TPT Oil and Gas Sector Guidance

Oil & Gas
Sector Guidance
DRAFT FOR CONSULTATION
NOVEMBER 2023
2 TPT Oil & Gas Sector Guidance
Acknowledgements
The drafting of this guidance was led by the TPT Oil & Gas Working Group, with oversight from the Sector
Guidance Co-Chairs and input from the wider TPT Delivery Group, Steering Group, and the TPT working
groups on nature, adaptation, and just transition, with technical, drafting, and overall support from the
TPT Secretariat.
The TPT would like to thank:

• the Co-Chairs of the Working Group: Vanessa Havard-Williams , and Bruce Duguid (EOS at
Federated Hermes Limited); and
• the Co-Chairs of the Sector Guidance Workstream: Julie Baddeley (Chapter Zero) and David Harris
(London Stock Exchange Group)
alongside members of the TPT Oil & Gas Working Group and their teams:
Fiona Maclean, Aaron McDougall, Amundi Chandra Gopinathan, Railpen
Andy Ross, CDP Steffen Kram, Christopher Vernon, Banco

Santander S.A
Owen Tutt, EOS at Federated Hermes Limited
Valentin Jahn, TPI
Dan Gardiner, IIGCC
Aarti Ramachandran, UBS
Tara Schmidt, Kevin Treco, Lloyds Banking Group
Adrien Rose, Krista Halttunen, Oxford
The TPT would also like to thank others who provided expert advice, including:
Gregorio Giorgi, Maggie Luebs, Barclays, Matthew Duhan, Matthew King, Alan Haywood, bp, Amy Owens,
Carbon Tracker, Jennifer Driscoll, Sherry Englande, ExxonMobil, Kirstie Wright, Harbour Energy, Emelia
Holdaway, Coco Wong, HSBC, Paul Schreiber, Henri Her, Reclaim Finance, Ronan Hodge, Charlie McLellan,
GFANZ, Laetitia Pirson, Vladimir Proaño, Ceres, Alexandre Brito, Fernanda Bianchini Egert, Petrobras, Mark
Manning, Phil Delaney, Financial Conduct Authority, James Vaccaro, Re:Pattern, Joanne Edgeler, North Sea
Transition Authority
All members of the TPT Steering Group and Delivery Group can be viewed on the TPT website.
The TPT would also like to thank members of the alongside the wider TPT Secretariat team for
TPT Secretariat Sector Guidance team: their work on this guidance and the wider TPT
work programme:
Nina Pimblett (Sector Guidance Lead and Lead
on Asset Owners and Asset Managers) Dr Ben Caldecott (Co-Head)
Ben Gilbey (Sector Guidance Deputy and Lead Kate Levick (Co-Head)
on Food & Beverage, Electric Utilities & Power
Jacques Morris (Team Leader)
Generators, and Metals & Mining)
Ira Poensgen (Technical Lead)
Saad Moazam (Sandbox Lead and Lead on Oil &
Gas) Helen Civil (Director of Communications)
Nathan Chan (Banks Lead) Sophie Collerton (Focus Topics Lead)
Alexander Schlatter (Sector Summary Lead) Max Rose (Implementation Guidance Support)
Kate Ryan (International Engagement Lead)
Photo,
Photo Unsplash.com
pixabay, Pexels.com
Contents
ABOUT THE TPT 5
1. INTRODUCTION 6
The TPT’s Sector Guidance 6
How this Guidance fits within the suite of TPT Guidance 7
Sector Context 11
Scope of the Oil & Gas Guidance 12
A strategic and rounded approach to Oil & Gas 15
transition plans
2. INTERPRETING THE TPT DISCLOSURE FRAMEWORK FOR THE OIL & 20

GAS SECTOR
38
GLOSSARY

Cover image, Alexis Antoine, Unsplash.com This page, Greg Johnson, Unsplash.com
ABOUT THE TPT

The UK has set itself ambitious and legally binding The Transition Plan Taskforce (TPT) was launched by
targets to cut greenhouse gas (GHG) emissions to HM Treasury in March 2022 with a mandate to bring
net zero by 2050, with binding interim targets. The together leaders from industry, academia, and
UK has also pledged at UN climate negotiations to regulators to develop good practice for transition
cut emissions by at least 68% by 2030.1 plan disclosures for finance and the real economy.
In addition, the TPT has been tasked to engage with
In October 2021, the UK government published non-UK governments and regulatory networks to
the Greening Finance Roadmap, signalling support conversations on how to build common
that it intends to strengthen new and existing baselines and principles for transition planning.
sustainability reporting requirements for
companies, including publication of climate In the 2023 Green Finance Strategy, the UK
transition plans. government committed to consult on introducing
requirements for the UK’s largest companies to
At COP26, the UK Chancellor further committed to disclose their transition plans if they have them.2 In
work towards the UK becoming the world’s first Net addition, the Financial Conduct Authority (FCA) has
Zero-aligned Financial Centre and ensuring that signalled its intention to consult on strengthening
financial flows shift towards supporting a net zero requirements for transition plan disclosures in line
economy. The Chancellor also set out that the UK with the TPT Disclosure Framework, alongside its
will move towards making publication of transition consultation on implementing UK-endorsed ISSB
plans mandatory. Standards.3
At COP26, the UK Chancellor further committed to work

towards the UK becoming the world’s first Net Zero-
aligned Financial Centre and ensuring that financial
flows shift towards supporting a net zero economy.
1) See UK Climate Change Act 2008 and the UK’s Nationally Determined Contribution, as updated September 2022
2) UK Government, Mobilising green investment: 2023 green finance strategy, April 2023
3) FCA, Primary Market Bulletin 45, August 2023
1. INTRODUCTION
The TPT’s Sector Guidance

In October 2023, the TPT published the final Disclosure Framework and a suite of Implementation
Guidance. Preparers of transition plans should first read these products.
The TPT’s Terms of Reference also gave the TPT a mandate to produce guidance for a small number of
finance and real-economy sub sectors. In its Status Update in July 2023, the TPT confirmed these sectors as:
• Asset Owners;
• Asset Managers;
• Banks;
• Food & Beverage;
• Electric Utilities & Power Generators;
• Metals & Mining; and
• Oil & Gas.
These sectors were chosen given each sector’s greenhouse gas emissions, its need for additional
transition finance in the UK context, and the quality of existing guidance available in the market. In making
its selection the TPT sought to identify sectors for which additional guidance would be beneficial in kick-
starting transition plan disclosures, while also identifying opportunities to leverage existing sectoral
guidance and consolidate it into the context of the Disclosure Framework.
This Guidance, alongside the others listed above, is open for consultation until 29 December 2023. Please
provide feedback here.
The materials produced by the TPT reflect a synthesis of best practice at the time of publication. They
do not constitute financial, legal, or other professional advice and should not be relied upon as such.
Nothing in the Oil & Gas Guidance is intended to override, substitute, or alter existing legal or regulatory
requirements, including, without limitation, duties of the entity’s directors and senior managers, and the
entity’s constitutional documents. Nothing in this Oil & Gas Guidance should be understood to require the
disclosure of commercially sensitive information.
Photo, Nathan Anderson, Unsplash.com

How this Guidance fits within the

suite of TPT Guidance
In October 2023, the TPT published its final Disclosure Framework, as part of a wider suite of Implementation
Guidance, including:
• Guidance to help preparers explore the disclosure recommendations, including case studies;
• Guidance on the transition planning cycle, including case studies;
• Technical mapping to the final Climate-Related Disclosures standard (IFRS S2) issued by the
International Sustainability Standards Board (ISSB) and the TCFD’s Recommendation and Guidance;
• A comparison of the TPT Disclosure Framework to the European Sustainability Reporting Standards
(ESRS); and
• Legal considerations for preparers of transition plans using the TPT Disclosure Framework.
The Disclosure Framework contains the foundational disclosure recommendations which apply to all sectors.
It is designed to complement, and build on, the ISSB’s final Standards IFRS S1 and S2, as well as drawing on
GFANZ’s framework and guidance for credible, comprehensive, and comparable net zero transition planning
and uses the same core components and structure. This means that the TPT Framework and GFANZ are both
part of an aligned, consistent effort to support the development of private sector transition plans.
Preparers should first read the Disclosure Framework for an understanding of the key concepts of the TPT,
such as how the Disclosure Framework complements, and builds on, ISSB, the key Principles of the Disclosure
Framework and the Strategic and Rounded Approach to transition planning.
PRINCIPLES Ambition Action Accountability
DISCLOSURE 2. Implementation
1. Foundations 3. Engagement Strategy 4. Metrics & Targets 5. Governance
ELEMENTS Strategy
4.1 Governance, engagement,

DISCLOSURE 3.1 Engagement with value 5.1 Board oversight and
1.1 Strategic Ambition 2.1 Business operations business and operational
SUB-ELEMENTS chain reporting
metrics and targets
5.2 Management roles,

1.2 Business model and value 4.2 Financial metrics and
2.2 Products and services 3.2 Engagement with industry responsibility and
chain targets
accountability
3.3 Engagement with

1.3 Key assumptions and
2.3 Policies and conditions government, public sector, 4.3 GHG metrics and targets 5.3 Culture
external factors
and civil society
5.4 Incentives and

