For the three main criteria used to assess oil and gas policy, the scoring system is quite simple. The scores range from 0 to 10 and are based on the following color code: red, orange, yellow, green, to quickly identify the quality of the policies with regard to the assessed criteria.
For the focus on the four unconventional sectors, the rating is primarily qualitative. Project-level exclusion, company-level exclusions (relative and absolute thresholds, exclusion of companies with expansion plans) and the phase-out strategy from the unconventionals are taken into account. The rating system includes five grades, ranging from no policy to a robust exclusion policy.
Many policies allow exceptions, use inappropriate metrics or weaken the impact of the criteria by limiting their application to certain activities. In these cases, a penalty of one or two points is applied for each criteria to sanction these limitations and loopholes.
Policies only applying to SRI/ESG funds are not considered in this analysis, except if they are the only ones proposed by the financial player or if these funds represent at least 80% of the total assets under management.
For each financial institution, a quick paragraph summarizes the content of each policy per criteria, the source used (policy, press release, web page…), and a brief analysis by Reclaim Finance. Filters allow the user to limit the selection to either banks, insurers or investors so that you can better compare financial players to their peers. Finally, it is possible to identify the best policies at a glance with the “Best Practices” button (a “star logo” appears next to the name of the financial institution)
The complete analysis grid is available below the Oil & Gas Policy Tracker.