First Steps: Introducing ESG Issues in Midstream

Environment, social, and governance factors, or ESG, comprise the criteria used by investors in a holistic approach to analyze an investment. Formerly a niche concept, ESG has moved toward the mainstream of finance in recent years as a result of investor demand, regulatory influence, and demographics. With ESG gaining traction broadly among the investment community, discussions around ESG have also become more prevalent in the midstream space. This piece discusses the current state of ESG within midstream, examining metrics currently disclosed by companies and recommending additional metrics that would provide greater transparency for investors.