2.4. Financial planning 4.4 Carbon credits
remuneration
5.5 Skills, competencies and

training
Figure 1: The TPT Disclosure Framework

The Oil & Gas Guidance adds further depth and detail for preparers of transition plans that are operating in
the Oil & Gas sector.
Part One of this Guidance (Introduction) introduces the sector context and how the Guidance is to be
used alongside the Disclosure Framework and wider TPT Guidance. Part Two (Interpreting the Disclosure
Framework for the Oil & Gas sector) provides suggestions of disclosures and further guidance and
resources for entities to consider.
The hierarchy of TPT guidance within the overall transition plan disclosures landscape is set out in Figure 2.
In jurisdictions where ISSB Standards are to be adopted, preparers will likely begin by consulting IFRS S1 and
S2. IFRS S24 contains disclosure requirements relevant to transition planning. The TPT Disclosure Framework
complements, and builds on, ISSB. The TPT’s suite of Implementation Guidance, as well as transition plan
guidance materials published by GFANZ, may further help preparers develop their plans. The Oil & Gas
Guidance then interprets the Disclosure Framework for the Oil & Gas sector.
Preparers of Oil & Gas transition plans

should first read the Disclosure Framework.
They may then read this guidance to
interpret the TPT Disclosure Framework for
the Oil & Gas sector.
Photo, Mike Benna, Unsplash.com
4) IFRS, Draft IFRS S2 Climate-related disclosures, 2022

The Transition Plan Disclosures Landscape:

how preparers can use the outputs of ISSB, GFANZ, and TPT
IFRS FOUNDATION
IFR S S1 G enera l Req uirements for D is clos ures of

S us t a ina b ility -rela ted F ina ncia l Informa tion
IASB IS S B
IF RS S2 C lima te-rela ted D is clos ures
Further depth
& detail for GFANZ Real-economy GFANZ Financial Institution
preparers & Transition Plans Guidance Transition Plans Guidance
users
TPT Disclosure Framework
TPT suite of Implementation Guidance
TPT Sector Summary (40 sectors)
Real economy sectors Finance sub-sectors
TPT Electric Utilities & Power TPT Banks

Generators Guidance Guidance
TPT Food & Beverage TPT Asset Owners

Guidance Guidance
TPT Metals & Mining TPT Asset Managers

Guidance Guidance
TPT Oil & Gas

Guidance
Figure 2: The Transition Plan Disclosures Landscape

Using the Oil & Gas Guidance to

interpret the Disclosure Framework
The TPT Disclosure Framework (see Figure 1) breaks down five Elements into 19 Sub-Elements, each of which
is supported by Disclosure Recommendations. Where Recommendations are introduced using “shall”, this
indicates that the TPT views these as relevant disclosures for all good practice transition plans, subject to a
materiality assessment. Some Sub-Elements also contain examples of additional disclosures that an entity
may consider, but which may not be relevant to all entities. These are introduced using “may” or “e.g.”, and
are not intended to be comprehensive. This means an entity may consider disclosing other information
under these Sub-Elements.
Part Two of this Guidance supports preparers and users to interpret the Disclosure Framework by setting
out suggestions of disclosures that entities “should consider disclosing”. None of the suggestions in this
Guidance replace the Disclosure Recommendations in the Disclosure Framework; they are complementary
and intended to help preparers interpret the Disclosure Framework. Like in the Disclosure Framework,
suggested disclosures are not intended to be comprehensive, and an entity may consider disclosing other
information under these Sub-Elements where deemed material to the decisions of primary users of the
entity’s general purpose financial reports. These suggestions of disclosures are accompanied by further
considerations and references to external guidance that preparers may find useful, titled “When disclosing,
an entity may additionally consider:."
The TPT Disclosure Framework and Sector Guidance, including this Oil & Gas Guidance, use the ISSB’s
definition of a climate-related transition plan, and apply the same approach to materiality and the
wider set of concepts, definitions, and corporate reporting norms that are set out in the ISSB’s General
Requirements standard (IFRS S1)5 (see Appendix 1: Reporting of transition plans in the TPT Disclosure
Framework). In addition to including transition plan disclosures as part of its general purpose financial
reports, the TPT regards it as good practice for an entity periodically to publish its transition plan in a single
standalone document that sits alongside its general purpose financial reports.
Photo, Timothy Newman, Unsplash.com
5) IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, 2023.
Sector Context
Greenhouse Gas (GHG) emissions from the to be made to build the physical and transitional
production and consumption of oil and gas are climate resilience of residual oil and gas operations,
one of the most significant contributors to global in addition to the use of GHG neutralising measures
anthropogenic GHG emissions. The industry’s (e.g. Carbon Capture, Usage and Storage (CCUS),
operations account for just under 15% of total Direct Air Capture (DAC), nature based solutions,
energy-related global emissions, while the use of its and Carbon Dioxide Removals (CDR)) where
fuel products contribute 40%6 of emissions. Entities appropriate, and the phase-down and phase-
operating across the oil and gas value chain out of unabated fossil fuel production assets. The
not only have a critical role to play in reducing IPCC Sixth Assessment Report provides further
emissions, but also in leveraging their size, project information on climate mitigation.9 Consequently,
development and engineering capabilities to drive climate resilience will be an important factor in the
adoption and scalability of low and zero carbon design of decommissioning strategies, to ensure
energy solutions. that oil and gas companies minimise potential
additional costs, and in decisions about which
However, achieving an orderly transition is not assets to operate and which to retire.
straightforward given the scale and complexity
of our global economy, and its current Decarbonisation strategies and transition plans in
dependence on hydrocarbons, which deliver the value chain of oil and gas companies, including
dense, transportable energy and act as feedstock engagement and collaboration with commercial
for petrochemicals (now becoming the largest counterparties such as investors, customers,
drivers of global oil demand).7 In recent years, insurance providers and banks, will together
energy security and energy poverty challenges contribute to the transition of energy, industrial and
have become more pronounced in developed mobility systems, in relation to which entities in this
economies, while economic growth in other sector could be an important lever of change.
markets continues to increase overall energy
demand. In 2023 the International Energy Agency Comparable, decision-useful information on
(IEA) forecast that world demand for oil will reduce company strategy, targets, emissions and other
through 2028, fuelled by the energy transition. The 8
metrics, and on the boundaries applied for this
rapid growth of affordable renewables, batteries reporting and the extent to which transition plan
and electric vehicles is a challenge that entities and emissions disclosures align with the way that
in the sector need to respond to in the context individual businesses are structured/operated
of a rapidly changing world and one which is is also essential. This extends to communicating
augmented by increasing and evolving investor how transition risks and opportunities associated
expectations. with non-operated joint ventures and other assets
in which preparers hold minority interests are
This sector faces perhaps the most substantial addressed. Clarifying these matters will support the
challenges of any in the economy. Transition investment community and broader stakeholder
requires the development and scaling of new groups in better understanding where each
technologies and business models focused on low- organization is in its transition journey, and how it
GHG, climate-resilient energy products and services can be best supported to achieve its targets and
in line with rising demand. Furthermore, efforts need Strategic Ambition.
6) IEA, Emissions from Oil and gas Operations in Net Zero Transitions, 2023
7) Petrochemicals are also critical to the manufacture of components of the modern clean energy system
8) IEA, Oil Analysis and forecast to 2028, 2023
9) IPCC, Working Group III: Climate Mitigation Sixth Assessment Report, April 2022
Scope of the TPT Oil & Gas Guidance

In line with the IFRS industry descriptions10 for the oil & gas sector, this guidance applies to entities across the
oil & gas sector. Definitions used for each segment of the value chain include entities which operate across
the following activities:
Upstream Oil & Gas – Exploration & Production (E&P) entities that explore for, extract, or
produce energy products such as crude oil and natural gas, which comprise the Upstream operations of
the oil and gas value chain. Companies in the industry that develop conventional and unconventional oil
and gas reserves; these include, but are not limited to, shale oil and/or gas reserves, oil sands, and gas
hydrates. Activities covered by this standard include the development of both on-shore and off-shore
reserves.
Midstream Oil and gas – Midstream industry consists of companies that are involved in the
transportation or storage of natural gas, crude oil, and refined petroleum products. Midstream natural
gas activities involve gathering, transport, and processing of natural gas from the wellhead, as well as
the removal of impurities, production of natural gas liquids, storage, pipeline transport, and shipping,
liquefaction, or regasification of liquefied natural gas. Midstream oil activities mainly involve transport of
crude oil and refined products over land, using a network of pipes and pumping stations, as well as trucks
and rail cars, and overseas and rivers via tanker ships or barges. Companies that operate bulk stations
and terminals, as well as those that manufacture and install storage tanks and pipelines, are also part of
this industry. This segment includes physical trading of oil and gas products but this guidance excludes
financial trading.
Photo Ira E, Unsplash.com
10) Volume B11—Oil & Gas-Exploration & Production (ifrs.org)

Volume B12—Oil & Gas-Midstream (ifrs.org)
Volume B13—Oil & Gas-Refining & Marketing (ifrs.org)
Downstream Oil and gas - Refining & Marketing (R&M) entities that refine petroleum
products, market oil and gas products, and/or operate gas stations and convenience stores, all of which
comprise the Downstream operations of the oil and gas value chain. The types of refinery products and
crude oil inputs influence the complexity of the refining process used, with different expenditure needs and
intensity of environmental and social impacts.
The Oil & Gas Guidance does not cover the activities of petrochemicals entities, oil and gas service entities
or entities whose primary activity is gas distribution. Activities of oil and gas entities that are not oil and
gas related (for example, those relating to renewable power generation, transmission or distribution -
please see the supplemental Electric Utilities and Power Generation (EUPG) Reporting Guidance for more
information) or low carbon hydrocarbon related, such as biofuels, or hydrogen, also fall outside this
guidance .
A schematic of the oil and gas value chain is shown in Figure 3, highlighting which parts of the value chain
are out of the scope if their sole activities are in that space (in grey) of this guidance. Gas distribution/
utilities, financial trading and petrochemicals production are not in scope for this guidance as they
represent sufficiently different business and operating models compared to Upstream oil and gas, refining,
and retail & marketing, and a single piece of guidance would not be able to adequately address specific
differences and considerations in those value chain segments.
The figure below shows the Oil & Gas value chain. Sections of the value which are in scope of this guidance
are shown in green. Sections which are out of scope are shown in grey.
MIDSTREAM DOWNSTREAM (Refining & marketing)

