Mapping the oil and gas industry to the Sustainable Development Goals: An Atlas – SDGs 1-17.
Description
The United Nations Development Programme (UNDP), the International Finance Corporation (IFC) and IPIECA, the global oil and gas industry association for environmental and social issues, partnered to develop this Atlas. We believe our organizations represent distinct yet complementary perspectives on the public-private sector spectrum. By working together, we endeavoured to facilitate a shared understanding of how the oil and gas industry can most effectively support the achievement of the SDGs and the 2030 Agenda.
The Atlas offers a broad overview of opportunities and challenges, in order to demonstrate the actual and potential contributions of every part of the oil and gas sector to the achievement of the SDGs—from exploration and production through to pipelines, refining, transportation and retail. The Atlas outlines the typical roles and responsibilities of key stakeholders in enhancing the industry’s contribution to sustainable development. It presents examples of good practice in the industry, alongside existing knowledge and resources on sustainable development that could help the industry make useful contributions to the SDGs.<br />
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The Atlas presents the SDGs goal by goal, focusing on the contribution the oil and gas industry can make to each goal by integrating it into core business operations and by identifying opportunities for oil and gas companies to collaborate with other stakeholders and leverage experiences and resources in support of the goal. Each chapter also includes case studies of innovative and sustained efforts by companies, often working collaboratively. The practices outlined in the Atlas have been carried out over several years – many of which are ongoing.<br />
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Our hope is that this work will enable key oil and gas industry actors and their partners to identify how the industry can support countries in achieving the 2030 Agenda. UNDP, IFC and IPIECA hope that the Atlas will inspire action that leverages the transformative power of collaboration and partnership.
This Atlas is global-reaching. It highlights how the oil and gas industry can and does contribute to the SDGs at all stages of the oil and gas lifecycle and at different project levels. The Atlas includes ideas for and case studies of collaboration and partnerships which cover a range of geographical locations: Africa, Angola, Australia, Bolivia, Brazil, Canada, Colombia, Europe, France, Guyana, Indonesia, Italy, Kenya, Kuwait, Malaysia, Morocco, Mozambique, Nigeria, Oman, Papua New Guinea, Peru, Philippines, Qatar, Russia, Saudi Arabia, Tanzania, Trinidad and Tobago, Uganda, USA and Yemen.
These case studies are efforts by oil and gas companies, involving the consultation of and collaboration with several groups of key stakeholders: Governments, which are ultimately responsible for implementing the SDGs; Oil and gas companies, which have the responsibility to adhere to the law, respect human rights and minimize the negative impacts of their operations, and which have opportunities to maximize the positive contributions they make to society; Civil society organizations, which monitor the implementation of the SDGs, provide input from under-represented segments of society on the strategies for achieving the goals, disseminate information to the public and help to form multi-stakeholder partnerships; Local communities, which are often the stakeholders most directly affected by the impacts the SDGs seek to address; Development partners, including multilateral institutions and bilateral donors, which can provide financial, technical, managerial and capacity-building support to other stakeholders; Institutional investors, such as banks, pension funds and insurance companies, which have an opportunity to raise awareness of the SDGs and encourage companies throughout their investment chains to take actions that support the goals; Insurers, which, as risk managers and carriers, can contribute to the SDGs by embedding relevant goals in their decision-making and increasing understanding of how alignment with the SDGs can affect the financial performance of oil and gas companies.
The examples have involved the consultation of and collaboration with several groups of key stakeholders, which can take a number of approaches, outlined in the Atlas: Formal partnerships, generally codified by a signed agreement that details the respective duties and the intended results, are a common method of collaboration; Owing to their often-longstanding relationships with stakeholders ranging from governments and civil society to development partners and industry members, oil and gas companies are well positioned to use their reach to build connections between these groups and to facilitate collaboration to address complex challenges related to the SDGs; Information sharing is critical to meaningful engagement with local communities, the host government or civil society when designing and targeting development initiatives. The SDGs present a valuable platform to pursue multi-stakeholder global development agendas; Participation in collaborative efforts can include providing technical or project management skills, raising awareness or encouraging employee volunteerism; Companies can provide financial support for social investment programmes that address impacts related to the SDGs; Foundations, trusts or funds are another approach companies sometimes take to deliver community investments that successfully mobilize resources and stakeholders to address the SDGs.
A broad range of case studies are outlined in the Atlas, including local initiatives that address socio-economic and environmental challenges; Global programmes that raise awareness of sustainability issues; Investment in infrastructure, research, development and technology. Examples of these include partnerships between oil and gas companies and governments and the creation of new frameworks, policies and guidance to set standards for other companies and operators; Collaboration and engagement with local people, providing training courses, knowledge-sharing opportunities, creating direct jobs or microfinancing other small businesses and utilising existing services in these communities; Conserving natural habitats and vital local resources/incomes, and educating people/raising awareness of the importance of biodiversity and its conservation; Providing or encouraging equal opportunities for all parts of society; Providing access to energy, clean water, and a means to understanding and preventing serious health risks; Adopting low carbon emissions initiatives and reducing pollution, investing in alternative fuels and increasing the use of waste products. Companies will see initiatives they are already implementing or in which they are already participating, but will also discover new links between their existing activities and the SDGs. Some may find inspiration to try something completely new. Civil society and communities may uncover approaches in the Atlas that help them to support new partnerships or initiatives. National and local governments may see opportunities to link policies, regulatory activity and funding to the SDGs. By mapping the linkages between the oil and gas industry and the SDGs, the Atlas encourages oil and gas companies to further incorporate relevant SDGs into their business and operations, validate their current efforts and spark new ideas. If replicated and applied widely, the practices and examples presented in the Atlas could make important contributions to the SDGs.
