Sustainability Reporting in the Oil and Gas Industry

Literature Review: Sustainability Reporting in the Oil and Gas Industry
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Table of Contents Introduction. 3 Literature Review.. 3 i.       First Article. 3 ii.     Second Article. 5
Literature Review: Sustainability Reporting in the Oil and Gas Industry
Introduction
The Sustainability Reporting Guidance for oil and gas companies provides a framework for petroleum and gas firms that outlines their roles in energy transmission. The report also defines the operations of petroleum and gas firms in relation to managing climate change and environmental preservation, its implications and available growth opportunities. The Sustainability Reporting Guidance also looks into other areas, including safety, climate change, business ethics, reporting processes, and social implications. This promotes good practice in the energy industry through the guidelines. The International Energy Agency perceives oils and gasses as significant contributors to energy in the present and the future. When combined, oils and gasses could provide 48% of the energy demand in the next 18 years. This speculation proves that oils and gasses will continue to play a critical global role in producing reliable and affordable energy. The reliance on oils and gases in energy production will also contribute to economic growth, poverty eradication, and improved quality of life.
Literature Review
* First Article
“Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework.”
This article was published in the Journal of Cleaner Production to conceptualize a framework for the examination of how the reporting of sustainability practices by the petroleum and gas sector moderates performance and business risk management. The authors gathered empirical evidence from Malaysian gas and oil firms’ annual performance reports to support their argument that sustainability reporting is indeed a factor moderating performance. The article begins by providing a context for the study, discussing the relationship between business performance and sustainability reporting. The authors then discuss the beneficial role of sustainability disclosure on corporate risk management by exploring how oil and gas companies have responded to reports of environmental, social, and governance (ESG) performance (Shad et al., 2019). The authors present a conceptual framework for examining this relationship, which outlines five dimensions of sustainability reporting: environmental performance, social performance, financial performance, governance performance, and innovation performance.
According to Shad et al. (2019), despite being a critical element of corporate planning as well as strategic management, most companies do not integrate sustainability reporting and initiatives into their risk management frameworks and business strategies. This is especially problematic, considering that most modern consumers are increasingly interested in brands’ sustainability practices. The authors argue that companies need to understand better the beneficial role of sustainability disclosure on corporate risk management to communicate their sustainability commitments to stakeholders effectively and make informed decisions about their business investments. The conceptual framewo...