Beyond the over 4.5 million people that are directly employed in oil and gas, sector activities can help contribute to the socioeconomic development of local communities.

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.

  • People | IMPACT OPPORTUNITY 6: Governance and transparency
    Chevron-down

    Support governments in achieving the SDGs by aligning priorities and accelerating action.

    Actions for Ipieca

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    55.Share learnings and exchange experiences and approaches for the implementation of the Voluntary Principles on Security and Human Rights.16.3MS
    56.Engage with stakeholders such as the Organisation for Economic Co-operation and Development (OECD), the Extractive Industries Transparency Initiative (EITI) and others to coordinate efforts to scale action around good governance and transparency.16.3
    16.5
    16.6    		HS
    57.Facilitate and encourage the sector’s understanding of national climate and sustainability action plans, in order to enhance investment-related decision-making capabilities, accelerate action and catalyse partnerships.7.1
    7.2
    7.A
    8.4
    13.2
    13.A    		HS

    Options for oil and gas companies

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    58.Be transparent about revenues according to relevant legislation and the international methodology such as EITI methodology.16.5
    16.6    		HS
    59.With reference to the goals of the UNGPs, and associated national action plans19, engage with governments on their voluntary national reviews20 (VNRs) and how these are translated into national value propositions and activities.16.3
    16.5
    16.6    		MM
    60.Strengthen cooperation between companies and governments on health, safety and environment training programmes, social impact assessments, job-creation and social performance standards.8.2
    8.3
    8.5    		MM
    61.Be transparent about policies, codes of conduct and internal controls, related to prevention of bribery and corruption.16.5
    16.6    		HS
  • People | IMPACT OPPORTUNITY 7: Communities
    Chevron-down

    Foster individual and community prosperity around own activities, including advancing livelihoods, good health and well-being.

    Actions for Ipieca

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    62.Provide global leadership on the ways in which the industry should interact with people and communities – including details on the role of the sector in respecting human rights and driving socio-economic development.3.9
    8.8
    16.2
    16.3
    16.6
    16.10    		MM
    63.Continue to develop operational guidance and tools to support company understanding and implementation of the goals of the UNGPs framework.16.2
    16.3
    16.6
    16.7
    16.10    		HS
    64.Assist companies to understand the risks and opportunities of the energy transition to local communities in the context of the engagement on the just transition.8.2
    8.3
    8.7
    8.8
    9.2
    13.3    		HM
    65.Encourage collaboration and the sharing of information as appropriate between companies operating in the same geographies (e.g. sharing of insights/information from environmental, social and health impact assessment and monitoring and reporting of data).3.9
    8.3
    8.5
    16.7    		HM
    66.Share good practices around effective and inclusive community engagement and consultation including the roles of individuals responsible for stakeholder relations (including community liaison officers).16.7LS
    67.Help companies make successful and sustainable social investments through good practice sharing and by supporting companies to better understand how to measure their social impact and build long-term shared value.8.3
    16.7    		LS

