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Table of Contents
Abstract...............................................................................................................................................3
Keywords............................................................................................................................................4
ESG practices, oil and gas industry, financial responsibilities, stakeholder engagement,
sustainability, renewable energy, corporate governance, qualitative research..................................4
Chapter 1: Introduction.......................................................................................................................5
1.2 Research Problem..................................................................................................................................6
1.3 Research Questions...............................................................................................................................6
1.6 Structure of the Thesis...................................................................................................................7
Chapter 3: Methodology............................................................................................................................24
3.1 Research Design...................................................................................................................................24
3. 2 Sample Selection.............................................................................................................................24
3.3 Data Collection Methods.....................................................................................................................25
3.4 Data Analysis Methods........................................................................................................................27
3.7 Limitations of the Methodology..........................................................................................................30
3.8 Timeline...............................................................................................................................................31
3.9 Budget.................................................................................................................................................32
Chapter 4: Results..............................................................................................................................33
4.1 Introduction.........................................................................................................................................33
4.2 ESG Practices and Strategies................................................................................................................33
4.3 Financial Implications and Responsibilities..........................................................................................36
4.4 Stakeholder Engagement and Influence..............................................................................................37
4.5 Challenges in Implementing ESG Practices..........................................................................................39
4.6 Opportunities for Innovation and Improvement.................................................................................42
4.7 Summary of Findings...........................................................................................................................44
Chapter 5...................................................................................................................................................49
5.1 Discussion:...........................................................................................................................................49
5. 2. 3 Governance Improvements........................................................................................................50
5.5 Five Barriers to the Integration of ESG Practices.................................................................................51
5. 6 Areas Where Change and Enhancement Can Be Made......................................................................52
5. 7 Theoretical Implications.....................................................................................................................52
5. 8 Practical Implications.........................................................................................................................52
Chapter 6: Conclusion................................................................................................................................55
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6.1 Summary of Research.........................................................................................................................55
6.2 Key Findings........................................................................................................................................55
6. 3 Conclusion and Recommendations of the Study................................................................................56
6. 4 Recommendations.............................................................................................................................57
6. 5 Limitations of the Study.....................................................................................................................57
6. 6 Future Research Directions................................................................................................................58
References.........................................................................................................................................60
Appendices........................................................................................................................................63
Abstract
This thesis is divided into three main parts, which are Environmental, Social, and Governance
(ESG) practices in the oil and gas industry, energy transition, and the financial responsibilities,
and roles of different stakeholders. The research is a qualitative and multiple case study that
focuses on the ESG practices of large IOGCs, namely BP, Shell, ExxonMobil, and Chevron. The
study used semi-structured interviews, focus group discussions, document analysis, participant
observation, and secondary data analysis and used thematic analysis to analyze the collected
data. The study shows that leading IOGCs are expanding their ESG approaches to include
environmental measures like renewable energy and carbon capture, social measures like
community development and education, and governance measures like independent board
committees and sustainability-linked executive compensation. The cost analysis shows that the
costs of ESG are borne by different people, including shareholders, customers, and the public.
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Investors are also keen on ESG projects, clients support sustainable initiatives through
premiums, and government subsidies and incentives are vital in driving the energy transition.
Stakeholder engagement is identified to be a key component in the implementation of ESG
strategies. Shareholders seek more disclosure and control over the management, thereby
affecting the business policies, while consumers are willing to spend extra bucks for green
products. Government policies and public funding are crucial in such endeavors. However, there
are challenges that companies encounter in the areas of regulation, finance, and managing
different stakeholders’ interests. Although the above challenges exist, there are prospects of
innovation and partnership that can be harnessed to improve ESG outcomes. Thus, the study
enriches the theoretical framework of ESG and stakeholder theories by presenting a
comprehensive picture of the financial processes and stakeholders’ involvement in the CSR
processes. The implication is that firms should spend resources on sustainable technologies,
involve stakeholders, and lobby for enabling policies. It is suggested that policymakers should
come up with and enforce policies and regulations that encourage corporations to invest in
sustainability. Thus, this research provides a detailed picture of the opportunities and risks of
ESG practices in the oil and gas sector and stresses the importance of the systemic approach and
cooperation in achieving sustainable development goals.
Keywords
ESG practices, oil and gas industry, financial responsibilities, stakeholder engagement,
sustainability, renewable energy, corporate governance, qualitative research.
