Unearthing the pressures: An assessment of the sustainability focus and supply chain management practices adopted by global oil and gas titans

Abstract

This study aims to explore the influence of institutional pressures on the global oil and gas industry's prioritisation of sustainability and supply chain management (SCM) practices. This study conducted a thorough analysis of 15 prominent oil and gas companies across Europe, Asia and America over a span of 10 years. The study employed a mixed-method approach, combining qualitative content analysis of annual reports with quantitative analysis of variance to assess the companies’ commitment to sustainability practices in response to different institutional pressures. The findings uncovered notable variations in the prioritisation of economic, social, environmental and stakeholder sustainability across different continents. The study also highlighted various institutional pressures that impact these companies, including regulatory demands, Paris Agreement objectives and non-governmental organisation expectations. Notably, these companies displayed different levels of responsiveness to these pressures, which impacted their SCM and sustainability strategies. This research also highlights the intricate relationship between institutional pressures and sustainability within the oil and gas industry. This implies that companies should develop strong sustainability strategies that align with external pressures to improve their competitive advantage. For policymakers, the study suggests the development of more robust regulatory frameworks that consider the varying sustainability practices across different regions. Furthermore, it promotes the need for additional research to investigate the effectiveness of these strategies in real-world applications, establishing a foundation for well-informed policy choices that support a sustainable future in the oil and gas industry.