Like all publicly traded E&Ps under today’s evolving greenhouse gas reporting policies, a Permian operator faced increasing liability with easy access to filings from attorneys, regulators, and stakeholders.
ESG Challenge
As part of its routine operational audit of environmental compliance, the Permian operator identified substantial risks from failing to file greenhouse gas reporting correctly. The lack of GHG reporting consistency generated concern regarding the operator’s other filings, underscoring the need to identify the full scope of compliance risk.
The Solution
ESG Dynamics performed a Health Check on the Permian operator’s reporting processes to identify and prioritize areas for improving compliance and regulatory filings. An ESG Dynamics Health Check audits the company’s compliance and environmental performance. It also benchmarks their performance against a group of companies (in this case, comparable sized companies).
Top Results
In addition to the GHG reporting risks already identified by the operator, the ESG Dynamics Health Check revealed several additional regulatory issues that needed to be addressed. These included Lease Severances and some regulatory filings that had been missed. By correcting these issues before they became a larger problem, the company improved GHG reporting accuracy, fully meeting its regulatory filing obligations, and positioning the operator’s assets as attractive targets from an environmental perspective should it decide to divest.