New API guidelines come amid stiffening disclosure rules

July 2, 2021

The American Petroleum Institute (API) has launched a new template for natural gas and oil companies to better track and report greenhouse gas (GHG) indicators.

The trade association, which is the biggest in the US oil and natural gas sector, said the framework aims to standardise how companies track GHG emissions and encourages them to voluntarily release those details openly.

It is described by the API as the next step in its efforts to accelerate climate solutions.

“As an industry of engineers and problem solvers, we measure and track progress in everything we do and aim to share relevant data transparently,” API president and CEO Mike Sommers said.

“Working with our members, the financial community and throughout the supply chain, this reporting template builds on our robust sustainability efforts and elevates the consistency and comparability needed for tracking climate-related progress from company to company,” he added.

The latest announcement follows the publication of the API’s Climate Action Framework, which was released in March.

The SEC has placed a high priority on reviewing disclosure rules.

The API’s disclosure template contains five sections, including one where companies are expected to log data on greenhouse emissions coming from its own assets as well as from the energy they use.

Additionally, there are sections where companies are to report their efforts to reduce emissions through the use of carbon capture and renewable energy, as well as specific factors on how the company’s data has been independently verified.

The trade group, which has 600 members including giants such as Chevron and ExxonMobil, said the template is not mandatory, however it expects companies will voluntarily choose to use it.

Pressure has been mounting on oil giants in recent months on the heel of investor pressure and the need for US companies to keep pace with their European counterparts on the shift towards sustainability.

The first reporting via the framework is expected in 2022.