Energy Sector
The road to full ESG compliance and disclosure in the Energy sector does not have to be littered with oil rigs and fossil fuel power plants. Fossil fuel is and will continue to be the single most critical source of energy for our planet in the foreseeable future. What ESG in the sector aims to accomplish is the full and acceptable transformation and maintenance of sustainable operations in all aspects of the industry.
It must however be noted that fossil fuel is the single largest contributor to greenhouse gas emissions, it is the single most transformative force on the planet and hence the sector with the largest opportunity for ESG.
Because of the level of investment, safety, and impact on communities in which they operate ESG is critical in the mining, transport, utalization and disposal of uranium and other radioactive materials for fuel.
ESG is not only limited to non-renewable energy sector only but takes into consideration the renewable energy sector and their potential transformative impacts on the environment and society. While they may be carbon neutral their Social and Governance responsibility still needs to be ESG compliant.
Environmental
- Embracing research and development programs to firstly improve the efficiency of fossil fuel extraction, refining, transportation, distribution and consumption.
- Invest in research and development programs to transition out of Fossil fuels and into renewable sources of energy.
- Invest in the production of renewable sources of energy
- Investing in green bonds, purchasing carbon credits or trade carbon offsets with collaborating companies.
Social
- Because of the size, complexity, and influence of this sector the likelihood of non-compliance by some members of the supply chain is high. It is therefore critical that each point of the supply chain be examined for social compliance.
- Examine for fair and equitable distribution of business opportunities.
- Fair and equitable employment, training, development and retention of staff.
Governance
- Invest in countries with democratic governments and good human rights records.
- Are operations equipped with ESG policy pathways?
- Is there a policy of disclosure?
- Are operations in compliance with local, governmental, and international laws and regulations pertaining to extraction, production and and trading?