UPSTREAM
(Exploration & Production) Financial Physical Transportation Retail &
Refining Petro- Distribution
trading trading & storage chemicals marketing
Searching for Physical trading involves the Refining entails the process of transforming raw
underground oil & gas buying and selling of refined liquid hydrocarbons into oil products such as
reserves through products e.g. between an E&P Petrol, Diesel and Kersonsene
seismic surveys. player and a refinery. Petrochemical production involves the use
Extracting proven Transportation and storage of refined petroleum products as feedstocks
reserves through invlove transferring - and for producing plastics, solvents and other
drilling activities. sometimes storage of - extacteded non-fuel consumer and industrial products in
Selling hydrocarbons hydrocarbons between upstream petrochemical plants
to the downstream and downstream operations. Distribution involves the selling and
sector For oil, this is through tankers transportation of refined petroleum products
and vessels, for natural gas, it is and gas to wholesalers, retailers and utility
through pipelines (including LNG). entities
Retail and marketing involves the sale of fuels
(including aviation and marine), petroleum
products, and EV charging and convenience
service to consumers and industrial entities,
partly through a network of petrol stations.
Figure 3: The Oil & Gas Value Chain

Photo Isabel Garger, Unsplash.com
Sub-Elements of the Disclosure Framework addressed in this Guidance

The Disclosure Framework sets out 19 Sub-Elements supported by a series of Disclosure Recommendations.
While entities are expected to disclose against all Sub-Elements, only 13 were selected for sector-specific
interpretation in this Guidance. Sub-Elements were selected considering the scope for additional sector
specificity to build on the Disclosure Framework, and the breadth and depth of existing sector-specific
guidance.
For Sub-Elements where additional sector-specific guidance is provided, this may only apply to some
Disclosure Recommendations of the Disclosure Framework. Suggestions for disclosures and additional
considerations are not intended to be comprehensive. An entity should disclose other information under
these Sub-Elements where deemed appropriate.
The Disclosure Recommendations in the Disclosure Framework for the remaining 6 Sub-Elements were
deemed not to require further sector-specific detail or interpretation. No additional sector-specific
guidance has been provided for these Sub-Elements.
The TPT is interested in views on the selection of these Sub-Elements for interpretation in this Guidance.
Please provide feedback here.
The Sub-Elements selected for interpretation in this Guidance are set out in Figure 4 below.
PRINCIPLES Ambition Action Accountability
DISCLOSURE 2. Implementation
1. Foundations 3. Engagement Strategy 4. Metrics & Targets 5. Governance
ELEMENTS Strategy
4.1 Governance, engagement,

DISCLOSURE 3.1 Engagement with value 5.1 Board oversight and
1.1 Strategic Ambition 2.1 Business operations business and operational
SUB-ELEMENTS chain reporting
metrics and targets
5.2 Management roles,

1.2 Business model and value 4.2 Financial metrics and
2.2 Products and services 3.2 Engagement with industry responsibility and
chain targets
accountability
3.3 Engagement with

1.3 Key assumptions and
2.3 Policies and conditions government, public sector, 4.3 GHG metrics and targets 5.3 Culture
external factors
and civil society
5.4 Incentives and

2.4. Financial planning 4.4 Carbon credits
remuneration
5.5 Skills, competencies and

training
Figure 4: Sub-Elements selected for interpretation in this Guidance

A strategic and rounded approach

to Oil & Gas transition plans
The TPT Disclosure Framework recommends that entities, including Oil & Gas entities, take a strategic and
rounded approach to transition planning, considering three inter-related channels:
1. Decarbonising the entity: Given the oil & gas sector’s significant contribution to global GHG emissions,
it is crucial for entities in this sector to clearly disclose their strategies and actions to reduce emissions
including emissions from their products.
Strategies for both Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect
emissions from the generation of purchased energy) emissions are more straightforward to develop.
Reductions in Scope 1 and 2 emissions can be accomplished in a range of ways, including:
o Technological and operational enhancement and research and development (R&D): Investing
in technologies that can reduce emissions from oil and gas exploration, extraction, and refining
processes.
o Significant methane emissions reduction programmes.
o Reducing energy consumption: implementing energy efficiency programs.
o Decarbonising energy mix through electrification of energy consumption and low carbon power
generation.
o GHG neutralising measures ( e.g. CCUS, DAC, nature-based solutions, CDR): Implementing
measures such as CCUS techniques to sequester carbon dioxide emissions at the source,
especially in extraction and refining stages.
Scope 3 emissions account for the large majority of the oil & gas sector's total value chain carbon
footprint.11 Under most decarbonisation pathways and scenarios for the energy transition consistent
with the ambition of the Paris Agreement, consumption of oil and gas products must reduce very
substantially. Entities are expected to articulate their approach to driving reductions of Scope 3 (e.g.
emissions from use of sold products) emissions and the transition risks associated with their Scope
3 emissions exposure. The pace of reduction, and how it will impact individual organisations creates
transition risks that are essential for the sector and its investors and counterparties to understand and
manage, notwithstanding that these are necessarily trends over which such organisations do not
have full agency.
Capitalizing on and accelerating the adoption of key clean energy technologies and infrastructure will
help to control and reduce Scope 3 emissions and in turn has the potential to future-proof oil & gas-
focused business models and respond to growing consumer demand for clean energy. Oil and gas
entities should seek to articulate their approach to understanding and addressing Scope 3 emissions,12
while clearly communicating specific dependencies on customer actions and wider systemic change.
Reduction in Scope 3 emissions for this sector is closely linked to how the oil and gas industry can
contribute to the economy-wide transition (see point 3 below).
Photo Michael Benz, Unsplash.com
11) Data from IHS Markit in 2019 showed that Scope 3 emissions constituted on average 88% of total value chain emissions
12) DNV, Scope 3 emissions, 2022
2. Responding to the entity’s climate-related risks and opportunities: The oil & gas sector faces a
unique set of transition risks, such as changing market dynamics, the falling costs and growth of
renewables, accelerated consumer adoption of EVs, carbon pricing, and litigation risk. It also faces
physical risks, including changes in climate patterns that could affect the feasibility and safety
of exploration and extraction activities, as well as the ability to refine, transport and distribute oil,
petroleum and gas products and decommissioning and aftercare requirements in relation to
former production assets and infrastructure. entities in the oil & gas sector should disclose their risk
management processes relevant to any such risks and how they plan to address these concerns.
Opportunities presented by new low-carbon products and technology can also be disclosed, for
example, hydrogen production or advanced drilling techniques and initiatives such as biofuel
development and methane leak reduction initiatives.
3. Contributing to an economy-wide transition: The oil & gas sector has the potential to play a pivotal
role in the broader economy's energy transition. Entities in the sector have a major role to play in
facilitating economy-wide decarbonisation, through engaging with their suppliers, customers, and
contractors to develop the market for low carbon or carbon abated products and services and
reshaping their business model and asset base. The scale of their ambition and effectiveness of their
actions is likely to be a key contributor to the pace of transition.
When developing their transition plans, entities may explore a range of strategies including some or all
of the following:
o Portfolio diversification into new areas and relationships with new sectors and value chain
segments as the product portfolio evolves (e.g. shipping, carbon neutralisation, biofuels, wind
energy).
o Infrastructure development: Including adapting and/or repurposing pipelines, storage facilities,

and transportation networks to handle a broader array of energy products and/or services,
including renewable alternatives and CCUS.
o Phase-down and phase-out of unabated fossil-fuel assets and responsible decommissioning.
o Education and engagement: Constructively engaging with industry and policymakers to delineate
clear transition pathways for the energy system, contextualised for different fuel-types, countries
and businesses.
o Supporting climate resilience and adaptation to support society and environment to cope with the
impacts of climate change.
o Supply of energy: their role in maintaining secure, affordable and reliable supplies of energy.
Considering all three inter-related channels in designing their transition plan can help Oil & Gas
entities protect and enhance long-term value and avoid the unintended consequences of an
approach which exclusively focuses on achieving GHG emissions or adaptation targets within an
entity’s own operations and portfolio. For example, it helps Oil & Gas entities avoid a strategy of ‘paper
decarbonisation’, where actions are taken to green an entity’s balance sheet in a way that may not
necessarily contribute to greening the economy.
Decarbonising
the entity Responding
to the entity’s
climate-
related risks &
Taking a opportunities
strategic
& rounded
approach
Contributing to an
Figure 5: Three inter-related channels
economy-wide
for a strategic and rounded approach transition
Impacts and dependencies of the transition plan on stakeholders, society, the

