Framework for Mainstreaming Sustainability and Climate Governance in the Oil & Gas and Finance Industries

Abstract

Before Covid-19, leadership was deemed responsible through parameters of organisational performance, inclusivity, innovation, profits, and economic growth. However, the pandemic has revealed the delicate nature of resources upon which most of our economic systems depend, exposing the fact that responsible leadership cannot be considered so through unidimensional parameters like profit and bottom-line only. Businesses need a ‘boardroom-to-copy-room’ approach in operations to sustain themselves through abnormalities like the pandemic or climate change. As governments across the world have demonstrated through net-zero commitments and pledges, there is a pressing need for immediate action to protect the environment, people, and social systems. Recognising this need, the paper looks at two traditional sectors that have substantially contributed to rising emissions—the Finance sector and the Oil and Gas sector—to identify how the leadership can embed sustainability into the core of their business. The paper examines purposeful ESG practices adopted by industry players to reconcile the gap between needful climate action and commitments. Finally, the paper builds on a framework of recommendations for stakeholders, across Governance, Strategy, Risk Management and Disclosures, in an effort to promote industry-wide sustainable and responsible leadership.