TECHNICAL PROGRAMME | Energy Leadership – Future Pathways
ESG and Governance
Forum 28 | Hall 5 Digital Poster Plaza 5
14
October
11:30
13:30
UTC+3
This forum will delve into the integration of Environmental, Social, and Governance (ESG) criteria into corporate governance frameworks. Discussions will cover the importance of ESG factors in driving sustainable business practices and long-term value creation. The panel will explore best practices for ESG reporting, stakeholder engagement, and the role of governance in ensuring transparency and accountability. The forum will also highlight case studies demonstrating successful ESG implementation and its impact on corporate reputation and performance.
The Pars Special Economic Energy Zone (PSEEZ), as one of the world’s largest energy and petrochemical hubs, poses complex environmental and social governance challenges. This study investigates industrial noise exposure as a critical ESG (Environmental, Social, and Governance) parameter, assessing the effectiveness of current noise management regulations in protecting local communities. Sound levels were monitored across 60 locations during three-time intervals, and spatial analysis using ArcGIS enabled the development of detailed noise distribution maps. The results identified five primary noise sources: road traffic, flares, diesel generators, compressors, and industrial machinery. While noise levels near flares and compressors exceeded thresholds, their impact on residential zones remained limited. However, the desalination plant was identified as the dominant contributor to urban noise exposure.
Mitigation measures such as acoustic barriers and green buffers proved effective in maintaining compliance with existing standards. The study concludes that although PSEEZ hosts a high concentration of energy infrastructure, current environmental safeguards and governance frameworks are adequate, and immediate regulatory tightening may not be necessary. The findings underscore the importance of ongoing environmental monitoring, data-driven governance, and proactive stakeholder engagement to ensure sustainable industrial development and maintain the social license to operate.
Mitigation measures such as acoustic barriers and green buffers proved effective in maintaining compliance with existing standards. The study concludes that although PSEEZ hosts a high concentration of energy infrastructure, current environmental safeguards and governance frameworks are adequate, and immediate regulatory tightening may not be necessary. The findings underscore the importance of ongoing environmental monitoring, data-driven governance, and proactive stakeholder engagement to ensure sustainable industrial development and maintain the social license to operate.
In high-risk industries such as energy, where precision, regulation, and human reliability are paramount, incidents are often attributed to human error. Common post-incident reflections—like “What were they thinking?”—assume that workers were consciously and logically making decisions at the time. Neuroscience tells a different story.
This session introduces the concept of Limbic Risk—the risk that emerges when the brain’s emotional and unconscious systems override logical thinking. Our brains are evolutionarily wired to conserve energy and respond to threat. As such, much of our daily behavior is driven not by deliberate reasoning, but by the automatic processes of the Limbic System, especially under stress, fatigue, or routine conditions. This default to “autopilot” behavior is a major, yet often invisible, contributor to safety incidents.
As energy operations become more technically advanced and organizational systems more robust, the remaining margin of risk increasingly lies in the human factor. This presentation explores:
Why inattention and unconscious behavior are not anomalies, but normal functions of the brain.
How experienced workers become particularly vulnerable to Limbic Risk due to overfamiliarity with tasks.
The neuroscience behind complacency and normalization of deviation.
How emotional states—such as pressure, distraction, and irritation—suppress logical brain function and increase risk.
Grounded in the latest cognitive science, this session offers practical solutions for leaders and safety professionals in the energy sector. These include design strategies for work systems that account for human cognitive limitations, training methods that reinforce conscious risk scanning, and leadership practices that create environments where the brain is more likely to engage the rational Prefrontal Cortex.
As the energy sector faces evolving challenges—from automation to mental health, from aging workforces to increasingly complex risk landscapes—this presentation equips industry leaders with a neuroscience-informed framework to proactively manage human error. Understanding Limbic Risk is not just about reacting to incidents; it’s about designing safer systems, improving situational awareness, and shaping a culture that truly aligns with how the human brain functions under pressure.
This session introduces the concept of Limbic Risk—the risk that emerges when the brain’s emotional and unconscious systems override logical thinking. Our brains are evolutionarily wired to conserve energy and respond to threat. As such, much of our daily behavior is driven not by deliberate reasoning, but by the automatic processes of the Limbic System, especially under stress, fatigue, or routine conditions. This default to “autopilot” behavior is a major, yet often invisible, contributor to safety incidents.
As energy operations become more technically advanced and organizational systems more robust, the remaining margin of risk increasingly lies in the human factor. This presentation explores:
Why inattention and unconscious behavior are not anomalies, but normal functions of the brain.
How experienced workers become particularly vulnerable to Limbic Risk due to overfamiliarity with tasks.
The neuroscience behind complacency and normalization of deviation.
How emotional states—such as pressure, distraction, and irritation—suppress logical brain function and increase risk.
Grounded in the latest cognitive science, this session offers practical solutions for leaders and safety professionals in the energy sector. These include design strategies for work systems that account for human cognitive limitations, training methods that reinforce conscious risk scanning, and leadership practices that create environments where the brain is more likely to engage the rational Prefrontal Cortex.
