Fueling Sustainability: ESG Considerations for Fuel Filing Stations in Urban Zambia
As Zambia continues to grow and develop, the demand for fuel-filling stations is on the rise. With the shrinking commercial space and high population density, a local fuel-filling station within the vicinity of an urban locale is now commonplace. Lusaka is a notable example where fuel filling stations are dotted along the main, busy roads bordering households, kiosks, markets, and other local businesses. This close interaction between high-risk commerce and the general public draws a lot of Environmental, Social, and Governance (ESG) concerns. As Zambia is committed to achieving SDG 7 on Affordable and Clean Energy, it is crucial to consider the ESG concerns for urban fuel filling stations.
Under the head of Environmental Risks (ER), air pollution is the most obvious due to the poisonous chemicals in exhaust gases or vehicle fumes. Second place is the noise pollution attached to the hustle and bustle of vehicle traffic on-site. Underground Storage Tanks (USTs) also pose a risk of water and soil pollution. With water pollution, the discussion covers leakage and spillage of water into local water sources. Connected to this is the risk of leakage of fuel in underground soil, as well as tank corrosion, which affects soil quality.
The cited ERs pave the way to note down Social Risks (SR). As highlighted, noise pollution from the ‘vroom’ of passing vehicles disrupts the natural peace and quiet of residential life. Further, the health and safety of nearby residents are at risk from potential air, water, and soil contamination. Another SR is vicinity security, as fuel filling stations are mostly considered ripe targets for armed robbers. Connected to this is the risk of fire, whose volatility may greatly affect nearby human residences. Away from the negative, there are opportunities for employment of locals in jobs such as fuel attendants, fuel station managers, and station shop cashiers. Another golden opportunity is that these local fuel stations bridge the service gap by providing other support services in underserved local communities. In addition to energy, other co-services include ATMs, vehicle servicing, and groceries.
The major Governance Risks (GR) of urban fuel filling stations could be the failure to adhere to local laws on environmental protection, pollution control, and occupational health and safety. This is a major risk as it exposes the company to significant fines, criminal liability of controlling officers, remediation costs, and reputational injury. Another risk is the lack of accountability, transparency, and emergency response to disasters.
To mitigate the cited concerns, it is crucial to conduct pre-and post-operation measures. A pre-operation measure is an Environmental Impact Assessment (EIA) prior to the setup of the station. Another pre-operation measure is meeting the siting criteria for petroleum infrastructure as set by the Energy Regulation Board. Post-operation measures include regular policy reviews, legal compliance checklists, regular ESG audits and on-site assessments, Emergency Response Plans, company restructuring on ESG governance, employee training on risk management, and the publication of sustainability reports and pamphlets.
By integrating these detailed practices and legal considerations, gas filling stations can effectively manage their ESG compliance, mitigate risks, and enhance their overall sustainability performance. If you have any specific areas you’d like to explore further, let me know!
