In 2017, EIG contributed to the Environmental Defense Fund (EDF) / PRI’s “Investor’s Guide to Methane: Engaging with Oil and Gas Companies to Manage a Rising Risk”. Through this Guide, the EDF and PRI provide “constructive tools for investors to engage with oil and gas companies on methane reporting and mitigation, to engage with senior management in constructive dialogue, and to identify concrete actions to improve methane performance”.
Additionally, EIG’s ESG Committee has been in active dialogue with the EDF to learn best practices for emissions measurement and reduction. EIG is taking proactive steps to understand new investment and existing portfolio companies’ methane emissions and practices, and in 2019, EIG began requiring all upstream companies to complete methane emissions questionnaires to in order to track emissions from EIG portfolio companies. Based on these discussions with and information from portfolio companies, EIG plans to assess overall portfolio risk to (i) reputation (ii) basin or state-specific regulatory requirements and (i) economics. EIG aims to lead and leverage its reputation and network amongst upstream and midstream capital provider peers to create or participate in a coalition by which methane emission best practices become standardized. EIG has met with two leading private equity firms to discuss coalition or partnership efforts, and is currently collaborating with partners to host a Methane Emissions Summit in the coming months in which best practices and new technologies are shared across private equity firms, upstream/midstream operators, and technology or service companies.