As the energy sector faces evolving challenges—from automation to mental health, from aging workforces to increasingly complex risk landscapes—this presentation equips industry leaders with a neuroscience-informed framework to proactively manage human error. Understanding Limbic Risk is not just about reacting to incidents; it’s about designing safer systems, improving situational awareness, and shaping a culture that truly aligns with how the human brain functions under pressure.
Despite the current positive relations between China and Russia, the outlook for China's upstream oil and gas ventures in the Russian Arctic remains uncertain. This article begins by analyzing potential risks associated with oil and gas cooperation in this region
Arctic Environmental Risks: These encompass Arctic warming, permafrost melting, potential oil spills, the presence of independent environmental protection agencies, protected environmental areas, indigenous land preservation issues, and uncertainties regarding the Northern Sea Route.Geopolitical Risks: Factors include enduring Western sanctions against Russia, instability in neighboring countries, and concerns over the quality and reliability of resources provided by Russia to China.Social Governance Risks: These relate to authoritarian governance practices, unresolved terrorism threats, and issues concerning rule of law and regulatory oversight.
Drawing from historical contexts of oil and gas collaboration between China and Russia, the analysis indicates that challenges outweigh opportunities for China due to several key reasons:Russia considers oil and natural gas as strategic resources, leading to frequent shifts in foreign investment policies influenced by domestic and international political events, resulting in poor policy stability and predictability. Furthermore, Russia's treatment of foreign investors is often perceived as biased and unfair, illustrated by incidents such as the Sakhalin case in 2007.The collaboration between China and Russia remains primarily focused on resource extraction, with limited emphasis on technical cooperation. Russia maintains cautious attitudes towards Chinese capital, persistently reinforcing its technological and informational advantages.Russia's distinct political and economic environment frequently undervalues its corporate market, exacerbated by severe premiums, especially under Western sanctions, which restrict capital flows and conceal substantial value risks.Divergent energy strategic goals between China and Russia contribute to prolonged negotiation processes and slower cooperation. While Russia views projects as long-term drivers of regional economic growth, China prioritizes projects to alleviate domestic supply-demand disparities and seeks diversified import channels.China's inadequate understanding of Russian laws, policies, and regulatory frameworks, coupled with limited familiarity with contract terms, poses challenges. In instances of disputes, China's capacity and experience in cross-border and international judicial litigation are comparatively underdeveloped.
Finally, considering previous oil and gas business disputes in Russia (e.g., Yukos, Sakhalin), strategic legal responses for China are proposed:l Investment Insurance: Utilization of entities like the China Export and Credit Insurance Corporation or World Bank MIGA.l Contractual Norms and Dispute Resolution: Comparative analysis of arbitration venues such as the International Court of Arbitration, Russian courts, local arbitration courts, or the European Court of Human Rights. Timely consideration of investor nationality issues, including establishing affiliated companies in third countries for enhanced BIT protection, and strategies to avoid benefit denial clauses by meeting substantial commercial activity requirements under investment treaties.
Arctic Environmental Risks: These encompass Arctic warming, permafrost melting, potential oil spills, the presence of independent environmental protection agencies, protected environmental areas, indigenous land preservation issues, and uncertainties regarding the Northern Sea Route.Geopolitical Risks: Factors include enduring Western sanctions against Russia, instability in neighboring countries, and concerns over the quality and reliability of resources provided by Russia to China.Social Governance Risks: These relate to authoritarian governance practices, unresolved terrorism threats, and issues concerning rule of law and regulatory oversight.
Drawing from historical contexts of oil and gas collaboration between China and Russia, the analysis indicates that challenges outweigh opportunities for China due to several key reasons:Russia considers oil and natural gas as strategic resources, leading to frequent shifts in foreign investment policies influenced by domestic and international political events, resulting in poor policy stability and predictability. Furthermore, Russia's treatment of foreign investors is often perceived as biased and unfair, illustrated by incidents such as the Sakhalin case in 2007.The collaboration between China and Russia remains primarily focused on resource extraction, with limited emphasis on technical cooperation. Russia maintains cautious attitudes towards Chinese capital, persistently reinforcing its technological and informational advantages.Russia's distinct political and economic environment frequently undervalues its corporate market, exacerbated by severe premiums, especially under Western sanctions, which restrict capital flows and conceal substantial value risks.Divergent energy strategic goals between China and Russia contribute to prolonged negotiation processes and slower cooperation. While Russia views projects as long-term drivers of regional economic growth, China prioritizes projects to alleviate domestic supply-demand disparities and seeks diversified import channels.China's inadequate understanding of Russian laws, policies, and regulatory frameworks, coupled with limited familiarity with contract terms, poses challenges. In instances of disputes, China's capacity and experience in cross-border and international judicial litigation are comparatively underdeveloped.
Finally, considering previous oil and gas business disputes in Russia (e.g., Yukos, Sakhalin), strategic legal responses for China are proposed:l Investment Insurance: Utilization of entities like the China Export and Credit Insurance Corporation or World Bank MIGA.l Contractual Norms and Dispute Resolution: Comparative analysis of arbitration venues such as the International Court of Arbitration, Russian courts, local arbitration courts, or the European Court of Human Rights. Timely consideration of investor nationality issues, including establishing affiliated companies in third countries for enhanced BIT protection, and strategies to avoid benefit denial clauses by meeting substantial commercial activity requirements under investment treaties.
