Energy Analytics

ESG in the Energy Industry — Embracing Change

byNick Volkmer

How did we get here and what is the challenge?

The evolution of an energy company’s environmental, social and governance (ESG) profile demonstrates the tremendous power of capital markets. In just a few years, ESG moved from a footnote on public disclosure to the forefront of investment decisions and operators’ corporate strategies, a change largely propelled by investors rather than governments.

Driving the discussion are institutes like the Principles for Responsible Investment (PRI). Nearly 3,000 firms that manage more than $100 trillion in assets under management back the PRI, a U.N.-supported initiative stating firms will incorporate ESG issues into investment analysis and decision-making processes. This does not mean the firms will base investments solely on ESG performance, but they will consider ESG aspects alongside their traditional processes. Our discussions with investors show that ESG is becoming another pillar of the decision-making process, along with asset quality and financial performance.

Why? Investors are using a company’s ESG profile to predict its resiliency to future changes. If you know how an executive team is incentivized (governance), you can properly model how the company will react to certain shocks. Quantifying a producer’s greenhouse gas footprint (environmental) will help measure how exposed it is to future regulatory changes. Analyzing a company’s demographic profile (social) can indicate the diversity of its thought process.

The challenge the market faces is that analyzing a company’s ESG profile is largely new and it is difficult to access trusted data. The market is ahead of regulation on this one – there are no generally accepted accounting principles that companies must adhere to. Investors tell companies that ESG will be factored into decisions and companies respond by voluntarily disclosing information, typically at their discretion. It is hard to cut through the smoke and really understand how two companies compare. In parallel, corporate clients position themselves as industry leaders and work to understand the ESG data landscape to ensure they set the right policies to appear favorable relative to peers.

What is Enverus’ solution?

Realizing the need emerging in our client base for integrated, normalized, quantitative data on the ESG performance of energy companies, we built Enverus ESG™ Analytics.

Enverus ESG™ Analytics is the energy industry reference for corporate ESG, providing full visibility into companies’ rankings, how they compare among their peers, and who and what are the most environmentally responsible and investible opportunities in the space.

This solution is delivered in the Prism platform and saves time by eliminating in-house data collection and providing fast analysis and benchmarking tools. The product casts a wide net, collecting the best available energy-related ESG data and distilling it down into an easy-to-digest, transparent format.

Learn more about Enverus ESG Analytics here:

Nick Volkmer

Nick Volkmer

Nick Volkmer is vice president of ESG and Renewables at Enverus. Nick joined Enverus in 2015 and initially focused on onshore U.S. asset valuation and optimization, where he led the Gulf Coast research team. He now heads the ESG team, helping clients navigate carbon-focused investments. Nick graduated from Queen’s University with a degree in engineering chemistry and earned his CFA charter in 2019.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

Energy Analytics Energy Transition
ByAndrew Gillick

In case you missed it, Enverus virtually hosted EVOLVE, our flagship conference, May 16-17. The event included two full days of presentations, panels and keynotes, distilling the most relevant data and thoughts on the industry today.  Below Andrew Gillick, managing director...

Energy Analytics Other
ByShane Reddell

In the current landscape of heightened environmental and social consciousness, upstream oil and gas companies face significant challenges in achieving favorable refinancing for their existing credit facilities. These challenges are compounded by the recent volatility in the debt markets and...

Energy Analytics Intelligence Publications
ByMaurice Smith

Wildfires that have already scorched more than double the average annual fire destruction across Alberta forced the shut-in of more than 300,000 boe/d while threatening future shuttering of output from the so-far largely unaffected oil sands region. Record temperatures saw...

Energy Analytics Energy Transition
ByHeather Leahey

CO2 containment risk has become one of the most popular topics among our clients evaluating CCUS projects. Operators need to understand and evaluate subsurface features that could trigger CO2 migration and containment losses as well as introduce additional safety, reputational...

Energy Analytics Energy Transition
ByRyan Luther

Anyone who thinks spending time at a public charging station is a blocker to buying an electric vehicle (EV) might want to consider the numbers behind EV and internal combustion engine (ICE) vehicle refueling times. The answer is that it...

Enverus Blog - 6 tax preparation tips for mineral and royalty managers
Energy Analytics
BySilas Martin

Recent years have been a roller coaster for mineral buyers, from record low commodity prices to highs for oil and natural gas in the last year. Going forward, challenges and opportunities will be plentiful. We expect oil prices between $80...

Power and Renewables
ByKenneth Curtis

It’s that time of year when generator and transmission outages are at their peak in PJM. The first half of April has not disappointed volatility-wise as the WHUB/NIHUB spread has set new 30-day highs largely driven by congestion. Figure 1:...

Enverus Blog - April's energy outlook: Analyst insights you can't miss
Analyst Takes Energy Analytics
ByChris Griggs

May marks a new month, and it’s essential to assess the energy landscape of April. Our Enverus Intelligence® | Research (EIR) team has scrutinized critical trends and advancements, delivering to you insightful analyst takes that can shape your business decisions....

Energy Analytics
ByCayley Krynowsky

Inventory is king in 2023. Operators and investors alike are more concerned than ever about remaining inventory – who has it, where is it, and will it be economic? To answer these questions, most turn to the tried-and-true, but also...

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Access Product Tour

Speak to an Expert

Book a Demo