economy and the natural environment
The TPT Disclosure Framework recommends that an entity shall disclose whether and how it has identified,
assessed and taken into account the impacts and dependencies of the transition plan on its stakeholders
(e.g. its workforce, value chain counterparts, customers), society (e.g. local communities), the economy, and
the natural environment, throughout its value chain, that may give rise to sustainability-related risks and
opportunities.
This section provides guidance on how these impacts and dependencies can be understood by the oil &
gas sector. This can inform specific disclosures under 1.1 Strategic Ambition.
Impacts and dependencies: the natural environment
The transition plan of entities in the oil & gas efforts to strengthen the resilience of an entity’s
sector may impact and depend on the natural infrastructure to the increasing pressures of a
environment and many of the ecosystem changing climate may depend on ecosystem
services it provides. For example, the sector’s services such as natural flood, storm and heat
transition will include significant investment protection.
in large infrastructure projects, including
in renewable energy, carbon capture and The impacts and dependencies of an entity’s
storage and hydrogen production, as well as transition plan may give rise to both nature-
the decommissioning of current oil and gas related risks and opportunities. For example,
assets. Many of these activities could have the destruction of ecosystems due to large-
adverse and unintended impacts on nature, scale infrastructure development may increase
such as habitat degradation and loss. Similarly, vulnerability to extreme weather events.
Entities in the oil & gas sector may find that and priorities in a manner that safeguards the
they can mitigate these risks and create environment.
opportunities for the entity by taking steps In doing so, entities in the oil & gas sector may find
to mitigate their impacts or actively work to it helpful to refer to:
reverse the loss of nature. For example, as assets
are decommissioned, entities may find some • exploring Natural Capital Opportunities, Risks
opportunity to create positive impact on local and Exposure (ENCORE), ENCORE – A key tool for
natural environments, such as by supporting the TNFD’s LEAP approach;
creation of new protected biodiversity areas when
• science-based Targets Network (SBTN), Target-
exploration activities end.13 Well-designed oil &
setting Tools and Guidance (see Materiality
gas transition plans can safeguard the natural
Screening Tool under Step 1: Assess);
environment, address these risks and opportunities,
and seek to build some positive outcomes for • taskforce on Nature-related Financial
nature into the transition. Disclosures (TNFD), Guidance on the
identification and assessment of nature-
The TPT therefore recommends that entities
related issues: The LEAP approach, 2023; and
disclose whether and how they identify, assess and
take into account the impacts and dependencies • TNFD, Additional Sector Guidance: Oil and gas
of their transition plan, and pursue their objectives – Draft, 2023.
Photo Benjamin Voros, Unsplash.com
13) The Energy and Biodiversity Initiative, Integrating Biodiversity Conservation into Oil & Gas Development, 2023
Impacts and dependencies: stakeholders, society, and the economy
The transition plan of entities in the oil & gas sector as societal and political support for key transition
may impact and depend on its stakeholders policies.
(e.g. its workforce, value chain counterparts,
customers, and local communities), society (e.g. These impacts and dependencies of an entity’s
NGOs, interest groups, and the public) and the transition plan may give rise to social risks and
economy (e.g. through job displacement and opportunities. For example, they might expose
affordability of energy). the entity to risk of community opposition,
as well as reputational and political risks. An
For example, an expected significant decline entity may find that that taking a just transition
of oil and gas production over the next several approach to transition planning, e.g. by taking
decades may cause job losses, stranded action to provide energy access, security and
communities and changing skill requirements. affordability throughout the transition or upskilling
At the same time, the continued acceleration and retraining their workforce for a net zero
in the deployment of renewables, biofuels, and economy can mitigate these risks and create new
other clean technologies may create new growth opportunities.
prospects for workers, communities and suppliers.
Similarly, the success of an entity’s transition plan In doing so, entities in the oil & gas sector may find
may depend on the availability of skills, as well it helpful to refer to:
• The Council for Inclusive Capitalism, Just Transition Framework for Company Action, accessed
September 2023 and
• World Benchmarking Alliance, 2023 Oil and Gas Benchmark , 2023; and
• Council for Inclusive Capitalism, Actions for a Just Transition, 2022
Example 1: Dependencies of Example 2: Impacts of transition

transition plan on the natural Entity's climate plan on stakeholders, society
environment transition plan and the economy
To achieve resilience to the physical As part of its transition plan, an

impacts of the changing climate, Oil & Gas entity accelerates the
an Oil and Gas entities have a closure of oil & gas operations,
Risks and
es
dependency on ecosystem services leading to significant job losses.

opportunities
endenci
to protect infrastructure from heat,

Impacts
floods and storms. that may affect

the entity’s
prospects Social risks
Dep
Nature-related risks
… job losses lead to significant
…destruction of ecosystems due
severance pays, social tensions
to large-scale infrastructure
in local communities and
development increases risk of
political pressure.
damage from more frequent
extreme weather events
Social opportunities
Nature-related
Stakeholders, society,
opportunities
the economy and the … early engagement with
natural environment workers, unions, other companies
…ecosystem restoration and and governments creates an
biodiversity protection inside opportunity to develop an up- and
project boundaries strengthens re-skilling program, strengthening
infrastructure resilience. community and political support.
Figure 6: Illustrative example of how nature and just transition related impacts,
dependencies, risks, and opportunities interact in the Oil & Gas sector.
2. INTERPRETING THE TPT DISCLOSURE FRAMEWORK FOR THE

OIL & GAS SECTOR
Preparers should first read the Disclosure Framework for Disclosure Recommendations against each Sub-Element.
Not all Sub-Elements of the Disclosure Framework have additional sector-specific guidance. Where additional sector-
specific guidance is not provided, the following statement is included “No additional sector-specific guidance is
provided for this Sub-Element”.
For Sub-Elements where additional sector-specific guidance is provided, this may only apply to some Disclosure
Recommendations of the Disclosure Framework. Cross-references to Disclosure Recommendations of the Disclosure
Framework are provided in the format “see DF 1.1.a”.
Suggestions for disclosures and additional considerations are not intended to be comprehensive. An entity should
disclose other information under these Sub-Elements where deemed appropriate.
1. Foundations
1.1 Strategic Ambition

Sub-Element
An entity shall disclose the Strategic Ambition of its transition plan, setting out its objectives and priorities for
responding and contributing to the transition towards a low-GHG-emissions, climate-resilient economy, and
doing so in a manner that captures opportunities, avoids adverse impacts for stakeholders and society, and
safeguards the natural environment.
When interpreting the Disclosure Framework for the Oil & Gas sector, an entity should consider
disclosing:
• objectives and priorities it has in relation to each of its business segments including, where applicable:
o upstream, including conventional and unconventional (e.g. oil sands, fracking) oil & gas;
o midstream, including physical trading, transportation, and storage of oil & gas products, but
excluding financial trading; and
o downstream, including processing, refining, marketing and sales of oil and gas products to
business and retail customers, but excluding petrochemicals or distribution.
• any objectives and priorities, including timeframes, to phase-down and phase-out any unabated
fossil fuel-related business and diversify towards products and services which support a transition to
a low-carbon, climate-resilient economy (see DF 1.1.a); and
• the purpose of any new or planned oil and gas exploration & production activity within its Strategic
Ambition and strategy.
When disclosing, an entity may additionally consider:
The assumptions that underpin any sector pathways, roadmaps or climate scenarios used to inform the
entity’s Strategic Ambition. This could include regional/geographic assumptions about future energy mix,
oil & gas supply and demand and emissions. Further detail on the key assumptions underpinning the
sectoral pathways, roadmaps or other climate scenarios the entity has used may be included under 1.3 Key
assumptions and external factors. This may also include specific information for different commodities to
reflect the pathway and Strategic Ambition of the entity for that commodity.
When setting out its Strategic Ambition an entity may consider more widely defined ambitions including:
• Nationally Determined Contributions – for example, the UK commits to reducing economy-wide

greenhouse gas emissions by at least 68% by 2030, compared to 1990 levels.
• National Commitments – for example, the UK’s legal commitment to reduce net GHG emissions by at
least 100% of 1990 levels by 2050.
• Implementation measures/commitments – for example, interim targets defined in the Climate Change
Committee (CCC) Sixth Carbon Budget.
• Nationally Determined Contributions in other jurisdictions where an entity has oil and gas operations
• Adaptation Communications14 – for example, the UK commits to national climate change risk
assessments, and implementing actions set out in its second National Adaptation Programme.
• National Biodiversity Strategies and Action Plans (NBSAPs),15 the Kunming-Montreal Global Biodiversity
Framework,16 or the UK’s commitment to biodiversity net gain.
When considering the impacts and dependencies of its transition plan on its stakeholders, society, the
economy, and the natural environment, throughout its value chain, that may give rise to sustainability-
related risks and opportunities, an entity may refer to the “Impacts and dependencies of the transition plan:
stakeholders, society, the economy and the natural environment” section within this guidance.
Relevant areas of synergy, trade-offs and co-benefits between the Strategic Ambition and the natural
environment include but are not limited to land management, land-use and land-use change (including
deforestation, decommissioning), marine use change (including marine pollution), and activities in priority for
nature (e.g. as defined by TNFD 13).
14) UNFCCC Adaptation Communications Registry, 2023

15) NBSAP, National Biodiversity Strategies and Action Plans (NBSAPs), 2023
16) GBF, KUNMING-MONTREAL GLOBAL BIODIVERSITY FRAMEWORK, 2023
1.2 Business model and value chain

Sub-Element
An entity shall disclose a description of the current and anticipated implications of the entity’s Strategic
Ambition on its business model and value chain.
When interpreting the Disclosure Framework for the Oil & Gas sector, an entity should consider disclosing:
• if it plans to transition its business model, how it plans to do so, by business segment and how it
anticipates the product mix/portfolio will change over the short- and medium-term including, as
applicable:
o oil and/or gas operations;
o physical trading of oil, gas, and other commodities;
o managed phase-out of unabated oil or gas assets or related activities;
o GHG neutralising measures and associated offsets (e.g. CCUS, DAC, nature based solutions, CDR);
and
o low-carbon fuels and/or electricity generation;
• how it plans to mitigate potential climate-related risks, originating from its business model, such as
stranded asset risks, litigation risks, transferred emissions and other risks from former or sold assets and
access to financial and capital markets;
• the role of new oil and gas exploration and production assets in its business model, stating any impact
these have on its Strategic Ambition. This should consider disclosure of their location, and projected
absolute emissions and intensity calculated over their operating life; and
• their approach towards assessing the compatibility of partnerships and joint ventures with the
realisation of their Strategic Ambition, and their transition plan and how it applies its plan to transition
its business model to any interests it holds in partnerships, non-operated joint ventures and other
minority interests, including the emissions boundary used.
Potential strategic changes to the business model and value chain to support the transition to a low-GHG,
climate-resilient economy, and an entity may refer to Acclimatise’s report: “Oil and gas: understanding the
investment implications of adapting to climate change” 17 and the following IEA reports: “The Oil and gas
Sector in Energy Transitions” 18 and “Emissions from Oil and Gas Operations in Net Zero Transitions”.19
In relation to trading, differentiating between physical and financial trading in their disclosures, is both are
disclosed.
When looking to diversify from ‘molecule’ to ‘electron’ production as part of its decarbonisation strategy, it is
recommended that entities refer to the TPT Electric Utilities & Power Generators Guidance.
17) Acclimatise, Oil and gas Understanding the investment implications of adapting to climate change, 2009
18) IEA, The Oil and gas Sector in Energy Transitions, 2020
19) IEA, Emissions from Oil and Gas Operations in Net Zero Transitions, 2023
1.3 Key assumptions and external factors

