Environmental, social and governance (ESG) investing is rapidly becoming one of the most valued megatrends on the globe. Even amid the effects of COVID-19, global economies are still exploring ways of pushing ESG investing in the long-term. As the momentum builds and policies seek to promote renewable energy, what does this new trend hold for the petroleum sector? So, does it spell doom to all the industries in this sector? A Closer Look at ESG Reporting
Before looking at the strategies that petroleum and gas companies can use to promote sustainability, it is crucial to understand what it is and how it works. ESG sustainability reporting is a process that considers environmental, social and governance factors together with financial factors in the running of a company. Ultimately, companies generate reports that stakeholders, especially investors, use to select the company for investment. Check out the answers as we explore how companies in the gas and petroleum niche can use ESG sustainability reporting to promote resilience.
In the gas and petroleum sectors, sustainability reporting might involve exploring how the actions of the company impact the society and environment. Notably, the process starts with a deep evaluation of a company’s actions, helping it to understand the challenges facing it. So, in addition to highlighting efforts for sustainability, the reporting process becomes a crucial source of information for strategy formulation.
What Managers in the Petroleum and Gas Industry Should Do
When we talk about global warming and pollution, among many challenges facing the planet, many accusing fingers are directed at petroleum. For example, all cars that use gas and petroleum fired power stations emit gases that are harmful to the environment. This means that you need to look ahead when crafting strategies for implementation. So, here are some useful tips for you:
Think of Changing tact: Probably Spearhead Alternative Sources
The entire globe appears in agreement that we are in need of alternative sources of energy as a way of securing the planet. Indeed, these efforts have started and results are now evident. For example, most car manufacturers are now looking forward to developing electric-powered cars. By 2030, it is estimated that about 30 million electric cars will be on the road in the US alone. The best thing to help push the wheel of innovation and continue reaping profits is joining the pack. Why not work on new alternative sources of energy?
Partner With Ventures that Promote Carbon Uptake from the Atmosphere
Since there is no doubt that vegetation, especially dense forests, takes up a lot of carbon dioxide from the atmosphere, you can also promote related initiatives. One way of doing this is identifying groups that are involved with forestry projects and supporting them. Remember to capture related data well so that stakeholders can make their decisions about your efforts correctly.
Work Towards Influencing Other Firms to Adopt Sustainability
To make your efforts for sustainability more effective, it will be a good idea to rope in more parties. As a petroleum company manager, you can ask other firms, whether suppliers or product buyers, to put more effort towards sustainability. For example, manufacturers who use the oil can commit to regular maintenance of their machines and using scrubbers to cut down harmful emissions.
The petroleum and gas industry contributes so much to the global economy but is also a major source of greenhouse gases. Therefore, you need to put more efforts to demonstrate that the actions taken to promote sustainability can help to promote sustainability. In addition to developing a good strategy for your sustainability goals, it is also important to work with appropriate sustainability management software to capture the right information.