While global energy shifts toward sustainable and environmental-friendly policies, the incorporation of Environmental, Social, and Governance (ESG) principles into oil and gas contracts has become critical for aligning economic objectives of the oil-rich countries with climate challenges and social responsibility. This study examines the potential for integrating ESG frameworks into the Iran Petroleum Contract (IPC), a model designed to attract foreign investment in Iran’s oil and gas sector. While the IPC prioritizes technical and fiscal efficiency, its current structure lacks explicit mechanisms to address ESG risks, mainly carbon emissions, community impacts, and governance transparency.
This research evaluates how ESG considerations can be systematically embedded into the IPC’s contractual clauses, performance metrics, and stakeholder engagement processes. It uses a comparative method to find parallel legal solutions from Norway, Canada, and the UAE, where ESG-aligned petroleum contracts have enhanced project sustainability while maintaining profitability. Key focus areas include carbon capture and storage (CCS) mandates and local content development. The study also identifies challenges unique to Iran’s geopolitical context, including sanctions-related barriers to green financing and technology transfer.
Findings suggest that revising the IPC to include ESG-linked incentives, such as tax rebates for methane reduction or community benefit agreements, could improve Iran’s competitiveness in a decarbonizing global market. The paper includes actionable recommendations for policymakers, emphasizing the dual imperative of meeting Iran’s energy production goals and contributing to global climate targets under the Paris Agreement. By bridging gaps between traditional energy contracting and ESG imperatives, this research offers a roadmap for fostering resilient, socially accountable hydrocarbon development in emerging economies.
Keywords: ESG, Iran Petroleum Contract (IPC), Sustainable Energy, Climate Governance, Hydrocarbon Policy.
This research evaluates how ESG considerations can be systematically embedded into the IPC’s contractual clauses, performance metrics, and stakeholder engagement processes. It uses a comparative method to find parallel legal solutions from Norway, Canada, and the UAE, where ESG-aligned petroleum contracts have enhanced project sustainability while maintaining profitability. Key focus areas include carbon capture and storage (CCS) mandates and local content development. The study also identifies challenges unique to Iran’s geopolitical context, including sanctions-related barriers to green financing and technology transfer.
Findings suggest that revising the IPC to include ESG-linked incentives, such as tax rebates for methane reduction or community benefit agreements, could improve Iran’s competitiveness in a decarbonizing global market. The paper includes actionable recommendations for policymakers, emphasizing the dual imperative of meeting Iran’s energy production goals and contributing to global climate targets under the Paris Agreement. By bridging gaps between traditional energy contracting and ESG imperatives, this research offers a roadmap for fostering resilient, socially accountable hydrocarbon development in emerging economies.
Keywords: ESG, Iran Petroleum Contract (IPC), Sustainable Energy, Climate Governance, Hydrocarbon Policy.
Environmental, Social, and Governance (ESG) considerations have become central to corporate governance, particularly in the energy sector, where companies face increasing scrutiny from shareholders, investors, regulators, and consumers. Stakeholders now expect not only improved ESG performance but also greater transparency, accountability, and long-term value creation. As ESG factors increasingly shape investor decisions, the quality of board-level decision-making has never been more critical.
In this evolving landscape, boards of directors must lead the way. Governance is the foundation for achieving ESG objectives, and it is the board’s responsibility to ensure these factors are deeply embedded into governance frameworks. This includes setting strategic priorities, managing risk, allocating resources effectively, and aligning ESG principles with the company’s purpose and long-term strategy.
This presentation will explore how energy company boards can move beyond compliance and adopt a more strategic, inclusive approach to ESG governance. It will highlight the importance of adaptive decision-making frameworks that incorporate diverse perspectives from within the boardroom and across internal and external stakeholder groups. Boards must evolve their governance practices to embrace broader stakeholder engagement, build trust, and improve transparency around decision-making processes and trade-offs.
A key feature of the presentation is the introduction of an alternative FOCUS decision-making model (Frame, Option, Cognitive Bias, Uncertainty, Selection). Developed by Roger Schwarz, FOCUS is a human-centred decision-making framework designed to support individuals and teams in making high-quality decisions under uncertainty. Grounded in scientific research and real-world experience, FOCUS integrates logic and structure with a deep understanding of human behaviour—including values, cognitive biases, intuition, emotion, and physical and mental states. The framework is not a checklist, but a tool to help boards navigate complexity and make decisions they can stand behind—even when outcomes are uncertain. Attendees will leave with a foundational understanding of it and how to apply it in practice, as well as a renewed appreciation for the art and science of making better decisions in complex environments.
The presentation will draw on governance insights and real-world case studies to show how effective board leadership can balance commercial imperatives with societal responsibilities and stakeholder expectations. It will challenge traditional assumptions about how decisions are made, emphasising a practical guidance for directors and senior executives seeking to embed ESG into the core of governance and decision-making processes.
