CSRD Series: CSRD Best Practices in the Oil and Gas Sector Artwork

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CSRD Series: CSRD Best Practices in the Oil and Gas Sector

March 27, 2025 • Intertek Business Assurance • Season 8 • Episode 9

What CSRD best practices look like in the oil and gas sector!

As the CSRD reporting requirements start to kick in for a number of sectors this year, in this podcast we explore the current key themes and what ‘good’ looks like generally for sustainability in the oil and gas industry.

Speakers:

Catherine Beare the Regional Director - Intertek Business Assurance UK & Iberia
Yannick Garcia, Regional Director - Intertek Caleb Brett

For more information, please do go and visit our website www.intertek.com/assurance/EU-CSRD.

Catherine Beare [0:10]

Hello and welcome to this podcast exploring what CSRD - Corporate Sustainability Reporting Directive - best practice looks like in the oil and gas sector. I’m Catherine Beare the Regional Director for Business Assurance in the UK & Iberia and I am joined by Yannick Garcia, our Regional Director for our Caleb Brett business here at Intertek. Yannick has been in the Oil and Gas industry for 20 some years, operating in a number of different roles, in both the upstream and downstream sectors. Yannick is going to reflect with us today on how our clients and the industry in general in oil and gas, is responding to the existing CSRD requirements.

So Yannick, thank you for joining me today. The CSRD reporting requirements are starting to kick in for a number of sectors this year, including oil and gas companies and although we have the Omnibus announcement recently, which does put some questions into the future of the CSRD specific reporting, we still know that this is affecting many companies today. In today’s podcast we will explore the current key themes and what ‘good’ looks like generally for sustainability in the oil and gas industry.

So let’s kick off with my first question Yannick. What’s the state of play for oil and gas companies as it affects them with regards to CSRD compliance, what do you see as the general sustainability journey for oil and gas companies today?

Yannick Garcia [2.17]

The phased implementation of the CSRD is gathering momentum this year, particularly for the first tranche of companies that are required to submit their first set of CSRD reports for the 2024 financial year.

This requirement applies to large companies with more than 500 employees, listed SMEs and non-EU organisations, many of which can be found within the oil and gas industry. The good news is that a lot of the ground work has already taken place, for instance, the IPIECA’s work to advance ESG performance in accordance with the UN Sustainability Goals, as well as its collaborative work with the Global Reporting Initiative.

Other notable steps forward include:

The GRI’s Sector Standard for oil and gas - which emphasises the pressing need for consistent and complete reporting on the complexity of transparency demands faced by the sector
Mapping the oil and gas industry to the Sustainable Development Goals – the report published by the IPIECA, United Nations’ Development Programme and the International Finance Corporation to identify common links and how the industry can most effectively support the achievement of the goals
The SDG Business Forum – is organised in conjunction with the UN High-Level Political Forum on Sustainable Development
The publication of the 4th edition of the Sustainability Reporting Guidance for the oil and gas industry – this edition reflects the long experience of reporting by member companies of API, IPIECA and IOGP, as well as the industry’s commitment to the ever-advancing reporting of company-wide sustainability performance

Catherine [4.30]

That’s good to hear, and clearly the oil and gas sector has a lot to be proud of in relation to its sustainability journey so far, which has been spearheaded no doubt in partnership collaboration on a widespread scale – you mention quite a few. All of the progress that has been achieved to date is to be welcomed, but what does the oil and gas industry roadmap look like in terms of its sustainability commitments now that we’ve got this pressure?

Yannick [5.12]

As is the case with all industries right now, there is still much work to be done in order for the oil and gas sector to deliver on achieving a more sustainable future. For some companies, this means starting to submit their CSRD reporting, which presents a real opportunity to lead from the front and demonstrate to others what CSRD excellence looks like in reality. The CSRD road may not necessarily be a straightforward one, it will ultimately lead organisations to CSRD success.

While CSRD reporting outputs will inevitably vary from organisation-to-organisation, some common underlying themes do exist. They include:

1. Adopting standardised reporting frameworks

In order to meet the CSRD requirements, many oil and gas companies are aligning their reporting with established sustainability frameworks. For example, as referenced a bit further up, bodies like IPIECA have provided industry-specific guidance that spans a range of sustainability issues and indicators.

2. Enhanced transparency and stakeholder engagement

The CSRD emphasises transparent sustainability reporting. Oil and gas companies are responding to this requirement by improving their data-reporting mechanisms, so that they can accurately capture and report all of the relevant Environmental, Social and Governance (ESG) data. This is crucial for meeting regulatory requirements and addressing stakeholder expectations.

3. Navigating global implications

The CSRD is a European directive with global implications. Non-EU companies with significant operations in the EU are subject to the reporting requirements too. As a result, oil and gas companies worldwide are today assessing their activities to ensure compliance and mitigate potential risks associated with non-compliance.

Catherine [7.41]

That’s interesting, can you give some best practice examples of CSRD reporting for oil and gas companies?

Yannick [8.02]

Well Catherine, as we said, the initial phase of CSRD reporting primarily targets large companies that are already subject to the Non-Financial Reporting Directive (NFRD). Within the oil and gas sector, several major companies are already leading the way by preparing to comply with CSRD requirements. They include:

1. Shell plc

Shell has been specifically enhancing its sustainability reporting so that it aligns with the upcoming CSRD standards. This includes focusing on detailed disclosures of environmental and social impacts.

2. BP plc

BP is actively working to meet the CSRD requirements by integrating comprehensive sustainability metrics into its annual reports and emphasising transparency within its transition strategies.

3. TotalEnergies SE

TotalEnergies is aligning its reporting practices with the CSRD mandates and aims to provide stakeholders with clear insights into its overall environmental and social performance.

4. Eni S.p.A.

Eni is preparing for CSRD compliance by enhancing its sustainability reporting framework and focusing in on detailed ESG disclosures.

5. Repsol S.A.

Repsol is updating its reporting processes to meet CSRD standards and emphasise transparency across its sustainability initiatives.

In addition, all of these companies are investing in data management systems, engaging with stakeholders and aligning their reporting frameworks with the European Sustainability Reporting Standards (ESRS) to ensure compliance.

The CSRD's phased implementation will extend to more companies in subsequent years, including non-EU entities with significant operations in the EU. Therefore, oil and gas companies operating within or having substantial business in the EU are expected to progressively align their reporting practices with CSRD requirements.

So Catherine, while there is already lots to be learned from decisions made and actions that have been implemented to date, there is so much more to come as the oil and gas sector becomes truly CSRD compliant.

Catherine [10.38]

Very clear Yannick. Interesting to see that some of the companies have already had to get ready and start reporting which is great to see.

So thank you, Yannick for your time today and again, so just as a reminder of how Intertek can help on CSRD needs.

There are various ways;

1: To understand your current CSRD readiness, we can help you to undertake a gap analysis which you've just heard that we are able to implement that with companies dependent in whatever sector they are based on, working with our colleagues in the relevant sector within Intertek, alongside the CSRD subject matter experts.

2: Through training - to ensure everyone understands what's required to prepare for your submission.

3: We can also provide auditing solutions and in some markets we will also hopefully be able to act as the auditor of your CSR Directive report.

For more information, please do go and visit our website www.intertek.com/assurance/EU-CSRD.

So that concludes today's podcast. Thank you for listening and please watch out for further CSRD episodes to help with your journey to compliance. Thank you, Yannick and for everyone listening.