Unconventional gas

Unconventional gas (e.g. coal seam) has significant investment potential, but rapid growth elevates risk of ESG-related failures, given unresolved technical, regulatory and stakeholder issues whose complexity has been a barrier to effective dialogue between investors and the industry. Consequently, Regnan, an Australian Governance Research and Engagement organisation, collaborated with unconventional gas companies to develop a set of Principles and Recommendations through collaboration to frame a more constructive discussion.

These Principles & Recommendations build on technical guidance on hydraulic fracturing risk management (the IEHN/ICCR fracking guide), current research, investor initiatives both in Australia and overseas, and discussions with companies involved in unconventional gas in Australia. The Principles and Recommendations have been designed to advance best practice and identify key risk management gaps, and are very commercially oriented. The aim is not to prescribe how risks are managed, but to assure investors that they are managed. The recommendations are also not intended as prescriptive, but to inform the thinking and decisions of investors and companies.