When it comes to ESG, it’s important to remember the golden rule: “Whoever has the gold makes the rules.”
“ESG is part of being a U.S. public company, especially in the energy industry now, so embrace it and get on board,” said Hillary Holmes, partner in the Houston office of Gibson, Dunn & Crutcher LLP who also co-chairs the firm’s capital markets practice group.
Holmes recently sat down with Hart Energy’s Emily Patsy to discuss the ESG movement and what opportunities exist for oil and gas companies, including the emergence of sustainability bonds.
Despite its growing ubiquity, Holmes noted in the discussion that ESG is not a one-size-fits-all strategy but something that should be tailored to a particular company, situation, sub-sector, etc.
“It’s a very bespoke strategy with respect to each company,” she said. “I like to advise clients to just step back and instead of attacking ESG as a separate strategy from their business strategy, think about ways that ESG can be integrated into the business strategy to really add value.”
For some companies, Holmes said this approach could increase access to capital.
In particular, she noted the increase in capital raising she’s seeing tied to the “E” and “S” in ESG—the environmental and social aspects of the movement.
“Also investors are just demanding that companies pay attention to ESG and provide specific goals with respect to their ESG strategy and provide regular reporting on how they’re achieving those goals,” she said.
Jump to a topic:
- ESG strategies (0:40)
- Capital markets and ESG (2:25)
- Capital tied to ESG (4:25)
- Sustainability bonds (6:00)
- Energy and suitability bonds (10:20)
- Advice to oil producers (13:45)
Recommended Reading
Vivakor to Acquire Endeavor Crude Transport Cos. for $120MM
2024-09-25 - Vivakor said it is buying Endeavor Crude and related companies, which have a series of long-term strategic partnerships with customers in the Permian Basin, Eagle Ford Shale and the STACK play.
Energy Transfer, Sunoco Announce Team Up in Permian Basin JV
2024-07-16 - Energy Transfer LP and Sunoco LP have formed a partnership that will operate more than 5,000 miles of crude oil and water gathering pipelines in the Permian Basin with crude oil storage capacity in excess of 11 MMbbl.
Shell Sells Pipeline, Terminal Assets to Edgewater Midstream
2024-08-29 - Shell is selling its Sinco pipeline system and Colex terminal assets that have been historically integrated with the Deer Park Refinery, which Shell sold to Pemex in 2022.
Delek Logistics Acquires EIV’s H2O Midstream for $230MM
2024-08-06 - Delek Logistics acquired H2O Midstream, a portfolio company of EIV Capital and the largest pure-play water midstream company in the Permian Basin, with more than 250 miles of pipe.
EQT Closes $5.45B Acquisition of Equitrans Midstream
2024-07-22 - In addition to integrating Equistrans’ midstream assets, EQT will focus on reducing the infrastructure company’s debt of between $7.6 billion and $8 billion. Including equity and debt, the deal is valued at roughly $13 billion.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.