The NSTA is committed to actively promote the importance of ESG for investors, supporting clarity in ESG disclosure and reporting, and working with industry in the development of exemplar ESG practices.

NSTA ESG Taskforce

The NSTA set up a cross industry/investor and lender ESG taskforce in 2020 when it was clear from investor/lender engagement that there was a gap between investor expectations and what was actually being reported by industry.

The Taskforce initially focused on the ‘E’ of ESG, in light of a perceived lack of standardised metrics that were manageable, repeatable, and comparable for industry and investors. It agreed on a series of expectations for the future direction companies should take:

  • Operators and licensees to disclose climate related data in their financial reports, and/or websites
  • Industry to be mindful of the gap between investor expectations and what industry are currently reporting and we will encourage and ensure better disclosure & transparency
  • Disclosure should both be quantitative and qualitative with signalled improvements over time
  • Senior leadership teams to set the tone at company strategy level

The Taskforce agreed an outline for optimal ESG reporting and several key indicators which it recommended that operators and licensees align to, and be ready to report in Q1 22, alongside the publication of their 2021 full year audited financial reports financial reports.

Since then, the NSTA and its Taskforce has worked closely with industry in understanding key challenges and issues facing industry in its ESG disclosures and works with Licensees to assist and support ESG Reporting.

It has looked at a variety of challenges facing the sector such as the continued need for robust and consistent data sets, the importance of bringing the supply chain into the ESG journey and the need for collaboration and communication at all levels, understanding apparent inconsistencies in ESG ratings and the various approaches and methodologies used, and the fast-evolving regulatory landscape.

It is committed to providing expectations and support to industry and this is achieved through the use of open letters to industry and wider interested parties, as well as roundtable discussions and workshops.

Open Letters

2024 Open Letter on ESG Data Sharing

On 22 February 2024, the NSTA wrote an open letter to licensees urging them to improve their ESG reporting to promote trust and encourage investment in the industry. 

The letter identifies four current issues with ESG Data sharing between the participants of joint ventures which can result in some partners finding it difficult to comply with their ESG reporting obligations and suggests possible solutions.  The letter can be viewed here.

2022 Open Letter on Importance of high-quality ESG disclosure

On 31 March 2022, Joanne Edgeler, Head of Licensee Governance and ESG, NSTA and Chair, NSTA ESG Taskforce, sent an open letter to all licensees urging them to focus on high-quality ESG disclosure and reporting to demonstrate the UKCS is an attractive investment proposition for investors and lenders. This will assist in maintaining investor confidence in both oil & gas and the energy transition and provide continued access to financial capital.  The letter can be viewed here. 

NSTA ESG Roundtable series

At the request of the ESG Taskforce membership and wider industry partners as well as interested parties, a new series of extended ESG Taskforce Roundtables was launched in 2023.

Under Chatham House rules, these quarterly, invitation-only events allow the NSTA to invite a wider audience to participate in a highly beneficial Roundtable deep dive discussion on certain key topics. These are invaluable in sharing case studies, best practices, and hearing from subject matter experts to continuously support, drive and assist in ESG Reporting. For further information, please contact correspondence@nstauthority.co.uk

2024

  1. March 2024 ESG Ratings
  2. September 2024 TNFD Disclosure
  3. December 2024 Audit & Assurance of ESG Reports

2023

  1. June 2023 ESG Data
  2. November 2023 Supply Chain

ESG Taskforce Materials

  1. The March 2021 Taskforce recommendations can be viewed here
  2. ESG Taskforce revised Terms of Reference

NSTA ESG Disclosure Reports

  1. On 15 December 2022, the NSTA published its inaugural ESG Disclosure Report, which contained recommendations to help the oil and gas sector continue to attract investment. Read the report here.
  2. On 19 July 2024, the NSTA published its second ESG Disclosure Report, which found that many of the 29 North Sea licensees included in the analysis are following good practice across key areas of ESG reporting and are on the right track, though there is still plenty of room for improvement. Read the report here.