1. MASTER IN ENVIRONMENTAL,SOCIAL AND
GOVERNANACE(ESG)
Aug’24 - Feb’25(MESG-4)
Sector- Oil & Gas
Assignment Group 3
Group Participants
Anand Saini RSN Sharma
Divya Tiwari S C Sharada
Kavin Sadvikar Saigitha Vijay
Navin Shankar Naik Saiyad Karar Husain
Nivetha Ramanujam Saket Kumar Vats
Prathmesh Pagare Shekhar Golla ESG
Rhea Thomas Suprikesh Kadlag
Kamal Waris Sowndarya
1
2. Content Index
2
List of companies
3
Company
Introduction
4
Risk and
opportunity
5
Stakeholder
process &
identification
7
Materiality
process and
assessment
9
ESG Strategy and
implementation
11
ESG Disclosure &
ratings
15
Sustainable
finance
intervention
18
ESG Score
20
Conclusion &
takeaway
22
3. Listed Oil and Gas
Companies in India &
Globally (Top 10)
►# Companies selected based on
top market cap in India & Globally
3
Sr. No Company Sr. No Company
Indian Global
1
Reliance Industries
Ltd.
1 Saudi Aramco
2
Oil and Natural Gas
Corporation (ONGC)
2 Exxon Mobil
3 Oil India Ltd. 3 Chevron
4 Petronet LNG Ltd. 4 PetroChina
5
Hindustan Oil
Exploration Company
Ltd.
5 Shell PLC
4. Company Introduction
4
S. No Parameter Reliance Shell PLC
1
Company
Overview
Founded in 1973, India's largest
conglomerate with interests in
petrochemicals, telecom, retail, and
renewable energy.
Established in 1907, Shell is a global energy giant
headquartered in the Netherlands, operating
across oil, gas, and renewables with a focus on
global energy transition.
2
Core Business
Areas
Focuses on refining, petrochemicals,
telecom (Jio), retail, media and
renewable energy (solar, hydrogen).
Focuses on oil and gas exploration, production,
refining, along with growing investments in
renewable energy (wind, solar, electric vehicle
infrastructure).
3
Market Position
and Reach
Global operations with strong market
presence in telecom (Jio) and retail.
A top global player in oil and gas, with operations
in over 70 countries and growing involvement in
clean energy solutions worldwide.
4
Financial
Performance
High revenue and profitability, with
growth driven by telecom and retail
sectors.
Consistently among the top revenue-generating
companies globally, with performance linked to oil
prices, while expanding clean energy
investments.
5
ESG Focus and
Sustainability
Committed to carbon neutrality by 2035,
with large investments in renewable
energy.
Committed to achieving net-zero emissions by
2050, Shell is focusing on reducing its carbon
footprint through renewable energy, biofuels, and
carbon capture technologies.
6 Global Ranking
Fortune Global 500 - #86
Forbes Global 2000 - #49
Fortune Global 500 - #13
Forbes Global 2000 - #17
5. Risk & Opportunities
5
Category
Reliance Shell
Risk Opportunity Risk Opportunity
Environmental
Climate Change Clean Energy Investment Climate Change Low-Carbon Energy
Managing
Environmental Impacts
Carbon Neutral goal Regulatory and Policy
Uncertainty
Carbon Capture and
Storage (CCS)
Energy Efficiency of
Operations
Energy Transition Technology Risks Energy Efficiency
Water and Effluent
Management
Circular Economy
Investment
Transition Risks Circular Economy
Ecosystem and
Biodiversity
Bio Innovation Waste management
Circular Economy Digital Services Fossil Fuel Dependency
Social
Disaster Preparedness
and Management
CSR and community
development
Community Relations Community Engagement
and Development
Health, Safety and
Employee Well-being
Education and skill
development
Human Rights Supply Chain Sustainability
Diversity and Inclusion Strengthening
Entrepreneurial and
Livelihood Capabilities
Social License to Operate Sustainable Development
Community
Development
Enhancing Access to
Basic
Entitlements for Social
Security
Health and safety
Labour Management Diversion and Inclusion Supply chain Safety
