SUSTAINABILITY REPORTINGWHAT DO THE GLOBAL TOP TEN OIL AND GAS COMPANIES REPORT ON?

Thesis supervisors: Torbjörn Brorson, Konstantinos Evangelinos

Martin Petrushevski, LU, CEU, Budapest - June 17 2014

MESPOM 2012-2014

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PRESENTATION OUTLINE• Problem definition

• Research question

• Methodology

• Results

• Conclusions and recommendations

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

April 13, 2023 3

OIL AND GAS PRODUCTION

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

Image source: BP 2012 (with amendments)

Image source: Usresponserestoration 2014.

Image source: Andrewfrank 2013.

Image source: Wikimedia 2010.

Image source: Capitolalert 2010.

Image source: Wikimedia 2010b.

Image source: Wikimedia 2010c.

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RESEARCH QUESTION

• To what extent do sustainability reports in the oil and gas industry comply with the GRI Guidelines for sustainability reporting?

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

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METHODOLOGY AND RESEARCH DESIGN• Literature review

• Top ten oil and gas companies in 2013

• GRI Guidelines

• Evaluation framework development

• Results

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

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OIL AND GAS COMPANIES

MESPOM 2012-2014

Martin Petrushevski, Sustainability Reporting

1. ExxonMobil2. Shell3. PetroChina4. Chevron5. Gazprom6. BP7. Petrobras8. Total9. Sinopec10. Eni

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GLOBAL REPORTING INITIATIVE (GRI G3.1 OGSS)

• Profile and Governance• Strategy and Analysis• Organizational Profile• Report Parameters• Governance, Commitments

and Engagement

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

• Management Approach and Performance Indicators• Economic Indicators• Environmental Indicators• Social Performance Indicators• Labor Practices and Decent Work• Human Rights• Society• Product Responsibility

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EVALUATION TEMPLATE

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

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FINDINGS: STRATEGY AND ANALYSIS

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

Topics: 2

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FINDINGS: ORGANIZATIONAL PROFILE

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

Topics: 10

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FINDINGS: REPORT PARAMETERS

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

Topics: 13

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FINDINGS: GOVERNANCE

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

Topics: 17

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FINDINGS: ECONOMIC PI

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

Topics: 10

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FINDINGS: ENVIRONMENTAL PI

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

Topics: 32

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FINDINGS: SOCIAL PI

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

Topics: 15 Topics: 12

Topics: 14 Topics: 10

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OVERALL RESULTS• The frontrunners

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

• The better-than-average reporters

• The mediocre reporters

• The trailers

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CONCLUSIONS AND RECOMMENDATIONS• Four categories identified• The frontrunners• The better-than-average-reporters• The mediocre reporters• The trailers

• Higher scores for first part of the guidelines• Strategy and analysis (95%)• Organizational profile (91.8%)• Report parameters (85.7%)• Governance (81%)

• External assurance

• Applicability of GRI Guidelines

Martin Petrushevski, Sustainability Reporting

MESPOM 2012-2014

• Lower scores for TBL PIs• Economic (66.9%)• Environmental (42.4%)• Social (37.6%)

Thank you for your attention

Any questions?

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REFERENCES• Andrewfrank 2013. Portfolio: Andrew Frank Communications. URL: http://

andrewfrank.com/wp-content/uploads/2013/05/Exxon-Valdez-Aerial-Photo-AF.jpg. [consulted 9 June 2014].

• Usresponserestoration 2014. Remembering the Exxon Valdez: Collecting 25 Years of Memories and Memorabilia. URL: http://usresponserestoration.wordpress.com/2014/03/24/remembering-the-exxon-valdez-collecting-25-years-of-memories-and-memorabilia/. [consulted 9 June 2014].

• Wikimedia 2010a. Deepwater Horizon offshore drilling unit on fire. URL: http://upload.wikimedia.org/wikipedia/commons/9/9d/Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg. [consulted 9 June 2014].

• Wikimedia 2010b. Deepwater Horizon oil spill. URL: http://upload.wikimedia.org/wikipedia/commons/7/7b/Deepwater_Horizon_oil_spill_-_May_24,_2010_-_with_locator.jpg. [consulted 9 June 2014].

• Wikimedia 2010c. Oiled pelicans. URL: http://upload.wikimedia.org/wikipedia/commons/4/48/Oiled_Pelicans.jpg. [consulted 9 June 2010].