Plans must include operational, purchased energy, and value-chain impacts across exploration, production, logistics, and retail.
Sustainability in Oil & Gas
Balance production demands with transition expectations.
Sustainability in oil and gas means cutting emissions, protecting water and land, and investing in people while keeping energy supply reliable. This guide explains what ESG looks like in upstream and downstream operations before you build a transition plan.
Oil & gas sustainability guide overview:
What does sustainability in oil & gas cover?
Operators integrate emissions reductions, methane and flare control, water stewardship, workforce safety, and transparent reporting into the way they explore, produce, refine, and deliver energy.
Regulators, Traditional Owners, and local communities expect visible commitments around land, water, and jobs.
Boards revisit assumptions each quarter because commodity cycles and climate policies move quickly.
Oil & gas transition focus areas
Methane & carbon management. Deploy leak detection, electrify equipment, optimise flare performance, and fund offsets tied to real reductions.
Water & land stewardship. Protect aquifers and coastal systems, manage tailings, and engage Traditional Owners before new projects advance.
Workforce & community trust. Invest in safety, reskilling, and community benefit agreements so transition plans feel fair.
Governance & disclosure. Integrate sustainability metrics into strategy, capital allocation, and transparent reporting (TCFD, ISSB, OGMP).
WHY IT MATTERS
Why sustainability in oil & gas accelerates value
Licence to operate. Communities and regulators approve projects faster when they see credible transition actions.
Capital access. Lenders and investors tie cost of capital to ESG commitments, methane intensity, and disclosure quality.
Operational resilience. Efficiency programs lower costs, avoid unplanned downtime, and prepare teams for new energy models.
Talent retention. Engineers and frontline teams want to see how their skills fit in a lower-carbon portfolio.
ROADMAP
How to plan sustainability work in oil & gas
- Map assets and scenarios. List every basin, facility, and product plus the policy or market shifts that could affect them.
- Align with regulators and standards. Reference OGMP 2.0, TCFD, ISSB, and local safeguards so teams know which data to capture.
- Prioritise near-term moves. Start with methane, electrification, and procurement levers that deliver impact without delaying delivery.
- Create cross-functional governance. Bring operations, finance, community affairs, and sustainability together to log decisions in one system.
MEASUREMENT
Keeping oil & gas sustainability measurable
- Set accurate baselines. Capture Scope 1, 2, and key Scope 3 metrics plus water, biodiversity, and community indicators.
- Instrument assets. Use continuous monitoring, satellite data, and drones to validate methane, flare, and leak assumptions.
- Track stakeholder feedback. Log regulatory audits, Traditional Owner dialogues, and community commitments alongside KPIs.
- Connect RunSustainably dashboards. Store actions, approvals, and reporting packs so everyone sees progress in the same workspace.
Next steps for oil & gas teams
Launch a methane reduction sprint. Pick one asset, document leaks, assign fixes, and capture savings before scaling.
Publish your transition narrative. Summarise near-term actions, long-term bets, and how communities benefit, then refresh quarterly.
Bundle sustainability with safety meetings. Add environmental and community updates to existing toolbox talks so change feels natural.
GLOSSARY SNAPSHOT
Oil & gas glossary snapshot
Flaring intensity. A measure of how much gas is flared relative to production, signalling efficiency and emissions performance.
Just transition. A commitment to reskill and protect workers and communities as energy systems shift.
Scope 1/2/3 emissions. Direct, purchased energy, and value-chain emissions that shape oil & gas ESG reporting.
FAQS
Sustainability in Oil & Gas FAQs
What is ESG in oil & gas?
It is the set of environmental, social, and governance practices that keep production aligned with climate, community, and investor expectations.
How often should we update the sustainability plan?
Revisit assumptions every quarter, or sooner if policy, price, or community signals shift.
Do we need perfect data to start?
No—log current measurements, state the confidence level, and explain how instrumentation will improve over time.
Which frameworks should we reference?
TCFD, ISSB, OGMP 2.0, local methane or environmental rules, and any voluntary commitments you have signed.
Drova RunSustainably unites objectives, approvals, and reporting so industry teams stay aligned.
Ready to keep sustainability work visible?
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