Sub-Element
An entity shall disclose assumptions that it uses and external factors on which it depends in order to achieve
the Strategic Ambition of its transition plan.
• assumptions which inform or affect its transition plan, including those relating to the following over the
short, medium-, and, long-term on a regional or global level (where relevant):
o oil and gas demand and pricing;
o GHG emissions prices (including methane pricing);
o low-carbon fuels demand and pricing;
o low-carbon electricity pricing;
o expected role of GHG neutralising measures, including assumptions relating to permanence/

leakage;
o tax (including carbon border taxes), allowances and reliefs;
o reliance on technological development and related infrastructure readiness, with specific reference
to Carbon Capture, Utilisation and Storage; and
o physical risks and impacts of climate change.
For assumptions relating to:
• Scenarios, refer to internationally recognised scenarios to identify key forward looking assumptions.
For example, the IEA publishes data annually in the World Energy Outlook and other analysis, providing
comprehensive projections of materials demand, technology cost, energy production and consumption,
energy prices, energy mix, CO2 prices and more.
• The reliance on advancement and deployment of technologies (such as those relating to CCUS or new
low-carbon products and/or services), entities may consider referring to technology readiness levels
(TRL) used by the IEA20,21 . An entity may consider delineating between its use of Prototype (TRL 4-6),
Demonstration (TRL 7-8), Early Adoption (TRL 9-10), and Mature (TRL 11) technologies.
• The availability of natural resources which may include, assumed future availability of water abstracted
from natural ecosystems, or assumed future availability of land for applying natural climate solutions
/ nature-based solutions. Justification of these assumptions could reference material nature-related
dependencies, and risks and opportunities identified following the TNFD LEAP process.
20) IEA, ETP Clean Energy Technology Guide, accessed June 2023
21) IEA, Special Report on Clean Energy Innovation: Accelerating technology progress for a sustainable future, 2020.
2 Implementation Strategy
2.1 Business operations

Sub-Element
An entity shall disclose information about the short-, medium- and long-term actions it is taking or plans to
take in its business operations in order to achieve the Strategic Ambition of its transition plan.
disclosing:
o short-, medium-, and long-term actions for embedding the Strategic Ambition of its transition
plan in its business operations to achieve the Strategic Ambition disclosed in 1. Foundations,
which may include:
o operational reductions in Scope 1 and Scope 2 GHG emissions (see DF 2.1.a-b);
o addressing methane emissions;
o eliminating non-emergency flaring and venting, in line with the World Bank‘s ZRF Initiative;22
o electrifying operational facilities with low-carbon electricity;
o equipping oil and gas processes with carbon capture;
o expanding the use of low emissions hydrogen in refineries;
o decommissioning (e.g. early decommissioning);
o business model diversification (see DF 2.1.a-b);
o low-carbon fuel production;
o low-carbon/ renewable electricity generation;
o responsible retirement or phase-out of unabated GHG-intensive assets or related activities;
o provision of GHG neutralising measures ( e.g. CCUS, DAC, nature based solutions, CDR); and
o responsible divestment.
• how its diversification plans and targeted operational reductions above are dependent on the
advancement and deployment of technology under development by them, or by third parties in the
market;
• whether it is a member of The Oil and Gas Methane Partnership 2.0 (OGMP 2.0)23 and detail on the
stage of its methane management and reporting journey, i.e. the reporting level of its asset-level
reporting;
• if an entity plans to use CCUS, which assets are expected to use CCUSl
• any R&D initiatives supporting these actions, including detail on how these will be financed. See sub-
element 2.4 for more detail on financial planning;
• its approach to assessing physical and transition risks of a changing climate and building climate
resilience, including both new and existing facilities forming part of its business;
• its approach to protecting, retraining, relocating, and reassigning workers whose skills are not yet
aligned with its Strategic Ambition; and
o how these actions (including specific actions or strategies) may give rise to impacts and
dependencies on stakeholders, society, the economy and the natural environment.
22) The World Bank, Zero Routine Flaring by 2030, 2015

23) OGMP, The Oil & Gas Methane Partnership 2.0, 202
• The methane emissions measurement-based reporting framework set out by the OGMP 2.0.24
• Its approach to decommissioning, acquisitions or divestments of GHG intensive assets and

whether these are informed by the Environmental Defense Fund report on Transferred Emissions25
or similar principles.
• This identifies five criteria (emissions disclosure, methane target, OGMP membership, flaring
targets and net zero targets) to understand whether an asset is being transferred to an operator
with lower environmental commitment. For acquisitions and divestments, the Environmental
Defense Fund‘s Transferred Emissions Climate Principles for Oil & Gas Mergers and Acquisitions26
provides an articulation of good practices in asset related emissions reduction target
setting and data transfer. It includes specific suggestions in relation to vendor due diligence,
disclosure, maintenance or improvement of asset focused emissions targets and strategy and
decommissioning obligations.
• On the responsible retirement or phase-out of unabated GHG intensive assets, GFANZ’s

Expectations of a managed phase-out plan. 27 This provides relevant disclosures such as phase-
out timing and details on ensuring an orderly and just transition.
• On approaches towards assessing physical and transition risks, guidance from IPIECA28 on
addressing adaptation, as well as the Environment Agency’s29 examples for adapting climate
change risk assessment, and UNEP’s list of climate risk in the sector.30
• Geographical footprint of activities and operations affected by the entity’s transition, and local
community dependencies, including where operations are within direct control, partial control
(financial or operational). An entity may also consider other relevant social impacts, including
how it manages employment during periods of volatility.
25) EDF, Transferred emissions: how risks in oil and gas M&A could hamper the energy transition
26) Tackling Transferred Emissions: Climate Principles for Oil & Gas M&A (edf.org)
27) See Figure 11 in GFANZ, The Managed Phaseout of High-emitting Assets, 2022
28) IPIECA, Addressing adaptation in the oil and gas industry, 2013
29) Environment Agency, Onshore oil and gas: examples for your adapting to climate change risk assessment, 2023
30) UNEP, Climate Risks in the Oil and Gas Sector, 2023
2.2 Products and services

Sub-Element
An entity shall disclose information about short-, medium-, and long-term actions it is taking or plans to take to
change its portfolio of products and services in order to achieve the Strategic Ambition of its transition plan.
disclosing:
• a description of any planned changes to its portfolio of products and/or services it offers to deliver
each of the anticipated changes to business model set out in 1.2 Business model and value chain. The
entity may consider disclosing relevant details of sales- and market-share associated with low-carbon
products and services, and both current state and projections related to relative portfolio composition
(see DF 2.2.a);
• relevant details of planned portfolio shifts for example towards lower GHG intensity products or CCUS
services including both current information and projections; and
• where relevant, planned sales of carbon credits, for example through technologies such as CCUS, and
detail on how these are accounted for in the entity’s GHG inventory and reduction targets.
• when disclosing changes to products and services portfolio, the IEA‘s paper on the potential of digital
business models in the new energy economy31 may be helpful to the entity as a reference to align
against or to use as a starting point;
• distinguishing between energy and non-energy products when communicating changes to its portfolio,
where this might have significant impacts beyond GHG emissions (e.g. pollution, waste, biodiversity loss);
• when disclosing details of current state and projects relating to low-carbon products and services, the
ACT methodology32 and EU Green Taxonomy33 which describes a definition of low carbon technologies to
support investors looking to fund entities investing in climate solutions;
• when disclosing any underlying taxonomy, tools, methodologies or definitions used to classify products
and services, an entity may consider:
o distinguishing between energy and non-energy products;
o as recommended by IIGCC, setting a consistent definition of “low carbon” products and services,
that excludes unabated fossil fuel-based products ;34 and
o as recommended by IIGCC, providing thresholds for fuels like hydrogen and bioenergy that are
consistent with regional taxonomies.35
• any plans it may have to facilitate affordability of its products and services, including detail on the
affordability of low-carbon alternatives; and
• when describing plans to change its portfolio of operations and materials, its social impact and the
impact of these changes on the natural environment.
31) IEA, The potential of digital business models in the new energy economy – Analysis – IEA, 2022
32) ACT, ACT Sector Methodology Assessing low-Carbon Transition Oil & Gas, 2021
33) EU, EU Technical Expert Groupe on Sustainable Finance, Taxonomy Report: Technical Annex, 2020
34) IIGCC, Net Zero Standard for Oil and gas, 2023
2.3 Policies and conditions

Sub-Element
An entity shall disclose information about any policies and conditions that it uses or plans to use in order to
achieve the Strategic Ambition of its transition plan.
No additional sector-specific guidance is provided for this Sub-Element.
2.4 Financial planning

