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Halliburton (HAL) to Reduce Greenhouse Emissions Through SBTi

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Halliburton Company (HAL - Free Report) stated that it would set climate-reduction targets to reduce greenhouse gas (“GHG”) emissions to meet the goals of the Paris Agreement, which aims to reduce global warming by keeping the temperature rise well-below 2°C above pre-industrial levels.

The decision came as investors brought immense pressure on the global energy sector, mainly concerned about the climatic impacts of fossil fuels. As a result, Halliburton joined several global firms with a shared purpose by setting science-based targets through the Science Based Targets initiative (“SBTi”) to prevent the worst effects of climate change.

The SBTi is a partnership formed by CDP, United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature to fight against climate variability by allowing companies to set targets for emission reduction. Setting those targets would help mitigate the risks of global warming and ensure that businesses remain flexible and responsive in an evolutionary working environment.

Oilfield service providers have been attempting to increase opportunities outside their scope of activities as they move through a transition to a low-carbon future. While the actions of the upstream companies usually hit the headlines, it has become apparent that oilfield service companies like Baker Hughes Company (BKR - Free Report) and Schlumberger Limited (SLB - Free Report) are also responding by setting their emission-reduction targets.

Per Jeff Miller, president/CEO at Halliburton, the company’s commitment toward net-zero emissions bolsters its sustainability goals, and at the same time offers affordable and reliable energy worldwide. In other words, the Houston-based company, which will finalize its targets by 2021, expects a validation from the SBTi by 2022 and commits toward a low-carbon future to avoid the catastrophic impacts of climate change.

Company Profile & Price Performance

Headquartered in Houston, TX, Halliburton is one of the largest oilfield service providers. Its shares have outperformed the industry in the past six months. The company’s stock has gained 47.4% compared with the industry’s 25.2% growth.

 

 

Zacks Rank & Stocks to Consider

Halliburtoncurrently carries a Zack Rank #3 (Hold). One better-ranked player in the energy space is Altus Midstream Company (ALTM - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Altus Midstream is expected to see earnings growth of 364.4% in 2021.

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