The Gulf Cooperation Council Oil Industry’s Corporate Environmental Impact Reporting and Global Stakeholders: A Case Study of Saudi Arabia

Abstract

Corporations form one of the primary contributors to environmental degradation. Less than 20 fossil fuel companies contribute approximately 35 percent of global carbon emissions, pointing to the significance of sustainable corporate actions such as environmental impact reporting. The paper applies an integrated literature review to explore a comprehensive scope of the global relevance of corporate environmental impact reporting in the GCC countries, focusing on environmental impact reporting in Saudi Arabia’s commercial sector. The paper analyses Saudi Arabia's oil sector, which highly contributes to global carbon emissions regarding product production and consumption. The researcher used secondary data collection, exploring peer-reviewed journals and credible sources to establish whether Saudi Arabian companies’ environmental impact reporting framework holds significance for the corporate sector’s global stakeholders. Corporate Environment, Social, and Governance (ESG) reporting continuously gains stakeholder traction globally to minimise externalities like carbon emissions as part of the report that should accompany companies' regular financial statements. Stakeholders prioritise engagement with firms that practice sustainable business. Saudi Arabia’s corporate sector global stakeholders include but are not limited to foreign investors, international regulatory bodies, trade partner countries, and corporations. The country’s corporate oil sector has been at the forefront regarding its leading contribution to global carbon emissions. Saudi Aramco, a state-owned Saudi Arabia-based corporation, is leading globally in corporate environmental pollution. Saudi Arabia's commercial platform’s externality contribution and the sector's massive global influence have attracted international stakeholder attention. Its sustainability stance will influence global stakeholders’ decision-making. The research was limited by companies' use of varied accounting standards to report their environmental impact.