Oil and gas operators are stepping up to today's multi-faceted challenges, integrating ESG into their businesses to comply with changing regulations, secure capital during fundraising, identify and manage risks during operations and capitalise on opportunities.
The newly formed International Sustainability Standards Board (ISSB) is a prime example of how ESG will influence finance and reporting
These standards aim to make it easier for investors and other capital market participants to compare sustainability-related disclosure against a global baseline. The ISSB provides standard terminology, measurement, and metrics for sustainability disclosure standards that are understandable, enforceable and accepted worldwide.
As new standards are being released and older ones are updated, exploration, production and operating companies will increasingly need to provide verified data representing actual ground operations. Reports will be audited against measured findings from the field or site by third parties to ensure accuracy and validity.
This trend in reporting standards points the way to a future where ESG claims, data and reports will be scrutinised with the same rigour as a company's financial claims, data and statements.