The chief executive of the Carbon Disclosure Project (CDP) has called for tighter regulations on the energy sector, as new figures show that oil, gas and coal-mining companies are lagging behind in efforts to set greenhouse gas reduction goals.

As the NGO today publishes the 2011 edition of its annual Global 500 report, Paul Simpson, chief executive of Carbon Disclosure Project, has called on governments to improve the environmental impact of some of the world’s heaviest emitters.

Significantly, the report found the energy sector, which covers oil, gas, fossil fuels and energy services, had just 55 per cent of companies setting targets, which was the lowest proportion of all sectors.

Energy firms were also under-represented in both the Carbon Performance Leadership Index (CPLI) and the Carbon Disclosure Leadership Index (CDLI). Some of the largest firms that did not disclose their emissions included Rosneft, Surgutneftegas and Lukoil.

In comparison, the electric gas and mixed utilities had the best average climate change performance, which CDP believes could be a reflection of the impact of regulations on the sector.

Speaking to BusinessGreen, Simpson said that energy companies were likely to respond to greater regulation, especially if fuel bills continue to rise.

“The oil and gas sector has a reputation of not improving unless regulation makes it do so,” he said.

“It’s indicative for regulators that this sector is under-represented in the index and needs to do more. There are various measures that can drive action, but the energy sector isn’t taking the necessary steps.”

He also pointed out that while the recent hike in energy prices may have helped to boost investment in renewables, it would also likely prompt further unconventional oil exploration, such as extracting tar in Canada and extracting shale gas by fracking.

“If a price was put on carbon, that move could deter companies from doing so,” he said. “It’s really about economics.”