The 12 Pillars model of ESG: bringing practical clarity to ESG across the Australian gas industry
Jen Thompson A * and Matt Colquhoun B *A Australian Gas Industry Trust, Canberra, ACT, Australia.
B KPMG, Brisbane, Qld, Australia.
The APPEA Journal 63 S105-S108 https://doi.org/10.1071/AJ22125
Accepted: 7 March 2023 Published: 11 May 2023
© 2023 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.
Abstract
The rise of Environmental, Social and Governance (ESG) standards and the immense global challenges it brings are shaping the way we do business now and into the future. The elements of ESG are broad, dynamic and not always easily understood. There is no set definition of ESG nor a one-size-fits-all approach. This has resulted in piecemeal, fragmented and reactive initiatives implemented across strategy development, implementation, reporting and compliance. The lack of clearly defined, unified ESG approaches across the supply chain can often complicate investment, procurement, as well as government, shareholder and community relations. It is well known within the Australian gas industry that proactively and pragmatically addressing ESG concerns is pivotal to our position in the future energy mix, and a strategic focussed approach is required. This paper attempts to ‘cut through the noise’ and provide clarity around the ESG expectations being placed on the industry. We put forward a simple 12 Pillars model which can be used by all parts of the gas supply chain to improve the application of ESG principles to business operations. We delve into how each of these factors can be addressed across business operations using the 12 Pillars model. We consider the current opportunities under each pillar to aid a strategic and consistent approach by the industry, whilst being broad enough to be fluid as the industry faces future ESG challenges. This model could also underpin a standardised ESG mechanism for the industry, something that offers real benefits when it comes to monitoring and reporting.
Keywords: defining ESG, ESG, ESG and the Australian gas industry, ESG framework, ESG model, implementing ESG, measuring ESG, reporting on ESG.
Dr Jen Thompson, The Australian Gas Industry Trust. Jen is the CEO of the Australian Gas Industry Trust. She has a PhD in Business and a Masters degree in Educational Studies. She has a strong background in academia and government with more than 20 years’ experience working across research and strategy teams in mining and infrastructure. She represented Queensland on an array of COAG Energy Council committees including the Energy R&D Working Party and the Critical Minerals Taskforce. She now works closely with the International Gas Union representing Australia at several forums including the G20 Energy Group and the IGU R&D Innovation Committee. Her objective is to deliver education and research activities that are of value to the gas industry. She is a member of the AICD and the AIE. https://www.linkedin.com/in/jen-thompson-6b9b3221/. |
Matt Colquhoun, KPMG Australia. Matt is a Director within KPMG’s Engineering, Assets and Project Delivery Advisory Team. After an initial career in Defence as a Helicopter Pilot and Engineer, he has focussed his consulting career on asset-intensive sectors across resources, defence, infrastructure, aviation and all levels of government. Matt works with his clients to achieve improvements in Strategy, Operations, ESG and realisation of capital asset investment outcomes. He is passionate about the critical role that the resources sector will play in the energy transition over the next few decades. He is a Chartered Engineer, Admitted Lawyer and Certified Asset Management Assessor (CAMA) with Masters level Qualifications in Business Administration (UQ) and Project Management. https://home.kpmg/au/en/home/contacts/c/matthew-colquhoun.html. |