Ultimately, this presentation offers practical guidance for directors and senior executives looking to embed ESG into the DNA of corporate governance. Participants will leave with a stronger understanding of how to build resilient, stakeholder-responsive governance structures that support ESG integration and strengthen corporate performance in a rapidly changing energy landscape.
In this evolving landscape, boards of directors must lead the way. Governance is the foundation for achieving ESG objectives, and it is the board’s responsibility to ensure these factors are deeply embedded into governance frameworks. This includes setting strategic priorities, managing risk, allocating resources effectively, and aligning ESG principles with the company’s purpose and long-term strategy.
This presentation will explore how energy company boards can move beyond compliance and adopt a more strategic, inclusive approach to ESG governance. It will highlight the importance of adaptive decision-making frameworks that incorporate diverse perspectives from within the boardroom and across internal and external stakeholder groups. Boards must evolve their governance practices to embrace broader stakeholder engagement, build trust, and improve transparency around decision-making processes and trade-offs.
A key feature of the presentation is the introduction of an alternative FOCUS decision-making model (Frame, Option, Cognitive Bias, Uncertainty, Selection). Developed by Roger Schwarz, FOCUS is a human-centred decision-making framework designed to support individuals and teams in making high-quality decisions under uncertainty. Grounded in scientific research and real-world experience, FOCUS integrates logic and structure with a deep understanding of human behaviour—including values, cognitive biases, intuition, emotion, and physical and mental states. The framework is not a checklist, but a tool to help boards navigate complexity and make decisions they can stand behind—even when outcomes are uncertain. Attendees will leave with a foundational understanding of it and how to apply it in practice, as well as a renewed appreciation for the art and science of making better decisions in complex environments.
The presentation will draw on governance insights and real-world case studies to show how effective board leadership can balance commercial imperatives with societal responsibilities and stakeholder expectations. It will challenge traditional assumptions about how decisions are made, emphasising a practical guidance for directors and senior executives seeking to embed ESG into the core of governance and decision-making processes.
Ultimately, this presentation offers practical guidance for directors and senior executives looking to embed ESG into the DNA of corporate governance. Participants will leave with a stronger understanding of how to build resilient, stakeholder-responsive governance structures that support ESG integration and strengthen corporate performance in a rapidly changing energy landscape.
Optimal management of energy resources to reduce carbon emissions is recognized as a key strategy in energy policymaking, playing a vital role in resource allocation, sustainable development, and strengthening democratic governance. These approaches foster transparency, accountability, and public participation while aligning economic and environmental interests. Pioneering projects such as Humber Zero (transforming heavy industries into low-carbon hubs) and Northern Lights (underground carbon storage) exemplify successful international integration of advanced technologies with carbon reduction policies. However, implementing these solutions requires a multi-layered architecture combining digital technologies, stakeholder engagement, and data transparency.
This research focuses on designing an integrated blockchain and smart data mining framework (utilizing LSTM and Federated Learning) to enable precise tracking of microgrids’ contributions to energy consumption and carbon emissions. The proposed architecture leverages blockchain’s decentralized capabilities to ensure computational transparency, equitable resource distribution, and reduced risk of data tampering. Participatory data mining algorithms facilitate real-time analysis of energy and emission data, empowering policymakers to design accurate incentive mechanisms. By establishing decentralized energy and carbon markets, this framework creates an international platform for attracting investments, where civil society and private institutions play pivotal roles in decision-making processes.
Key advantages include enhanced energy market efficiency, reduced transaction costs, and progress toward Paris Agreement goals through transparent, data-driven reporting. The integration of IoT and artificial intelligence across architectural layers enables smart monitoring of energy consumption and prediction of carbon emission patterns. These technologies prove particularly effective in challenging sectors like oil and gas, where solutions such as Carbon Capture and Storage (CCS) and process optimization require advanced analytical capabilities.
Nevertheless, challenges such as institutional resistance to change, high costs of deploying advanced technologies, and the need for harmonized international standards complicate implementation. For instance, conflicts between national regulations and global carbon market mechanisms may hinder cross-border collaboration. Findings demonstrate that combining blockchain and participatory data mining not only improves accuracy in allocating carbon emission shares to microgrids but also creates financial incentives for community participation through self-executing smart contracts. Energy and carbon tokens facilitate investments in decentralized renewable projects, peer-to-peer (P2P) transactions, and global decarbonization efforts.
This research underscores the necessity for collaboration among international institutions, governments, and the private sector to build a sustainable digital ecosystem where digital technologies drive energy transformation and carbon reduction. Successful implementation requires incentive policies (e.g., tax exemptions for green technologies), investments in workforce training, and strengthened digital infrastructure. In summary, the study provides policymakers with a roadmap to achieve sustainable development goals by synergizing smart technologies with governance principles rooted in democratic values, balancing technological innovation with participatory decision-making and market-based mechanisms for global impact.
