MetaVu, Inc.

Measuring return on environment (in the oil and gas industry)

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Organizations, no matter the size or industry, have stakeholders. Those stakeholders, internal or external, have expectations for a tangible return on their investment. Measuring a Return on Environment (RoE) is about generating and executing the strategy and associated metrics to build the business case for EHS investments. Outcomes such as sustained shareholder return, increased stakeholder value creation, mitigated compliance risk, and improved stakeholder reputation all contribute to the ability of an organization to maintain its “Social License to Operate”. Measuring that RoE is about transforming corporate culture to no longer simply view environmental health & safety (EHS) performance as a necessary cost center, but using tangible metrics to provide an opportunity to actually improve its position in the competitive market. By moving beyond simply reactively 'managing' EHS performance, corporations have been able to carve a competitive position in their industry by leveraging their proactive culture to generate tangible outcomes for their stakeholders.

So how do organizations transform their corporate culture and become an industry leader? The answer lies in their ability to manage and report their key EHS performance indicators. This paper describes a study of publically available reporting trends in the upstream, midstream, and downstream. The study found that even if organizations do track the key metrics, many fail to publicly report them. Failure to report is a statement in itself. Fewer than 30% of the metrics deemed 'essential' by international industry standards are commonly publicly reported. This leaves a significant gap for any industry leader to capitalize on. This paper will review the:

  • Challenges & Benefits of Reporting
  • Trends in the Industry
  • A Review of Utilizing Database Tools to Accurately Track & Report Metrics
  • Metrics Throughout the Organizational Strategy to Generate Organizational Effectiveness

Knowing and reporting the key EHS performance indicators can add significant value to the organization. By defining the paybacks the corporation seeks, and knowing the associated metrics to track and report, organizations can actually achieve operational excellence.

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