Shell and Other Oil Giants Abandon Net-Zero Standards

Today’s ESG Updates

• Oil & Gas Industry Drops ‘Net Zero’ Standard: Shell, Aker BP, and Enbridge exit SBTi group, delaying new guidelines until 2030.
• SBTi Net-Zero Standard for Finance Launched: 135 financial institutions adopt new net-zero targets to meet ESG goals.
• AI Mining Firm Raises $44M: GeologicAI secures funding to speed up critical mineral mining for energy transition.
• AI Data Centers to be powered by Renewables: UN calls for tech firms to power data centers with 100% renewable energy, as deep-sea mining firm moves ahead with its plans.

Oil and gas industry abandons ‘net zero’ emissions standard 

Shell, Aker BP, and Enbridge withdrew from the Science-Based Targets initiative (SBTi) advisory group after draft standards required companies to cease developing new oil and gas fields and significantly reduce production. The industry pushback has led the SBTi to delay its guidelines for ending investment in new oil and gas projects until 2030. “The more we delay, the more cover we are providing to big oil,” critics argue, as large oil and gas companies remain difficult to enforce environmental standards. Companies are increasing their budgets for ESG solutions, indicating that despite the challenges in the energy sector, ESG is becoming central to business development. 

***

Further reading: ‘Net zero’ emissions standard paused as Shell quits

SBTi launches the Net-Zero Standard for financial institutions 

Financial institutions will, for the first time, be able to set science-based targets aligned with net-zero emissions, following the release of the Science-Based Targets initiative’s (SBTi) Financial Institutions Net-Zero Standard. The Standard expands asset class coverage, enhances emissions inventories, and offers options for institutions to focus on the net-zero alignment of their customers or financed emissions. So far, 135 institutions have adopted the Standard, citing it as a key step in meeting ESG goals their business. 

***

Further reading: The SBTi opens net-zero standard for finance industry

Mining tech firm adopts AI to speed up mineral mining for the tech industry

GeologicAI, a mining technology company based in Calgary, has raised $44 million to accelerate the use of AI in discovering and developing critical minerals, supporting the global energy transition. The tech is backed by large investors, including Blue Earth Capital, BNP, Rio Tinto, and Bill Gates’ cleantech fund Breakthrough Energy Ventures. The AI-driven platform uses integrated sensors and analytics to scan and analyse drill core samples in real-time. With the integration of AI, GeologicAI aims to improve the efficiency of mining, catering to the growing demand for precious minerals. 

***

Further reading: GeologicAI Raises $44 Million to Use AI to Source Critical Minerals

UN urges AI data centers to be powered with renewables by 2030

UN Secretary-General Antonio Guterres urged tech companies to power their data centers with 100% renewable energy by 2030. The call comes as the US and China compete in the AI arms race. Many large tech companies, such as Microsoft, have invested in powering AI data centers with clean energy. However, the UN worries that President Trump’s new AI Action Plan will ease environmental restrictions, potentially opening the door to the use of fossil fuels by tech firms.  Guterres also urged governments to prepare new climate plans by September to advocate ESG solutions via renewable energy initiatives. 

***

Further reading: UN chief urges tech sector to power data centers with renewables

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit:  Keming Tan