The Risk of Doing Nothing: A Reflection on Sustainability Reporting

The recent decision by the SEC to pause the implementation of new sustainability reporting guidelines, following a petition from Liberty Energy and Nomand Proppant, has brought to the forefront critical questions about the implications of inaction in addressing environmental issues. The petition argues that the costs of compliance could lead to "irreparable injury," but it is important to delve deeper into the context. For example, Liberty Energy closed out 2023 with impressive financial figures, including $4.7 billion in revenue and a net income of $556 million, translating to $3.15 fully diluted earnings per share (EPS). These numbers represent a significant increase of 39% and 49% respectively.

“https://investors.libertyfrac.com/press-releases/2024/01-24-2024-213422100”

Furthermore, while the petition highlights financial concerns, it is essential to consider the broader global landscape. Many European countries have already implemented similar reporting measures, underscoring the growing recognition of the importance of assessing and mitigating negative externalities. This shift in perspective emphasizes the need to evaluate how our actions impact not just our profit margins, but also the environment, including air quality, water resources, soil health, and overall societal well-being.

It is crucial to move beyond profit-centric thinking and prioritize environmental stewardship, especially in industries with substantial environmental footprints such as the petroleum sector. The historical focus on maximizing profits has often come at the expense of environmental sustainability, leading to detrimental consequences that are increasingly difficult to ignore.

Ignoring sustainability measures and continuing with business as usual only heightens the risks of environmental degradation. Pollution transcends geographical boundaries and affects communities worldwide, irrespective of their socioeconomic status. The alarming data on escalating atmospheric pollution and its ramifications on climate change necessitate urgent and decisive action.

The key message is clear: complacency is not an option. We possess the necessary technology, knowledge, and resources to tackle environmental challenges effectively. It is imperative to prioritize the collective well-being of our planet over short-term gains, fostering meaningful discussions and taking concrete actions towards a sustainable future. The potential risks of inaction far outweigh the challenges associated with implementing responsible environmental practices.