June 7, 2021
Today, as environmental, social, and governance (ESG) issues take increased prominence and companies invest heavily to reduce their environmental footprints, natural resource companies have made only tentative steps to actively manage and shed light on the ESG performance of their non-controlled joint ventures.
We recently benchmarked 31 large publicly listed oil and gas, mining, and chemical companies to understand how these firms report on issues related to ESG for non-controlled ventures. We looked at 20 ESG metrics, including emissions, human rights, fatalities, community engagement, and corruption. We found was that the largest companies in these sectors provide little or no public reporting or commitments on ESG performance in this asset class. While a handful of companies, including Chevron, BP, BHP, and Rio Tinto, have made commendable recent advances, they are the exception rather than the rule.