ESG - or Environmental, Social, and Governance - has become more important in recent years. It is the practice of investors incorporating and applying non-financial factors to their system of analysis when determining risk and growth opportunities.
ESG strategy in investments is part of the new wave of socially responsible investing. Taking on ESG practices has demonstrated several benefits to investors such as lower volatility, higher employee productivity, and reduced regulatory and legal interventions.
Environmental criteria may include how a company performs as a steward of nature. Social criteria can encompass a company’s relationships with their employees, suppliers, customers, and the communities in which it operates. Governance criteria are based on internal leadership, executive pay, audits, internal controls, and shareholder rights. Companies involved in the oil and gas industry have more frequently encountered the review of ESG criteria being applied to the vendor acceptance process. This may include a requirement of ESG reporting to disclose a how a company is implementing ESG strategy into their operations or how well they are meeting their ESG goals.
Flow Meters and Their Uses for ESG Reporting
ESG Reporting Goals
Flow meters are increasingly being used to help companies meet their environmental criteria for ESG reporting. Thermal mass flow meters from Fox Thermal can be used to track gas consumption or emissions at facilities. This data can be recorded, analyzed, and published online along with a statement regarding their usage or emissions reduction goals.
For example, Fox Thermal customers use our flow meters to proactively monitor their flare gas emissions and log the data to combat a potential negative ESG rating. A low ESG rating could negatively affect their ability to drill for and produce oil and gas, so their executive management has made ESG a priority.
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Visit the Fox Thermal ESG Statement page to learn more about Fox Thermal's commitment to ESG.