Over the past year, environmental, social and governance (ESG) has been a transformative force in the oil and gas industry, driving company decision-making and impacting nearly every aspect of oil and gas production. In response to investor and stakeholder demands for greater disclosure, some oil and gas producers are rapidly adopting ESG policies and disclosing more
information than ever regarding ESG goals and achievements.
Other producers with previously established ESG policies are broadening existing disclosures, reflecting how ESG is embedded within company culture and guideslong-term strategy.
Now, more than ever, company ESG achievements and commitments to sustainability are easily accessible on company websites and in U.S. Securities and Exchange Commission (SEC) filings.
Companies are forming ESG committees and detailing their ESG strategies in proxy statements and letters to shareholders. Although companies generally are gravitating toward Task Force on Climate-related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB) reporting metrics, many challenges remain due to the multitude of existing disclosure frameworks and standards, making an apples-to apples comparison difficult. Further, the SEC and other federal regulators are prioritizing climate change.
The SEC has indicated that it expects to issue proposed rules on climate change disclosures by the end of this year, but as of today, it is not clear what disclosure framework will be adopted by the SEC. This second edition of the Haynes Boone and EnerCom Oil & Gas ESG Tracker summarizes the findings from our mid-year review of 30U.S.-listed middle market onshore oil and gas producers’ SEC filings and other ESG disclosures to help the market better understand the ESG policies and identify trends and takeaways across the industry.
We will continue to monitor company disclosures and publish updated reports tracking changes in disclosures and identifying industry trends.
Haynes and Boone, EnerCom Oil & Gas ESG Tracker–
EnerCom, Inc. is an internationally recognized management consulting firm advising companies on ESG, investor relations, corporate strategy/board advisory, marketing, analysis and valuation, media, branding, and visual communications design. Learn more at www.enercom.com.
Haynes and Boone is an international corporate law firm. The firm’s ESG Practice Group helps clients develop and implement a comprehensive approach to managing legal and business risks and addressing ESG-related issues. The firm’s Energy and Restructuring Practice Group lawyers also closely follow industry developments and prepare closely-followed reports that track trends for borrowers, lenders, private equity firms, investment funds and other industry participants. Learn more at www.haynesboone.com.
