Oil and gas operations can stimulate the local economy and promote good practice in labour, human rights, health and safety, and environmental and social performance, directly and through the supply chain. Oil and gas activities can also generate high fiscal revenues, attract significant foreign direct investment and accrue foreign exchange reserves, which contribute to the overall economic growth of host countries and the ability of governments to invest in activities that directly contribute to realising the SDGs.
However, oil and gas operations can also result in risks to workers and local communities including to health, safety, livelihoods or welfare, where not appropriately avoided, managed or mitigated. It is important that the sector continues to work together to help promote sustainable livelihoods and adequate living standards, and to respect people’s rights to health, labour and property. Both Ipieca and its members will continue to play a crucial role in promoting good governance and transparency, respect for human rights and diversity in the workforce. The sector also has an important role to play in social and economic development through its interactions with governments and other stakeholders and their internal actions and policies. Whilst much has been achieved, there are actions that can be initiated, strengthened, or deepened across the sector. This includes the positive contributions that companies make to the SDGs directly via their interactions with the communities in which they operate, via the workforces they employ and through their supply chains.
Ipieca will continue to lead industry collaboration and engagement with UN agencies and other stakeholders on the topic of a just transition. It will also continue to promote high standards and good practice informed by the UN Guiding Principles on Business and Human Rights framework (UNGPs) and by convening the industry to advance social performance along the supply chain. The oil and gas industry also has a wealth of experience in protecting the health, safety and well-being of its workforce, and collaborating with local communities. These core attributes make the industry well positioned to harness its collective expertise to promote worker welfare and workforce diversity within its operations and supply chain and to extend this knowledge and experience through the energy transition.