The Carbon Underground 200 represents the top publicly-traded coal, oil, and gas reserve-owning companies globally, ranked by the carbon emission potential of their reported fossil fuel reserves. The total potential C0₂ emissions from these reserves now exceed 474 Gt, down almost 15% from our last report (published in February 2015) but still over 460% of the allocated CU200 carbon budget to 2050.

This report estimates an updated carbon budget based on the only IPCC climate scenario with a future less than 2° C above pre-industrial levels with >66% probability. These estimates broadly confirm growing research on the exposure of public fossil fuel companies, especially those in the coal sector, to potential constraints and revaluation based on stranded assets.

The Carbon Underground identifies the 100 largest public coal companies, and the 100 largest public oil and gas companies, based on estimates of the potential CO₂ emissions of their reported reserves as of May 31, 2016. This report shows significant movement and changes in the companies on the 2016 list over the past 18 months. Merger and acquisition activity, bankruptcy, privatization, and nationalization, along with ongoing reserves discoveries, better reserves reporting, and extensive due diligence on reported reserves data, have all impacted the rankings. Since the last report, 35 companies have changed on the coal list, and 14 companies have changed on the oil and gas list.

Since the publication of our 2015 report on The Carbon Underground 200^TM (CU200), market volatility, and an unprecedented level of climate policy initiatives have had a dramatic impact on companies in the CU200. The number of asset owners focusing on climate risk has grown significantly during this period, especially those focused on the risks associated with carbon emissions.

The Carbon Underground 200 – Potential CO₂ Emissions from the Reserves

The potential CO₂ emissions embedded in the reported reserves of The Carbon Underground 200 exceed the allocated carbon budget by almost 460%.

Listed Companies

Companies on the list are investable as of July 11, 2016. Subsidiaries with their own exchange listings that report reserves separately from their parent are eligible for inclusion. Companies that publicly trade only a portion of their overall shares are also eligible for inclusion.

Construction

The rankings are based on calculated carbon emissions data using reserves reported as of May 31, 2016. The ranking are adjusted for company mergers and acquisitions through July 11, 2016.

Data

Rankings are constructed using a reserves-based methodology with the underlying core data based on “reported” reserves. Coal reserves are the sum of proven and probable reserves based on the last reported reserves amount by mine. Reserves are allocated to listed companies based on percentage ownership of individual mines. Oil and gas companies are ranked on proven reserves (1P) net of royalty payments.

Emissions Calculations

The Carbon Underground 200 relies on the IPCC Revised 1996 Guidelines for National Greenhouse Gas Inventories as a methodological framework. The calculation of CO₂ emission potential requires several conversions to the raw reserves figures.

For detailed methodology, download The Carbon Underground 2016 full report.

See below for information on receiving the full 2016 list of The Carbon Underground 200 companies.