ESG? 
What is  
ENVIRONMENTAL 
SOCIAL 
 
          The information in the social 
 
       portion of a company’s ESG        
                document looks at a company’s 
business relationships with employees,  
suppliers, customers and communities 
where it operates. 
Why ESG Matters to Your Company? 
Environmental, Social and 
Governance criteria are a set 
of standards for a company’s 
operations that socially  
conscious investors use to 
screen potential investments. 
 
$ 
The information in the environmental portion  
of a company’s ESG document explains how 
that company performs as a steward of  
nature.  It documents the company’s energy 
use, water, pollution, natural resources,  
conservation, animal treatment and  
benefits to the environment. 
Investors are requesting information on the commitment to the three ESG 
pillars. In coming years their request could be a requirement.  Historically,  
the industry has done a poor job showcasing its community benevolence.   
An ESG minded company attracts more investment and channels a  
positive message to shareholders.  The environmental, social and gov-
ernance standards have become the leading indictors of measuring 
management competence, risk management, and financial perfor-
mance. 
A Sustainable, Responsible, Impact (SRI) investment strategy is based on 
the belief that a commitment to the principals of Corporate Social Respon-
sibility (CSR) generated long-term competitive financial returns as well as 
positively impacts society.  For investors and lenders, reducing the risk 
associated with sustainability of performance is immensely important. 
Corporate Social Responsibility (CSR) goes beyond the law.  It is about 
self-regulation and reveals itself in a company’s guiding principles,  
operating philosophy and behaviors toward all stakeholders.  The goal is to 
ensure a company’s actions positively impact all stakeholders.  CSR  
includes programs, policies and practices related to employees, suppliers, 
customers and society. 
The return on investment for CSR is the positive impact a focus on  
stakeholders can have on the retention, loyalty and recruitment of employ-
ees and customers, due to reducing the costs associated with employees 
and customer turnover on bottom line performance. 
Sustainable, Responsible and Impact Investing is an actual  
investment strategy where ESG and CSR come into play. 
Sustainable, Responsible and Impact (SRI) criteria are used to make  
investment decisions.  SRI refers to evaluating the long-term sustainability 
of a company’s performance due to the evolving importance of good  
corporate citizenship on business drivers such as reputation, employment, 
purchasing decisions and more. 
In our ever changing society, transparency on the issues of environment, 
social responsibility and corporate leadership are becoming more  
important.  Investors are turning their backs on companies that don’t offer 
information on these areas.  There is a need to “tell our story” to compete 
in the investment world.   
Governance 
Governance information in an ESG document 
looks at a company’s leadership, executive 
pay, audits, internal controls and shareholder 
rights. 
Today financial results are not the only measure by which 
firms are valued on the market.  Social and environmental 
outcomes of a company are critical to the sustainability of 
company growth.

Is an Environmental, Social and Governance document 
 a new operational requirement? 
No. ESG reporting is voluntary.  However, the oil and gas industry is 
changing and a clear indication is the performance of oil and gas  
companies on the S&P 500.  Most brokerage firms and mutual funds  
invest in companies that follow ESG criteria.  
What constitutes an acceptable set of ESG criteria? 
It’s subjective.  Investors must do the research to find companies that 
match their own values. 
Is there a template ESG or a sample to follow? 
Visit the DEPA website for more information about how to get started 
creating an ESG report, and to find links to sample ESG reports as well as 
the Tudor, Pickering, Holt & Co “Data Disclosure Wish List” for Domestic 
US E&P.   
Visit the DEPA website for more information about how to get started 
creating an ESG report, and to find links to sample ESG reports and the 
Tudor, Pickering, Holt & Co “Data Disclosure Wish List” for Domestic US 
E&P companies.   
How Do I Start? 
ESG should be addressed in 
every oil and gas company’s 
mission statement going  
forward. 
Companies should communicate their 
ESG analysis and plans to shareholders 
and the community at large.  It should 
be posted on their website and easily 
available to the public.   
 
DEPAUSA. 
Frequently Asked Questions 
Who is this document written for? 
Companies should communicate their ESG analysis and plans to share-
holders and the community at large.  It should be posted on their website 
and easily available to the public.   
Keep in Mind 
An ESG minded company  
attracts more investments  
and channels a positive  
message to shareholders. 
ESG 
Today financial result is not the only  
measure by which firms are valued on 
the market.  Social and environmental 
outcomes of a company are critical to 
the sustainability of company growth.   
The importance of non-financial  
factors is gaining momentum. 
Socially conscious investors using the 
ESG self analysis to screen potential 
investments and create a new measure-
ment to assess a company’s value are 
no longer the exception to the  
investment community. 
How do I gather all of this information? 
Much of what is typically included in an ESG document is already gathered 
for regulatory reporting, stakeholder meetings, and internal documentation.  
Assembling this information into one document for the financial sector will, 
eventually, be crucial for publicly traded companies and those private companies 
looking to raise capital. 
How is this different than regulatory reporting or 
an annual report, which we already do? 
While ESG reporting has no specific requirements or format, there are 
rating companies who look for specific components to be addressed.  
An ESG is very similar to a melding of regulatory reporting and an annual 
report in one document. 
What is generally included in an ESG? 
To be effective an ESG report should generally include a company’s  
impact on climate change and carbon emissions, water use, conservation 
efforts, anti-corruption policies, board compilation including how directors are 
elected, the audit committee structure and diversity in gender.  However, it is 
important to also highlight diversity in industry backgrounds inside the board of 
directors. Of course, safety measures, data protection, employee engagement 
including efforts for positive team dynamics and transparency from manage-
ment to teams are all important metrics.  Don’t forget to give information about 
community development, local corporate engagement and giving. These are  
just a few of the topics to consider, NOT an exhaustive list.