 The practice of implementing the ESG strategy in foreign companies using the example of the Royal Dutch Shell oil and gas company: advantages, limitations and risksG.A. Aleksandrov
Siberian Journal of Economic and Business Studies, 2026, vol. 15, issue 1, 26–42 Abstract: Background. The relevance of the study is due to the increasing requirements for environmental and social responsibility of oil and gas companies in the context of the global energy transition and stricter international regulation. The implementation of ESG principles is becoming a key element of corporate strategies, but it is accompanied by a number of contradictions, legal and reputational risks, which require a comprehensive scientific analysis. Purpose. The purpose of the study is to analyze the experience of integrating ESG principles into the business strategy of an oil and gas company using the example of Royal Dutch Shell, as well as to identify key areas of ESG transformation and associated institutional, legal, and reputational risks based on an analysis of court cases (the 2021 case in The Hague), human rights violations in Nigeria, Arctic drilling projects, and the company's 2024 integrated report. Materials and methods. The work uses comparative and system analysis methods, as well as content analysis of corporate reporting. The empirical base includes data from the company's 2024 integrated report, materials from the 2021 trial in The Hague, and open sources covering Arctic drilling projects, allegations of human rights violations in Nigeria, and cases of potential greenwashing. Results. The results of the study show that despite the declared environmental and social commitments, the practical implementation of ESG strategies in the oil and gas sector is hindered by institutional constraints and conflicts of interest between the goals of sustainable development and the need for economic growth. The 2021 court decision in The Hague on reducing greenhouse gas emissions set a significant precedent for global corporate regulation and increased legal risks for the industry. The study also identified significant reputational risks associated with Arctic projects, accusations of human rights violations, and greenwashing practices. The paper concludes that it is necessary to strengthen the mechanisms for verifying ESG initiatives and critically evaluating corporate reporting. Practical significance. The practical significance of the study lies in the possibility of applying the identified conclusions and formulated recommendations by Russian companies in the oil and gas and other carbon‑intensive sectors of the economy when forming and adjusting ESG strategies, taking into account the national institutional environment and the requirements of current legislation, including Law No. 296‑FZ “On Limiting Greenhouse Gas Emissions”. Keywords: ESG strategy; sustainable development; oil and gas sector; economic restrictions and advantages; foreign experience; ESG litigation risks; corporate sustainability in the oil and gas sector; greenwashing in reporting (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cxm:rusebs:15:1:2026:26-42 DOI: 10.12731/3033-5973-2026-15-1-338 Access Statistics for this article Siberian Journal of Economic and Business Studies is currently edited by Ivan D. Kotliarov More articles in Siberian Journal of Economic and Business Studies from Science and Innovation Center Publishing House 9 Maya Str., 5 office 192, Krasnoyarsk, 660127, Russian Federation. |
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