Big oil and gas companies could be collectively worth $100 billion (£69bn) more if they align their investment plans with a 2˚C target.

That’s according to a study by the Carbon Tracker Initiative which stated only proceeding with the lower cost projects needed for a 2˚C target would add that amount of money to the value of the world’s seven largest listed oil and gas companies.

They are ExxonMobil, Shell, BP, Chevron, ConocoPhillips, Eni and Total.

The 2˚C target was agreed in Paris in December and signed in April.

The ‘Sense & Sensitivity: Maximising Value with a 2˚C portfolio’ report also highlights projects which rely on high oil prices are more risky and once fossil fuel risk premium is added, prices would need to reach $180 (£124.2) per barrel.

The report combines low carbon demand scenarios with oil price and discount rate sensitivity for the seven oil majors to quantify how reducing exposure to high-cost, high-carbon projects can increase the value of their upstream interests.

James Leaton, Research Director at Carbon Tracker said: “A simple carbon sensitivity analysis shows that oil majors pursuing volume at all costs can deliver lower shareholder value than a more disciplined approach. That is why financial regulators need to make 2˚C stress tests standard practice for the energy sector to help avoid companies wasting capital.”

According to a report by non-profit Influence Map, some of the biggest oil and gas firms have started to tell investors the risks climate change could have on their businesses.