Sustainable supply chain management in the oil and gas industry

Abstract

Purpose– The purpose of this paper is to assess the sustainability reporting practices of oil and gas (O & G) companies and the integration of sustainability in the management of their supply chain.Design/methodology/approach– A content analysis of sustainability report of 30 companies was conducted based on the Pacific Sustainability Index that contains 21 topics on social and environmental reporting. An analysis was also conducted on supply chain management (SCM) topics related to supplier management, product stewardship and logistics management.Findings– There is inconsistency in the sustainability reporting practices among the O & G companies studied. While 63 percent of the companies expressed higher environmental intent compared to social intent, their reporting of environmental performance is lagging behind social performance reporting. There is also a lack of supply chain indicators in the sustainability reporting guidelines. This affects the companies ability to report their supply chain practices objectively.Practical implications– The findings of this study can be used as a guideline to improve the sustainability reporting practices and to identify relevant supply chain indicators that can be incorporated in a sustainability reporting index.Originality/value– There is a lack of research on sustainability reporting practices in the O & G industry context, especially in terms of SCM. Previous studies focussed on companies in specific countries and/or do not incorporate all sustainability dimensions, namely, economic, environmental and social factor. We think that this is the first comprehensive study on the sustainability reporting practices and the integration of sustainability in SCM in the O & G industry.