Environmental and social governance
In a changing climate and global pandemic, this much is truer than ever:
Energy and commodity markets have always been defined by volatility. Adding the complexity of Environmental, Social, and Governance (ESG) pressures only ramps up the challenges.
A sound ESG program checks three vital boxes
If you don’t have a dialed in program to manage ESG policies, you need one. Not just to demonstrate to the public that sustainability matters — it does — but because you are otherwise foregoing a critical opportunity to capitalize on the good things your company is already doing. A well-executed environmental sustainability program is about balancing these components in the smartest way.
It starts with an accurate measure of your company’s carbon footprint.
For most industrial firms and the downstream uses of production output for producers and midstream companies this is . What’s the breakdown of your company’s energy usage by source, and how is this usage tracked? Especially in the wake of production disruptions in the volatile markets that have accompanied COVID-19, a real-time view of data is all-important.
Next, we need a clear understanding of your company’s environmental goals. Do you want renewable energy to come from your own facilities, or the credits and offsets available for purchase on the open market? Do you want credits that finance projects with social benefits beyond green energy? How much is that worth to you? Does your analysis take into account the balance between liquidity, risk, and optionality?
Mobius’ experts are adept at valuing and pricing out the alternatives, both project and market based, that get your company closer to these goals.
Developing an initial ESG strategy is only the beginning. At Mobius, we take a dynamic approach, suggesting regular volume adjustments based on production levels and ongoing strategy tweaks based on evolving regulations and market conditions. If production screeches to a temporary halt because a pandemic shutters the global economy, you need a nimble strategy for managing your credit and offset portfolio. The same is true when production returns.
ESG isn’t charity. It’s a necessary element of any energy and commodity intensive company’s strategy in the 21st Century. It’s about making every industry as green as possible without adversely impacting the global economy. The right ESG program doesn’t dress up your company to the public; it’s a smart, profitable approach to navigating a complex web of laws, incentives and market opportunities
It’s about being good corporate citizens to all stakeholders: customers, employees, investors, and regulators.