Developing an ESG Strategy and Roadmap: An Integrated Perspective in an O&G Company

Abstract

Efforts have been made globally to reduce companies' impacts on the planet, people, and communities, which leads industries to rethink how to produce and manage their workforce. But some challenges and barriers keep businesses from embracing sustainable actions to drive change. One of them is to create healthy ESG planning. This research aimed to create a sustainability roadmap based on the Environmental, Social, and Governance (ESG) strategies in a Norwegian O&G company. The programs were segregated into three pillars based on the triple bottom line and the Sustainable Development Goals (SDGs). From this strategy's construction, ten key workstreams (WS) were developed and sponsored by a Steering Committee. The Environmental dimension [E] is related to the Energy Management & CO2 Emissions program, in which the company is committed to the challenges of climate change by reducing CO2 emissions and environmental impacts of its operations. Also, in the Waste Management program, the company is committed to reducing waste generation from its operations and promoting a circular economy approach. In the Low Carbon Solutions program, the company contributes to the decarbonization of global O&G production. For the Social dimension [S], in the Health & Safety program, the strategy corresponds to creating a world-class performance organization, strengthening business competitiveness, and achieving the zero-incident vision. In the Talent Attraction & Retention program, it is believed that people are the key to creating a successful business. In the Diversity & Equality program, the company is strongly committed to the principles of non-discriminatory practices and equal opportunities, and in the Social Responsibility program, it positively impacts the development of local communities through education. Finally, for the Governance dimension [G] are presented the Responsible Business Conduct program promoting zero tolerance for corruption, also the Compliance Obligation for HSE program to respect and comply with HSE laws and regulations. And contemplating the three dimensions in the Responsible Supply Chain program, suppliers were selected with high environmental, anti-corruption, and human rights standards. Based on the study results, recommendations are made to ensure that an ESG strategy and roadmap are effectively accommodated to ensure optimal cohesion amongst the O&G industry and the integration of their strengths that will positively impact the entire value chain and optimize the realization of organizational goals.