WASHINGTON – To provide investors and the public with transparency and consistency for key upstream ESG indicators, the American Exploration and Production Council (AXPC) has launched the AXPC ESG Metrics Framework and Template.
“Robust ESG reporting is important to both companies and stakeholders, and while there are a number of frameworks available, there is no standardized framework for reporting consistent metrics with consistent methodologies for the upstream oil and gas industry,” said AXPC CEO Anne Bradbury. “AXPC’s ESG metrics and framework reiterates the upstream oil and gas industry’s commitment to sustainability, transparency, and constant improvement.”
AXPC represents the largest onshore independent oil and gas producers in the U.S. Data from IHS Markit shows that U.S. independents combined produce about 83 percent of the nation’s oil production and 90 percent of its natural gas and natural gas liquids (NGL).
Oil and gas companies routinely report on ESG performance, demonstrating their accountability for addressing challenges and risks affecting the industry, the environment, and our commitment to sustainable operations. AXPC’s ESG Framework focuses primarily on environmental metrics at this time and centers around five key areas that AXPC companies believe are important to capturing more consistent and transparent reporting across the upstream industry: greenhouse gas (GHG) emissions, flaring, spills, water use, and safety:
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- Greenhouse Gas Emissions: AXPC’s Framework seeks to provide a common methodology for GHG emissions related metrics that are clearly defined using EPA’s GHG Reporting Program principles. The metrics include GHG emissions and intensity, and methane emissions and intensity.
- Flaring: Flaring metrics focus on an operator’s flaring activity per unit of natural gas production and barrels of oil equivalent production and is intended to capture high-pressure flaring of wellhead gas. Stakeholders can also calculate customized intensity metrics with separate component reporting.
- Spills: AXPC’s spills metric establishes a single spill intensity metric that encompasses all produced liquids spilled outside of impermeable secondary containment greater than or equal to one barrel.
- Water Use: AXPC’s water use metric grouping includes three metrics: fresh water intensity, water recycle rate, and water stress assessment. Fresh water intensity provides data about fresh water consumed as compared to production. The water recycle rate provides a percentage calculation of a company’s recycled water, as compared with total water consumption. The water stress assessment provides information about whether companies consider water stress in the areas in which they operate.
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- Safety: AXPC’s safety metrics group focuses on the Occupational Safety and Health Administration’s Total Recordable Incident Rate (TRIR) calculations. Incident rates can be used to show the relative level of injuries and illnesses among different industries, firms, or operations within a single firm. AXPC’s metrics use a common base and a common time frame, to help determine areas where progress is being made to prevent work-related injuries and illnesses. The TRIR metrics grouping includes employee TRIR, contractor TRIR and a combined metric that includes both.
The Framework, available for use on a voluntary basis in sustainability reporting this year, is intended to supplement, not supplant, any individual company’s efforts, and may be updated periodically as needed.
To view AXPC’s ESG Framework, please visit here.
About the American Exploration and Production Council:
AXPC is a national trade association representing the largest independent oil and natural gas exploration and production companies in the United States. We lead the world in the cleanest and safest onshore production of oil and gas, while supporting millions of Americans in high-paying jobs and investing a wealth of resources in our communities. Learn more at https://axpc.org/
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