    Options for oil and gas companies


    Impact pathways    		Priority SDG targets*Level of potential impact on the SDGsTimeframe
    68.Undertake multi-stakeholder, participatory engagements with local communities and host governments to understand socio-economic development priorities and utilise this understanding to drive shared value. This can be driven through core business practices, and maximising local content and social investment.3.8
    3.9
    3.c
    8.1
    8.2
    8.3
    8.5    		HM
    69.Improve the use of environmental, social, community health and economic impact assessments to identify opportunities to advance contributions to the SDGs, including a focus on on vulnerable people and with particular consideration for operations in countries with a lower Human Development Index.3.9
    8.3
    8.5
    8.6    		HM
    70.Conduct targeted human rights due diligence to proactively manage potential and actual adverse human rights impacts as well as identifying opportunities to advance human rights.16.2
    16.3
    16.6
    16.10    		HM
    71.Build mutual respect, trust and confidence with local communities through early, ongoing, transparent, and accessible engagement programmes and community level grievance mechanisms encompassing operations and activities of suppliers.16.6
    16.7
    16.10    		H(local)L(global)M
    72.Increase access to energy with accompanying benefits such as improved air quality for local communities, by expanding and improving off-grid systems and low carbon technical solutions, to support the sector’s contribution to the energy transition in the context of sustainable development.7.1
    7.B    		HL
    73.Support innovative financing and payment mechanisms to assist communities in gaining access to energy and other essential services.7.1
    7.A    		HL
    74.Promote and build effective public-private partnerships in order to help advance positive business impacts to local communities.8.3HL
    75.Actively engage in the energy transition dialogues in countries of operation to identify opportunities to share knowledge and experience.7.1
    9.4
    9.A
    9.B    		MS
    76.As the sector transitions into new forms of energy and activities, harness industry’s collective expertise in operational performance standards to promote respect for human rights.16.2
    16.3
    16.6
    16.10    		HM
    77.Consider when consulting with local communities and/or Indigenous Peoples about land issues such as acquisition, resettlement or access, how to strengthen land rights, reduce vulnerability and improve livelihoods and standards of living.16.7
    16.10    		HM
    78.Recognize the position of Indigenous Peoples and aim for free, prior and informed consent (FPIC).16.7
    16.10    		HM
    79.Support national health efforts and community response through collaborative efforts on disease prevention and medical emergency response.3.8
    3.c
    3.d    		HM
  • People | IMPACT OPPORTUNITY 8: Thriving workforces
    Chevron-down

    Provide productive employment, championing worker health, safety and well-being across the supply chain.

    Actions for Ipieca

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    80.Support companies to promote high standards and good practice informed by the UNGPs framework, enhance human rights due diligence through operations and business relationships, and explore collaborative opportunities to enhance worker welfare throughout the industry supply chain.8.2
    8.3
    8.7
    8.8    		HM
    81.Engage with other industries to understand innovative approaches to human rights and worker welfare, particularly related to the supply chain, and offer spaces for collaboration.8.2
    8.3
    8.7
    8.8    		MS
    82.Promote and share good practices on local content, including supporting companies to identify systematic ways to measure and report on local content, exploring collaboration initiatives to streamline and enhance programmes in-country, and by tracking laws and regulations.8.1
    8.2
    8.3    		MM
    83.Lead industry collaboration and engagement with UN agencies and other stakeholders on the just transition.16.7MM
    84.Bring together and share good practice on company approaches to skills building, re-skilling and enterprise development that supports a just transition for workers in global supply chains, which fosters inclusion and equality. In that context explore the application of emerging principles such as WBCSD’s Business principles for people-centred technology transformation.8.2
    8.3
    8.5
    8.6
    8.7
    8.8
    9.2
    13.3    		HL
    85.Facilitate dialogue across the sector to address diversity and inclusion topics across the industry’s supply chains and communities.8.5HS

    Options for oil and gas companies

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    86.Implement local content plans that support supplier development and enhance the scale and quality of local procurement. Where possible, emphasise preference for local suppliers near operations.8.3
    8.5
    8.7
    8.8    		H(local)L(global)M
    87.Contribute to a skills base that is transferable across industry sectors in the context of the energy transition including training and continuous learning opportunities for suppliers and local communities.8.2
    8.5    		HL
    88.Implement transition plans well in advance of transition between different project phases, including closure, to reduce impacts to local communities, including engagement with labor organizations and actively assisting the workforce to prepare for and access future employment opportunities.8.2
    8.3
    13.3    		ML
    89.Measure and report on local content in order to improve visibility, promote dialogue and maintain focus.8.2
    8.3
    13.3    		MM
    90.Strive to positively influence the human rights policies and practices of oil and gas suppliers and work with suppliers on the results and findings to improve, and, where appropriate, disclose information to scale impact.8.3
    8.5
    8.7
    8.8    		HM
    91.Respect human rights informed by the UNGPs framework or seek ways to promote and strengthen existing corporate human rights policies.8.5
    8.7
    8.8    		HS
    92.Share good practice examples to support companies’ assessment of health related risks and opportunities of the energy transition and related technological enhancement.3.9MS
    93.Promote health services and programmes to workers to address major non-work-related health risks.3.8
    3.9    		MS

Key
Level of potential impact on the SDGs: L - Low | M - Medium | H - High
Timeframe: S - 1–3 yrs | M - 4–6 yrs | L - 7–9 yrs

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