Green and Sustainable Manufacturing with Implications of ESG In Energy Sector: A Comprehensive Review

. Environmental, social, and corporate governance, which is commonly shortened to ESG, is becoming an increasingly important part of the oil and gas industry as it faces a transition towards the usage of renewable energy sources. Today, businesses are increasingly looking for new ways to promote ESG initiatives, as a growing number of customers and investors are urging organisations to take ESG issues more seriously. Businesses are also looking for new ways to promote initiatives related to environmental, social, and governance (ESG) issues. This pattern can be explained by the fact that consumers are becoming more conscious of the significance of the problems being addressed. Even if the pressure on oil and gas companies is rising, the sector now has a lot of alternatives thanks to the increased emphasis on environmental, social, and governance concerns. This paper explores how ESG is redefining the sustainable energy sector as well as the reasons why it is necessary for businesses to address environmental challenges and adapt to this new paradigm. In addition, it explains how ESG is transforming the energy industry.


INTRODUCTION
In this integrated global setting, the key difficulties are a limited supply of resources and an expanding human population.The environment is a crucial factor, and every change in climate, no matter how slight, adds to the unequal distribution of resources around the globe.Both a new quality management system for goods and an environment management system have been proposed by the International Organization for Standardization (ISO).The most important goal is to lessen the environmental impact caused by commercial enterprises as much as possible[1-2].There is an urgent requirement for a brand-new production method that is suitable for use in conjunction with an approach to sustainable development.This method has been given the moniker "Green Manufacturing."The price of resources and energy is increasing at an alarmingly rapid pace due to a number of variables, one of which being combination of high demand and restricted supply.In addition, it is notoriously difficult to accurately predict the changes of prices, which is why firms work hard to successfully produce within broad price ranges for the resources and energy that they utilise.When there is a rise in the overall cost of the items that are being sold, one approach that may be taken is to raise the prices that are being charged to the end user.But, in order to establish that the increased price is reasonable, the product might need to go through some sort of evolution [3][4].Alternatively, it is possible that increased manufacturing efficiency will make it simpler to maintain constant prices.This is something that can be done by reducing the number of resources utilised in production and making the production system more organised in a way that is more efficient.
Green technology is the application of environmental science, green chemistry, environmental monitoring, and electronic devices to monitor, model, and conserve the natural environment and resources, as well as to curb the negative impacts of human involvement.Green chemistry is a form of chemistry that does not involve the use of toxic chemicals.Green chemistry is a branch of the scientific discipline of chemistry that eschews the use of hazardous substances.This expression is also used to refer to technologies that create renewable energy in a sustainable manner [4,[23][24][25][26][27].Some examples of such technologies are photovoltaics, wind turbines, bioreactors, biofiltration, bioremediation, desalination, and other processes along these lines.
Environmental, social, and governance ratings (also known as ESG ratings) are becoming an increasingly evident major motivation for stakeholders and investors in the energy sector, as well as for the general public.For a long time, ESG investing was thought to be a subfield; but, in recent years, particularly after the beginning of the COVID-19 pandemic, it has emerged as a field that is crucial for enterprises that are active in every industry.In order to assure their continued prosperity throughout the transition to a low-carbon economy, businesses operating in the energy sector need to take the necessary steps to ensure they are compliant with the new energy environment.ESG practises are no longer only a box to be checked off; rather, they are very necessary for keeping the support of existing stakeholders and attracting new ones.At the present time, the implementation of ESG as a strategy for the workforce is more important than it has ever been before.Companies in the energy industry that recognise the benefits of ESG will be in a better position to satisfy the demanding requirements of the market while also being able to recruit and retain the industry's top personnel.This is because these companies will be able to demonstrate their commitment to the environment, social responsibility, and governance (ESG) [5].
