Sustainability Reporting and Performance of Listed Upstream Oil and Gas Firms in Nigeria: A Content Evaluation Approach

This study evaluates the sustainability reporting and performance of listed upstream petroleum companies in Nigeria, using a content analysis approach. The paper objectively evaluated the textual content of the sustainability reports of the firms in line with the GRI standards. The study found evidence of inadequate reporting of sustainable economic performance by the major oil and gas firms, especially the financial implications and other risks and opportunities due to climate change. The results also show that the oil and gas companies are less perturbed by environmental conservatism due to weak environmental law enforcement. The firms’ sustainability performance reports about the environment and protection of the rights of indigenous communities are disingenuous. Further, there is little evidence of adoption of the Triple Bottom Line framework in evaluating firm performance in a broader perspective or in creating firm value. The findings also indicate that there is sustainability implementation laxity or apathy in Nigeria. This study adds to the burgeoning literature on the dichotomy of stakeholder value-driven versus shareholder value-driven corporate governance and how this paradigm fosters long-term sustainable value creation in an industry whose activities impinge upon the environment and people’s social lives. The findings are useful for Government, regulators, corporate executives, and other stakeholders in understanding the importance of institutionalizing sustainability reporting and disclosure on economic sustainability performance in line with the GRI disclosure content.