Current changes in investment strategy are focusing on ESG initiatives. Although this term is familiar in
global markets, it is new in the United States. This shift is causing American investors to ask, “what
exactly is ESG?”
The Environment, Social, and Governance (ESG) initiative began in 2004 when former UN Secretary-
General Kofi Annan invited over 50 CEOs of major financial institutions to participate in a joint initiative
under the auspices of the UN Global Compact. The goal was to find ways to integrate the environmental,
social, and governance efforts undertaken by companies into capital markets. Annan believed focusing
on these areas would make good business sense and lead to more sustainable markets and better
outcomes for societies.
The E in ESG considers how a company impacts the environment and its ability to mitigate risks. This
includes energy use, waste generation, pollution, conservation, and remediation. The S considers how a
business manages relationships with employees, suppliers, customers, and the communities where they
operate. This includes working conditions, safety programs, diversity, and local engagement. The G
considers the make-up of company leadership, internal controls, audits, and shareholder rights.
Currently, one out of every three dollars invested is tied to ESG. The shift currently underway in the
energy sector to address ESG concerns is like nothing we’ve ever seen before. Wall Street is driving this
train and each company must get on board.
As ironic as it may seem, the fossil fuel industry is fighting to survive, fending off attacks from every
direction. With a political environment based on the idea of an energy transition from traditional forms
to renewables as well as financial pressure from investors insisting companies address ESG
requirements, traditional drilling and production methods are no longer an option for producers. Finding
opportunities to reduce the carbon footprint of the extraction and production processes is vital for
As monetary sources lean into the ESG trend, financing and insurance options will be reliant on the
environmental and social influence of a given company. Governance policies will be scrutinized. Safety
programs and outcomes will be analyzed. Companies will be expected to look at how they impact the
environment and how they mitigate various risks while managing relationships with employees,
vendors, suppliers, customers, and local communities where they operate.
On the environmental side, examination of emissions in the energy value chain is forcing operators to
reduce their greenhouse gas impact. Fortunately, vapor recovery provides a solution to this problem
while creating a revenue stream for the producer.
Flogistix designs, builds, and maintains a variety of vapor recovery options. We use advanced
compressor technology and proprietary solutions to eradicate oil and gas vapors and put an end to the
need to vent or flare.
The data compiled by a Flogistix vapor recovery unit is valuable to those companies addressing ESG
concerns because the push for emissions data from investors and regulators is increasing. Utilizing a
Flogistix vapor recovery unit provides operators with this necessary data in real-time and in an accurate
and easy-to-use format. Our technology reduces emissions while providing increased safety at the well
site by keeping pressures in check.
Our main objective is to lead the movement to a low-carbon future with our innovative vapor recovery
technologies. We are advancing efforts to reduce environmental impacts through the use of specialized
computing systems and data streams.
While the current drive to energy transition is changing the oil and natural gas industry in ways many
never anticipated, technology developed by the Flogistix team provides vital statistics regarding
environmental sustainability. Flogistix data provides prompt and accurate emissions management
details suitable for ESG reporting.