TD updateGibson Energy Inc. (GEI-T) C$22.38 Ambition to Reach Net-Zero and MSCI ESG Rating Upgrade Linda
Event On October 14, 2021, Gibson Energy Inc. ("GEI") announced its commitment to reach Net Zero emissions by 2050 and has received an "AAA" rating from MSCI ESG Ratings.
Impact:SLIGHTLY POSITIVE
MSCI Rating Upgrade: GEI is the only company in the Oil & Gas Refining, Marketing, Transportation & Storage industry in North America and one of three companies in the same industry globally to receive the "AAA" rating provided by MSCI ESG Ratings, one of the largest providers of ESG data and analysis. This is the latest addition to the other leadership ratings received by the company that recognizes GEI's ESG accomplishments to date.
Net Zero by 2050: GEI established the goal to reduce all of its Scope 1 and 2 greenhouse gas emissions by 2050, which is an extension from a series of targets to reduce emissions and GHG intensity by 2025 and 2030 across all of its business units. The company expects minimal reliance on carbon offsets or credits to reduce ~90% of current Scope 1 and 2 emissions produced by GEI's asset base given existing technologies already in use in North America, and more advanced technologies likely to emerge over time. GEI notes that all investments, including energy transition related opportunities, will continue to meet existing internal return hurdles.
Progress to Date: The company has invested in various initiatives to reduce GHG emissions, with the investment in thermal heat exchanger technology at the Moose Jaw facility being the most recent highlight that reduced emissions intensity on a per barrel basis of over 10%. In our view, we believe GEI will continue to make strong progress on reducing emissions and energy transition.