The Sustainability Accounting Standards Board (SASB) has released their provisional Sustainability Accounting Standards for Non-Renewable Resources, which includes standards for oil and gas production. The standards provide guidance to companies on how to measure and disclose to investors environmental, social, and governance risks that impact a company’s financial performance.
SASB’s oil and gas industry brief says that “performance on…sustainability issues will drive competitiveness within the Exploration & Production industry.” Among those issues are:
- Reducing GHG emissions, particularly of methane and carbon dioxide;
- Reducing other air pollution;
- Securing water supplies without exacerbating local water system stresses and preventing water contamination;
- Minimizing the biodiversity impacts of operations;
- Ensuring strong relations with local communities at all project stages; and
- Incorporating environmental considerations into the valuation of oil and gas reserves and long-term business strategy