We consider climate change and energy transition as a principal risk to our business. We continue to consider the specific challenges, risks and opportunities it represents to improve our understanding and response.
Global energy transition
In 2022, we anticipate a greater emphasis on global energy transition, with an acceleration of activities by investors, companies and businesses around the world in developing and implementing actions that limit temperature rise.
Net zero carbon economies
Governments are expected to further their specific commitments in their Nationally Determined Contribution (NDC) plans under COP26. This forms part of the transition towards more sustainable affordable sources of energy and the path to develop net zero carbon economies.
Limiting temperature rise
To meet the aspiration of limiting temperature rise to 1.5°C above pre-industrial levels, the continued use of hydrocarbon fuels with technologies and mechanisms to capture carbon emissions associated with their use will be required for some decades to come.
Given the importance of climate action policy and planning to us and our stakeholders, we will continue to assess our reporting against the four pillars of the Task Force on Climate-related Financial Disclosures (TCFD):
- risk management; and
- metrics and targets.