Abstract
Recently, there have been many reports of catastrophic accidents in the oil and gas (O&G) industry which led to huge financial losses and hazards to humans and the environment. Apart from the primary operational (technical) risks, there exist numerous non-technical risk factors such as workforce protection, climate change, ecosystem, biodiversity, health and safety, governing compliance, and other environmental, and social issues. These risks if left without intervention could affect the green growth and eco-friendly resilience of the O&G companies. Thus, this work offers a conceptual framework on how corporate sustainability practices along with risk management implementation are stimulating green growth in the O&G industry. The presented theoretical and conceptual framework underpinned by the stakeholder theory proposed in this paper provides a foundation for empirical validation of the intertwined relationship between the pertinent variables. The measurement of the variables such as corporate sustainability performance, enterprise risk management and green growth is proposed to be drawn from earlier research and developed frameworks and guidelines by prominent organizations. The significance of this paper is to lend guidance to Malaysian oil and gas players to embrace green growth through sustainability and risk management implementation.
Highlights
In the current era, large corporations are looking for new ways to reduce their risks by implementing enterprise risk management (ERM) and sustainability agenda
This study proposed examination of the ERM implementation and sustainability performance using the globally recognized framework for oil and gas (O&G) companies, namely, International Petroleum Industry Environmental Conservation Association’s (IPIECA) 2015 guidelines and their contribution to sustainable development using green growth framework proposed by the Organization for Economic Co-operation and Development (OECD) that foster the essential plans for innovations, investment, and conditions that increase the modern bases for financial development and advancement
The present work alludes a conceptual design that reflects the intertwined relationship of effective ERM implementation and corporate sustainability reporting with green growth
Summary
Large corporations are looking for new ways to reduce their risks by implementing enterprise risk management (ERM) and sustainability agenda. The World Business Council for Sustainable Development (WBCSD), advocates on the transition of global risks from a focus on an economic risk towards non-technical risks noted as societal, geopolitical and environmental risks (WBCSD, 2017). The organizations are being held liable and responsible by regulatory bodies for their economic, environmental and social impact, forcing risk and sustainability management as critical components in their business pursuit (Jagoda & Wojcik, 2019). Governments and policymakers advocate for effective risk and sustainability management implementation for sustainable development and green growth, the impacts of such initiatives are still at the infancy stage.
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