ESG: To sound good, or to be good?

Abstract

Technip Energies formed as a separate energy and technology company in 2021 focussed on supporting the energy transition. As part of the company formation, environmental, social and governance (ESG) principles through the sustainability strategy were recognised as needing to be embedded into processes and business development from day 1, noting the company is subject to current and upcoming EU reporting regulations for non-financial disclosure. This paper serves as a case study of how our company implemented ESG principles and requirements into the business strategy aligned with internal and external stakeholders and provides interim commentary on the relative success of the program, and future areas of focus on this journey. This paper explains the following: how our journey of developing our ESG Roadmap, ESG Scorecard and corporate structure, aligned with our company’s purpose of supporting the energy transition; how we have implemented a cultural change program similar to the principles previously adopted in the organisation for health and safety engineering management; and how the metrics associated with ESG reporting are ever expanding, especially as preparations are made to align with EU reporting regulations, and how digitalisation is required to support this; the processes adopted for measuring Scope 3 emissions, and how Scope 3 emissions can be targeted to demonstrate ‘being good’; and how we support ESG rating agencies to accurately report the ESG risk of our company given the importance of this to investors.