Every investor dealing with ESG challenges while continuing to invest in oil and gas has a responsibility to take part in the solution to problems such as flaring. And some steps have now been set to motion.
Moving forward, all financial firms that still invest in the energy sector should leave no doubt about where they stand. Asset managers like BlackRock, banks like Citi and private equity firms such as KKR are among those that have a desire to lead on climate change and ESG. Such institutions have the opportunity and the responsibility to change environmental issues like flaring regulation.
Texas regulators have so far ignored flaring but times are changing for companies in the State who have a business interest in addressing an industrywide problem. As Wall Street knows that a solid policy is essential to build investor and public confidence at the energy sector.
This is why it comes as a breath of fresh air to see that BP and Shell together endorsed the ambition of ending routine flaring while calling on the RRC to establish regulations to make zero routine flaring a reality in a sensible way.
ExxonMobil reported reducing its own routine flaring at a pace that is easily consistent with eliminating routine flaring by 2025, while confirming that ending routine flaring is “within everyone’s reach.”
Chevron has reduced its own flaring to just 1%, well below the average. Government regulations are the best way to change normal practice by all operators across the Permian, and Chevron has every reason to support strong regulations.
When working together a cleaner energy economy that works for business and for the environment can be built. Extinguishing routine flaring could be a big win for the environment, the industry and the state of Texas.
Professionals who will complete the Certified Sustainability (ESG) Practitioner Program will be enabled with all the practical tools to implement regulations through effective sustainability strategies, thus offering a better chance of overall success.
CSE’s Certified Sustainability (ESG) Practitioner Program, Advanced Edition 2020, aims to help sustainability professionals rise to any occasion. This challenging three-day digital training offered by Center for Sustainability and Excellence (CSE) aims to provide to sustainability professionals all the latest tools and resources required to implement or upscale existing sustainability initiatives.