For the fourth consecutive year, Shell is the world's best oil company in sustainability, social responsibility (CSR), corporate governance, ethics and transparency, according to the 4th annual oil/gas ranking by the sustainability research and rating firm Management & Excellence (M&E), Madrid.
The annual M&E ranking measures oil/gas companies' compliance with 386 relevant international standards such as those of SEC, Sarbanes-Oxley, national laws, Dow Jones Sustainability Index, OECD, industry benchmarks, GRI, ILO, ISO, IUCN, reserves accounting, Global Compact, Millennium Goals, and others.
Most Sustainable Oil Companies 2007 (compliance scores)
1. Shell 90.16%
2. Petrobras 89.64%
3. Total 86.01%
4. BP 81.35%
5. Repsol 74.35%
6. ENI 71.24%
7. ConocoPhilips 67.36%
8. OMV 65.54%
9. Pemex 56.99%
10. Lukoil 51.55%
As new pipelines (e.g. Brazil-Bolivia of Petrobras) and higher volumes need to be refined and transported, companies are increasing social investments (e.g. Shell up over 20% annually) as one way of producing goodwill and thus hedging increased risks in the case of incidents. Employee training and HSE standards drove accidents and fatalities down. Corruption dropped at Shell, for example, which fired numerous employees over a bribery affair in Nigeria.
Total improves most over 2006 (+10%), followed by ENI and Petrobras while Shell only inches up (+1.15%). Shell operates in 76 countries, making it harder to broadly improve. Companies such as Petrobras, with refining operations in few countries, can concentrate their community and sustainability efforts and thus excel more easily. BP falls to 4th place mainly due to its Texas City refinery accident and the Baker Report.
Most Sustainable Oil SERVICE Companies 2007
1. Schlumberger 71.39%
2. Halliburton 65.24%
3. Baker Hughes 44.92%
As oil/gas companies have upped ethical standards for suppliers, the 2007 M&E study includes an assessment of the leading oil/gas service companies Schlumberger, Halliburton and Baker Hughes. All excel at corporate governance and financials, but only the top two, Schlumberger and Halliburton, perform in human resources, sustainability initiatives and community programs. Service companies generally underperform the oil/gas companies themselves, but their business is less risky, not owning land, refineries and transportation systems. This reduces their need for the same dimension of sustainability programs.