3578 Circular economy indicators in the oil and gas industry

Overview:

The EFRAG is developing industry-specific standards, including for the oil and gas sector, and an exposure draft was published in June 2024 (Exposure Draft ESRS Oil and Gas V3.1, EFRAG). Proposed indicators from the draft ESRS Oil and Gas industry-specific guidance have been included throughout the report. Please note that while the EFRAG ESRS Oil and Gas specific guidance has not yet been finalised, draft indicators are included to provide users with early insight into key global emerging regulations. These metrics may not be included in the final standard, and the report developers and publishers may update this report as the guidance and experience develop. Specifically, the value of using the ‘volume of crude oil traded’ as an outflow metric is being reconsidered by the group and is likely to be removed from the list of recommended metrics.

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Developed in partnership with Ipieca, this guidance presents the first oil and gas specific set of circularity indicators, bringing together elements from a number of existing circular economy (CE) frameworks and providing qualitative and quantitative CE indicators to enable oil and gas companies to measure the circularity of their assets and material in/out flows.

Through aligning the industry’s understanding of CE and providing a general approach to measuring circularity, the guidance ensures adherence to environmental standards, encourages innovation and fosters collaboration.

Increasing the circularity of their production processes and products can support oil and gas companies to produce the energy the world needs, while reducing impacts on natural resources and biodiversity, and cutting emissions.

As well as providing climate, environmental and social benefits, CE helps builds long-term resilience and generates business and economic opportunities.

This report helps oil and gas industry CE SMEs, waste professionals and corporate sustainability units to:

• Improve understanding of the various CE frameworks available
• Develop a CE strategy
• Improve their companies’ CE performance
• Measure, assess, report and steer on circularity