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the low-risk playbook of cutting costs and retre- tal made a final investment decision on their lar-
ating to the core may be the higher-risk path for ge carbon capture and storage project, Northern
oil and gas players. Analysis of oil and gas valua- Lights, off Norway’s west coast. Less clear will be
tions over three major economic recessions during the scale and pace for development of low-carbon
the last 25 years confirms that “wait and watch” infrastructure, build-out of net-zero carbon assets,
was a poor option. Across industry sectors, com- and larger-scale expansion of biofuel production
panies that took bold and effective action during and the next generation of renewable power assets
the 2007–08 global financial crisis performed much (see Figure 3).
better than those that retreated to precrisis appro-
aches and activities (see Figure 2).
Steps to pursue a zero-carbon
Act now future

Given that standing still is not an option, what During the current crisis, oil and gas companies are
should oil and gas companies be doing? freeing up company resources through new ways
of working and lower levels of operational and ca-
The standard response might be to shelve mid- pex activity. Some are diverting this expertise to
and longer-term sustainability research into initia- initiatives that will help them reach their net-zero
tives that will take years to reach scale, such as carbon goals (see Figure 4).
large-scale hydrogen infrastructure. Energy sto- In this environment, leaders are bringing together
rage and advanced biofuel feedstocks may also the often fragmented and incremental sustainabi-
take a back seat, while plant electrification, carbon lity efforts into a concentrated set of initiatives and
capture, operational decarbonization, plastics and establishing a transformation framework. Despite
lubricants recycling are more likely to push forward. growing advocacy, initiatives and target setting, the
For example, in late May, Equinor, Shell and To- oil and gas majors have yet to substantially redu-
ce their Scope 1 and 2 carbon emissions: Betwe-
Sector leaders can continue to en 2014 and 2018, eight majors reduced these
demonstrate their low-carbon emissions by only 5.6% on average. The Covid-19
slowdowns in industrial and commercial activity re-
“commitments to investors duced global greenhouse gas emissions by about
by doubling down on low- 17% in April, but that followed a decade of annual
carbon investments with increases. Without concerted action, emissions
are certain to spike back as lockdowns relax and
the best returns and shorter resume their rise, and people and companies get
implementation times, such as back to work. To change the trajectory, a bolder
approach is required.
electrifying assets and reducing
the carbon output of operations Establish a short-term sustainability roadmap.
Many companies have set long-term decarboniza-

Figure 3: Energy companies
may need to prioritize sustai-
nability initiatives based on
their ability to deliver greater
effects in less time

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