A recent Financial Times article highlighted a report which found that oil and gas companies with more ethical operations are more profitable and valued than their competitors. According to the report, “For oil and gas companies, the valuation premium was almost a fifth for those that combat corruption, have better health and safety processes or attempt to limit environmental damage.”
In fact, to reduce the risks associated with environmental, social, and governance issues, investors are increasingly evaluating a company’s sustainable business practices before they buy shares.
According to Investopedia, “Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is comprised of three pillars: economic, environmental and social – also known informally as profits, planet, and people.”
Energy companies continue developing and enhancing sustainability programs that push their strategic values and priorities. Typically, these programs revolve around the pillars mentioned above.
Ensuring that companies research, innovate, and guarantee a reliable supply of energy in a compliant manner is important. This is why companies remain steadfast in their expectations of employees.
Remaining ethical, transparent, and respectful of one another is critical. Reputations – and employee lives – are at stake. Employee safety is a top priority for organizations. Employees work in incredibly difficult and dangerous environments. Ensuring they go home safely every day is always at the top of executives’ minds.
While expectations regarding employee behavior remain high, it’s essential that employers invest in them. Employees must feel trusted and appreciated, as well as encouraged to innovate and make a difference in society.
Equally important is a concern for our environment. Energy organizations can make the world greener and cleaner by reducing carbon, water, and waste. Protecting the world’s natural resources is a “must” and the programs that companies put in place can make a big impact.
While sustainability efforts have been made for years, they’ve now become more important than ever. The way in which a company addresses economic, environmental, and social issues is often a barometer of success. Companies like Andeavor, Chevron, ConocoPhillips, and Hess (all named to the Dow Jones Sustainability North America Index) will continue focusing on their responsibility and sustainability initiatives.
Using the insights we’ve gleaned from conversations with clients and perspectives from industry executives, we have prepared a guide that describes the current state of the energy industry. Use it as a barometer to measure the impact of your own activities and initiatives. How do you compare to your peers? Are you doing the right things? Should you adjust your strategy to remain or become an industry leader?
You can download the guide here or fill out the form below.
