The Role of ESG in Attracting Capital to The Petroleum Industry

Abstract

Environmental Social Governance (ESG) is having an increasing impact on investment decisions globally, this includes the oil and gas industry. This paper argues that our industry has a positive narrative for ESG conscious investors and financiers. The reasons for the industry’s positive ESG impact includes the important role of gas and LNG in the energy transition and the likely importance of Carbon Capture and Storage in reducing emissions. The industry also has a good track record in the areas of safety performance and social responsibility. The paper points out that this good performance needs to continue as projects enter the decommissioning phase. Finally we suggest that two existing frameworks - the Equator Principles and Indonesia’s PROPER system - can be used to assist the industry enhance its ESG performance.