On March 30th, 2020, the International Petroleum Industry Environmental Conservation Association (IPIECA), the American Petroleum Institute (API), and the International Association of Oil & Gas Producers (IOGP) released the 4th edition of the Sustainability Reporting Guidance for the oil and gas industry. This guidance has been developed to provide a framework for oil and gas companies prioritizing reporting on environmental, social, and sustainability issues. Due to growing interest by investors accounting for climate change within their long-term strategies, improvements were made to reporting of performance indicators related to climate change and energy.
The six main areas within the guidance that were updated are as follows:
- Reporting process
- Governance and business ethics
- Climate change and energy
- Safety, health and security
In addition, due to the growing industry support of the Task Force on Climate-Related Financial Disclosures (TCFD), the revisions to the Climate change and energy module of this guidance were influenced by TCFD recommendations.
Sustainability reporting for oil and gas companies will not only help identify the risks associated with climate change but also allow for companies to be more effective in addressing them in the future. For companies that have not yet ventured into the world of sustainability reporting, the guidance provides a more simplified set of instructions on report narratives. Please email John Fillo. with any questions regarding the updated guidance or advice on the first steps for your sustainability reporting journey.