Using scenario analysis to align MOL Group with a 2°C pathway
MOL Group is a Hungarian multinational oil and gas company based in Budapest. A growing number of its investors are considering sustainability risks during the investment decision-making process. As a result, MOL Group is increasingly being asked for information about the long-term impact of climate change risks.
To respond to investor needs as it transitions a larger portion of its business to petrochemicals, MOL Group teamed up with Quantis to create a corporate carbon footprinting tool and perform the company’s first-ever scenario analysis up to 2030.
A corporate footprint enables organizations to understand where the hotspots are across its value chain and identify the main drivers of its environmental impact. This information provides the foundation for a robust sustainability strategy and is critical for communicating credibly with investors about risks and how to address them.
In the case of MOL Group, however, a corporate footprint alone was not enough. An assessment of its current business would not reflect the changes the company is making to its business model and value chain. Performing a scenario analysis, however, provided valuable insight into what these changes mean for the company’s total footprint and how its strategy and actions could be adjusted to align with IPCC scenarios and projected global transitions.
Quantis first worked with MOL Group to develop a carbon footprint tool to enable the company to monitor its long-term sustainability goals, as well as short- and long-term milestones. By adjusting the situation in the tool, the company can also see how changes to its business will influence future performance.
Quantis then performed a scenario analysis on different policies to track how MOL Group’s business model shift will influence its environmental performance. The analysis was based on three International Energy Agency scenarios, the company’s current operations, and 2030 strategy and related estimations for GHG Emissions Scope 1, 2 and 3 up to 2030.
MOL Group has been using the results of its scenario analysis to communicate to its investors about future risks and opportunities.
Using the corporate footprint tool, MOL Group now has an easy way to update its performance every year with new activity data and adapted business opportunities in order to track progress on achieving its long-term goals and communicate this progress to internal teams, investors and other key stakeholders.
"A corporate footprint provides the foundation for a robust sustainability strategy and is critical for communicating credibly with investors about risks and how to address them."