Showing our working: the framework behind OGCI’s emissions reporting

For years, the conversation around oil and gas industry emissions has centred on the headline numbers. How much progress, how fast, and against what benchmark? Those questions matter, but they all depend on understanding how the numbers are produced.

Transparent reporting starts with transparent methodologies. Credible data is founded on clear definitions, consistent reporting and an understanding of what the data can and can’t tell us.

That’s why, ahead of our annual Progress Report this October, we have published our annual update of the Reporting Framework that sits behind it.

The framework is the foundation for OGCI’s reporting, and this is why we have developed it since the inception of OGCI, back in 2014, pioneering such exercise at a coalition level. It sets out the indicators our member companies report each year, including Scope 1 and 2 emissions, methane and carbon intensity, flaring and low-carbon investment, alongside the boundaries, definitions and methodologies that underpin them.

Having a common approach allows us to aggregate company data into OGCI-wide indicators and assess progress over time. It also helps ensure that everyone is working from the same set of assumptions and definitions.

The framework is built on established methodologies from organizations that include the UN’s Intergovernmental Panel on Climate Change and the Greenhouse Gas Protocol among others.

Since 2016, EY has independently reviewed and verified our reporting, on top of other third party verifiers checking the data of each of our member company, helping to ensure the full integrity of OGCI’s reporting. Again, having such 3^rd party verification at a coalition level was a first-of-its-kind, and we have consistently maintained it since then.

Where there are limitations, we explain them. Transparency is about being clear on the strengths of the data and where further improvements are being made.

Publishing the framework before the Progress Report is a deliberate choice.

The framework is also becoming increasingly important beyond OGCI’s 12 member companies. This year is the second year that the Oil & Gas Decarbonization Charter (OGDC), a diverse global coalition of 56 companies, is using the framework. Last year, 50 of OGDC’s signatories reported in line with it.

Having a common framework across a wider section of the industry helps create greater consistency and supports more meaningful comparisons over time.

Better measurement supports better decision-making, strengthens accountability and helps organizations understand where progress is being made and where further effort is needed.

We review our Reporting Framework every year to ensure it evolves as data and methodologies improves and experience grows. Publishing the framework is part of that process. It reflects our commitment to continuous improvement and giving stakeholders the information they need to understand what we report and how we define it.