ESG due diligence services for oil and gas M&A
In your due diligence reviews of potential oil and gas investments, it’s vital to consider direct financial, operational and reputational impacts of ESG issues on your business.
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Although increased energy security and supply fluctuations have complicated the situation, ESG conformance and compliance is still required by funders. The political and supply situations have resulted in certain funding entities moving beyond pure negative screening. Instead, they are engaging with companies through interaction to ascertain their ESG strategies and ensure that (1) their reporting and verification is fit for purpose and (2) it accurately reflects actual actions on the ground.
These requirements will only intensify as we move through the energy transition phase of the industry. The oil and gas finance cycle has become increasingly challenging in recent years, as projects face more scrutiny to ensure that they conform to climate change targets, human rights and ‘social licence to operate’ norms, with proper stewardship from company boards. In this changing arena, there are also new investment and product options to consider as a result, such as those offering incentives for ‘advantaged barrels’.
Oil and gas has its own specific set of ESG considerations to navigate, from tough regulatory/permitting rules for land and sea use through to differences between regional expectations for workplace safety, business practices and environmental standards.
Third-party verifications can be necessary to ensure that a company complies with the various guarantees given to its funding stakeholders. RPS can:
Reporting ESG data accurately and transparently is paramount to proving a company’s ESG policies are effective and are being carried out by its operational personnel. RPS can provide the people and the tools to ensure this data is collected and reported in a manner that is satisfactory to the various funding stakeholders, whilst ensuring confidentiality and data security.
We provide seasoned Oil and Gas professionals experienced in ESG delivery, alongside specialist ESG advisors. We are ready and able to assist you in managing and integrating these non-technical risks against your project planning horizon, minimising costly project delays, negative press and reputational damage.
See also: RPS provides geotechnical expertise to value oil and gas assets through its traditional Competent Person's Reports (CPR), required for raising money on the capital markets, or to support merger and acquisition (M&A) activity.