Energy and climate
We recognise that society is expecting rapid solutions to the challenges we face, especially our industry’s role in reducing greenhouse gas emissions. Access to affordable, reliable energy is essential to fuel economies and improve living conditions globally. At the same time, it comes with the momentous challenge to reduce the risks of climate change.
Our industry is committed to being part of the solution. One of the most relevant contributions of the oil and gas industry is providing affordable, reliable, sustainable and modern energy. We believe it is our responsibility to deliver solutions to future lower carbon energy systems and to reduce greenhouse gas emissions.
We understand that the energy system will change. Launching the fourth edition of the Guidance is evidence of our member companies´ commitment to reporting and transparency about how they manage climate-related and broader sustainability-related opportunities, impacts, and risks.
Contributing to sustainable development
The energy transition fits into a broader picture of sustainable development, which addresses all the most urgent economic, social, and environmental challenges of this generation. These are reflected through the 17 Sustainable Development Goals (SDGs), agreed by all countries, for overcoming poverty while protecting the planet and ensuring that all people enjoy peace and prosperity by 2030.
Our industry continues to collaborate with stakeholders – including governments, non-governmental organizations (NGOs), and investors – on many topics included in the SDGs. Our member companies often work through our organizations to update frameworks such as this Guidance to provide practical support for reporting of our industry’s contribution to the SDGs.
Driving transparency and consistency
This fourth edition marks over fifteen years of collaboration between the member companies across our three associations around the most relevant sustainability issues and indicators to report on. IPIECA, API, and IOGP believe that it is essential to continue providing this robust industry-developed framework to help companies shape the structure and content of their sustainability reporting, including for companies starting to report.
Society´s expectations are evolving. Recent years have been characterised by a growing interest in sustainable investment, including greater focus on the risks and opportunities driven by the potential acceleration to a lower-carbon future. Companies need to manage both the transition to a lower carbon economy and the physical risk of a changing climate, and these twin challenges are increasingly of interest to investors and lenders. Sustainability reports are a key enabler to provide decision-useful information and can help to foster understanding and collaboration with a wide range of stakeholders. Our Guidance supports this by encouraging reporters to keep their stakeholders informed about their governance, strategies, risk and opportunity management, and performance.
This revision of the Guidance represents consensus from our members on the sustainability issues relevant to our industry and aims to encourage consistency and continuous improvement in reporting..
This edition also reflects feedback from stakeholders beyond our industry. We received this feedback through a public consultation process. We engaged an independent external stakeholder panel, comprised of leading environmental, social and financial experts, to advise us on the process and content of the Guidance. The panel included leaders from banks and investors reflecting the increasing focus on sustainable finance and the keen interest in reporting from this community. We also looked for balance across subject matter expertise, experience, and geography. The stakeholder panel engagement for the 2020 Guidance brought different perspectives to the table and contributed to many of the significant updates.
The companies in our industry are well aware of society’s expectations and the many opportunities and challenges that the future holds. Navigating these successfully is in each company´s interest. Demonstrating resilience through robust reporting and communication is key going forward.
Launching the fourth edition of the Guidance is only one milestone of this journey without a finishing line. We anticipate updating certain sections of this Guidance on a frequent basis in order to respond to an evolving business and reporting landscape.
IPIECA, API, and IOGP also aim to strengthen the relevance of this Guidance to serve not only as a practical tool for reporting but also to enable and enhance engagement with stakeholders across society as we collaboratively navigate the energy transition.