The North American Oil and Gas Sector: A Case Study of Environmental, Social, and Governance Risk and Opportunity Management

Environmental, social and governance (ESG) risks and opportunities have become central to the strategies of oil and gas companies worldwide. In North America, increased activism from internal and external stakeholders is driving firms to better understand ESG risks and identify opportunities for improvement. This study explores how and why ESG risk management is implemented among North American oil and gas companies through a qualitative case study of two firms. Findings indicate that key drivers of ESG risk and opportunity management include reputational concerns, stakeholder activism, legal requirements, evolving legal and regulatory requirements, and the desire of firms to maintain positive relations with the communities in which they operate. Drawing on stakeholder and institutional theory, the research examines how external pressures shape corporate priorities and influence the governance structures and decision-making used to manage ESG issues. By linking these pressures to enterprise risk management (ERM), the research illustrates how ESG expectations are translated into internal decision-making, oversight and organizational change. Overall, the study shows that when ESG risks and opportunities are effectively integrated into ERM processes, oil and gas companies can strengthen community relationships, reduce conflict and stakeholder opposition, and support strategic operational decision-making.

Author dc:creator

• Schorr, Stacey

Advisor dc:contributor.advisor

• Herremans, Irene

• College of interdisciplinary studies

Language dc:language.iso

en_US

Identifier URI

https://doi.org/10.25316/IR-20941

OAI identifier oai:identifier

oai:null:10613/29412