Environmental social and governance (ESG)

The December 2022 International Energy Agency (IEA) Oil Market Report, a globally recognized policy maker on the oil market, highlights a current upswing in oil consumption, with sustained increased demand projected in the immediate years ahead. This surge in demand has brought environmental, social, and governance (ESG) issues within the industry to the forefront, gaining rightful prominence in recent years.

Industry executives are increasingly acknowledging the necessity of implementing sustainability-related changes to their operations. This shift is primarily propelled by heightened government interventions, evolving public expectations, and mounting pressures from the investment community.

This trend is anticipated to persist as governments and societies advocate for continued action. Gas oil companies that proactively embrace ESG considerations will secure a more competitive position, ensure regulatory compliance, and effectively mitigate controversies surrounding their commitment to ESG issues.

Across the globe, numerous governments and companies have committed to reducing their CO2 emissions footprint, ultimately striving for net-zero emissions. The industry's transition to higher sustainability levels hinges on advances in environmentally friendly technologies, particularly in decarbonization programs, ensuring environmental sustainability.

As the oil industry progresses toward greater sustainability, collaboration with financial partners becomes essential for the development of decarbonization projects to meet environmental regulations and enhance contributions to the societies in which they operate. In return, these companies can expect increased trust, a positive brand reputation, accelerated growth, higher customer loyalty, improved financial performance, and a commendable scorecard of their performance in platforms like EcoVadis.