ESG

Investors and consumers are pressuring companies to incorporate environment, social, and governance (ESG) practices into their culture and operations. Now, ESG has gone from a nice-to-have feature to a must-have prerequisite.

What’s driving ESG investment?

Environment/social/governance (ESG) represents the integration of human values into the financial value of investments. The energy industry that emerges from the COVID-19 pandemic will be different from the one that entered it.

Integrating sustainability in the core business is not a quick fix but a complex journey that touches all parts of the business and requires new ways of alignment and cooperation. Safety has gone through similar challenges, and we can learn a lot from that journey.

French oil giant Total said it will not renew its membership of the American Fuel and Petrochemical Manufacturers association because the organization’s stance on climate issues does not align with its own.

Environmental, social, and governance (ESG) refers to three central factors in measuring the sustainability and ethical impact of investments. At its core, ESG investment involves gauging a company’s long-term, rather than short-term, sustainability.

Impact and environmental/social/governance investing are reshaping adviser and investor relations. They are fast becoming the business model of the future, with investors exercising a greater degree of diligence on how their investments are bringing wider benefits.

The SPE Strategic Plan 2018–2023 calls for claiming pride in our industry’s higher purpose, that of supplying energy to meet the needs of humanity.

The company-centric stakeholder model belongs to the time when an oil company had to communicate its good intentions and demonstrate it was also executing them. But the world continues to change. Society nowadays expects business to take on more responsibility than that.