Frequently Asked Questions

Environmental, social, and governance (ESG) is an increasingly important factor for investors to evaluate the short and long-term sustainability of businesses. It is also an important framework and tool for an organization’s internal investment decision criteria. Ecologically, ESG criteria and data help companies and investors avoid investments into high-risk areas due to the environmental impact and performance.

  • Supported by environmentalists focused on the energy industry
  • Utilizes industry regulator data as foundation for its metrics
  • Focused on generating best practices and performance improvements to reduce or eliminate oilfield emissions

In the past few years, a multitude of standards and certifications have been introduced. Most have proprietary methods of producing their scores. Without knowing how the score is generated, the company is at a disadvantage in improving its environmental standing. ESG Dynamics offers a more granular and transparent data set which allows companies to fix emissions issues directly at the location.

  • Confidence in the underlying environmental data is key to generating credibility for the industry
  • Inconsistent data generates various risks and liabilities including shareholder lawsuits
  • Missing, incomplete, or inaccurate data can highlight issues with operations or administrative functions that need attention
  • ESG Dynamics reviews company data provided to various entities to evaluate its consistency and accuracy

  • Federal and state regulators are becoming more aggressive, issuing significant penalties for missed filings
  • Proactively managing your compliance response will reduce liability
  • Poor compliance reflects negatively on the company image to the public, regulators, and investors
  • ESG Dynamics identifies appropriate regulatory filings and ascertains how a company has addressed them

  • ESG Dynamics’ automated environmental checks can determine risks faster and more cost effectively
  • Data from ESG Dynamics can identify potential acquisition targets
  • Data from ESG Dynamics can help sellers identify assets to sell or better prepare assets for a more robust marketing effort

  • With most existing standards not able to be correlated, using performance of comparable companies provide a good basis for evaluation
  • Assists in identifying potential buyers and their environmental standards
  • Provides a visual way of identifying strengths and weaknesses

  • Many exist but, in our opinion, greenhouse gas (GHG) emissions, with extra weighting on flaring intensity and methane intensity
  • Each of these are emphasized by regulators, investors, and the public and they are perceived as critical to improved environmental stewardship, with an emphasis on air quality
  • Water use will grow in importance

  • Many Boards are creating ESG Committees to highlight the Company’s ESG emphasis
  • To provide the Committee the support it needs, most are engaging outside experts to advise on ESG matters
  • ESG Dynamics can provide information and guidance to Board Committees to address ESG-related risks:

    - Educate their board members on ESG issues and policy evolution

    - Assist in generating communication and operational strategy

    - Provide analytics, metrics to allow Board members to properly govern

    - Generate data AND analysis to evaluate company and management performance in the environmental space