Energy Tomorrow Blog
Posted June 24, 2021
As an integral of its Climate Action Framework, API has developed a template of core greenhouse gas (GHG) indicators to guide individual natural gas and oil companies in their climate-related reporting. The template will help standardize reporting on a base set of specific indicators. Companies that use the template will do so in 2022 to report 2021 data. In the Q&A below, Dr. Aaron Padilla, API manager of climate and ESG policy, explains what the template is, how it was developed and its role in industry’s efforts to address the risks of climate change.
Posted April 14, 2021
Timely, accurate reporting of greenhouse gas (GHG) emissions – by our industry and all emitting sectors of the economy – is critically important for our country’s efforts to address the risks of climate change. That’s why enhancing the consistency and comparability of our industry’s GHG reporting is one of the main elements of the Climate Framework action plan API unveiled last month.
As the U.S. Securities and Exchange Commission (SEC) increases its focus on climate and ESG (environmental, social, governance) reporting, let’s just say that the natural gas and oil industry is on it. Not only do we see the value of reporting to stakeholders and the importance of accurate, transparent GHG reporting in developing sound, we want to drive it.
Indeed, industry is well-positioned to be a reporting leader; we’re not newcomers to it.
Posted November 6, 2020
The natural gas and oil industry has advanced sector-wide guidance for sustainability reporting for over fifteen years, reinforcing its longstanding commitment to energy and environmental progress.
Earlier this year, three international natural gas and oil industry associations – API, IPIECA and IOGP – released an updated version of the “Sustainability Reporting Guidance for the Oil and Gas Industry,” which provides a common framework for assessing environmental, social and governance (ESG) issues.
In September, IPIECA released the results of its annual reporting survey, identifying widely used performance indicators and emerging trends. The findings, which include answers from 27 of the world’s largest energy companies, highlight the progress of industry leaders and partner organizations.
Posted October 6, 2020
ESG – environmental, social and governance – covers the way that businesses achieve strong performance on a range of sustainability issues. Below, Dr. Aaron Padilla, API manager of climate and ESG policy, explains the natural gas and oil industry’s focus on ESG as integral to the way its members conduct themselves in developing energy, as well as the way stewardship on these issues is helping define the modern industry’s identity in 2020 and beyond.
A little background: Dr. Padilla leads API’s work to determine and represent the natural gas and oil industry’s own initiatives and its public policy positions on ESG and climate issues. In the past 13 years, he has worked in 30 countries across six continents. Prior to joining API, he worked for Chevron as a senior advisor for global issues and public policy. 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.
Q: How does ESG apply to the natural gas and oil industry?
A: ESG is often interchangeable with the term “sustainability” and encompasses several environmental, social and safety issues. There’s climate change and energy, there’s environment – which covers air and water and waste and other elements of environmental performance – and then there’s safety, health and security, which obviously are a key focus of our industry. … And then there’s social performance more broadly, and that encompasses community relations and responsibility, that companies have to respect human rights. All of those issues fit under ESG. The governance part is the way companies have systematic processes and procedures and ways of managing the risks and opportunities associated with these environmental, social and safety issues.