The Evolution of ESG Reporting for E&P Companies

Developing SEC requirements and market pressure push E&P companies to meet ESG disclosure demands.

(Source: Shutterstock.com)

[Editor's note: A version of this story appears in the July 2022 issue of Oil and Gas Investor magazine.]

Attitudes toward ESG metrics have been shifting for some time. As ESG becomes more of a priority for the oil and gas industry, the way these metrics are reported has also evolved. Pressure from different kinds of stakeholders has played into how E&P companies report on ESG, and it also depends on the nature of the company in question. Generally speaking, though, it is the environmental aspect that has been the main focus by far.

“The ‘E’ takes most of the oxygen in the ESG conversation, partially because it is easier to agree on how to measure. The ‘S’ and ‘G’ tend to be more subjective,” Nick Volkmer, Enverus’ director of product, ESG, told Hart Energy.

This has translated into companies beginning to set various targets, including reaching net-zero greenhouse-gas (GHG) emissions over the long term in some cases, to report their ESG achievements. Progress has been mixed to date, and efforts to develop a more unified approach are now underway, with various standards emerging and gaining popularity in recent years.

Already have an account? Log In

Subscribe now to get unmatched and complete coverage of the Energy industry’s entire landscape!

View our subscription options
  • Access to site wide content
  • Access to our proprietary databases
  • Watch exclusive videos with energy executives
  • Unlimited access to an extensive library of Playbooks, Techbooks, Yearbooks, supplements, and special reports
  • Newly Added! Access to Rextag's Energy Datalink, containing extensive GIS databases of energy assets, production records, processing capacities, physical locations, planned projects, acquisition records, and much more.

Anna Kachkova

Anna Kachkova is a freelance writer based in Edinburgh, Scotland.