It is a fact that has been widely recognised and acknowledged that the oil and gas sector poses a threat to the environment in wherever it operates.A sizeable portion of the companies that are active in this industry have been putting out efforts to lessen the impact that they have on the environment and bring themselves into conformity with ESG.For instance, the British oil company BP is apparently proposing to acquire solar projects for a total of $220 million in order to contribute in the promotion of a future with decreased levels of carbon emissions.This will help promote a greener future [6][7].In addition, during the course of the past five years, a total of around sixty billion dollars has been invested in digital technologies, hydrogen technologies, and other sources of energy.It is becoming increasingly apparent that oil and gas companies are beginning to acknowledge the significance of environmental conditions as a priority for the purpose of strengthening their operations and providing value throughout their organisations [8][9][10][11][12].Even though the majority of oil and gas corporations are likely to continue investing in conventional production, executives in the industry are beginning to view clean energy more seriously as a viable option.This is despite the fact that the majority of oil and gas corporations will continue to invest in conventional production [6][7].
One of the most challenging challenges that energy companies must face in the modern day is the implementation of an efficient environmental, social, and governance (ESG) plan.When companies adopt a strategy to environmental, social, and governance (ESG) that is strategic and is related to the goals and values of the company, the likelihood that leaders will perceive advantages increase dramatically.Because ESG encompasses not only environmental but also social and governance efforts, it is imperative that oil and gas companies evaluate the requirements of their organisation in addition to the requirements of their personnel.ESG is an acronym that stands for environmental, social, and governance.In order for an oil and gas company to appease a broad range of different stakeholders, it is very essential for the company to have an environmental, social, and governance plan.Initiatives based on environmental, social, and governance principles are not only crucial for reducing risks but also for promoting innovation in the energy sector [8].
The most significant impact on the environment Allen and Pentland used the phrase "carbon footprint" to refer to the total amount of carbon dioxide and other greenhouse gases (GHGs) that were released into the atmosphere during a predetermined period of time.This was done in order to highlight the impact that humans have had on the environment.Unhappily, the top 20 companies responsible for the highest contributions to carbon footprints are all involved in the energy business.These corporations are all accountable for producing carbon dioxide emissions.The following image presents a visual representation of the accumulated carbon footprints of the top 20 firms worldwide from the year 1965.This number accounts for all twenty businesses now active in the energy industry.Pollution and GHG (greenhouse gas) emission is one of the ongoing challenges that has to be addressed in the business that is reliant on traditional energy sources and fossil fuels.The CES (Conventional Energy Sector) is directly responsible for both the health concerns that have come from these pollutants as well as the greenhouse gas emissions that the EPA (2016) has measured.S&P has devised a grading system in order to provide environmental risk scores to the various sectors that are included in the S&P 500.These sectors can be found here (S&P, 2021).According to the findings of this investigation, the Energy Sector is associated with the highest levels of environmental, social, and governance risk.This sector encompasses not only the extraction of oil and gas but also the generation of power.Figure 1.2 provides a visual representation of the relative Environment Risk Score. Figure 2. Iberdrola, EDF, Orsted, Vestas, NextEra Energy, Enel, NRG, and National Grid are some examples of some of the most renowned power firms in the world that are focussing their efforts on ESG.Other companies that are doing the same include Vestas, NRG, and National Grid.When a strong environmental, social, and governance (ESG) framework is in place, businesses have the ability to create action plans and monitor performance metrics.These indicators may include the diversity of energy sources, the reduction of a person's carbon footprint, and the sustainable utilisation of natural resources.At this point in time, there is a greater requirement for environmental, social, and governance (ESG) activities in the energy industry than there ever has been before.The implementation of ESG best practises shows oil and gas companies that they care about the health and safety of their employees by providing concrete evidence of this concern.Placing a focus on environmental, social, and governance issues is not only the appropriate thing to do from the point of view of society, but it also assists energy firms in gaining the trust of their customers and in preparing their businesses for the changing nature of work [5-7].Environmental, social, and governance is an acronym that is used to describe the corporate financial interests of a business, with the primary emphasis being placed on ethical and environmentally responsible effects.This is because ESG is an all-encompassing term that encompasses all three of these aspects.With the assistance of ESG, both the appraisal of firms and the forecasting of the future financial performance of those organisations may be accomplished.Although ethical, sustainable, and corporate governance are all examples of non-financial performance indicators, their primary purpose is to guarantee responsibility and provide management systems for a company's impacts, such as its carbon footprint.This is because these non-financial performance indicators are not directly related to the company's financial performance.Effective environmental, social, and governance (ESG) initiatives include laws, operational standards, and technology that may be used to make energy generation cleaner, hence reducing the total number of adverse effects that are had on the natural environment [8-10].

