ARPEL WORKSHOP ON ESG AND COMPLIANCE, TRENDS AND CHALLENGES IN THE ENERGY INDUSTRY
At the end of April, ARPEL held the Workshop “ESG y Compliance en el sector petróleo y gas: Tendencias y Desafíos” ("ESG and Compliance in the oil and gas sector: Trends and Challenges,"), attended by professionals from member companies related to the subject at hand.
The speakers were María Archimbal, Chief Compliance Officer of YPF, who has more than 15 years of professional experience in the public and private sector; and Christopher Thomas, leader of Oxy's corporate sustainability strategy and performance reporting.
This workshop was aimed at discussing international trends in ESG and Compliance, exchanging experiences and defining how ARPEL can help the industry in this area, and it will have a second activity with Dante Pesce, founder and Executive Director of the Linking Center (Centro Vincular) of Pontificia Universidad Católica de Valparaíso (PUCV) and member of the UN Working Group on Business and Human Rights.
The main conclusions of the virtual workshop point out that climate change, the need for a sustainable transition to low-carbon systems, and the social transformations derived from digitalization, among other aspects, are shaping an increasingly complex scenario for the energy business.
The Paris Agreement, the Sustainable Development Goals, the commitments made by governments and companies to be net carbon neutral by mid-century, and the advances in reporting and accountability regulations are a true reflection of these transformations.
Furthermore, in this scenario, one thing is clear: the transparent communication of environmental, social and governance (ESG) performance is an increasingly relevant aspect of both business management and the relationship between companies and their stakeholders.
When analyzing the global trends, there are three key areas to look at in terms of ESG: Climate; Human Rights, Workers, Diversity and Value Chain; and Green Taxonomy, which will define conditions for access to capital or to different markets.
Appropriate due diligence, reporting, communication and monitoring of actual and potential impacts in these areas will allow us to build greater trust with stakeholders.
The other important aspect is compliance with national and international regulations governing companies.
During the meeting, it was also highlighted that the transformation of the energy scenario has created a new set of risks for companies, including cybersecurity, information privacy, money laundering or non-compliance in the value chain, among others, which can entail serious losses for companies, both financial and reputational.
One of the conclusions is that the management of these risks is highly strategic. Therefore, developing an effective compliance program necessarily requires an active involvement of top management and a proactive attitude to monitor and adapt quickly to the volatility of the energy industry.