A working group born from the Council’s ESG Committee held a workshop focused on customer and partner expectations on ESG requirements. Led by Gary Childress, Oil State Energy Services; Paul Kaster, ProFrac; and Andrew Glasoe, DistributionNOW, participants heard from ISNetworld and EcoVadis on ESG reporting trends and received practical ideas from Member Company Schlumberger.
Setting the stage for the discussion, Childress emphasized that as companies begin their journey into ESG reporting they need to consider the progress and successes they’ve made thus far and then develop a systematic plan to address gaps. He said companies need to keep in mind the “dual role” of the energy services sector as both customer and supplier, and how transparency across these roles is critical.
Ryan Rodriguez, HSE Group Supervisor, ISNetworld, said ESG and sustainability are top of mind for company leaders due to increased investor requests for ESG data, as well as governments and international organizations considering an array of current and upcoming legislation on disclosures. When it comes to collecting and reporting data, Rodriguez said it’s important to understand what is material to one’s company, calibrate a consistent methodology for collecting data, and then educate down the supply chain.
Chase Buzzell, ESG Consultant, EcoVadis, touched on top trends in ESG assessments and reporting, which include greenhouse gas emissions, diversity and inclusion, and COVID-19. Buzzell said only about 15% of suppliers globally are reporting emissions due to limitations on tools and expectations from customers. This, however, will likely change as entities set goals, share knowledge down supply chains and communicate expectations.
Leticia Neves, Sustainability Analyst, Schlumberger, discussed ESG frameworks, materiality and best practices for ESG disclosures in 2021. For those starting in their reporting journey, Neves said many of the existing frameworks address different needs from a variety of stakeholders and suggested companies select a few frameworks according to its target audience. Once companies begin to report, regardless of the methodology, it is critical to disclose how and where that data was found and indicate what measures are being taken to improve data collection.
The workshop ended with an opportunity for attendees to network and discuss lessons learned, as well as share their own experiences with reporting. Providing members a platform to share resources and ideas is one of the Council’s strategic ESG pillars and is intended to help companies avoid reinventing the wheel.
If you are interested in learning more about the session or joining the ESG Committee, please contact Andy Knapp, Senior Advisor, ESG, Energy Transition and Technology.
Maria Suarez, Director Government Affairs, writes about industry-specific policies for the Energy Workforce & Technology Council. Click here to subscribe to the Council’s newsletter, which highlights sector-specific issues, best practices, Council activities and more.