Sustainability Reporting Guidance for the Oil and Gas Industry: Communicating sustainability performance

Background

The Sustainability Reporting Guidance for the Oil and Gas Industry was developed to provide a sector-specific framework for sustainability reporting. While many organizations use general reporting standards, the guidance focuses on issues that are particularly relevant to oil and gas operations, including greenhouse gas emissions, methane management, flaring, process safety, biodiversity, human rights, and community engagement. The guidance is intended for both companies beginning their sustainability reporting journey and organizations with mature reporting programs. It incorporates industry expertise alongside input from independent stakeholders and seeks to improve consistency and comparability across sustainability disclosures. The current fifth edition was published in 2025 and introduced a new section addressing the concept of a "just transition," reflecting increasing stakeholder interest in how companies manage the social dimensions of the energy transition.

Key Provisions

The guidance is organized into several modules covering key sustainability topics and recommended disclosure areas. Companies are encouraged to report on material issues relevant to their operations and stakeholders. Key provisions include:

• Reporting process and materiality - Guidance is provided on stakeholder engagement, materiality assessment, reporting boundaries, assurance, and report development.

• Governance and business ethics - Recommended disclosures cover governance structures, management systems, anti-corruption measures, transparency of payments to governments, and public policy engagement.

• Climate change and energy reporting - Companies are encouraged to disclose climate governance, climate-related risks and opportunities, greenhouse gas emissions, methane emissions, energy use, flaring, and lower-carbon technologies.

• Environmental performance - The framework includes indicators related to freshwater use, water discharges, biodiversity management, protected areas, air emissions, spills, materials management, and decommissioning activities.

• Safety, health, and security - Reporting topics include occupational safety, workforce health, process safety, transport safety, product stewardship, and security risk management.

• Social performance and human rights - The module covers issues like human rights, due diligence, labour practices, workforce diversity, employee engagement, and training.

Current Status

The Sustainability Reporting Guidance for the Oil and Gas Industry remains one of the most widely referenced sustainability reporting frameworks within the sector. It is used by oil and gas companies of different sizes and across different regions to structure mandatory reporting requirements and support voluntary ESG disclosures (it is referenced, for example, in ExxonMobil's 2025 Sustainability Report). The fifth edition, published in June 2025, reflects evolving expectations around climate reporting, social performance, and energy transition issues. Although the guidance itself is voluntary, it continues to evolve alongside developments in sustainability reporting regulations and frameworks, helping companies align industry-specific disclosures with broader ESG reporting expectations.