6. Risk & Opportunities
6
Category
Reliance Shell
Risk Opportunity Risk Opportunity
Social
Sustainable Supply Chain
Management
Innovation and technology
Human Rights
Customer Satisfaction
Talent Management
Governance
Data privacy and
cybersecurity
Strong Governance
Framework
Governance Failures Strong ESG Integration
Security and Asset
Management
Sustainability Reporting and
Transparency
Stakeholder Engagement Sustainability Reporting
Business Ethics, Integrity
and Transparency
Board Diversity and Ethics Cybersecurity Threats Cybersecurity Resilience
Regulatory Issues and
Compliance
Data Privacy Stakeholder Engagement
Grievance Redressal
Mechanisms
Corruption and Ethical
Issue
Strong Governance
Economic Performance Legal and Regulatory
Challenges
Code of Conduct
Raw Material Security
7. Stakeholder Engagement Process
7
Engagemen
t process
Identification
Prioritization
Dialogue and
consultation
Feedback
Integration
Tools Used
for
Engagement
Stakeholder
Surveys
Stakeholder
Engagement
Platforms
Public Reports
and
Disclosures
Engagemen
t Methods
Survey
Feedback
system
Partnership
and alliance
Meeting and
forum
8. Key Stakeholders
8
Reliance Shell Plc
Customers Investor Community
Employees Employees/Workforce/Pensioners
Shareholders Regulators/Governments
NGO & Communities
NGOs/Civil society stakeholders/Academia/Think
tanks
Suppliers Communities
Investors(Other than Shareholders) Customers
Regulators Suppliers/Strategic partners
9. Materiality Process
9
Objective:
To identify and prioritize the
most relevant ESG issues that
can impact business
performance and long-term
value creation.
Approach
Internal Assessment
Internal audits to assess which
ESG factors are critical to the
company’s operations.
Internal Assessment
Internal audits to assess which
ESG factors are critical to the
company’s operations.
Stakeholder Input
Stakeholder feedback plays a
crucial role in identifying
material issues, ensuring the
process reflects external
concerns.
15. Reliance-ESG Strategy & Implementation
15
Major Highlights
⮚ Committed to net zero by 2035
⮚ Green Energy Ecosystem with Giga
factories for solar energy, hydrogen
production, and battery storage
⮚ Focus on CO2 recycling as a valuable
resource through carbon capture and
utilization
⮚ Energy savings: 2.53 million GJ and 6.73
million GJ from renewable sources
⮚ Reliance pioneered chemically recycling
pyrolysis oil into circular polymers
⮚ ESG-driven decision-making is backed by
partnerships with global leaders in
energy transition
⮚ ₹1,592 Crore contributed towards CSR in
FY 2023-24
⮚ Focus on inclusive growth: Empowering
local communities, artisans, and small
businesses through retail platforms like
Swadesh
16. ESG Disclosure
16
Reliance
⮚ GRI, SASB, TCFD, BRSR and SDGs
aligned disclosures
⮚ Disclosure Highlights
⮚ Carbon Emissions: Reliance provides
detailed disclosure on its Scope 1, 2,
and some Scope 3 emissions, with a
commitment to net-zero by 2035.
⮚ Renewable Energy Projects: Detailed
updates on renewable energy capacity
(solar and hydrogen) and investments
in green technologies.
⮚ Social Impact: Disclosures on CSR
initiatives through Reliance
Foundation, addressing healthcare,
education, and rural development.
Shell PLC
⮚ GRI, TCFD, SASB, SDGs aligned
disclosures
⮚ Disclosure Highlights
⮚ Carbon Emissions: Shell is one of the
few oil majors that discloses all three
scopes of emissions comprehensively,
with specific reduction targets
⮚ Renewable Energy Projects:
Transparent reporting on investments
in wind, solar, biofuels, and hydrogen,
with a focus on meeting its 2050 net-
zero target.
⮚ Social and Human Rights: Detailed
disclosures on human rights due
diligence, community investments, and
safety metrics.
