The Business of Environmental Performance

Everyone is in the business of the environment, from small coffee shops to large oil and gas companies. The capital and social markets are scrutinizing the environmental performance of companies, often using obscure and inconsistent measures, resulting in impacts to reputation and shareholder value. Increasingly, the efficacy of non-governmental organizations, environmental advocacy, investor groups, and public awareness of a company’s lack of performance can create negative impacts. For example, United States shareholder proxy suits are being used by investors at an alarming rate to advocate on a range of issues, such as climate change. Therefore, it is crucial for companies to establish clear business measures to assess and drive internal performance and to effectively communicate those performances externally.

This paper was selected for presentation at the 2007 Society of Petroleum Engineer Conference and Exhibition held in Bangkok, Thailand.