At COP28, more than 50 of the world’s leading oil and gas companies launched the Oil and Gas Decarbonization Charter (OGDC), laying out a series of ambitions to achieve net zero operational emissions by 2050. As global methane and flaring emissions continue to rise, these ambitions are more important than ever to reduce energy waste and mitigate the harmful consequences of climate change.

To support accountability and transparency, the International Energy Agency (IEA), the United Nations Environment Programme (UNEP) International Methane Emissions Observatory (IMEO) and the Environmental Defense Fund (EDF) set out a framework of 25 metrics to assess and track the efforts reported by the oil and gas industry to achieve the goals set out in the OGDC. The framework is detailed in the 2024 report Turning Pledges into Progress.

This progress report is the first assessment of the largest 116 oil and gas companies against the 25 metrics. The assessment covers companies that account for 80% of global oil and gas production and considers both OGDC signatory and non-signatory companies.

This report aims to provide oil and gas companies, governments, investors, civil society and the public with an assessment of the actions companies are taking towards fulfilling the ambitions in the OGDC. In this first assessment, company performance is evaluated on the extent to which they are publicly reporting on the measures that are required to drive credible emissions reductions (rather than being evaluated on actual emissions reductions). Key highlights from the assessment include:

• Building on the work of the Oil and Gas Climate Initiative (OGCI), the OGDC has helped significantly expand and standardise the industry’s commitment to reducing operational emissions. Around 70 of the assessed companies have publicly set targets for near zero methane and flaring emissions by 2030, as well as interim (pre-2050) operational emissions reduction targets; 56 of these companies are members of the OGDC. Joining the OGDC is one of the simplest ways for companies to align with industry-standard targets and to accelerate peer-to-peer learning.

• Companies on average scored 9 out of a total possible 25 points corresponding to each metric, but there is wide variation: the 10 best performers scored between 20 and 23, members of the OGDC on average scored 12, and 20 companies scored less than 3 out of 25.

• Companies scored much more highly for target setting than for disclosure on strategies for implementation and reporting. On average, companies scored 66% against the metrics related to setting high-level targets, 21% on the metrics related to disclosure and reporting, and 18% on metrics related to implementation strategies. The individual metrics with the lowest scores relate to methane investment reporting (metric 24), economic analysis of abatement measures (metric 10) and divestments and acquisitions-related emissions (metric 22).

• Results show a mix of full, partial and no credit awarded for almost every metric, with the exception of metric 24 (methane investment reporting) for which no company received full credit. Many companies were awarded partial credit for several metrics. This highlights that there are low-hanging opportunities for companies to improve scores related to disclosure and abatement. As companies align their actions and reporting with the ambitions set out in the OGDC, scores should increase and unlock real-world operational emissions reductions to 2030.

• Companies are actively leveraging other tools and resources to help achieve the emissions reduction targets they have set themselves. Initiatives such as the Oil and Gas Methane Partnership (OGMP 2.0) can improve disclosure, help companies support effective mitigation measures, and improve scores against the metrics in this framework.

This assessment benefited greatly from valuable input and feedback from a large number of the assessed oil and gas companies, as well as the OGCI and OGDC secretariat. OGCI members consistently achieved high scores in this assessment, underscoring how collaboration can drive improved outcomes and offering a valuable example for OGDC and other industry initiatives to follow.

The IEA, IMEO and EDF plan to release annual updates to this assessment and continue to provide support to stakeholders to help reduce methane, flaring and other emissions.