API Releases New Sustainability Reporting Guidance with International Community to Promote Environmental Progress
Posted March 30, 2020
Industry-led efforts to reduce greenhouse gas emissions are a key contribution to global climate solutions, and when companies transparently report their performance, it reflects their commitment to ongoing advances in sustainability. The natural gas and oil industry pioneered industry-wide guidance for sustainability reporting 15 years ago, and for decades now, has delivered detailed performance information for stakeholders, including regulators, investors and the general public.
Today, three leading global natural gas and oil industry associations – API, IPIECA and IOGP – released the fourth edition of the “Sustainability Reporting Guidance for the Oil and Gas industry,” which provides a consensus framework for company reporting on sustainability topics in governance and business ethics; climate change; environment; safety, health and security; and social impacts.
Our industry is committed to meeting the world’s growing demand for affordable, reliable and ever-cleaner energy – and mitigating the risks of climate change is fundamental to this challenge. To that end, API is engaged in public- and private-sector partnerships to implement state-of-the-art standards, invest in advanced technologies and strengthen reporting on sustainability performance.
API President and CEO Mike Sommers explained:
“This guidance helps provide detailed reporting on environmental, health, safety, social and economic performance – critical information that helps to foster collaboration with a wide range of stakeholders focused on creating a significant turning point in meeting the challenge of climate change head on.”
This renewed guidance from the three industry associations marks 15 years of cooperation among their member companies, providing natural gas and oil companies worldwide with recommendations on reporting of sustainability performance. This guidance is also essential to recording and reducing U.S. carbon dioxide emissions, which are at their lowest levels in a generation.
API Senior Vice President of Global Industry Services (GIS) Debra Phillips further explained:
“The guidance draws on unparalleled industry expertise and knowledge with contributions from hundreds of professionals from across the world, representing the work of more than 80 representatives from 28 natural gas and oil companies from six continents and an independent external stakeholder panel comprised of experts representing NGOs, investors and investor groups, banks and expert consultants.”
API, IPIECA and IOGP believe that reporting on sustainability provides an opportunity to demonstrate the critical role of natural gas and oil in advancing the simultaneous pursuit of economic, social and environmental prosperity. Additionally, strong sustainability reporting by natural gas and oil companies demonstrates a steadfast commitment to continuous improvement, responsible operations and stronger stakeholder relationships, including with financial services.
The guidance is part of API’s longstanding actions to advance sustainability. Over its 100-year history, API has developed more than 700 standards and related certification, assessment and training programs to enhance operational and environmental safety, efficiency and sustainability. API is committed to meeting the growing set of expectations among investors, banks and other stakeholders for reporting and advancing performance on sustainability, or “environmental, social and governance” (ESG) issues.
The natural gas and oil industry is an essential partner in a sustainable energy future, and business transparency supports broader efforts toward emissions reductions and environmental progress. With updated guidelines and ongoing collaboration, reporting initiatives will continue to reflect the safety and reliability of industrywide performance for consumers, policymakers and stakeholders around the globe.
About The Author
Dr. Aaron Padilla is Manager of Climate and ESG Policy at the American Petroleum Institute (API). He leads API’s work to determine and represent the natural gas and oil industry’s public policy positions on climate and on reporting and disclosure related to sustainability and environmental/social/governance (ESG) issues. Aaron is a member of the US Government’s Industry Trade Advisory Committee (ITAC) on Energy and Energy Services. In the last thirteen years, he has worked in 30 countries across six continents. Prior to joining API, Aaron worked for Chevron as Senior Advisor for Global Issues & Public Policy, with responsibilities for both supporting new capital investments on-the-ground and representing the company globally for international policy initiatives. Dr. Padilla is a Marshall Scholar and Truman Scholar, and he completed his M.Phil. and Ph.D. at the University of Cambridge and B.A. at Stanford University.