Developing a composite Sustainability Index for ADNOC, BP and Shell

  • Vijay Francis

Student thesis: Master's Thesis

Abstract

The Oil and Gas (OandG) sector is a fundamental part of today's world, providing essential energy for global development. The Abu Dhabi National Oil Company (ADNOC) owned by the UAE Government, controls the OandG reserves and its operations in the United Arab Emirates (UAE). In the UAE, which has the 6th largest oil reserves in the world, the OandG sector currently contributes to 49% of the Gross Domestic Product (GDP). However, studies have also shown that sources of green house gas (GHG) emissions in the UAE to be from oil refineries, petrochemical and fertilizer plants and power and desalination plants. Recognizing the importance of making its operations sustainable, ADNOC has consistently reported their sustainability performance through Health, Safety and Environmental reports since 1997. But, a quantitative study on the sustainable performance of ADNOC was not available in the literature. Further, a study on how ADNOC performed in sustainability, when compared to other multinationals was also not present. This study was done to bridge the gap of knowledge on the sustainable performance of ADNOC and to understand the limitations in doing a comparative study of ADNOC with multinational companies. In this research, a composite sustainability index for ADNOC, BP and Shell is developed based on the work of Krajnc and Glavic (2005). For the study, common indicators published in the sustainability reports of the companies were used. The results of the study show that ADNOC made a significant improvement in sustainability performance from 2007 to 2010 when compared to its performance from 2005 to 2007. Comparisons based on the index calculated could only be performed for BP and Shell since ADNOC's reported indicators did not match those by the other two companies. The sustainability performance results for BP and Shell follow a convex curve with Shell consistently performing better than BP for the years 2007, 2008 and 2009. In addition to throwing light on the need to improve the reporting practices of companies, this study also proposes that consensus should be reached on the weights assigned to the reported indicators of different companies.
Date of Award2011
Original languageAmerican English
SupervisorGeorgeta Vidican (Supervisor)

Keywords

  • Petroleum Industry and Trade--Abu Dhabi (United Arab Emirates : Emirate)

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