Barr helped a midstream oil and gas company develop an environmental, social and governance (ESG) framework. The work involved two phases—training and framework development.
The training curriculum introduced the client’s executives and managers to ESG topics and was developed in consultation with the client. The training covered the history of ESG, ESG stakeholders, business benefits of addressing ESG risks and opportunities, and reasons for the recent interest in ESG. The training also included key ESG issues, including materiality assessment, metrics and targets, and data collection, management, and reporting. Key international ESG standards and frameworks, as well as the reporting requirements within the standards, were also addressed.
In phase 2, Barr worked closely with the client to develop a customized ESG framework. As part of the study, we reviewed the client’s corporate policies relevant to ESG, including those dealing with corporate governance, human resources management, and health, safety, and environmental management. We also reviewed a questionnaire the client uses to report on ESG activities to its main investor. Barr undertook some research and screening of 10 ESG reporting frameworks and standards to identify the most appropriate ones to use.
In addition, we developed an implementation plan with a prioritized list of actions and recommendations for filling gaps identified during preparation of the custom framework.