Governance in ESG of oil and gas sector

ESG plays a vital role in modern business as it is a key for a company to build trust among stakeholders and access capital. On the one hand, investors look for companies having a good ESG practice to control and reduce potential risks. On the other hand, companies or investees should avoid “greenwashing” behaviors such as setting impractical targets in the name of sustainability, especially in high ESG risk sectors like oil and gas. For these reasons, governance (G) is the foundation of a company’s ESG, and it reflects the commitment of the top management level to achieving all ESG targets by managing risks, developing strategies and being transparent.