Creating Sustainable Value: An ESG Framework for the Petroleum Industry

Abstract

Abstract Efforts have been made on a global scale to reduce companies' impacts on the planet, people, and communities, prompting industries to reconsider their approaches to production and workforce management. However, several challenges and barriers impede businesses from fully embracing sustainable actions. One such obstacle is the creation of robust ESG planning. To address this issue, this research aims to develop a sustainability roadmap based on Environmental, Social, and Governance (ESG) strategies for a Norwegian Petroleum company. The programs are categorized into three pillars aligned with the triple bottom line and the Sustainable Development Goals (SDGs). To achieve this, a Steering Committee sponsors and oversees ten key workstreams (WS) derived from this strategy's construction. The Environmental dimension encompasses the Energy Management & CO2 Emissions initiative, demonstrating the company's dedication to tackling climate change by curbing CO2 emissions and minimizing environmental impacts from its operations. Additionally, in the Waste Management program, the company strives to reduce waste generation and promote a circular economy approach. Moreover, the company actively contributes to the global decarbonization of Oil and Gas (O&G) production through the Low Carbon Solutions program. As for the Social dimension, the Health & Safety program centers on creating a world-class performance organization, enhancing business competitiveness, and achieving a zero-incident vision. In the Talent Attraction & Retention program, people are acknowledged as the key to the company's success. The Diversity & Equality program showcases the company's commitment to non-discriminatory practices and equal opportunities. Through the Social Responsibility program, the company positively impacts local communities through educational initiatives. Finally, in the Governance dimension, the Responsible Business Conduct program promotes zero tolerance for corruption. The Compliance Obligation for HSE program ensures strict adherence to HSE laws and regulations. In the Responsible Supply Chain program, suppliers are selected based on their adherence to high environmental, anti-corruption, and human rights standards. The study results inform recommendations to effectively accommodate an ESG strategy and roadmap, fostering optimal cohesion within the petroleum industry and integrating their strengths to positively impact the entire value chain and optimize the realization of organizational goals.