17. ESG Ratings
17
Rating Agency Reliance Shell PLC
MSCI
(Oct 23)
A-Average
A-Average
Sustainalytics
(May 24)
38.5 (High Risk)
Industry group Ranking-160/200
Global universe Ranking- 14570/16048
32.4(High Risk)
Industry group Ranking- 51/307
Global Ranking - 12553/16048
CDP Climate Change 2023 - A Climate Change 2023- B
S & P Global
18. ESG Performance and Key Takeaways
18
Company Strength Weekness
Reliance
⮚ Strong commitment to renewable
energy, with significant investments
in solar and green hydrogen.
⮚ Extensive CSR initiatives focusing on
healthcare, education, and rural
development through the Reliance
Foundation.
⮚ Improved carbon reporting and
disclosures, though still heavily
reliant on oil refining.
⮚ High environmental risk due to
petrochemical and refining
operations.
⮚ Moderate governance
performance, with opportunities
for greater transparency and
improved board-level oversight
on ESG issues.
Shell Plc
⮚ Comprehensive carbon emissions
disclosures (Scope 1, 2, and 3) and
strong alignment with net-zero by
2050.
⮚ Significant investments in renewable
energy (wind, solar, hydrogen) and
leadership in carbon capture.
⮚ Strong social and governance
practices, including human rights
due diligence and ethical supply
⮚ Legacy oil and gas operations
continue to pose reputational
and operational risks.
⮚ Medium risk in ESG due to
ongoing fossil fuel dependence,
despite renewable energy
investments.
19. Sustainable Finance Intervention
19
⮚ Sustainable finance refers to financial services and investments that take into account environmental,
social, and governance (ESG) criteria. It aims to promote long-term economic sustainability by
directing capital towards projects and companies that have positive social and environmental impacts,
while avoiding those that contribute to ESG risks.
Key Elements of Sustainable Finance in Line with ESG
⮚ Environmental: Investments focus on mitigating climate change, preserving biodiversity, reducing
pollution, and promoting sustainable use of resources. Examples include green bonds and renewable
energy projects.
⮚ Social: Investments aim to improve societal outcomes by supporting initiatives that foster community
development, human rights, labor standards, and access to essential services like healthcare and
education.
⮚ Governance: Good corporate governance is a cornerstone of sustainable finance. This includes
ensuring transparency, accountability, ethical business practices, and stakeholder engagement within
companies.
Types of Sustainable Finance Instruments
⮚ Green Bonds: These are bonds specifically earmarked for climate and environmental projects.
⮚ Sustainability-Linked Loans: Loans with interest rates tied to the borrower's ability to meet specific
ESG targets.
⮚ Social Bonds: Issued to fund projects with positive social outcomes, such as affordable housing or
education programs.
20. Sustainable Finance Intervention
20
Reliance
Finance
Type
Action
Green Bond
⮚ In 2022, Reliance issued $4
billion in bonds, with a focus on
green hydrogen and renewable
energy.
Clean Energy
⮚ $10 billion towards renewable
energy over the next 3 years.
⮚ Goal- 2035 target for net-zero
carbon emissions
ESG Linked ⮚ Financing tied to ESG targets,
focusing on carbon reduction
Partnerships
and
Collaborations
⮚ Collaborations with BP and
global institutions for clean
energy.
Circular
Economy
⮚ Investments in recycling,
green chemicals, and
sustainability.
Shell PLC
Finance Type Action
Transition
Bonds
⮚ Issued to fund
decarbonization and
transition to clean energy.
Climate-Aligned
Bonds
⮚ Sustainability-Linked
Bonds (SLBs) tied to
emission reduction targets.
Sustainable
Investments
⮚ $2-3 billion/year in
renewables (wind,
hydrogen, EV
infrastructure).
Carbon Capture
& Storage
(CCS)
⮚ Significant financing for
CCS to lower emissions.
Divestment
from Fossil
Fuels
⮚ Gradual divestment from
high-carbon assets for
green projects
