Fueling the circular transition: an empirical exploration of Sustainable Development Goal performance in the Oil & Gas Industry

Purpose: The present research aims to analyse the impact of circular economy (CE) initiatives on the Sustainable Development Goals (SDGs) performance of firms operating in the Oil & Gas (O&G) sector. In detail, adopting a stakeholder-agency theory lens, this study explores the relationship between corporate governance and CE performance measured through SDGs. Specifically, the research aims to highlight how corporate governance attributes could affect firms’ ability to implement CE practices and – in turn – reach a higher SDGs performance. Design/methodology/approach: A global sample of firms operating in the O&G sector has been selected from the Refinitiv Eikon database. In order to test the research hypotheses, an SDG-based CE performance index has been developed. Subsequently, an Ordinary Least Squares (OLS) regression model is carried out to explore the impact of the following variables on the CE performance index: board size, board gender diversity, board independence and Corporate Social Responsibility (CSR) committee. Findings: The results highlight that the board size and the presence of a CSR committee positively influenced SDG-based CE performance. However, board gender diversity does not have a significant impact on CE performance in relation to the SDGs, whereas board independence appears to exert a negative effect.