A corporate sustainability policy is becoming increasingly important for organizations.
Corporate sustainability is taking over the business world, as companies realize that profits alone will not cause a business to prosper into the future. All the stakeholders of a business, such as employees, partners, customers, society and suppliers should benefit from the company’s activities, not just in the present but in the future as well.
What is corporate sustainability ?
Corporate sustainability is often confused with Corporate Social Responsibility (CSR).
Corporate sustainability is a broader concept that encompasses the integration of environmental, social, and governance (ESG) factors into a company’s operations and decision-making processes. It focuses on the long-term viability and responsible management of a company, considering its impact on multiple stakeholders, including the environment, society, and the economy. Corporate sustainability goes beyond compliance with regulations and aims to create value by addressing sustainability challenges and contributing to a sustainable future.
CSR on the other hand refers specifically to a company’s voluntary initiatives and actions to address social and environmental issues beyond legal requirements and is often considered a subset of corporate sustainability, focusing on the social and philanthropic aspects of a company’s responsibilities.
Why is corporate sustainability important?
Corporate sustainability is important because it allows companies to address environmental and social challenges, manage risks, ensure long-term viability, meet stakeholder expectations, comply with regulations, foster innovation, and gain a competitive advantage in the marketplace. It is not only a moral imperative but also a strategic approach to creating value and contributing to a sustainable future.
corporate sustainability in the oil and gas industry
While the oil and gas industry is known for its significant carbon footprint and environmental challenges, many companies are increasingly recognizing the need to transition towards more sustainable practices.
Environmental Impact Reduction
Oil and gas companies are investing in technologies and practices to reduce their greenhouse gas emissions, water usage, and waste generation. This includes adopting cleaner technologies, such as carbon capture and storage, and implementing more efficient processes to minimize resource consumption and emissions.
Renewable Energy Investments
Many oil and gas companies are diversifying their portfolios by investing in renewable energy sources such as wind, solar, and biofuels. By expanding into renewable energy, these companies aim to contribute to the transition to a low-carbon future while leveraging their existing expertise and infrastructure.
Companies in the oil and gas industry are increasingly engaging with local communities to address their concerns and support local development. This involves conducting social impact assessments, implementing community development programs, and fostering dialogue to ensure that their operations benefit local populations and minimize negative impacts.
Transparency and Reporting
Transparency is crucial for corporate sustainability. Oil and gas companies are expected to disclose their environmental performance, climate-related risks, and social impact through sustainability reporting. This enables stakeholders, including investors and the public, to assess their sustainability efforts and hold them accountable.
Innovation and Research
Oil and gas companies are investing in research and development to drive technological innovations that can improve sustainability. This includes developing advanced drilling techniques, enhancing energy efficiency, and exploring alternative fuels and energy sources.
Health and Safety
Ensuring the health and safety of workers is a critical aspect of corporate sustainability. Oil and gas companies implement rigorous safety protocols and invest in training and technology to prevent accidents and protect the well-being of their employees.
As part of Vivo Asia’s corporate sustainability policy, we recognise and strive to implement the Ten Principles of the UN Global Compact ,in our efforts to align our strategies and goals with internationally recognized standards.
This includes implementing policies with regards to human rights, labour, environment and anti-corruption. In addition to internal procedures and policies, we also aim to include our entire supply chain in our efforts to become more sustainable.