Towards sustainability in the global oil and gas industry: Identifying where the emphasis lies

Abstract

There are growing concerns regarding the compatibility of the oil and gas industry in a sustainable future. Many companies claim to address sustainability and are engaged in a plethora of sustainability initiatives related to their supply chain operations. However, it is often difficult to make sense of this whirlwind of corporate activities, as research has failed to verify these claims’ veracity. We analysed one hundred and fifty annual reports of fifteen oil and gas companies across Europe, Asia and America to determine whether these companies support their green rhetoric by pushing their supply chain in the direction of sustainability. Content analysis was used to codify and explain what sustainability the companies emphasise in their supply chains. Findings indicate that in addition to the disparity that exists in the supply chain sustainability emphasis in the global oil and gas industry, oil and gas companies in Asia and America were lagging behind and still have a lot to do if they are to make a comprehensive emphasis on the three dimensions of sustainability in their supply chains. We argued that the observed emphasis of these oil companies would not result in a more sustainable oil and gas industry in the future; therefore, we expect them to act more sustainably given the nature of their operations and constraints of the industry.