Oil and gas adapts to the challenges of ESG reporting

Oil and gas leaders prioritize sustainability goals

As O&G leaders look to incorporate sustainability goals into their operations, many are making important strides forward. Their organizations are building capacity by focusing on cross-functional collaboration, dedicated leadership, and hiring new resources. They recognize potential internal and external benefits to their investments in sustainability reporting, including greater efficiencies, lower risk, and enhanced stakeholder trust. However, many report challenges of poor data quality, especially in preparing and disclosing scope 3 greenhouse gas (GHG) emissions.

In January 2024, 250 O&G executives were surveyed about the progress they’ve made in achieving their sustainability goals and implementing the various regulations. Using a four-point scale from “no progress” to “significant progress,” 27% of O&G respondents report having made “significant progress” toward their sustainability goals, compared to 25% of the 300 public companies with more than $500 million in revenue included in the Sustainability Action Report. Most O&G organizations (60%) report moderate progress.

Planning for climate-related reporting

As the O&G industry works to make progress toward achieving its sustainability goals, organizations have a unique set of considerations and expectations around ESG reporting. Maintaining trust in leadership is likely important to the success of the industry’s approach to sustainability-related matters and the expectations set by various stakeholders.

Whether you have established reliable, robust reporting capabilities, or you are just beginning the journey, it’s important to recognize any challenges and plan for success. How can you get started? Here are some things to consider:
Identify what is expected of your organization.

• Be aware of the regulations you are obligated to follow.
• Take stock of the resources necessary to meet those expectations and obligations.
• Establish policies and procedures in gathering the required data to be disclosed.
• Connect sustainability efforts with value creation.
• Collaborate across the organization to achieve your company’s sustainability goals.

Understanding ESG reporting regulations that apply to an organization and within what time frame is an important step. Then, work to determine the data required for compliance through a data, process, and controls gap assessment. After a company determines the data that needs to be collected, establishes the appropriate processes and controls, and assesses the possible technology needs, it should seek to develop a strategic implementation plan or roadmap. This roadmap should help ensure the completeness and reliability of data collection and governance and the allocation of necessary resources.

Whether your company is looking to understand the global ESG regulatory reporting landscape, assess the impact of regulation on your sustainability strategy, or define an implementation plan, find out how our breadth of knowledge, resources, and experience might further you on your journey.

Elevate your company’s ESG reporting

If you’d like to learn more about how your O&G organization can enhance its ESG reporting to better prepare for new regulatory requirements, let’s set up a conversation.

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