Path for Producers to Show Their ESG Bona Fides

Oil and gas producers increasingly must disclose their metrics and performance to attract capital and satisfy stakeholder concerns. The good news: how to do so is becoming clearer.

Ellen Chang, Contributing Editor
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(Source: HartEnergy/Shutterstock.com)

Oil and gas companies have faced pressure from investors for several years to reduce their greenhouse carbon emissions and adopt ESG measures while balancing financial goals with returning money to shareholders and generating sustainable value.

Quantifying ESG has become easier as more data are being captured and frameworks have been set by the Task Force for Climate-related Disclosures (TCFD) to help businesses, especially energy companies, disclose their climate related risks and their goals to reach lower emission output. The Sustainability Accounting Standard Board also developed standards and a subset of ESG issues that are relevant to financial performance.

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