Fig. 3 ESG Framework
ESG variables come together to offer a measurement that analyses an organization's collective conscience by utilising indicators such as inclusiveness, sustainability, and social impact.This evaluation is made possible by the combination of all of these factors.Examples of these metrics can be:  "Using PV Modules as a means of power generation"  "An efficient framework for waste management".
 "Percent of gender and ethnic group representation". "Employee wellness initiatives". "Stakeholder wellness and safety initiatives".

ESG TRENDS IN THE ENERGY SECTOR
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Technology trends:
Some of the most recent breakthroughs in technology include hydrogen, carbon capture and storage (also known as CCS), electrification, energy storage, and renewable sources of energy [12][13][14][15][16]. Hydrogen is still the element that has the highest availability and about which the most information is known across the whole cosmos.It is a source of cleaner power (fuel with zero emissions) that can be used on a massive scale, thus it will be a game-changer for both of those reasons.Hydrogen is simple to move and store, and its usage does not immediately result in the production of carbon dioxide or other greenhouse gases (GHGs).
Carbon capture and storage (CCS) technology may give a solution to the problem of growing carbon emissions all over the world since it prevents fossil fuel power facilities from releasing considerable amounts of CO2 emissions into the atmosphere.The carbon capture and storage (CCS) technique is a three-step process that involves the sequestration, transportation, and storage of anthropogenic CO2 emissions in deep geological formations in order to prevent the release of a harmful gas into the atmosphere.CCS is an abbreviation for the acronym "carbon capture and storage" [6].
The elimination of carbon emissions in the future is dependent on one of the most important enablers: universal access to the electrical grid.By the year 2030, the United Nations intends for all of the world's inhabitants to be provided with access to electrical power, which is one of the Sustainable Development Goals (SDGs) that they have put out.Despite the fact that this percentage is greater than the global average of 90%, just 46% of people in sub-Saharan Africa have access to electricity as of the year 2019, according to statistics published by the World Bank.The global average for access to electricity is 90%.Even now, there are still more than 800 million people who do not have constant access.
Energy storage systems, also known as ESS and sometimes abbreviated as ESS, are used extensively for the purpose of storing energy for use at a later time.This can be accomplished in a number of ways.This facilitates energy control, offers bridging power, and enhances power quality and dependability.The ESS technology may be utilised to aid in power management during peak load periods.Also, it makes it simpler to integrate decentralised renewable energy sources into the power grid, which enables these sources to be utilised to supply demand in a manner that is more environmentally friendly [13][14][15][16][17][18][19][20].
By the year 2030, it is expected that around forty percent of the world's demand for power would be fulfilled by renewable energy.It is anticipated that an increase in the usage of renewable energy sources will occur over the course of the next 10 years as a direct result of increased expenditures in environmentally friendly technologies.It is expected that by the year 2024, the output of electricity from renewable sources would have overtaken that of coal-fired power plants to become the predominant source in the mix.

Macroeconomic trends:
Examples of advancements in the macroeconomy include the decline in cost of renewable energy sources, the use of diversity as a risk management technique for emissions, the imposition of environmental levies, and the achievement of sustainable financing through regulated categorisation.The cost of renewable energy underwent a significant decline beginning in the second part of the 2010s and continuing all the way into the 2020s.The most important factors that have contributed to this tendency are the fast progress of technology and the broad use of it.In spite of the COVID-19 outbreak, the capacity of renewable energy sources around the globe expanded by more than 260 gigawatts (GW) in the year 2020.Price competitiveness, which is supported by policies that are advantageous from the government, may be ascribed to this increase.The transformation of the power industry into one that generates energy in a more environmentally friendly and sustainable manner by depending on renewable sources has already started on a global scale.As a direct consequence of this, there is an urgent need for utilities to immediately begin the process of divestment and diversification.The nation's power companies are exerting a lot of effort in order to maintain a high level of both their operational and financial performance.In addition to this, they are focussing on improving people's standard of life and addressing environmental concerns in a manner that is consistent with the ideas presented in the Sustainable Development Goals published by the United Nations (SDGs) [5][6][7] Utility businesses on every continent have been subjected to government oversight for compliance with regulations concerning the environment's air, water, and waste.If you break these rules, you will be subject to large penalties and, depending on the severity of the offence, you might even have your licence revoked or suspended.The additional cost is meant to motivate utilities to seek out greener energy sources in order to bring about a decrease in emissions, and the goal is that this will happen as a result of the reduction in emissions.
When it comes to making decisions regarding investments, paying respect to environmental, social, and governance aspects is a crucial trend that is now being applied across the power industry.This shift came about as a direct result of the growing awareness of the importance of these elements.It acts as an incentive for investors to put their money into initiatives that have a positive impact on the environment.In recent years, we have had the opportunity to see, within the framework of EU policy, financial aid for economic growth that takes into consideration challenges pertaining to social governance and governance in general.
In general, those in the energy industry who are in charge of running operations are held responsible for complying with rigorous emission standards.Hence, utilising these models is a workable choice for attaining environmental, social, and governance (ESG) compliance with the regulations that control the protection of local and national ecosystems.Some examples of effective ESG trends include:  Hydrogen Technology  Carbon Capture Technology  Renewable Energy Use  Energy Storage Systems

