Menu
BUSINESS FORA
Open access
Article credentials
Original Research
Integrating Environment, Social, and Governance in Oil and Gas: Balancing Profitability and Sustainability
Business Fora: Business and Allied Industries International Journal
Volume 6 | Issue 1 | 2025 | 15 – 28
Mark Phill de Rama, ORCID No. 0009-0000-2163-9960
Master of Business Administration, San Beda University, 638 Mendiola Street, San Miguel, Manila, Philippines
Article History:
Initial submission: 28 September 2025
First decision: 30 September 2025
Revision received: 17 October 2025
Accepted for publication: 30 October 2025
Online release: 03 November 2025
Quick links
Ready to submit? Click the button below.
Need more help before you submit?
Abstract
This study examines the integration of Environmental, Social, and Governance (ESG) practices and their impact on organizational performance within Saudi Arabia’s oil and gas sector. The main objective was to determine how environmental initiatives, social responsibility programs, and governance mechanisms influence financial performance, shareholder value, and competitiveness amid the country’s sustainability transformation. ESG dimensions were treated as independent variables, while organizational performance was identified as the dependent variable. A quantitative research design was used, employing a structured survey distributed to professionals across various segments of the oil and gas value chain. The instrument was validated through expert review and pilot testing to ensure reliability. Descriptive statistics (frequency, mean, and standard deviation) were used to summarize adoption levels, while Spearman correlation tested the relationships among ESG dimensions and profitability. Results revealed that environmental practices were partially adopted, emphasizing energy efficiency over carbon capture and renewable integration, yet showed a moderate positive correlation with profitability (r = 0.437, p = 0.001). Social practices achieved the highest adoption and demonstrated the strongest relationship with profitability (r = 0.614, p = 0.001), particularly through health, safety, and inclusion initiatives. Governance practices were moderately implemented but significantly associated with profitability (r = 0.558, p = 0.001). Respondents identified high operational costs and regulatory ambiguity as main barriers, while opportunities emerged in innovation and investor confidence. In conclusion, ESG adoption positively contributes to financial and organizational performance. While environmental initiatives remain underdeveloped, social and governance dimensions drive measurable business value. ESG integration thus represents a strategic approach for achieving both profitability and sustainability in the evolving global energy landscape, supported by national policy frameworks such as Saudi Vision 2030 and the Saudi Green Initiative.
Keywords: ESG integration, sustainability, profitability, organizational performance, governance, social responsibility, environmental practices, oil and gas sector
Cite this article
APA (7th edition)
De Rama, M. P. (2025). Integrating environment, social, and governance in oil and gas: Balancing profitability and sustainability. Business Fora: Business and Allied Industries International Journal, 6(1), 14–27. https://doi.org/10.62718/vmca.bf-baiij.6.1.SC-1025-009.
Author contributions
– (Not applicable).
Funding
This research received no external funding.
Conflict of interest
The author declares no conflict of interest.
Institutional ethics review statement
This study involved human respondents; however, formal ethical approval was not sought from the authors’ institution. The authors affirm that participation was voluntary, informed consent was obtained, and confidentiality of responses was strictly maintained. No procedures were undertaken that posed risk or harm to the participants.
Data availability statement
All data supporting the findings of this study are included within the manuscript and its supplementary materials.
Declaration of generative AI use/assistance
No AI tools were used in the preparation of this manuscript.
Acknowledgement
– (Not available).
Publisher’s disclaimer
The views expressed in this article are those of the authors and do not necessarily reflect the views of the publisher. The publisher disclaims any responsibility for errors or omissions.