Can Environmental, Social and Governance be successfully incorporated into reporting standards? Evaluating ESG (Environmental concerns) in the Oil and Gas indus

This paper examines the current status of Environmental and Social Governance incorporated into company reporting and activity. This investigation first discusses the specific details and components of ESG. It then outlines recent movements towards it, while discussing causes and rationale for companies to consider ESG concerns. Despite Friedman’s sentiment that a company must focus on maximizing shareholder earnings, ESG has demonstrated a noticeable rise in implementation, with over $30 trillion in assets under management globally incorporating ESG. This paper then considers existing ESG frameworks in the Oil and Gas industry, ultimately proposing five criteria to evaluate the ESG consideration/reporting in this industry by different companies. Finally, this paper considers industry leaders from around the world and evaluates their ESG-related activity against the proposed criteria. It concludes that although ESG reporting still lacks common structure and awareness, ESG consideration has become feasible and evident in the Oil and Gas Industry.