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Top 10 Sustainable Oil & Gas Companies

Earlier this year at the World Economic Forum in Davos, Switzerland, a new ranking study came out from Corporate Knights ranking the world’s most sustainable companies of 2014. It’s in its tenth year.
 
Doug Morrow, vice president of research at Corporate Knights, discussed what makes a company sustainable.
 
“On the one hand, it means doing more with less; squeezing more output out of every capital input, including financial, human and natural capital,” he says. “But the hallmark of a sustainable enterprise is not just efficiency, but also mechanisms to encourage meritocracy, diversity, innovation and long-term planning. Management teams at sustainable corporations are afforded room to think and plan beyond the next financial quarter.”
 
To determine the new ranking, Corporate Knights compiled a list of 350 publicly traded companies based on financial performance, sustainable disclosure, etc.
 
The 350 companies were then further evaluated by using key environmental, social, and governance performance indicators, like waste productivity, leadership variety, worker turnover, pay ratio from CEO to average employee. Companies in the same industry were then scored relative to their peers.
 
Corporate Knights gathered their data through direct interaction with each company and from Bloomberg.
 
1. Statoil
Statoil is an international energy company based in Stavanger, Norway. It operates in more than 30 countries around the world. But their commitment to sustainability is what put them high on the list. They provide the world with growing energy demands, but in an economically, environmentally, and socially responsible way. They also hold themselves to extremely high ethical standards and are committed to being open about their business actions.
 
Statoil
 
2. Neste Oil
A Finnish oil refining and marketing company, Neste Oil mainly transports fuels and other refined gas products. For their sustainability practices, they focus on six key areas: Customers – providing cleaner solutions for people on the go; Society – they are against injustices to human rights, provide employment opportunities and social well-being; Safety – prevent any accidents to employees, clients, civilians; Climate and Resource Efficiency – they have environmental permit limits that they must adhere to; Personnel – providing a safe, healthy, and exciting workplace; and Sustainable Supply Chain – through monitoring, they expect their suppliers to also have a high code for sustainability.
 
Neste Oil
 
3. Royal Dutch Shell
Headquartered in the Netherlands, Royal Dutch Shell, or more commonly known as Shell, is one of the six oil and gas “supermajors”. They are extremely active in the industry, that already include exploration, production, refining, distribution, trading, and marketing. One way they stay sustainable is by partnering with experts on the environment and by using new technologies to help them reduce the impact their operations have on the environment.
 
Shell
 
4. Cenovus Energy Inc.
This fairly new Canadian oil company uses a balanced approach when dealing with all areas of business. In addition to finding a good balance among economic, social, and environmental sustainability, they also fostered a strong relationship with the Aboriginal community in their operating areas. The primary goal is to encourage respect and to provide benefits for both parties.
 
Cenovus
 
5. Suncor Energy Inc.
Suncor Energy specializes in production of synthetic crude from the oil sands. But, they are also advocators of economic growth, improved social well-being, and living in a healthy environment. They invest in new technologies that will improve operational performance to have the least impact on the environment. They also earn and maintain trust by providing a familiar face to the communities they operate in.
 
Suncor
 
6. Galp Energia
This is Galp Energia’s second time making the most sustainable list. So how do they do it? They keep it simple. They incorporate the essential principles of sustainability into its culture. It becomes second-nature to them. The company also created a Corporate Responsibility Policy that the company adheres to in everyday business practices.
 
Galp Energia
 
7. BG Group
This international British oil and gas company is the largest supplier of Liquefied Natural Gas (LNG) to the United States. And not only that, but they are also involved with a ton of sustainability initiatives. From human rights to risk assessment to climate change.
 
BG Group
 
8. Enbridge Inc.
Enbridge is a Canadian company that focuses on transportation and distribution of crude oil, natural gas, and other liquids. They are transparent and proactive with their initiatives, like providing information to the public about pipeline safety and guidelines. They also encourage minimal environmental impacts and renewable energy. They also have a strong relationship with the Aboriginal community.
 
Enbridge
 
9. Encana Corporation
No stranger to the sustainability list, Encana is an energy producer of natural gas, oil and natural gas liquids. They also transport and market natural gas and oil. They are committed to building on past success to ensure future responsibility in their commitment to a sustainable future. Their strong governance is tied to the performance of their employees and adherence to policies put in place.
 
Encana
 
10. Hess Corporation
Oil company, Hess Corporation, explores, produces, transports, and refines crude oil and natural gas. However, they pride themselves on long-term care of the environment, economy, society, and precious resources. As they continue to meet the growing demand for energy, the more they incorporate environmental and social considerations into all of their actions.
 
Hess
 

TNphoto Tatsuya Nakagawa
Tatsuya Nakagawa is the VP of Marketing and co-founder of Castagra Products, a storage tank and wastewater coatings manufacturing company that is highly acclaimed for its sustainable coatings, cold weather tank coating applications, and its durable frac tank coatings. Castagra is used by the world’s top oil and gas field services companies.