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Monday, July 7, 2014

Accounting 101 for the oil and gas industry

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:
As I’ve argued, there’s a strong and growing business case for sustainable shale gas development that the industry ignores at its peril. SASB’s new standards reflect the financial community’s increasing acceptance of that fact - and its demand for performance by the oil and gas industry. 

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