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The purpose of this paper is to assess the sustainability reporting practices of oil and gas (O & G) companies and the integration of sustainability in the management of their supply chain.

A content analysis of sustainability report of 30 companies was conducted based on the Pacific Sustainability Index that contains 21 topics on social and environmental reporting. An analysis was also conducted on supply chain management (SCM) topics related to supplier management, product stewardship and logistics management.

There is inconsistency in the sustainability reporting practices among the O & G companies studied. While 63 percent of the companies expressed higher environmental intent compared to social intent, their reporting of environmental performance is lagging behind social performance reporting. There is also a lack of supply chain indicators in the sustainability reporting guidelines. This affects the companies ability to report their supply chain practices objectively.

The findings of this study can be used as a guideline to improve the sustainability reporting practices and to identify relevant supply chain indicators that can be incorporated in a sustainability reporting index.

There is a lack of research on sustainability reporting practices in the O & G industry context, especially in terms of SCM. Previous studies focussed on companies in specific countries and/or do not incorporate all sustainability dimensions, namely, economic, environmental and social factor. We think that this is the first comprehensive study on the sustainability reporting practices and the integration of sustainability in SCM in the O & G industry.

Logistics as a sector has a key role to play in reducing greenhouse gas emissions and in reducing the dependency of our economy on non-renewable energy sources. The challenges are enormous: by 2050 the sector needs to have achieved about 50% lower fossil fuel use and CO₂ emissions. If freight volumes grow according to expectations, this requires over 70% less CO₂ emissions per unit of transport. This chapter explores the options for reducing CO₂ emissions from freight transport and their reduction potential, and analyses whether the logistic sector would be likely to achieve the required reduction based on its intrinsic drive for cost reduction alone.

In this conceptual chapter we identify options for sustainable logistics and discuss the necessary economic conditions for their deployment using a simple cost/benefit analysis framework. We distinguish between three regimes of measures for improving sustainability: efficiency measures with net negative costs (‘low hanging fruit’), cost-neutral measures and measures that allow to reach societal targets at net positive costs. Policy measures are discussed that may help the sector to implement cost-effective greenhouse gas abatement measures that, in the absence of incentives, go beyond the point of lowest cost from an end user perspective.

Sufficient energy saving options are available to be implemented in the short to medium term, which can lead to operational cost savings with a short return on investments period. The potential contribution of the logistics sector to sustainability is larger, however, as logistics can make large steps ahead in sustainability with cost neutrality or with small cost increases. The full potential has been underrated by many stakeholders and should be explored further.

Efficiency measures are a necessary but insufficient condition for sustainable logistics. The industry will need to go beyond cost saving measures, or even cost-neutral measures to reach the long-term energy saving and emission reduction targets for freight transport. We provide a systematic presentation of these options and discuss the additional necessary measures.