Sustainability in the Oil Refining Industry
Eyab A. Alshehab
Published: 2025/10/26 · PUB-2025-000009
Abstract
This research examines sustainability practices in oil refineries, focusing on how to achieve environmental, social, and governance (ESG) performance at the operational and investment levels. It discusses the implementation of a sustainable value chain, starting with supplier selection based on sustainability criteria, through optimizing energy and water production processes and reducing emissions, to responsible product distribution. The research also explores sustainable investment and risk management methods by integrating ESG factors into investment and financing decisions, including sustainable project loans, green bonds, and transition, physical, social, and governance risk analysis. Furthermore, the research presents performance measurement tools and indicators appropriate for refineries, such as emissions intensity, energy and water consumption, waste management, occupational safety, community engagement, and corporate governance, linking them to disclosures according to GRI, SASB, TCFD, and IPIECA standards. The study concludes that adopting sustainability in refineries not only enhances environmental and social performance but also contributes to improving operational efficiency, reducing financial risks, and attracting sustainable investments, which supports a company's long-term competitive advantage.
Keywords: sustainability، oil refineries، ESG، environmental، social، governance، sustainable development goals (SDGs)، risk management، corporate sustainability، value chain