Key factors influencing sustainability performance in the oil and gas industry in Malaysia and selected western countries (US, Canada, UK, Norway)

Soo, Hui Lin (2025) Key factors influencing sustainability performance in the oil and gas industry in Malaysia and selected western countries (US, Canada, UK, Norway). Final Year Project, UTAR.

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Abstract

This study investigates the key factors influencing sustainability performance (SP) among the top 30 oil and gas (O&G) companies across five countries: the United States, Canada, the United Kingdom, Norway, and Malaysia. Using a quantitative, cross-country comparative design, secondary data from LSEG Workspace spanning 2020–2024 were analyzed. The study examines five independent factors: decarbonization strategy (DS), financial performance (FP), social responsibility (SR), governance quality (GQ), and company structure (CS), alongside country-level differences, to determine their impact on SP. Multiple linear regression analysis identified DS and GQ as the most significant predictors of SP, whereas FP, SR, CS, and country effects were largely insignificant. These findings highlight that proactive decarbonization initiatives and robust governance mechanisms are critical for enhancing SP in the O&G sector, while short-term financial outcomes and SR activities alone are insufficient. The study offers practical implications for O&G companies to embed sustainability into core operations and for policymakers to strengthen governance and reporting frameworks. Limitations include a small, uneven sample and reliance on secondary data, suggesting future research should expand cross country coverage, include additional sustainability indicators such as scope 3 emissions, and consider mixed-method approaches to provide deeper insights. This research contributes to sustainability literature by providing cross-country empirical evidence on the drivers of SP in a high-impact industry, informing both theory and practice. Keywords: Sustainability Performance, Oil and Gas Industry, Triple Bottom Line (TBL), Stakeholder Theory, Institutional Theory, Decarbonization Strategy, Financial Performance, Social Responsibility, Governance Quality, Company Structure, Cross-country.

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