This research focuses on designing an integrated blockchain and smart data mining framework (utilizing LSTM and Federated Learning) to enable precise tracking of microgrids’ contributions to energy consumption and carbon emissions. The proposed architecture leverages blockchain’s decentralized capabilities to ensure computational transparency, equitable resource distribution, and reduced risk of data tampering. Participatory data mining algorithms facilitate real-time analysis of energy and emission data, empowering policymakers to design accurate incentive mechanisms. By establishing decentralized energy and carbon markets, this framework creates an international platform for attracting investments, where civil society and private institutions play pivotal roles in decision-making processes.
Key advantages include enhanced energy market efficiency, reduced transaction costs, and progress toward Paris Agreement goals through transparent, data-driven reporting. The integration of IoT and artificial intelligence across architectural layers enables smart monitoring of energy consumption and prediction of carbon emission patterns. These technologies prove particularly effective in challenging sectors like oil and gas, where solutions such as Carbon Capture and Storage (CCS) and process optimization require advanced analytical capabilities.
Nevertheless, challenges such as institutional resistance to change, high costs of deploying advanced technologies, and the need for harmonized international standards complicate implementation. For instance, conflicts between national regulations and global carbon market mechanisms may hinder cross-border collaboration. Findings demonstrate that combining blockchain and participatory data mining not only improves accuracy in allocating carbon emission shares to microgrids but also creates financial incentives for community participation through self-executing smart contracts. Energy and carbon tokens facilitate investments in decentralized renewable projects, peer-to-peer (P2P) transactions, and global decarbonization efforts.
This research underscores the necessity for collaboration among international institutions, governments, and the private sector to build a sustainable digital ecosystem where digital technologies drive energy transformation and carbon reduction. Successful implementation requires incentive policies (e.g., tax exemptions for green technologies), investments in workforce training, and strengthened digital infrastructure. In summary, the study provides policymakers with a roadmap to achieve sustainable development goals by synergizing smart technologies with governance principles rooted in democratic values, balancing technological innovation with participatory decision-making and market-based mechanisms for global impact.
Environmental, Social, and Governance (ESG) considerations have become central to corporate governance, particularly in the energy sector, where companies face increasing scrutiny from shareholders, investors, regulators, and consumers. Stakeholders now expect not only improved ESG performance but also greater transparency, accountability, and long-term value creation. As ESG factors increasingly shape investor decisions, the quality of board-level decision-making has never been more critical.
In this evolving landscape, boards of directors must lead the way. Governance is the foundation for achieving ESG objectives, and it is the board’s responsibility to ensure these factors are deeply embedded into governance frameworks. This includes setting strategic priorities, managing risk, allocating resources effectively, and aligning ESG principles with the company’s purpose and long-term strategy.
This presentation will explore how energy company boards can move beyond compliance and adopt a more strategic, inclusive approach to ESG governance. It will highlight the importance of adaptive decision-making frameworks that incorporate diverse perspectives from within the boardroom and across internal and external stakeholder groups. Boards must evolve their governance practices to embrace broader stakeholder engagement, build trust, and improve transparency around decision-making processes and trade-offs.
A key feature of the presentation is the introduction of an alternative FOCUS decision-making model (Frame, Option, Cognitive Bias, Uncertainty, Selection). Developed by Roger Schwarz, FOCUS is a human-centred decision-making framework designed to support individuals and teams in making high-quality decisions under uncertainty. Grounded in scientific research and real-world experience, FOCUS integrates logic and structure with a deep understanding of human behaviour—including values, cognitive biases, intuition, emotion, and physical and mental states. The framework is not a checklist, but a tool to help boards navigate complexity and make decisions they can stand behind—even when outcomes are uncertain. Attendees will leave with a foundational understanding of it and how to apply it in practice, as well as a renewed appreciation for the art and science of making better decisions in complex environments.
The presentation will draw on governance insights and real-world case studies to show how effective board leadership can balance commercial imperatives with societal responsibilities and stakeholder expectations. It will challenge traditional assumptions about how decisions are made, emphasising a practical guidance for directors and senior executives seeking to embed ESG into the core of governance and decision-making processes.
Ultimately, this presentation offers practical guidance for directors and senior executives looking to embed ESG into the DNA of corporate governance. Participants will leave with a stronger understanding of how to build resilient, stakeholder-responsive governance structures that support ESG integration and strengthen corporate performance in a rapidly changing energy landscape.
In this evolving landscape, boards of directors must lead the way. Governance is the foundation for achieving ESG objectives, and it is the board’s responsibility to ensure these factors are deeply embedded into governance frameworks. This includes setting strategic priorities, managing risk, allocating resources effectively, and aligning ESG principles with the company’s purpose and long-term strategy.
This presentation will explore how energy company boards can move beyond compliance and adopt a more strategic, inclusive approach to ESG governance. It will highlight the importance of adaptive decision-making frameworks that incorporate diverse perspectives from within the boardroom and across internal and external stakeholder groups. Boards must evolve their governance practices to embrace broader stakeholder engagement, build trust, and improve transparency around decision-making processes and trade-offs.
