Investment attractiveness of European oil and gas firms: a triple bottom line perspective

Yaremchuk, E. (2025) Investment attractiveness of European oil and gas firms: a triple bottom line perspective. PhD thesis, University of Reading. doi: 10.48683/1926.00127477

Abstract/Summary

The European energy sector depends heavily on oil and gas (O&G) operations yet faces an urgent need to unite economic success with environmental protection and social accountability. The current system of corporate performance evaluation focuses mainly on financial indicators which creates a deficiency for assessing sustainability performance and transition readiness of firms. The assessment of this knowledge gap stands essential for all stakeholders who want to succeed in the low-carbon transition. The research develops and tests an Investment Attractiveness Model (IAM) for the oil and gas industry which uses the Triple Bottom Line (TBL) framework. The research evaluates European oil and gas firms' investment potential through an assessment of their financial performance together with their E/S. The research investigates how specific indicators in the sector reveal transition-related risks and opportunities which standard financial assessments fail to detect. The research implements a combination of quantitative and qualitative methods. The research combines financial ratio assessments with standardized evaluations of non-financial disclosure data. The research uses NVivo-coded stakeholder interviews to obtain qualitative data which strengthens the study's validity through triangulation methods. The research uses financial statements and sustainability reports and assurance disclosures from 11 multinational European oil and gas firms spanning from 2015 to 2022. The research findings indicate that Shell and TotalEnergies and Equinor and Anglo American maintain their position as leaders because they link their financial stability to strong environmental and social programs. The research shows that certain businesses maintain solid financial performance yet fail to integrate sustainability practices properly while other organizations focus on sustainability but lack sufficient financial stability. The analysis shows that Fortune Global 500 rankings fail to predict IAM scores effectively because revenue size alone produces a correlation of approximately 0.5 (Spearman ρ). The leader–laggard structure maintains its stability when researchers perform sensitivity tests with different weighting methods. The research proves that customised TBL models serve as dependable methods for evaluating investment potential in sectors with high capital requirements and transition risks. The combination of sustainability metrics with financial performance creates stronger business stability instead of causing any negative impact. The research supports TBL theory by confirming balanced weighting methods while providing investors and policymakers and managers with a practical framework to assess transition readiness and manage stranded assets and create sustainable investment plans.

Item Type	Thesis (PhD)
URI	https://centaur.reading.ac.uk/id/eprint/127477
Identification Number/DOI	10.48683/1926.00127477
Divisions	Henley Business School
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