An op-ed, short for “opposite the editorial page”, is a written prose piece, which expresses the opinion of an author usually not affiliated with the publication’s editorial board.
Fatih Birol, Executive Director, International Energy Agency, Paris; Jonathan Price; Kgosientso Ramokgopa, Minister of Electricity and Energy of South Africa; Maria da Graça Carvalho, Minister of Environment and Energy of Portugal; Meghan O’Sullivan, Director, Belfer Center for Science and International Affairs, Harvard University, USA; Muhammad Taufik, President and Group Chief Executive Officer, PETRONAS (Petroliam Nasional), Malaysia; speaking in The Geoeconomics of Energy and Materials session at the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland, 21/1/2025, 09:30 – 10:15 at Congress Centre – Aspen 2. Stakeholder Dialogue. Copyright: World Economic Forum / Valeriano Di Domenico
Environmental concerns, greenwashing, and corporate responsibility have impacted how Canadian energy companies conduct operations. Canada’s implementation of its new Sustainability Disclosure Standards means that businesses that were under the private scrutiny of regulators are now exposed to additional public examination. These standards require an additional layer of transparency, requiring organizations to measure and disclose their sustainability impacts, while aligning with international best practices and frameworks. This three-part article will explore the reporting requirements, why waiting to report is a risky bet, and the implications beyond compliance-related reporting.
Part 3 – Beyond sustainability reporting: the societal impacts
Regardless of who leads Canada in the coming years, climate and sustainability remain topics of interest globally. They are not new concepts. International bodies and organizations have been putting pressure on governments and companies to re-imagine how business is conducted for decades. Banks, pension funds, insurance companies, and other financial institutions have been, and continue to be, used to facilitate these changes.
A brief history of the sustainability movement
- 1980’s – the United Nations introduces the concept of “sustainable development”.
- 2000 – the UN Global Compact is signed, outlining ten voluntary principles for how to conduct business; World Economic Forum (WEF) begins promoting the concept of “stakeholder capitalism”, the notion that companies should serve not just their shareholders but also other stakeholders, including employees, customers, communities, and the environment.
- 2005 – the UN Principles for Responsible Investing (PRI) is launched, asking members to consider ESG factors in investment decisions.
- 2010’s – institutional investors and asset managers, such as BlackRock and Vanguard, begin pressuring companies to disclose their ESG impacts and risks; WEF becomes the driving force to promote ESG as part of business strategy.
- 2015 – the Paris Agreement, the legally binding international treaty on climate change, is adopted.
- 2015 – the Financial Stability Board, chaired by Mark Carney, launches the preeminent sustainability reporting framework known as the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD would later form the foundation for future international reporting standards and climate-related reporting regulations.
- 2020’s – the EU aggressively begins implementing ESG reporting requirements; the WEF forms the “International Business Council” (IBC), the creator of “Stakeholder Capitalism Metrics”, a set of common ESG reporting standards to help businesses report their performance on environmental, social, and governance issues.
- 2021 – the International Financial Reporting Standards (IFRS) launches the International Sustainability Standards Board (ISSB) to develop global sustainability reporting standards.
- 2023 – ISSB finalizes their global reporting standards.
- 2024 – the Canadian Sustainability Standards Board (CSSB) finalizes the Canadian Sustainability Disclosure Standards (CSDS) for voluntary use effective January 1, 2025.
Sustainability disclosure is more political than practical, at times. The “green” movement, focused on climate hype and decarbonization, keeps climate change in the forefront of all their communiques and conferences.
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At one of the world’s most famous conferences, the World Economic Forum’s 2025 Annual Meeting in Davos, Switzerland, a key issue to be discussed is “stewarding a just, inclusive energy transition.” The WEF argues that achieving net-zero emissions will require a “scaling-up of ambition, governance, partnerships, and capital.” This aligns with a broader strategy of “demand management,” aiming to influence hydrocarbon production and consumption, which is likely to impact investment decisions in the energy sector directly.
Fatih Birol, Executive Director, International Energy Agency, Paris; Jonathan Price; Kgosientso Ramokgopa, Minister of Electricity and Energy of South Africa; Maria da Graça Carvalho, Minister of Environment and Energy of Portugal; Meghan O’Sullivan, Director, Belfer Center for Science and International Affairs, Harvard University, USA; Muhammad Taufik, President and Group Chief Executive Officer, PETRONAS (Petroliam Nasional), Malaysia; speaking in The Geoeconomics of Energy and Materials session at the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland, 21/1/2025, 09:30 – 10:15 at Congress Centre – Aspen 2. Stakeholder Dialogue. Copyright: World Economic Forum / Valeriano Di Domenico
These discussions and others by influential groups illustrate that ESG considerations are deeply intertwined with regulatory frameworks and investment strategies. This underscores that sustainability reporting is not merely a trend; it is a lasting priority that is set to reshape the energy landscape and potentially disrupt societal norms.
The disproportionate influence of European organizations on climate science, climate modeling, and climate policy cannot be overlooked. Their approach often favours renewables –
wind and solar – over traditional energy sources, shaping global standards that expect companies to reduce emissions by transitioning away from hydrocarbons. This creates a challenging landscape for the oil and gas industry as they navigate an evolving regulatory environment driven by stringent emissions reduction expectations.
In addition, the climate finance landscape appears to be undergoing significant shifts. Although some financial institutions may be withdrawing from certain climate finance organizations and alliances, they are not abandoning their climate commitments and continue to advocate for reducing dependence on hydrocarbons.
Activists, like the London, England, headquartered Insure our Future, are increasingly targeting insurance companies, urging them to stop insuring “fossil fuel” projects and infrastructure — a move that could significantly hinder the operational abilities of companies within the sector if successful.
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As the ESG movement continues its momentum, corporations face pressure to find a balance between generating returns for shareholders and adhering to responsible, sustainable business practices. There’s a space beyond shareholder supremacy, but not to the exclusion of shareholders’ ability to make a return on their invested capital, which requires a company to earn a profit.
As we see more corporate consolidation, supranational-like, mega corporations are gaining global political power, brand domination, and market capitalization. While often disconnected from the communities and people they serve, the need for greater alignment with societal values and expectations is crucial. Transparent reporting and accountability will become vital in restoring trust with communities and investors alike.
ESG reporting is not just a passing phase; it is an operational necessity that will persist and evolve over time. The oil and gas industry must adapt to this new reality, recognizing that sustainable practices and reporting are embedded in the future of energy development. The path forward is filled with opportunities for innovation and collaboration, urging the industry to engage constructively in the transition toward a more sustainable energy landscape.
Let’s talk today about the future of sustainability reporting, how it’s shaping societal expectations, and how your advocacy efforts can be used to influence the direction we go in. Reach out to me at dgaryk@equipoisability.com.
Deidra Garyk is the Founder and President of Equipois:ability Advisory, a consulting firm specializing in sustainability solutions. Over 20 years in the Canadian energy sector, Deidra held key roles, where she focused on a broad range of initiatives, from sustainability reporting to fostering collaboration among industry stakeholders through her work in joint venture contracts.
Outside of her professional commitments, Deidra is an energy advocate and a recognized thought leader. She is passionate about promoting balanced, fact-based discussions on energy policy, and sustainability. Through her research, writing, and public speaking, Deidra seeks to advance a more informed and pragmatic dialogue on the future of energy.
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https://pipelineonline.ca/op-ed-deidra-garyk-sustainability-reporting-part-1-canadian-sustainability-reporting-requirements/
https://pipelineonline.ca/op-ed-deidra-garyk-esg-is-not-going-away-why-waiting-to-report-is-a-risky-bet/