What is ESG?

The business landscape of today is quickly shifting due to expanding expectations relating to the role of corporations. Issues like climate change, nature loss, employee inequality, working conditions, and corporate ethics, have forced the World Economic Forum’s Business Council to distinguish common ground among corporate leaders. As a result, the development and implementation of ESG is emerging as much more than a trend.

Environmental, Social, Governance (ESG), is the evolution of themes and metrics that are expected to feed into enterprise value creation. The goal: to facilitate the adoption of a common set of universal sustainability principles and endorse them in capital markets. Jurisdictions and Regulators are working to finalize new guidelines. Such rules will require companies to disclose information concerning their “ESG” footprint within their annual reports and mainstream regulatory filings. ESG proves more than an emerging trend as its role in the retention of investment dollars has increased, substantially.

How does this affect Oil & Gas Companies?

Without an implemented ESG strategy, Oil & Gas companies that rely on investment dollars face obstacles in obtaining additional funding. In the area of energy, the push to zero carbon emissions is receiving the most interest.  There are many existing methodologies that are being considered by energy companies to cut carbon emissions (see model).  The greatest area for development is in fugitive emissions, where carbon capture technologies are being applied on a growing scale. As a result, Oil & Gas companies are predicted to migrate towards adopting ESG strategies at an increasing pace for the foreseeable future.

How Can KEA Help?

Allow KE Andrews to be your ESG Property Tax Partner.  Our seasoned professionals stay up to date on new ESG developments and standards that continue to evolve within the energy sector. New methods, equipment, and facilities will be deployed as oil and gas companies engage in strategies to curb carbon emissions. As these new assets and technologies continue to emerge, KE Andrews’ decades of energy-focused appraisal and valuation will prove beneficial to our clients. Partner with us, today!