A key feature of the presentation is the introduction of an alternative FOCUS decision-making model (Frame, Option, Cognitive Bias, Uncertainty, Selection). Developed by Roger Schwarz, FOCUS is a human-centred decision-making framework designed to support individuals and teams in making high-quality decisions under uncertainty. Grounded in scientific research and real-world experience, FOCUS integrates logic and structure with a deep understanding of human behaviour—including values, cognitive biases, intuition, emotion, and physical and mental states. The framework is not a checklist, but a tool to help boards navigate complexity and make decisions they can stand behind—even when outcomes are uncertain. Attendees will leave with a foundational understanding of it and how to apply it in practice, as well as a renewed appreciation for the art and science of making better decisions in complex environments.
The presentation will draw on governance insights and real-world case studies to show how effective board leadership can balance commercial imperatives with societal responsibilities and stakeholder expectations. It will challenge traditional assumptions about how decisions are made, emphasising a practical guidance for directors and senior executives seeking to embed ESG into the core of governance and decision-making processes.
Ultimately, this presentation offers practical guidance for directors and senior executives looking to embed ESG into the DNA of corporate governance. Participants will leave with a stronger understanding of how to build resilient, stakeholder-responsive governance structures that support ESG integration and strengthen corporate performance in a rapidly changing energy landscape.
While global energy shifts toward sustainable and environmental-friendly policies, the incorporation of Environmental, Social, and Governance (ESG) principles into oil and gas contracts has become critical for aligning economic objectives of the oil-rich countries with climate challenges and social responsibility. This study examines the potential for integrating ESG frameworks into the Iran Petroleum Contract (IPC), a model designed to attract foreign investment in Iran’s oil and gas sector. While the IPC prioritizes technical and fiscal efficiency, its current structure lacks explicit mechanisms to address ESG risks, mainly carbon emissions, community impacts, and governance transparency.
This research evaluates how ESG considerations can be systematically embedded into the IPC’s contractual clauses, performance metrics, and stakeholder engagement processes. It uses a comparative method to find parallel legal solutions from Norway, Canada, and the UAE, where ESG-aligned petroleum contracts have enhanced project sustainability while maintaining profitability. Key focus areas include carbon capture and storage (CCS) mandates and local content development. The study also identifies challenges unique to Iran’s geopolitical context, including sanctions-related barriers to green financing and technology transfer.
Findings suggest that revising the IPC to include ESG-linked incentives, such as tax rebates for methane reduction or community benefit agreements, could improve Iran’s competitiveness in a decarbonizing global market. The paper includes actionable recommendations for policymakers, emphasizing the dual imperative of meeting Iran’s energy production goals and contributing to global climate targets under the Paris Agreement. By bridging gaps between traditional energy contracting and ESG imperatives, this research offers a roadmap for fostering resilient, socially accountable hydrocarbon development in emerging economies.
Keywords: ESG, Iran Petroleum Contract (IPC), Sustainable Energy, Climate Governance, Hydrocarbon Policy.
This research evaluates how ESG considerations can be systematically embedded into the IPC’s contractual clauses, performance metrics, and stakeholder engagement processes. It uses a comparative method to find parallel legal solutions from Norway, Canada, and the UAE, where ESG-aligned petroleum contracts have enhanced project sustainability while maintaining profitability. Key focus areas include carbon capture and storage (CCS) mandates and local content development. The study also identifies challenges unique to Iran’s geopolitical context, including sanctions-related barriers to green financing and technology transfer.
Findings suggest that revising the IPC to include ESG-linked incentives, such as tax rebates for methane reduction or community benefit agreements, could improve Iran’s competitiveness in a decarbonizing global market. The paper includes actionable recommendations for policymakers, emphasizing the dual imperative of meeting Iran’s energy production goals and contributing to global climate targets under the Paris Agreement. By bridging gaps between traditional energy contracting and ESG imperatives, this research offers a roadmap for fostering resilient, socially accountable hydrocarbon development in emerging economies.
Keywords: ESG, Iran Petroleum Contract (IPC), Sustainable Energy, Climate Governance, Hydrocarbon Policy.
Mehdi Tanha Ziyarati
Speaker
Head of Environment Department, Pars Special Economic Energy Zone
National Iranian Oil Company
The Pars Special Economic Energy Zone (PSEEZ), as one of the world’s largest energy and petrochemical hubs, poses complex environmental and social governance challenges. This study investigates industrial noise exposure as a critical ESG (Environmental, Social, and Governance) parameter, assessing the effectiveness of current noise management regulations in protecting local communities. Sound levels were monitored across 60 locations during three-time intervals, and spatial analysis using ArcGIS enabled the development of detailed noise distribution maps. The results identified five primary noise sources: road traffic, flares, diesel generators, compressors, and industrial machinery. While noise levels near flares and compressors exceeded thresholds, their impact on residential zones remained limited. However, the desalination plant was identified as the dominant contributor to urban noise exposure.
Mitigation measures such as acoustic barriers and green buffers proved effective in maintaining compliance with existing standards. The study concludes that although PSEEZ hosts a high concentration of energy infrastructure, current environmental safeguards and governance frameworks are adequate, and immediate regulatory tightening may not be necessary. The findings underscore the importance of ongoing environmental monitoring, data-driven governance, and proactive stakeholder engagement to ensure sustainable industrial development and maintain the social license to operate.
