July 9, 2024
Discover how oil and gas sustainability software can help maximize your return on investment.
According to a recent Nasdaq report, organizations are under increasing pressure to demonstrate ESG and sustainability excellence—and are investing in software to do so. Nasdaq surveyed 150 sustainability, finance, and legal executives to understand how organizations use ESG and sustainability data management and reporting software. Respondents reported a full ROI within 3 years of software implementation. The time to value will likely shorten with more software use cases and as teams further leverage its capabilities to meet changing ESG and sustainability demands.
Some of the benefits derived from using software include:- advantages in preparing for reporting requirements
- improving cross-functional collaboration
- integrating software into risk-mitigation strategies
- understanding how to employ software to help meet ESG and sustainability performance goals
The research results tell the full story:
Reporting and Communications
86% of respondents report that using software improved the quality of ESG and sustainability reporting as well as stakeholder communications
Progress Toward KPIs
78% of respondents agreed the software improves their ability to manage progress to reach ESG and sustainability metricsData Collection and Validation
86% stated that software significantly helps collect data efficiently and supports the validation processRisk Mitigation
74% stated that using software helps mitigate risks related to inaccurate ESG and sustainability dataTime Savings
68% concurred they experience at least a 35% time saving when validating and ensuring data accuracy, including internal audit processes
Additional benefits include automation, engagement, and aligned decision-making.
Added Benefits of Oil and Gas Carbon Management Software
Though it's common for teams to believe that using high-level ESG software is enough, there are incremental benefits to leveraging a bespoke oil and gas platform to track source-level emissions.
When companies track each division's data on a custom-built oil and gas reporting platform, the ROI benefits compound:
Increased Operational Efficiencies
When operating in a complex upstream or midstream environment, the number of emissions factors is too many to track on spreadsheets. When teams can visualize, analyze, and forecast GHG by company vertical, the data provides valuable insights to help streamline decision-making that benefits the bottom line.
Optimize Supply Chain Opportunities
Process efficiency insights derive higher profit margins. By avoiding rework, errors, and manual labor, your teams can increase collaboration and make smarter business decisions.
Maximize Differentiated Gas Marketing
Today's gas trade market is global. Savvier suppliers leverage product value chain transparency to benefit from increased international demand and market premiums.
Reduce Wasted Product
Leaked gas — not only equates to sustainability incidents and environmental risks — but also to product loss. By keeping more product in the pipes, you increase your profitability.
Avoid "Super Emitter" Fines and GHG Taxes
Reputational risks are the biggest current challenges for oil and gas companies. For each ton of methane above the “waste emissions threshold,” the applicable facility must pay $900 in 2025 for its excess 2024 emissions, with the charge increasing to $1,200 in 2026 for 2025 excess emissions and to $1,500 in 2027 and each year beyond for the preceding year’s excess emissions.
Understanding the Benefits of Oil and Gas GHG Software
By using software specifically designed for the oil and gas sector, companies can improve their sustainability performance and reduce risks. This can lead to cost savings and operational efficiencies, as well as enhanced reputation and stakeholder trust.
Additionally, oil and gas sustainability software provides companies with valuable data and insights. It allows for better decision-making by providing real-time information on key metrics and performance indicators. This helps companies identify areas for improvement and implement targeted sustainability initiatives.
Overall, understanding the benefits of the software is essential for companies looking to maximize their return on investment in terms of sustainability and operational excellence.
Key Features to Look for in Oil and Gas GHG Software
When selecting oil and gas sustainability software, there are several key features to consider. These features can greatly impact the effectiveness and efficiency of the software in driving sustainability performance.
Firstly, the software should have robust data management capabilities. It should be able to handle large volumes of data from various sources, such as environmental monitoring systems. The software should also be able to analyze and visualize the data in a user-friendly way, allowing for easy interpretation and reporting. Easier data interpretation translates into greater operational efficiencies.
Secondly, integration capabilities are crucial. The software should be able to integrate with existing systems and processes. This ensures seamless data flow and avoids duplication of efforts.
Furthermore, the software should have advanced reporting and analytics features. It should be able to generate comprehensive reports and dashboards that provide insights into key sustainability metrics and trends. This allows for better decision-making and performance tracking.
Finally, user-friendliness and ease of implementation are important considerations. The software should have an intuitive interface and be easy to use for all stakeholders, from sustainability managers to field operators. The software provider should also offer adequate training and support, if requested, to ensure successful implementation and adoption.
By looking for these key features in oil and gas sustainability software, companies can choose a solution that best meets their needs and maximizes their return on investment.
Measuring ROI: How to Track the Impact of Software
Measuring the return on investment (ROI) of oil and gas sustainability software is essential to understand its effectiveness and value. There are several ways to track the impact of sustainability software and measure its ROI.
Firstly, companies can track key performance indicators (KPIs) related to sustainability, including greenhouse gas emissions. By comparing these metrics before and after implementing the software, companies can assess the impact and calculate the ROI.
Additionally, companies can analyze cost savings and operational efficiencies achieved through the use of sustainability software. For example, the software may help identify opportunities for energy savings or reduce the time and resources required for compliance reporting. It may also open incremental gas marketing opportunities that didn't exist before having auditable emission data on record. By quantifying these savings, companies can determine the financial ROI of the software.
Overall, tracking the impact of sustainability software and measuring its ROI requires a combination of quantitative and qualitative data. By using a systematic approach, companies can gain a clear understanding of the value and benefits provided by the software.
Tips for Implementing Oil and Gas Software Successfully
Implementing oil and gas sustainability software successfully requires careful planning and execution. Here are some tips to help companies achieve a smooth implementation:
1. Define clear objectives: Before implementing the software, companies should define their sustainability goals and objectives. This will help guide the selection and configuration of the software to ensure it aligns with the company's specific needs.
2. Engage key stakeholders: It is important to involve key stakeholders throughout the implementation process. This includes sustainability managers, IT teams, operations personnel, and external consultants. By involving all relevant parties, companies can ensure that the software meets their requirements and is effectively integrated into existing systems and processes.
3. Provide adequate training and support: To ensure the successful adoption of the software, companies should provide comprehensive training and ongoing support to users. This will help build confidence and competence in using the software, maximizing its potential benefits.
4. Monitor and evaluate performance: After implementation, it is crucial to monitor and evaluate the performance of the software. This includes tracking key metrics, soliciting feedback from users, and conducting periodic reviews. By continuously monitoring performance, companies can identify areas for improvement and make necessary adjustments.
By following these tips, companies can increase the chances of successful implementation and maximize the ROI of oil and gas sustainability software.
If your team is currently exploring the economic benefits of incorporating emissions management software into your operations, we invite you to connect with Envana's oil and gas experts. We'll help guide you through the advantages of adding O&G GHG software to your organization during a 15-minute complimentary conversation. We're interested to hear where you are in your current GHG reporting process. Together, we'll explore how we can help you accomplish your sustainability goals efficiently, on time, and within budget. Reach out to an Envana team member today.
