What CSRD best practice looks like - for oil & gas companies
10 Feb 2025
The CSRD reporting requirements are starting to kick in for some sector-wide organisations this year, including oil and gas companies. We explore the current key themes and what ‘good’ looks like for the oil and gas industry.
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 stipulation 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 Beare, Intertek Regional Director for Business Assurance UKI & Iberia, explains:
“The oil and gas sector has a lot to be proud of in relation to its sustainability journey so far, which has been spearheaded by partnership collaboration on a widespread scale. All of the progress that has been achieved to date is to be welcomed, but now’s the time for the industry to ramp up its efforts by viewing its sustainability commitments through a CSRD lens.
“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.”
What the CSRD roadmap looks like for oil and gas companies
While CSRD reporting outputs will inevitably vary from organisation-to-organisation, some common underlying themes do exist. They include:
- 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. - 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. - 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 assessing their activities to ensure compliance and mitigate potential risks associated with non-compliance.
A best practice look at CSRD reporting for oil and gas companies
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:
- 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. - 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. - 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. - Eni S.p.A.
Eni is preparing for CSRD compliance by enhancing its sustainability reporting framework and focusing in on detailed ESG disclosures. - 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.
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.
More information
For more information about the CSRD and the implications for organisations, visit our dedicated Corporate Sustainability Reporting Directive Resource Hub, which includes a wealth of webinars and podcasts with our experts, FAQs, factsheets and more.