Sub-Element
An entity shall disclose information about the effects of its transition plan on its financial position, financial
performance and cash flows over the short, medium, and long term, including information about how it is
resourcing or plans to resource its activities in order to achieve the Strategic Ambition of its transition plan.
• its current and committed investment plans, by business segment, required to achieve its Strategic
Ambition (sections 1.2 Business model and value chain and 2.1 Business operations) including in relation
to (see DF 2.4.a):
o oil and/or gas operations, including long-lived fields;
o physical trading of oil, gas, and other commodities;
o managed phase-out of unabated fossil-fuel assets or related activities;
o low-carbon fuels and/or electricity generation; and
o GHG neutralising measures and associated offsets (e.g. CCUS, DAC, nature based solutions, CDR).
• for entities with major projects in development, how risks (transition and physical), impacts, and
mitigations, have been considered in financial planning for those projects;
• the target internal rate of return (IRR) for business segments as outlined above, including the 'break-
even' price, methodology, and any underlying assumptions for the relevant commodity (oil, gas, other) to
achieve the stated target internal rate of return (‘IRR’);
• its processes for considering (i) its Strategic Ambition and relevant components of its transition plan and
(ii) the financial impacts on its business of the global economy-wide drive to transition in the preparation
of its financial statements;
• for entities with decommissioning commitments, how risks (transition and physical), impacts, and
mitigations, have been considered in the estimates of decommissioning costs; and
• any plans it has to support employees whose current skillsets, responsibilities and projects are not yet fully
aligned with the climate commitments as outlined in its Strategic Ambition, and the planned investment
on any necessary employee retraining, relocation and reassignment.
How it is incorporating climate scenarios into business planning and strategic direction and associated
financial impacts. Financial impacts may cover changes in revenue streams; implications for asset values
under different scenarios including financial impacts of stranded assets and other value-at-risk; costs of
adaptation and mitigation; likely timings of these financial impacts; impact on cost of capital.
3 Engagement Strategy
3.1 Engagement with value chain

Sub-Element
An entity shall disclose information about any engagement activities with other entities in its value chain
that it is undertaking or plans to undertake in order to achieve the Strategic Ambition of its transition plan.

disclosing:
• its engagement strategy with its value chain (including suppliers, such as oilfield service providers,
joint venture parties and customers), that it is implementing or plans to implement in order to achieve
the Strategic Ambition of its transition plan (see DF 3.1.b);
• where it contracts with suppliers or service providers for example, through oilfield equipment and
services organisations - including if it is engaging with the contracted entity with regards to transition
planning, and what, if any, targets they have;
• where an entity has material financial interest in but does not have operational control over an asset
(operational or in development), its approach to engaging with the operator and other investors to
seek the alignment of the asset with its own Strategic Ambition. This may include taking the actions
of a prudent and responsible investor to monitor and encourage the operation of the asset and the
transportation, refining and marketing of the offtake in a manner consistent with the preparer’s own
Strategic Ambition, including through the use of any leverage, opportunities for engagement, and
access to information and other contractual rights that it has;
• information about any engagement activities with Downstream customers (e.g. aviation) by business
segment that it is implementing or plans to implement to drive demand, market presence and sales
and whether and how this is consistent with the Strategic Ambition of its transition plan;
• whether its products are sold with traceability back through the value chain, or whether they
themselves trace products along the value chain. Where this is the case, an entity should consider
disclosing how far down the value chain traceability extends, especially where a specific product is
advertised by the entity as being used in decarbonising technologies;
• other useful disclosures, including (non-exhaustive):
o defining how engagement and its impact is measured and tracked;
o any relevant partnerships, or investment support to collaborate on sustainability initiatives, and

innovation; and
o whether and how safeguarding nature features in these engagements and sourcing decisions,
especially wth regards to their Upstream value chain.
• the ACT Oil & Gas Methodology36 to identify strategies and activities to influence suppliers and
customers to reduce emissions;
• when carrying out stakeholder mapping, identifying key groups of stakeholders and the nature of
its stakeholder relationships with those stakeholders (particularly with reference to commercial
relationships);
• that traceability is likely to be highly relevant, for example in sourcing biofuel feedstock. An entity
may refer to monitoring and verification protocols, or sustainability certifications it has to collect
information on, such biofuel feedstocks. It should also include information on material sustainability
considerations including feedstock type, life cycle emissions, land-use changes, biodiversity, human
rights and other relevant environmental or social impacts associated with their production; and
• where an entity does not report on all relevant lifecycle emissions of its sales portfolio on an intensity
basis, it may consider publishing a stakeholder map highlighting material actors along the value
chain. Refer to section 4.3 GHG metrics and targets.
3.2 Engagement with industry

Sub-Element
An entity shall disclose information about any engagement and collaborative activities with industry
counterparts (and other relevant initiatives or entities) that it is undertaking or plans to undertake in order to
achieve the Strategic Ambition of its transition plan.
36) ACT, Oil & Gas Methodology, 2021

3.3 Engagement with government, public sector, communities and civil society
Sub-Element
An entity shall disclose information about any direct and indirect engagement activities with the
government, regulators, public sector organisations, communities, and civil society that it is undertaking or
plans to undertake in order to achieve the Strategic Ambition of its transition plan.

disclosing:
• its approach towards direct and indirect engagement with government and/or regulators on fossil
fuel and other relevant policy topics, and whether and how the entity (i) measures the impact of
such engagements and (ii) procures and monitors the alignment of direct and indirect engagement
respectively with its Strategic Ambition, including in relation to the natural environment;
• its approach towards engagement and consultation on any new asset/installation, ongoing
operations and closure/repurpose (see DF 3.3.b), with (i) government and regulatory authorities and
(ii) communities (including, Indigenous Peoples and Local Communities) and (iii) civil society as well
as whether and how safeguarding nature features in these engagements, whether and how the
principles of Free, Prior, and Informed Consent (FPIC) are applied where relevant;
• its approach towards engagement with Government and/or regulators on adaptation and climate
resilience policy (see DF 3.3.b);
• its approach towards engagement with government on current and future plans/timelines in relation
to fossil fuel and other subsidies relevant to the delivery of their Strategic Ambition; and
• its approach towards engagement with government, regulators, civil society, end users and
communities on affordability and accessibility of alternative/low carbon products and/or services and
on ways of optimising the efficiency and transparency of applications for any necessary approvals.

• The Global Standard on Responsible Climate Lobbying37 for expectations on lobbying to positively
influence public policies.
37) Climate Lobbying, Global Standard on Responsible Climate Lobbying, 2022

4 Metrics & Targets
4.1 Governance, business and operational metrics and targets

Sub-Element
An entity shall disclose information about the governance, engagement, business and operational metrics
and targets that it uses in order to drive and monitor progress towards the Strategic Ambition of its
transition plan, and report against these metrics and targets on at least an annual basis.

disclosing:
• operational metrics and targets:
o current and guidance on expected production volumes by major product type over the short-,
and medium-term for each of Upstream and Midstream business segments, and sales volumes
for Downstream; and
o current and guidance on expected capacity and production of low-carbon products, by product-
type over the short-, and medium-term - referring to the business model transitions set out in
section 1.2 Business model and value chain.
o current or expected changes to the composition of employees and contractors to drive and
monitor the Strategic Ambition, and any related technical, engineering or expert roles necessary
(see DF 4.1.d);
• metrics and targets relating to the managed phase-out of unabated high-emitting assets; and
• metrics and targets aimed at assessing and implementing efforts to address nature-related risks and
metrics, build climate resilience of assets, and activities. This should include both operational assets,
as well as those being decommissioned.

• GFANZ guidance on managed phase-out38 in order to communicate the managed phaseout of

high-emitting assets. This guidance highlights the alternative to entities and financial institutions
withdrawing finance and considerations for avoidance of the unintended consequence of prolonging
the life of high-emitting assets and worsening their GHG profile. This guidance outlines actions to
unlock managed phase-out including credibility and incentives, developing financing, identifying
relevant assets and mobilising high-impact projects.
• When considering nature-related disclosures, additional operational metrics which may be relevant
such as ocean/freshwater change and water use efficiency39, land ownership, leased or managed,
land or site metrics relating to land for nature or carbon benefits, biodiversity and habitats (e.g.
number of species in each IUCN category40), pollution and waste spills (non-exhaustive).
38) GFANZ, The Managed Phaseout of High-emitting Assets, 2022

39) Core Indicators for Sustainability and SDG Impact Reporting: Training Manual
40) IUCN, IUCN Red list of threatened species, 2023
4.2 Financial metrics and targets

Sub-Element
An entity shall disclose information about the financial metrics and targets that it uses in order to drive and
monitor progress towards the Strategic Ambition of its transition plan, and report against these metrics and
targets on at least an annual basis.

disclosing:
• on an annual basis current and projected capital expenditure for (as applicable) (see DF 4.2.a):
o oil and/or gas operations, including long-lived fields;
o low-carbon fuels and/or electricity generation;
o physical trading of oil, gas, and other commodities; and
o managed phase-out of unabated assets or related activities.
• R&D spend and activities in all of the areas listed above, including low/zero carbon and mitigation
technologies, carbon removal technologies, and any other emerging technologies;
• financial implications of assumptions and external factors (section 1.3 Key assumptions and external
factors) relating to transition. For example, an entity may disclose sensitivity of hydrocarbon reserve
levels and/or refining capacity to future price projection scenarios that account for increasing
economic costs of GHG emissions and other drivers of demand shift (such as electric vehicles or heat
pumps).
Note: Disclosures under 4.2 Financial metrics and targets relate to and shall align with the disclosures
made under section 2.4 Financial planning.

