Channels, Fall 2018

Channels • 2018 • Volume 3 • Number 1 Page 99 Literature Review Although broad in its implications and scope, the specifics of the research question need to be fully addressed to ensure the relevancy of the results. The research question states: “How does the relation between the state government and the NOCs affect sustainable development of the preservation of the environment using the case studies of Petrobras and Gazprom?” This question is not only limited in scope but focuses specifically on the interaction of the state government and NOCs. However, surrounding literature and research of the topic of environmental sustainability mentions not only the influence of state actors, but also the influence of private stakeholders and international frameworks and organizations. There appear to be three primary levels of analysis in explaining exterior influences on NOCs and their approach to environmental sustainability: the private stakeholder level, the local government level, and the global intergovernmental organization (IGO) level. A thorough understanding of each level and its relation to NOCs is needed to best determine the importance of selecting the state government and its relation to NOCs. Many oil and gas companies have begun releasing environmental practices due to the increasing impact and importance of environmental sustainability to private stakeholders and the company’s financial health. These reports are typically voluntary disclosed in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. The GRI guidelines measure three factors of sustainable development: the environmental, the economic, and the social performances of the company. The three factors together are collectively known as the ‘triple bottom line’ of sustainability. Alazzani and Wan-Hussin, associated with the sustainable-society focused Othman Yeop Abdullah Graduate School of Business in Malaysia, analyzed eight oil companies: CHEVRON, NEXEN, OMV, OSL, OXY, Petronas, SK Energy, and TOTAL via the ‘triple bottom line method’, concluding the companies with prominent investor participation were more devoted to addressing environmental issues and improving stakeholder communication (2013). Similarly, additional research (Clarkson, Li, Richardson & Vasvari, 2008) recognizes the importance of GRI sustainability reports to determine a company or corporation’s commitment to protect the environment. Furthermore, the chairman of strategy consultants SustainAbility and globally-acclaimed author John Elkington (1998) write on the effectiveness of long- term partnerships in issues of sustainability between nongovernmental organizations (NGOs) and business companies through a partnership with these stakeholders revolving around voluntary submission of environmental standards. The individual level of analysis is not solely limited to a NOCs private stakeholders but can include the company’s interaction with other energy companies. One of the three prominent areas during Petrobras’ era of transformation in promoting environmental sustainability included the prompting of other energy companies engaged in trade with Petrobras to implement higher environmental standards (Gabrielli, 2009). This level of influence is also seen through Gazprom’s concern for fulfilling its private stakeholder’s desire for continued economic growth. Koďousková and Jirušek (2016), researcher for the International Institute of Political Science and Centre for Energy Studies and lecturer of the Energy Security Studies program at Masaryk University, respectively, note Gazprom’s agenda to promote profits through low-cost operations towards customers in Western Europe as a