The oil and gas sector continues to provide essential energy supply for society's economic development. Managing sustainability impacts associated with producing these fuels and other energy products is an important responsibility. This includes addressing the challenges associated with climate change, and operating in remote and sensitive areas of the world. An important practice is sustainability reporting. Clear and consistent reporting helps companies create a solid platform for productive engagement and performance improvement.
For oil and gas companies, sustainability reporting provides a platform for describing how strategic issues—such as climate change and energy—are being addressed through long-term plans and current initiatives. As well as building external trust and confidence in a company, the process of reporting involving stakeholder engagement, data collection, analysis, communication and results can provide extensive opportunities for performance improvements.
The gathering and analyses of performance data and information can highlight areas of weakness that require management attention on an ongoing basis. The process of measuring and tracking procedures to collect data enable in-depth analysis of company performance and can be used as a decision making tool. Organizational strategy and policy can be adjusted on the basis of results to improve performance. Ultimately sustainability reporting can lead to a status quo of continual improvement and better data management, which can improve business performance, operational efficiency and lead to cost savings.
This paper will explore the various ways in which companies can improve HSE performance from the benefits provided by sustainability reporting which can include:
enhanced business value as investor confidence grows in response to evidence that the company is managing important risks and positioning itself to take advantage of emerging opportunities;
improved operations as employees develop a deeper understanding of a company's sustainability values, and performance indicators provide insight to support continuous improvement;
strengthened relationships as local community leaders, civil society representatives, government officials and regulators, and other key stakeholders learn how the company responsibly manages sustainability issues; and
enhanced trust and credibility as customers, suppliers and the wider society understand the company's brand, operations and products.