Blog

Planning for ESG: Environmental, Social and Governance

Fossil fuel vs renewable / future clean alternative energy concept : Petroleum pumpjack, crude oil drum barrel, solar panel, green leaf battery, wind turbine on a wood balance scale in equal position.
Business

Planning for ESG: Environmental, Social and Governance

Environmental, social and governance (ESG) criteria, programs, and policies are emerging as a significant area of focus for the oil and gas industry. Investors will be scrutinizing oil and gas companies, looking for them to build efforts to promote environmental responsibility and sustainable practices. Investors aren’t the only ones with eyes on the industry either, as there is also a growing consumer concern with these issues. Oil and gas companies must develop ESG policies that are strategic and impactful.  

What is ESG?

ESG refers to Environmental, Social, and Governance programs or policies within a company’s operations. ESG criteria might include:

  • Environmental stewardship – energy use, carbon capture and carbon emissions reduction, operational energy efficiency, natural resource conservation, energy portfolio diversification, and waste disposal.
  • Social responsibility – worker safety and health, diversity of community relationships, supply chain relationships, adherence to human rights, and commitment to philanthropy.
  • Governance – leadership diversity, executive pay, accurate and transparent accounting methods, and shareholder rights.

The concept of ESG builds on the previous Socially Responsible Investment (SRI) movement and Corporate Social Responsibility (CSR). Many investors are using ESG to both understand corporate strategy and management and evaluate corporate performance. In 2020, assets under management in funds that abide by ESG principles surpassed $1 trillion for the first time on record. Therefore, the rising importance of ESG is something that oil and gas companies must be prepared for.

The Importance of ESG

Momentum for ESG is building in part due to the COVID-19 pandemic. While the pandemic has disrupted the oil and gas industry, it has also put a greater emphasis on key ESG factors, things like workplace safety and an awareness of human capital. As investment firms are increasingly tracking ESG performance, it is essential for oil and gas companies to implement a strategic ESG program.

ESG programs are an opportunity for oil and gas companies to demonstrate leadership and company performance. successful ESG programs should:

  • Enhance operational efficiency and productivity
  • Strengthen innovation
  • Sustain long-term growth
  • Expand partnership opportunities

Inteleum Can Help With ESG

To have the necessary impact, ESG programs must be strategic initiatives that are fully integrated into a companies operations. While ESG can be a powerful tool for companies, many oil and gas companies may struggle to formulate their ESG programs. Don’t let ESG become grand intentions without a way to follow through.

The key is to create ESG goals that are authentic and achievable for your organization. By taking the time to develop a good understanding of your needs, goals, and business drivers, Inteleum can help oil and gas companies establish achievable ESG programs that are tied to your operations. We’ll use our expertise, experience, best-in-class apps and software, and industry connections to deliver tailored solutions along with the required support for successful implementation.

The importance of ESG programs for oil and gas companies will only continue to grow. At Inteleum, we are a highly specialized petroleum engineering and technology firm. We are passionate about being innovative and delivering cost-effective solutions. Contact us today and see how we help our clients identify and evaluate breakthrough technologies that can help them achieve their goals.

https://inteleum.net/

Key Takeaways

  • What is ESG? ESG refers to Environmental, Social, and Governance programs or policies within a company’s operations.
  • Oil and gas companies must develop ESG policies that are strategic and impactful.
  • The key is to create ESG goals that are authentic and achievable for your organization.
  • Inteleum can help oil and gas companies develop achievable ESG programs that are tied to your operations.

Leave your thought here

Your email address will not be published. Required fields are marked *