“ESG” may be an overused buzzword, but still there are many important reasons why companies should focus on improving their performance across environmental, social and governance factors. Acting as a responsible corporate citizen is one reason. Another is the fact that many strategies that fall under the ESG umbrella are simply good business practices.
I like to use the term “practical ESG” to describe policies that make sense from a business perspective—and happen to align with ESG principles. As Impact’s CEO, I’m proud of the practical ESG framework we’ve developed over the years, beginning long before that acronym became popular.
Minimizing the Energy Industry’s Environmental Footprint
Impact’s flagship Wellbore Shielding® products prevent fluid loss into the drilled formation, so environmental protection aligns with our business interests at a very basic level. There are also many smaller ways our work benefits both our company and our shared ecosystem.
- Producing green products – Our fluid solutions go far beyond meeting compliance standards, delivering low toxicity and high biodegradability to minimize environmental impact. This practice benefits our business by positioning Impact ahead of the curve as environmental regulations grow increasingly stricter.
- Promoting renewable energy – The world’s energy mix is changing in response to climate change concerns. Even the largest oil and gas producers are diversifying their portfolios with significant investments in green energy sources. Impact is capitalizing on this trend by expanding the market for our Wellbore Shielding® solutions to include geothermal and mining applications.
- Sourcing raw materials responsibly – Our product development process prioritizes sustainable raw material sourcing. This approach protects scarce resources while ensuring the product components we need are plentiful.
Empowering Employees & Strengthening Communities
Impact’s social initiatives affirm our commitment to giving back to the communities where we live and work, and where our products are deployed. We believe strongly in philanthropy, but we also benefit from this work in some important ways.
- Giving to nonprofits – Impact has given more than $1 million to charitable organizations across the globe over the past decade. These donations don’t just help the recipients. By strengthening the communities where Impact is active, we’re helping to promote the long-term health of our business.
- Supporting our employees’ efforts – Impact encourages employees to engage in both charitable giving and volunteer work. We do this by matching their qualified gifts dollar for dollar, and providing paid hours for them to work with community organizations they care about. This practice helps to make our team feel valued and empowered, promoting employee retention.
Providing Fair Treatment & Full Transparency
Our governance structure at Impact reflects our commitment to treating our employees fairly, promoting diversity in a variety of ways and providing robust transparency to all stakeholders.
- Ensuring fair and equal pay – Impact is committed to providing equal pay and benefits to all team members regardless of their gender or ethnicity. We also offer free healthcare coverage to employees. Compensating our employees fairly is not only the right thing to do—it’s also critical to retaining top talent, especially in today’s historically tight labor market.
- Fostering a diverse workforce – Our employees represent at least 15 unique nationalities, with a higher representation of females compared to industry standards. Over the years, I’ve found inclusion is key to fostering a positive and productive corporate culture, ensuring we approach problems from a variety of perspectives and continually learn from one other.
- Communicating openly – We provide transparency through meetings with employee stakeholders, annual engagements with external auditors, and regular performance updates for all company partners. Keeping stakeholders informed is essential to building and maintaining strong relationships, whether internal or external.
In conclusion, “practical ESG” is not just a theory at Impact. It is a living, breathing strategy that permeates our decision-making and operations. Our dedication to integrating environmental, social and governance considerations into our business model has yielded tangible benefits—both for our stakeholders and for the wider community. Moreover, our practical ESG approach has helped us mitigate risks and identify opportunities that a narrow focus on short-term profits might miss. We have proven that a commitment to ESG is not at odds with profitability; rather, it enhances it, ensuring that we can thrive in a rapidly changing global marketplace while contributing to the well-being of society and the planet.