An Evaluation of Sustainability Reporting in Nigerian Oil Companies: A Case Study of Shell Nigeria
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Background of the Study
Sustainability reporting is a practice that provides insights into a company’s environmental, social, and governance (ESG) performance. It enables stakeholders to assess how companies manage sustainability-related risks and opportunities. In the oil and gas sector, sustainability reporting has gained prominence due to the industry’s significant environmental and social impact (Adetayo & Musa, 2024).
Shell Nigeria, one of the largest oil companies in the country, publishes annual sustainability reports to demonstrate its commitment to responsible business practices. This study evaluates the quality and effectiveness of Shell Nigeria’s sustainability reporting, focusing on its compliance with global standards and its impact on stakeholder trust.
Statement of the Problem
The environmental degradation and social issues associated with oil exploration have led to increased scrutiny of oil companies’ sustainability practices. While Shell Nigeria has adopted sustainability reporting, questions remain about the depth, transparency, and reliability of the information provided.
This study investigates the extent to which Shell Nigeria’s sustainability reporting meets global standards and addresses stakeholder concerns, identifying areas for improvement (Okoro & Ibrahim, 2023).
Objectives of the Study
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To evaluate the quality of Shell Nigeria’s sustainability reporting.
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To assess the compliance of Shell Nigeria’s sustainability reporting with global standards.
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To analyze the impact of sustainability reporting on stakeholder trust and corporate reputation.
Research Questions
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How does Shell Nigeria’s sustainability reporting align with global standards?
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What is the quality of information disclosed in Shell Nigeria’s sustainability reports?
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How does sustainability reporting influence stakeholder trust in Shell Nigeria?
Research Hypotheses
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Shell Nigeria’s sustainability reporting significantly aligns with global standards.
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High-quality sustainability reporting enhances stakeholder trust and corporate reputation.
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Gaps in sustainability reporting reduce its effectiveness in addressing stakeholder concerns.
Scope and Limitations of the Study
The study focuses on Shell Nigeria’s sustainability reports published between 2015 and 2025, evaluating their quality, compliance, and stakeholder impact. Limitations include potential biases in secondary data sources and limited access to internal sustainability practices.
Definition of Terms
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Sustainability Reporting: Disclosure of a company’s performance on environmental, social, and governance (ESG) factors.
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Global Standards: Frameworks such as GRI and SASB used to guide sustainability reporting practices.
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Shell Nigeria: A subsidiary of Royal Dutch Shell operating in Nigeria’s oil and gas sector.
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