• a breakdown of current and projected capital expenditure for oil and/or gas operations between
maintenance, expansion of existing fields, exploration and development of new fields;
• financial risks associated with adjusting its business model(s) as a means to change its product
portfolio mix, as different products across the value chain may have varying associated transition risks
(e.g. cost and emissions intensity); and
• the ACT Oil and Gas methodology41 which includes guidance on measuring an entity’s growth in sales of
low-carbon products and/or services compared with a benchmark.
41) ACT, Oil & Gas Sector Methodology, 2021

4.3 GHG metrics and targets

Sub-Element
An entity shall disclose information about the GHG emissions and removals metrics and targets that it uses
in order to drive and monitor progress towards the Strategic Ambition of its transition plan, and report
against these metrics and targets on at least an annual basis.
In this section, the Oil & Gas Sector Guidance refers to various Scope 3 emissions categories in line with the
Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.42

disclosing:
• with respect to each reported GHG metric and any related targets (whether absolute or intensity
based and covering Scope 1, 2 and/ or 3 emissions over its lifecycle) (see DF 4.3.a-b) its calculation
methodology including critical assumptions (see DF 4.3.l). This includes the methodology for
calculating fossil-fuel equivalence of renewable energy and assumptions on the application and
contribution of GHG neutralising measures (e.g. CCUS, DAC, nature based solutions, CDR).
• in addition to information about GHG emissions and removals metrics and targets disclosed at entity-
level pursuant to the Sector Neutral Framework, for each of Upstream, Midstream, and Downstream
business segments as relevant, information about the following operational (Scope 1 and 2) GHG
metrics and any targets:
o absolute GHG emissions metrics and any targets
o GHG emissions intensity metrics and any targets
o metrics and any targets for methane emissions (absolute and intensity including denominator
used) – refer to the OGMP 2.043 and the IIGCC Oil and Gas Net Zero Standard.44
• if an entity plans to use CCUS, the expected volume and longevity of captured GHG emissions, and
leakage rates;
• for each of Upstream, Midstream, and Downstream business segments as relevant, GHG metrics and
any targets on a gross basis, for the following value chain (Scope 3) emissions categories:
o absolute GHG emissions metrics and any targets for Scope 3 category 11 emissions (use of sold
products); and
o GHG emissions intensity metrics and any targets for Scope 3 category 11 emissions (use of sold
products), including any low-carbon fuels or electricity generation;
• GHG metrics and any targets for value chain emissions categories, including but not limited to Scope
3 emissions (categories 1,3,4,9,10,11, and 15);
• total energy it sells externally (including fossil fuels and any other energy products), consistent with
boundaries set for emissions disclosure.
• GHG Neutralising measures - Carbon Removal Technologies and Nature-based solutions

(see DF 4.3.g)
o where it is, or is planning on, utilising carbon capture and biological or geological storage,
separately to its GHG emissions, information to allow external stakeholders to assess the
robustness of any current or planned removals, including:

o what proportion of total GHG emissions this makes up;
o the type of removal (e.g. whether they are based on natural carbon removals through
remediation or soil sequestration, etc, geological storage, and/or technological removals);
o any third-party verification or certification scheme or schemes the removals are subject to,
including the method of verification/certification, or state if they are not subject to third party
verification or certification;
o assumptions regarding the additionality and permanence of the removal, leakage rates, and
particularly noting increased physical risk associated with biological carbon storage associated
with climate change e.g. an increase in the prevalence of wildfires when trees are used as a
Natural Carbon Sink; and
o information on any co-benefits that the removal project may generate, such as improvements to
biodiversity, soil quality, or water resources, or positive social impacts such as providing additional
local jobs after the operation has been closed; and any other significant factors necessary
of users to understand the credibility and integrity of removals used (e.g. information about
safeguards to avoid negative social and environmental outcomes).

• its approach to estimating Scope 3 lifecycle emissions (including if relevant, if it is using a Life cycle
Emissions Assessment (LCA)45 , or how it otherwise approaches energy accounting for a diversified
portfolio of high, low, and zero carbon assets) as total energy sold, and an intensity metric, as well
as any associated assumptions. This shouldmay include detail on which products make up the
Scope 3 emission calculations and estimations, and any associated uncertainties or methodological
challenges (in particular, considering category 11, and category 3). Where an entity includes
contribution of customer actions, it shouldmay consider specifying these;
• ISSB guidance46 provides specific metrics for measuring across Midstream and Refining & Marketing,
which include: a breakdown of Scope 1 percentage GHG emissions and methane; percentage
coverage under emissions limiting regulations; plans to manage long- and short-term Scope
1 emissions; percentage of engines in services that comply with the highest level of emissions
standards; and total metric ton-kilometers of 1) natural gas, (2) crude oil, and (3) refined petroleum
products transported, by mode of transport;
• guidance on sector-specific transition in the IIGCC 2023 Oil and Gas Net Zero Standard47 and the
Science-based Targets Initiative (SBTi) Corporate Net Zero Standard48 which defines a minimum
percentage boundary coverage to target by Scope. Relevant guidance on definitions can be found in
the IIGCC 2023 Oil and Gas Net Zero Standard.49 The TPI50 provides an assessment of GHG metrics and
targets which can be used as support material in the meantime;
• for Scope 3 Use of Sold Product indicator calculation methodologies, the ACT (Assessing low-Carbon
Transition initiative) Oil and Gas Sector Methodology (version 2.0) February 2021.51 GRI52 points to a
number of sector specific metrics that are useful to disclose, these include:
45) Stanford University, Life cycle assessment, 2018

46) ISSB, [Draft] IFRS S2 Climate-related Disclosures, March 2022
48) SBTi, Corporate Net-Zero Standard, April 2023
50) TPI, TPI's methodology report: Management Quality and Carbon Performance, 2021
51) ACT, Oil and gas Sector Methodology (version 2.0), 2021
52) GRI, GRI Standards, 2022

o % of gross direct (Scope 1) GHG emissions from methane;
o The breakdown of gross direct (Scope 1) GHG emissions by type of source (stationary combustion,
process, fugitive);
o Net mass of carbon dioxide in metric tonnes captured and removed from the atmosphere
(carbon dioxide stored less the GHG emitted in the process); and
o The emissions potential of proven and probable reserves.
ACT also has key material investment indicators including:

53
o Trends in past Scope 1 and 2 emissions intensity;
o Emissions lock-in; and
o Trends in future Scope 1 and 2 emissions intensity.
• information on GHG removals, an entity may consider Ceres54 guidance on evaluating the use of
carbon credits. This outlines the criticality of having social and environmental safeguards in place
to protect local communities and ensuring they remain at the centre of these solutions. Information
on land tenure/access, community participation, grievance/redress mechanisms, benefit sharing
mechanisms, biodiversity protection, and ecosystem-appropriate practices are helpful.
• the Oxford Net Zero Offsetting principles, which outline for entities how offsetting needs to be
approached to ensure it helps achieve a net zero society and the principles by which an entity should
implement best practice in offsetting strategies.55
4.4 Carbon credits

Sub-Element
An entity shall disclose information about its current and planned use of carbon credits to achieve the
Strategic Ambition of its transition plan, and report on the use of carbon credits on at least an annual basis.

disclosing:
• its intended use of each of the following carbon credits in achieving its objectives and priorities,
including any mitigation hierarchy it has applied across the credit types (refer to Glossary for detailed
definitions of each term) (see DF 4.4.e):
o inset credits56 (from within its corporate value chain); and
o offset credits57 (from beyond its corporate value chain).
• if the entity sells carbon credits, it should consider disclosing (see DF 4.4.b):
o the number of credits sold, including the split between credits sold to entities in its value chain vs.
beyond its value chain; and
o its use of Renewable Energy Certificates (RECs) in the sale of green electricity.
53) ACT, Assessing low-Carbon Transition - Oil & Gas, 2020

54) Ceres, Evaluating use of carbon credits, 2022
55) Oxford Smith School, The Oxford Principles for Net Zero Aligned Carbon Offsetting , 2020
56) GHG Protocol, Land Sector and Removals Guidance (Draft for Pilot Testing and Review), September 2022
57) GHG Protocol, Land Sector and Removals Guidance (Draft for Pilot Testing and Review), September 2022
5 Governance
5.1 Board oversight and reporting

Sub-Element
An entity shall disclose information about the governance body(s) (which can include a board, committee,
or equivalent body charged with governance) or individual(s) responsible for oversight of the transition plan.
5.2 Roles, responsibility and accountability

Sub-Element
An entity shall disclose information about management’s role in the governance processes, controls, and
procedures used to monitor, manage, and oversee the transition plan, as well as how it is embedded within
the entity’s wider control, review, and accountability mechanisms.
5.3 Culture
Sub-Element
An entity shall disclose information about how it aligns or plans to align its culture with the Strategic Ambition
of its transition plan.

5.4 Incentives and remuneration

Sub-Element
An entity shall disclose information about how it aligns or plans to align its remuneration and incentive
structures with the Strategic Ambition of its transition plan.
5.5 Skills, competencies and training

Sub-Element
An entity shall disclose information about actions it is taking or plans to take to assess, maintain and
build the appropriate skills, competencies and knowledge across the organisation in order to achieve the
Strategic Ambition of its transition plan.

disclosing:
• the proportion of its management and wider workforce, who have undertaken training and/or
education to achieve the Strategic Ambition of its transition plan, with clear reference to operational
and business model changes across each of the below business areas (where applicable),
o oil and/or gas operations;
o physical trading of oil, gas and other commodities;
o managed phase-out of assets or related activities;
o Low-carbon fuels and/or electricity generation;
and
o climate change adaptation and resilience.
• how it forecasts potential skills which are directly at risk within its value chain, as well as any measures
in place to address these.

