Using Business Analysis to Enhance Sustainability and Environmental Compliance in Oil and Gas: A Strategic Framework for Reducing Carbon Footprint

Abstract

The oil and gas industry has been identified also as a major source of greenhouse gases and contributes approximately 42% of the total global CO₂ emissions. As the world continues to strive towards sustainable development goals including those of the Paris accord, this industry is under pressure to decrease its emission of carbon. This review discusses the application of business analysis tools on a strategy that supports sustainability and aligns oil and gas companies with environmental standards. The framework is centred on the deployment of next-generation technologies as carbon capture and storage, on establishing global standards of corporate climate policies, on engaging stakeholders, on optimizing business processes, on facing climate risks and on experimenting with new forms of biofuels. Some of the problems include high costs, complications due to state regulations, and negative attitudes from the public and stakeholders.These issues can be overcome through effective public-private partnerships, sharing of information, and diversification of research spending. In addition to mitigating emissions the envisaged framework is designed for companies to derive strategies that will keep them competitive and socially responsive. The present review also underlines the necessity to use a complex approach to increasing the sustainability of the oil and gas industry.