Hydrogen Technology:
Hydrogen gas is a very important source of energy that can be used without producing harmful emissions to power a wide range of different devices and processes.Hydrogen gas is not only one of the naturally occurring elements that can be found in the largest amount on earth, but it is also one of the elements that is discovered to be among the most common.The usage of hydrogen gas as an industrial fuel will continue to gain popularity as a result of the increased investment that a variety of different industrial players are making in the development of more environmentally friendly energy sources [12][13][14][15][16][17].The utilisation of hydrogen as a source of energy has a number of benefits, some of which are listed below:  Lightweight  Ease of storage  Zero-emission (no greenhouse gas release) rating

Carbon Capture Technology:
Another alternative that is particularly effective for reaching ESG targets is to make use of machinery that removes emissions of carbon dioxide.For instance, the emissions that are produced by businesses that are engaged in the generation of power have the potential to be collected, stored, or redirected for use in other settings.It is feasible to apply carbon capture technology on a global scale in order to cut down on emissions brought on by the consumption of fossil fuels.The ability to capture carbon-based emissions, transport them to locations where they may be safely stored in subterranean geological formations, and then reintroduce them into the atmosphere is a viable option [1].

Renewable Energy Use:
Renewable energy sources are pure sources of power that can be renewed continuously due to their inexhaustible supply.These types of energy sources are known as "renewable energy sources."Wind, solar, geothermal, and biofuels are a few examples of different types of renewable energy sources.An increase in the amount of a power company's output that comes from renewable sources is an indication that the power business is dedicated to a manufacturing future that is both environmentally benign and sustainable.An outstanding method to meet the emission criteria set by the industry while simultaneously investing in a rapidly expanding alternative to traditional fossil fuels is for an organisation to use renewable energy sources as part of its environmental, social, and governance (ESG) strategy [14][15][16][17][18].This can be accomplished by using renewable energy sources as part of an organization's ESG strategy [16-22].

Energy Storage Systems:
Energy storage systems (ESS) are an important development in the subject of environmental, social, and governance (ESG) that may be utilised to store energy generated for later use.These systems may be used to store energy in a manner that allows it to be used at a later time.In addition, these power storage units may be used as stopgap measures to sustain productivity during periods of heavy demand as well as during unexpected breakdowns of primary power sources.This is possible because these power storage units may be used to store energy.This is feasible as a result of the capability of the units to function as emergency sources of backup power.Technology such as pumped hydroelectric storage, capacitor units, flywheels, batteries, and compressed air energy storage systems are examples of the types of systems that fall under the umbrella term of energy storage systems (ESS)[5].