Mitigation measures such as acoustic barriers and green buffers proved effective in maintaining compliance with existing standards. The study concludes that although PSEEZ hosts a high concentration of energy infrastructure, current environmental safeguards and governance frameworks are adequate, and immediate regulatory tightening may not be necessary. The findings underscore the importance of ongoing environmental monitoring, data-driven governance, and proactive stakeholder engagement to ensure sustainable industrial development and maintain the social license to operate.
Despite the current positive relations between China and Russia, the outlook for China's upstream oil and gas ventures in the Russian Arctic remains uncertain. This article begins by analyzing potential risks associated with oil and gas cooperation in this region
Arctic Environmental Risks: These encompass Arctic warming, permafrost melting, potential oil spills, the presence of independent environmental protection agencies, protected environmental areas, indigenous land preservation issues, and uncertainties regarding the Northern Sea Route.Geopolitical Risks: Factors include enduring Western sanctions against Russia, instability in neighboring countries, and concerns over the quality and reliability of resources provided by Russia to China.Social Governance Risks: These relate to authoritarian governance practices, unresolved terrorism threats, and issues concerning rule of law and regulatory oversight.
Drawing from historical contexts of oil and gas collaboration between China and Russia, the analysis indicates that challenges outweigh opportunities for China due to several key reasons:Russia considers oil and natural gas as strategic resources, leading to frequent shifts in foreign investment policies influenced by domestic and international political events, resulting in poor policy stability and predictability. Furthermore, Russia's treatment of foreign investors is often perceived as biased and unfair, illustrated by incidents such as the Sakhalin case in 2007.The collaboration between China and Russia remains primarily focused on resource extraction, with limited emphasis on technical cooperation. Russia maintains cautious attitudes towards Chinese capital, persistently reinforcing its technological and informational advantages.Russia's distinct political and economic environment frequently undervalues its corporate market, exacerbated by severe premiums, especially under Western sanctions, which restrict capital flows and conceal substantial value risks.Divergent energy strategic goals between China and Russia contribute to prolonged negotiation processes and slower cooperation. While Russia views projects as long-term drivers of regional economic growth, China prioritizes projects to alleviate domestic supply-demand disparities and seeks diversified import channels.China's inadequate understanding of Russian laws, policies, and regulatory frameworks, coupled with limited familiarity with contract terms, poses challenges. In instances of disputes, China's capacity and experience in cross-border and international judicial litigation are comparatively underdeveloped.
Finally, considering previous oil and gas business disputes in Russia (e.g., Yukos, Sakhalin), strategic legal responses for China are proposed:l Investment Insurance: Utilization of entities like the China Export and Credit Insurance Corporation or World Bank MIGA.l Contractual Norms and Dispute Resolution: Comparative analysis of arbitration venues such as the International Court of Arbitration, Russian courts, local arbitration courts, or the European Court of Human Rights. Timely consideration of investor nationality issues, including establishing affiliated companies in third countries for enhanced BIT protection, and strategies to avoid benefit denial clauses by meeting substantial commercial activity requirements under investment treaties.
Arctic Environmental Risks: These encompass Arctic warming, permafrost melting, potential oil spills, the presence of independent environmental protection agencies, protected environmental areas, indigenous land preservation issues, and uncertainties regarding the Northern Sea Route.Geopolitical Risks: Factors include enduring Western sanctions against Russia, instability in neighboring countries, and concerns over the quality and reliability of resources provided by Russia to China.Social Governance Risks: These relate to authoritarian governance practices, unresolved terrorism threats, and issues concerning rule of law and regulatory oversight.
Drawing from historical contexts of oil and gas collaboration between China and Russia, the analysis indicates that challenges outweigh opportunities for China due to several key reasons:Russia considers oil and natural gas as strategic resources, leading to frequent shifts in foreign investment policies influenced by domestic and international political events, resulting in poor policy stability and predictability. Furthermore, Russia's treatment of foreign investors is often perceived as biased and unfair, illustrated by incidents such as the Sakhalin case in 2007.The collaboration between China and Russia remains primarily focused on resource extraction, with limited emphasis on technical cooperation. Russia maintains cautious attitudes towards Chinese capital, persistently reinforcing its technological and informational advantages.Russia's distinct political and economic environment frequently undervalues its corporate market, exacerbated by severe premiums, especially under Western sanctions, which restrict capital flows and conceal substantial value risks.Divergent energy strategic goals between China and Russia contribute to prolonged negotiation processes and slower cooperation. While Russia views projects as long-term drivers of regional economic growth, China prioritizes projects to alleviate domestic supply-demand disparities and seeks diversified import channels.China's inadequate understanding of Russian laws, policies, and regulatory frameworks, coupled with limited familiarity with contract terms, poses challenges. In instances of disputes, China's capacity and experience in cross-border and international judicial litigation are comparatively underdeveloped.
