ONEOK (OKE) Sets Target to Trim Scope 1 and Scope 2 Emissions
ONEOK, Inc. OKE announces its plans to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 30% from the 2019 levels of 7.2 million metric tons (MMT). The target will be to curb emission by 2.2 MMT within 2030. Along with setting sustainability targets, the company is exploring opportunities to expand its role in a lower-carbon economy.
To meet the target, it will undertake efforts like electrification of certain natural gas compression assets and methane reductions along with identifying opportunities to collaborate with other utilities and power generators to achieve its aim. In fact, since 2014, the company has internal environmental metric to promote the reduction of emissions.
Transition in the Industry
One of the biggest challenges today is climate change due to increasing emission of GHG. With increasing awareness of trimming toxic emissions globally, companies are adopting clean energy sources to provide environmentally-friendly energy to its end users. Even the current US regime had announced plans to reach the net-zero emissions economy by 2050.
The quest of the utilities to cut down on emission will assist in lowering the release of harmful GHG. UGI Corp. UGI disposed of its 5.97% ownership interest in the Conemaugh coal-fired generating station in fiscal 2020 to slash the total Scope I direct emissions by more than 30%. Also, in May 2021, it announced plans to curb Scope I GHG emissions by 55% within 2025. Another utility MDU Resources MDU retired Lewis & Clark coal facilities in March and will retire Hesket I & II coal-fired stations in early 2022.
Atmos Energy ATO aims at reducing methane emissions by 10-15% in the next five years from the current levels. The company also looks to lower methane emissions by 50% within 2035 from the 2017 levels.
Price Performance
Shares of the company have gained 15.6% in the past six months against the industry’s fall of 1.6%.
Six Months Price Performance
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Zacks Rank
Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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