Environmental challenges:
Examples of problems with the environment that need to be handled include emissions of greenhouse gases as well as pollution [11][12][13].Because a substantial section of the industry continues to rely on methods of generation that produce a high amount of carbon dioxide emissions, the generation of energy is one of the primary contributors to climate change.The burning of fossil fuels to generate electricity is another significant contribution to environmental degradation, notably in terms of the emissions of air pollutants produced by coal-fired power plants.The increased concentration of greenhouse gases in the atmosphere, such as carbon dioxide (CO2), works as a blanket that traps heat from the sun, which in turn drives up average temperatures all around the world [13][14].This phenomenon is known as "greenhouse effect."From the beginning of the industrial revolution, the average world temperature has grown by approximately one degree Celsius, as determined by the conclusions of the Intergovernmental Panel on Climate Change (IPCC) [14][15].
Whenever fossil fuels are burned, there is a subsequent release of pollutants into the surrounding environment.When coal is burned, a significant amount of pollutants, including as sulphur dioxide (SO2) and nitrogen oxides (NOx), are released into the atmosphere [15][16].These pollutants, together with oxygen and water vapour in the atmosphere, can contribute to the development of acid rain.Both SO2 and NOx have been implicated in a wide range of detrimental effects on human health, some of which include but are not limited to respiratory problems, asthma in children, and cardiovascular ailments.It has been estimated by the World Health Organization (WHO) that air pollution is to blame for 4.3 million deaths throughout the world every single year.Conditions such as lung cancer, heart disease, stroke, and chronic respiratory diseases are the root causes of many fatalities [12][13][14].

Social challenges:
Instability in employment and the subsequent impact on communities are two instances of social challenges.More than 40 million people are directly employed by the industries of oil and gas extraction, coal mining, renewable energy, bioenergy production, and energy networks across the world.According to projections made by the International Energy Agency (IEA), the number of people engaged in the supply of oil, gas, and coal fuel will drop by 5 million by the year 2030, while the number of people employed in the provision of clean energy would have climbed by 14 million.The objective of the International Energy Agency (IEA) is to achieve carbon neutrality by the year 2050.Many communities are dependent on the jobs that are related with fossil fuels; this is the case despite the fact that this indicates a net growth of 9 million employment opportunities inside the energy market.
There is a large body of information that points to a high degree of political and societal acceptability of new renewable projects all around the world.These projects include ones that use renewable sources of energy [12][13][14].People are aware of the benefits of energy sources with low carbon emissions, and they have voiced a wish to have their nation's energy mix result in a smaller total carbon footprint.It is almost probable that legislators will support initiatives to promote low-carbon energy due to the widespread usage of this type of energy.It is vital to build effective frameworks that incorporate not just the relevant markets and politicians, but also the local community in order for such initiatives to be effectively executed.This is a prerequisite for achieving success [7].

Governance challenges:
In the year 2021, there is a significant focus on the regulation of energy production and distribution companies.Stakeholders and members of the general public are asking, maybe more so than they ever have in the past, that power businesses assume responsibility for the damage they cause to the environment.Companies that do not make active efforts to improve their environmental credentials are being shunned by investors, and social organisations centred on climate change are educating communities about the negative repercussions of ever-increasing carbon emissions.Investors are shunning companies that do not make active efforts to improve their environmental credentials.Because of the ongoing growth in the amount of cyberattacks, electricity companies have also become the focus of these kinds of attacks.The executives who are employed in the power industry ought to make the mitigation of these dangers one of their highest priority in order to protect their company [6].

CONCLUSION
Environmental, social, and governance policies should be adopted by every industrial firm since doing so would result in various benefits.These policies should be implemented because of the multiple advantages that would arise from doing so.To begin, one of the most major difficulties that the energy industry needs to face is that of emission management.This is a task that must be met.As long as fossil fuels continue to be utilised for a substantial portion of the process of producing electricity, there will always be a chance of damaging CO2 emissions being released into the atmosphere.This risk will remain as long as fossil fuels continue to be employed.
Either by utilising sources of renewable energy or by collecting and storing the emissions from sources of fossil fuels, energy companies can effectively cut their emission levels by implementing ESG strategies.This can be done either by employing renewable energy or by collecting and storing the emissions.The energy industry has the ability to pursue one of these two paths.In addition, the development of renewable energy sources leads to the generation of new employment possibilities in addition to the expansion of the energy industry as a whole.So, from a sociopolitical point of view, investments in the generation of energy with low levels of carbon emissions are quite acceptable.
Thirdly, the use of ESG principles will make it feasible for participants in the energy sector to fulfil their commitments to reduce their carbon emissions.This is significant because firms that deal in power are being pressured to comply with stricter regulations on fossil fuels.