Finally, considering previous oil and gas business disputes in Russia (e.g., Yukos, Sakhalin), strategic legal responses for China are proposed:l Investment Insurance: Utilization of entities like the China Export and Credit Insurance Corporation or World Bank MIGA.l Contractual Norms and Dispute Resolution: Comparative analysis of arbitration venues such as the International Court of Arbitration, Russian courts, local arbitration courts, or the European Court of Human Rights. Timely consideration of investor nationality issues, including establishing affiliated companies in third countries for enhanced BIT protection, and strategies to avoid benefit denial clauses by meeting substantial commercial activity requirements under investment treaties.
Morteza Heidariannoghondar
Speaker
Author and Speaker
Maham-Vista Energy Consulting Engineers Group
Optimal management of energy resources to reduce carbon emissions is recognized as a key strategy in energy policymaking, playing a vital role in resource allocation, sustainable development, and strengthening democratic governance. These approaches foster transparency, accountability, and public participation while aligning economic and environmental interests. Pioneering projects such as Humber Zero (transforming heavy industries into low-carbon hubs) and Northern Lights (underground carbon storage) exemplify successful international integration of advanced technologies with carbon reduction policies. However, implementing these solutions requires a multi-layered architecture combining digital technologies, stakeholder engagement, and data transparency.
This research focuses on designing an integrated blockchain and smart data mining framework (utilizing LSTM and Federated Learning) to enable precise tracking of microgrids’ contributions to energy consumption and carbon emissions. The proposed architecture leverages blockchain’s decentralized capabilities to ensure computational transparency, equitable resource distribution, and reduced risk of data tampering. Participatory data mining algorithms facilitate real-time analysis of energy and emission data, empowering policymakers to design accurate incentive mechanisms. By establishing decentralized energy and carbon markets, this framework creates an international platform for attracting investments, where civil society and private institutions play pivotal roles in decision-making processes.
Key advantages include enhanced energy market efficiency, reduced transaction costs, and progress toward Paris Agreement goals through transparent, data-driven reporting. The integration of IoT and artificial intelligence across architectural layers enables smart monitoring of energy consumption and prediction of carbon emission patterns. These technologies prove particularly effective in challenging sectors like oil and gas, where solutions such as Carbon Capture and Storage (CCS) and process optimization require advanced analytical capabilities.
Nevertheless, challenges such as institutional resistance to change, high costs of deploying advanced technologies, and the need for harmonized international standards complicate implementation. For instance, conflicts between national regulations and global carbon market mechanisms may hinder cross-border collaboration. Findings demonstrate that combining blockchain and participatory data mining not only improves accuracy in allocating carbon emission shares to microgrids but also creates financial incentives for community participation through self-executing smart contracts. Energy and carbon tokens facilitate investments in decentralized renewable projects, peer-to-peer (P2P) transactions, and global decarbonization efforts.
This research underscores the necessity for collaboration among international institutions, governments, and the private sector to build a sustainable digital ecosystem where digital technologies drive energy transformation and carbon reduction. Successful implementation requires incentive policies (e.g., tax exemptions for green technologies), investments in workforce training, and strengthened digital infrastructure. In summary, the study provides policymakers with a roadmap to achieve sustainable development goals by synergizing smart technologies with governance principles rooted in democratic values, balancing technological innovation with participatory decision-making and market-based mechanisms for global impact.
This research focuses on designing an integrated blockchain and smart data mining framework (utilizing LSTM and Federated Learning) to enable precise tracking of microgrids’ contributions to energy consumption and carbon emissions. The proposed architecture leverages blockchain’s decentralized capabilities to ensure computational transparency, equitable resource distribution, and reduced risk of data tampering. Participatory data mining algorithms facilitate real-time analysis of energy and emission data, empowering policymakers to design accurate incentive mechanisms. By establishing decentralized energy and carbon markets, this framework creates an international platform for attracting investments, where civil society and private institutions play pivotal roles in decision-making processes.
Key advantages include enhanced energy market efficiency, reduced transaction costs, and progress toward Paris Agreement goals through transparent, data-driven reporting. The integration of IoT and artificial intelligence across architectural layers enables smart monitoring of energy consumption and prediction of carbon emission patterns. These technologies prove particularly effective in challenging sectors like oil and gas, where solutions such as Carbon Capture and Storage (CCS) and process optimization require advanced analytical capabilities.
Nevertheless, challenges such as institutional resistance to change, high costs of deploying advanced technologies, and the need for harmonized international standards complicate implementation. For instance, conflicts between national regulations and global carbon market mechanisms may hinder cross-border collaboration. Findings demonstrate that combining blockchain and participatory data mining not only improves accuracy in allocating carbon emission shares to microgrids but also creates financial incentives for community participation through self-executing smart contracts. Energy and carbon tokens facilitate investments in decentralized renewable projects, peer-to-peer (P2P) transactions, and global decarbonization efforts.
This research underscores the necessity for collaboration among international institutions, governments, and the private sector to build a sustainable digital ecosystem where digital technologies drive energy transformation and carbon reduction. Successful implementation requires incentive policies (e.g., tax exemptions for green technologies), investments in workforce training, and strengthened digital infrastructure. In summary, the study provides policymakers with a roadmap to achieve sustainable development goals by synergizing smart technologies with governance principles rooted in democratic values, balancing technological innovation with participatory decision-making and market-based mechanisms for global impact.