The Atlas aims to facilitate three outcomes: Enhanced understanding of the relationship between the SDGs and the oil and gas industry; Increased awareness of the opportunities and challenges that the SDGs pose for the oil and gas industry and its stakeholders, and the ways in which the industry might address them; Multi-stakeholder dialogue and collaboration towards enhancing the contribution of the oil and gas sector to the achievement of the SDGs.
Achieving sustainable development requires multisectoral and multi-disciplinary approaches and many of the challenges the SDGs address are beyond an individual company’s capabilities or control. To realize the full potential to contribute to the achievement of the goals, oil and gas companies should engage in meaningful multi-stakeholder dialogue with relevant actors locally and nationally to identify joint SDG priorities and collectively define potential coordinated responses to the SDGs in the local context. In addition to what we hope will be broader and more comprehensive uptake of the SDGs among oil and gas companies globally, success will also require substantial and sustained partnership between national and local governments, the private sector, communities and civil society, development agencies and other stakeholders.
A particular challenge for the industry is its role in climate change. While oil and gas have enabled industrialization and human development, their use has also contributed to the rise in atmospheric carbon dioxide, which in turn has contributed to a warming of the climate system. By endorsing the 2030 Agenda, the world agreed to deliver the SDGs while also addressing the risks of climate change. The Atlas emphasizes that the oil and gas industry must be a key part of the solution to address climate change. While there is no single pathway to a net-zero GHG emissions future, the Atlas presents a number of actions that could contribute to the transition in order to stabilize atmospheric GHG concentrations and global temperatures in line with the Paris climate agreement.
The relevance of each SDG to a company depends on a number of variables, including the location, size, duration, project stage and public policies governing the company’s activities, as well as the company’s position in the value chain. Some SDGs might apply to a company globally, while others might only be relevant at the operational level, or to certain projects, or at certain stages of a project’s lifecycle. For example, SDGs prioritized during the exploration stage could be different to those prioritized during the production stage.
Different implications and challenges will apply for companies conducting different operations. Different types of companies will need to prioritize and operationalize the SDGs in different ways. The direct impacts of the operations of a non-integrated company focused on one aspect of the industry, for instance, oil exploration, will differ from those of a company solely refining crude oil and, as a result, the companies will differ on how they prioritize the SDGs. Integrated companies, which work on all aspects of the chain from upstream to downstream, will have direct impacts on a broader range of SDGs. In addition, service companies may have potential impacts on a number of the SDGs, based on the type and location of services they provide to the industry. Finally, prioritization of the SDGs by state-owned or national oil companies (NOCs), which often have exclusive control of that country’s oil and gas resources, may be similar to that of international oil companies (IOCs). NOCs may also have similar priorities to those of their respective governments, enabling them to align with national implementation efforts to address the SDGs.
Some successful case studies outlined in the Atlas have contributed to socio-economic sustainability and resilience. For example, several projects have provided local opportunities for jobs, education, trade and therefore have contributed to economic development in these areas. Some companies have set up programmes to utilise waste products and excess energy, of which some have resulted in successful cost-effective partnerships between local businesses and oil and gas operations. Several companies have also implemented more energy-efficient operations and practices that reduce excess emissions in order to conserve the environment and protect local resources and incomes. Through collaborations, knowledge-sharing, partnerships and joint initiatives with other parts of society, new policies, frameworks and guidance have been developed to encourage widespread adoption of good practice in industry at all stages of the project lifecyle.
Some overall conclusions from the Atlas that can guide action and stimulate further debate and research include: The oil and gas industry has the potential to contribute to all 17 SDGs; The scope and nature of typical oil and gas activities point to some SDGs where there are particularly strong opportunities to contribute; There are opportunities to integrate SDGs into core business activities of oil and gas companies; Oil and gas companies can benefit from collaborating with stakeholders to broaden their impact and enhance their ability to leverage additional resources to achieve the SDGs; The SDGs are frequently interlinked and indivisible, requiring approaches that ensure synergies and manage trade-offs.
SDGS & Targets
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Resources mobilized
Partnership Progress
| Name | Description |
|---|---|
| 14.1 | By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution |
| 14.2 | By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans |
| 14.3 | Minimize and address the impacts of ocean acidification, including through enhanced scientific cooperation at all levels |
| 14.7 | By 2030, increase the economic benefits to Small Island developing States and least developed countries from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture and tourism |
| 14.a | Increase scientific knowledge, develop research capacity and transfer marine technology, taking into account the Intergovernmental Oceanographic Commission Criteria and Guidelines on the Transfer of Marine Technology, in order to improve ocean health and to enhance the contribution of marine biodiversity to the development of developing countries, in particular small island developing States and least developed countries |
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Amy Collins, Communications Manager