New report underlines continued importance of ESG disclosure
The oil and gas sector can mitigate barriers to investment by acting on recommendations in a new report on environmental, social and governance (ESG) disclosure.
The North Sea Transition Authority's (NSTA) first ESG Disclosure report says that a company's ability to keep getting money depends on how good their ESG credentials are. It also reinforces the importance of robust and authoritative disclosure.
The report, which looked at a sample of 31 UK licensees, found that the sector has improved its ESG reporting in recent years, with the majority of companies now providing information on most aspects of the recommendations set out by the NSTA’s ESG Taskforce in March 2021.
New regulatory requirements and an increase in the use of external experts to verify data have also improved disclosures across all elements of ESG.
Nevertheless, the NSTA continues to promote the need for further standardising disclosures that clearly show progress toward meeting net-zero commitments.
The “best in class” in the industry each pull their ESG data together and publish it in an easy-to-find, central location. This keeps data from being spread out across multiple reports and makes it easier to compare results from year to year.
Joanne Edgeler, Head of Licensee Governance and ESG, said:
“In ESG, the NSTA is focused on creating value for the industry and the investment community by highlighting the importance of robust, consistent, and transparent disclosure.
“I’m encouraged by the good progress made by many businesses on ESG reporting. However, the sector must keep improving the quality of its reports to address external pressures, in particular its social licence to operate. The NSTA is committed to working with the sector and the investment community to drive continuous improvements in reporting related ESG matters."