specific nuances when conducting company assessments.

The new framework was developed by IIGCC to complement the Disclosure Framework of the Climate Action 100+ Net Zero Company Benchmark. For instance, all 90 metrics used in IIGCC’s oil and gas framework are aligned with the indicators of the Climate Action 100+ Company Benchmark Disclosure Framework. This is the first of a series of sector-specific frameworks IIGCC will be helping to develop.

The Net Zero Standard for Oil & Gas will be used for initial public assessments of the largest European and North American oil and gas companies in late 2023. The list of companies for assessment will be finalised by the end of Q2 2023.

Stephanie Pfeifer, CEO, IIGCC, said: “Covering the sector facing some of the biggest challenges in the transition to a low carbon economy, the Net Zero Standard on Oil & Gas will be a valuable tool for investors as they develop and hone their climate-related engagement and escalation strategies for oil and gas companies. For oil and gas companies, the framework also provides clear guidance on what investors would like to see in a net zero transition plan and how these will be assessed.”


Notes to editors

1 Results of the pilot study have not been disclosed as it was based on provisional indicators which have since been refined and built upon to form the final indicator list published today.

Media contact

Ross Gillam, Head of Media Relations, IIGCC

T: +44 (0)7388 506013


IIGCC brings the investment community together to work towards a net zero and climate resilient future. We create change the world needs by unlocking investor action on climate change.

Our work supports investors in generating returns for clients and beneficiaries, which in turn provides financial wellbeing for future generations. We work with our members to address climate risk and ensure they are well positioned to make the most of investment opportunities offered by climate mitigation and adaptation efforts, ensuring that their investments contribute towards a better world for us all to live in.

Our team supports investors to create practical solutions that can make a real difference in tackling climate change – providing guidance and support on investment practices, policies and corporate behaviours that have real impact and deliver change that the world needs. For more information visit and @iigccnews