• the GFANZ paper on managed phaseout of high-emitting assets58 which provides guidance on
disclosing information relating to (e.g. training, upskilling) and other actions as part of just transition
considerations and the associated phase-out plan.
58) GFANZ, Managed Phaseout of High-emitting Assets, 2022

Glossary
Term Definition
carbon capture, utilisation Involves the capture of CO2, generally from large point sources like power
and storage (CCUS) generation or industrial facilities that use either fossil fuels or biomass as fuel.
If not being used on-site, the captured CO2 is compressed and transported by
pipeline, ship, rail or truck to be used in a range of applications, or injected into
deep geological formations such as depleted oil and gas reservoirs or saline
aquifers59
carbon removals (CDR) Anthropogenic activities that remove CO2 from the atmosphere and store it
durably in geological, terrestrial, or ocean reservoirs, or in products60
decommissioning Is a process consisting of the removal of industrial installations and any

relevant structures that have come to the end of their productive life in a
certain industry and the subsequent restoration of the industrial site to its
previous status61
Downstream When referring to the oil and gas industry, this term indicates the refining and
marketing sectors of the industry. More generically, the term can be used to
refer to any step further along in the process from “Upstream” crude oil and
natural gas production62
‘Electron’ production energy production related to the transfer of electrons
Energy-related emissions Emissions related to the combustion of fossil fuels (liquid fuels, natural gas, and
coal) and emissions associated with petroleum feedstocks. Emissions from the
flaring of natural gas are not included. Non-energy related emissions account
for any other types of emissions
existing facilities Legacy facilities already in existent from original business model
GHG neutralising Measures that entities take to remove carbon from the atmosphere and
measures permanently store it to counterbalance the impact of emissions that remain
unabated63 (e.g. CCUS, DAC, nature based solutions, CDR). For the oil and gas
industry this includes but is not limited to, implementing CCUS techniques to
sequester carbon dioxide emissions at the source, especially in extraction and
refining stages
life cycle assessment Process of evaluating the effects that a product has on the environment over
(LCA) the entire period of its life thereby increasing resource-use efficiency and
decreasing liabilities64
59) IEA, Carbon Capture, Utilisation and Storage, 2023

60)IPCC, Carbon Removal AR6 Factsheet 2023
61)OECD, An overview on the decommissioning process in the oil & gas sector, 2016
62)IFRS, [DRAFT] IFRS S2 Climate-related Disclosures Appendix B Industry-based disclosure requirements Volume B13—Oil & Gas–Refining & Marketing,
March 2022
64) EEA, EEA Glossary, Accessed October 2023
less mature technologies Broadly, less mature technologies are those which may not be available and/
or are economically unviable. In this guidance it is suggested that less mature
technologies are defined by technology readiness levels (TRL) used by IEA65,66
: Prototype (TRL 4-6), Demonstration (TRL 7-8), Early Adoption (TRL 9-10), and
Mature (TRL 11) technologies.
Mature and less mature technologies will require different roadmaps of action
through an entity’s transition plan
low-carbon fuels These can be grouped into gaseous fuels (biogases, hydrogen and synthetic
methane) and liquid fuels (liquid biofuels, ammonia and synthetic liquid
hydrocarbon fuels). They can be produced from plants, which absorb CO2 from
the atmosphere as they grow, or through industrial processes powered by
renewables or other low-emissions energy sources67
mature technologies Broadly, mature technologies are those that are available and economically
viable today. In this guidance it is suggested that mature technologies are
defined by technology readiness levels (TRL) used by IEA68,69 : Prototype (TRL
4-6), Demonstration (TRL 7-8), Early Adoption (TRL 9-10), and Mature (TRL 11)
technologies.
Mature and less mature technologies will require different roadmaps of action
through an entity’s transition plan
midstream A term sometimes used to refer to those industry activities that fall between
exploration and production (Upstream) and refining and marketing
(Downstream). The term is most often applied to pipeline transportation and
storage of crude oil and natural gas
‘molecule’ production Energy production related to the combustion of hydrocarbons
nature-based solutions Nature-based Solutions leverage nature and the power of healthy ecosystems
to protect people, optimise infrastructure and safeguard a stable and
biodiverse future70
net zero Setting corporate net zero targets aligned with meeting societal climate goals
means: (a) reducing Scope 1, 2 and 3 emissions to zero or a residual level
consistent with reaching net zero emissions at the global or sector level in
eligible 1.5°C scenarios or sector pathways and (b) neutralising any residual
emissions at the net zero target date – and any GHG emissions related to the
atmosphere thereafter71
new facilities Facilities being built as part of transition plan to net zero
physical risks Risks resulting from climate change can be event driven (acute) or longer-
term shifts (chronic) in climate patterns. Physical risks may have financial
implications for organisations, such as direct damage to assets and indirect
impacts from supply chain disruption72
65) IEA, ETP Clean Energy Technology Guide, Accessed September 2023.
67) IEA, Low-Emission Fuels, Accessed October 2023
68) IEA, ETP Clean Energy Technology Guide, Accessed October 2023.
70) IUCN, International Union for Conservation of Nature and Natural Resources, 2023
72) TCFD, Recommendations of the Task Force on Climate-related Financial Disclosures, June 2017
physical trading A Physical Trader (entity or individual) buys and sells commodities delivering
physically from producers, to consumer or processors. A trader may also
engage in storing, blending or refining commodities to meet customer
specifications and maximise their profit. Financial trading refers to Any other
business of entering into, buying of, or selling of contracts to deliver financial
trade
priority locations Locations where a business interacts with ecosystems assessed as being high-
risk as defined by the TNFD73. These include:
• High integrity ecosystems; and/or
• Areas of rapid decline in integrity; and/or
• Areas of high biodiversity importance; and/or
• Areas of water stress; and/or
Areas where the organisation is likely to have significant potential
dependencies and/or impacts
reserves Those quantities of petroleum anticipated to be commercially recoverable by

application of development projects to known accumulations from a given
date forward under defined conditions74
transition risks Transitioning to a lower-carbon economy may entail extensive policy, legal,
technology and market changes to address mitigation and adaptation
requirements related to climate change75
upstream The exploration and production portions of the oil and gas industry76
value chain The full range of activities, resources and relationships related to a reporting
entity’s business model and the external environment in which it operates.
A value chain encompasses the activities, resources, and relationships an
entity uses and relies on to create its products or services from conception
to delivery, consumption, and end of-life. Relevant activities, resources and
relationships include those in the entity’s operations, such as human resource;
those along its supply, marketing, and distribution channels, such as materials
and service sourcing and product and service sale and delivery; and the
financing, geographical, geopolitical, and regulatory environments in which the
entity operates77
73) TNFD, Guidance on the identification and assessment of nature-relates issues: the LEAP approach, 2023
74) North Sea Transition Authority, Glossary of Terms , 2023
75) TCFD, Recommendations of the Task Force on Climate-related Financial Disclosures, June 2017
76) IFRS, [Draft] IFRS S2 Climate-related Disclosures Appendix B Industry-based disclosure requirements Volume B11—Oil & Gas–Exploration &
Production, March 2022
77) ISSB, [Draft] IFRS S2 Climate-related Disclosures, March 2022
CONTACT US
[email protected]
transitiontaskforce.net

TPT Oil and Gas Sector Guidance

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Oil & Gas

The TPT would like to thank:

Fiona Maclean, Aaron McDougall, Amundi Chandra Gopinathan, Railpen

Andy Ross, CDP Steffen Kram, Christopher Vernon, Banco

Adrien Rose, Krista Halttunen, Oxford

Nathan Chan (Banks Lead) Sophie Collerton (Focus Topics Lead)

Kate Ryan (International Engagement Lead)

2. INTERPRETING THE TPT DISCLOSURE FRAMEWORK FOR THE OIL & 20

ABOUT THE TPT

At COP26, the UK Chancellor further committed to work

The TPT’s Sector Guidance

• Food & Beverage;

• Electric Utilities & Power Generators;

• Metals & Mining; and

• Oil & Gas.

Photo, Nathan Anderson, Unsplash.com

How this Guidance fits within the

• Guidance on the transition planning cycle, including case studies;

PRINCIPLES Ambition Action Accountability

4.1 Governance, engagement,

5.2 Management roles,

3.3 Engagement with

5.4 Incentives and

5.5 Skills, competencies and

Figure 1: The TPT Disclosure Framework

Preparers of Oil & Gas transition plans

Photo, Mike Benna, Unsplash.com

4) IFRS, Draft IFRS S2 Climate-related disclosures, 2022

The Transition Plan Disclosures Landscape:

IFR S S1 G enera l Req uirements for D is clos ures of

TPT Disclosure Framework

TPT suite of Implementation Guidance

TPT Sector Summary (40 sectors)

Real economy sectors Finance sub-sectors

TPT Electric Utilities & Power TPT Banks

TPT Food & Beverage TPT Asset Owners

TPT Metals & Mining TPT Asset Managers

TPT Oil & Gas

Figure 2: The Transition Plan Disclosures Landscape

Using the Oil & Gas Guidance to

Photo, Timothy Newman, Unsplash.com

Scope of the TPT Oil & Gas Guidance

Photo Ira E, Unsplash.com

10) Volume B11—Oil & Gas-Exploration & Production (ifrs.org)

MIDSTREAM DOWNSTREAM (Refining & marketing)

Figure 3: The Oil & Gas Value Chain

Photo Isabel Garger, Unsplash.com

Sub-Elements of the Disclosure Framework addressed in this Guidance

PRINCIPLES Ambition Action Accountability

4.1 Governance, engagement,

5.2 Management roles,

3.3 Engagement with

5.4 Incentives and

5.5 Skills, competencies and

Figure 4: Sub-Elements selected for interpretation in this Guidance

A strategic and rounded approach

o Significant methane emissions reduction programmes.

o Reducing energy consumption: implementing energy efficiency programs.

Photo Michael Benz, Unsplash.com

1.1 Strategic Ambition

o expected role of GHG neutralising measures, including assumptions relating to permanence/

o any relevant partnerships, or investment support to collaborate on sustainability initiatives, and