Super funds join calls for better methane emissions disclosures

Institutional investors representing over $14 trillion (US$9.85tn) in assets under management have come together to signify the importance in methane emission disclosure among metallurgical coal and steel providers.

Providing a letter to the United Nations Environment Programme's (UNEP) International Methane Emissions Observatory, which combine signatories of local super funds including Aware Super, Colonial First State, HESTA, Rest, and other asset managers, investors are urging metallurgical coal and steel companies to improve methane measurement and verifications, while advancing practical abatement opportunities.

They believe participating in UNEP's Steel Methane Programme can help formulate a framework for stronger methane data, greater comparability, and collaboration on emissions abatement.

The initiative aims to improve methane transparency and provides a platform for constructive collaboration, data sharing where appropriate, and the development of practical mitigation pathways, the letter said.

In addition to the participation of the program, investors are advising metallurgical coal producers to continue enhancing their understanding of methane emissions.

"We expect companies to develop and disclose practical methane reduction plans. These plans should reflect the company's approach to immediately tackling the financial liabilities associated with rising methane-related risks, as well as considerations of technical feasibility and workforce safety impacts," the letter said.

Meanwhile, steel makers and purchasers should dictate procurement frameworks that promote transparency and collaboration for abatement opportunities.

"Disclosures should clarify the difference between measured data and estimates and explain how upstream methane is incorporated into transition planning," it said.

Additionally, investors highlighted the addressing of methane emissions can provide "strong" benefits to both the environment and economy, hence, advocating the related entities to elevate the scrutiny on such area as a priority.

"As investors, we remain committed to ongoing dialogue and collaboration, and we will continue to follow progress through disclosures, governance practices, and demonstrated improvements in data quality and mitigation activity," it said.