Integration of ESG (Environmental, Social, and Governance) Factors in Petroleum Project Planning and Execution

Abstract

The petroleum industry is facing increasing pressure to operate sustainably amid growing environmental concerns, social expectations, and governance scrutiny. This study examines the degree to which Environmental, Social, and Governance (ESG) factors are incorporated into the planning and execution phases of petroleum projects in Sub-Saharan Africa, with a focus on Ghana, Nigeria, and Angola. Employing a mixed-methods approach, the research combines structured questionnaires administered to 127 industry professionals with in-depth interviews of 18 key stakeholders, including project managers, ESG officers, regulators, and community representatives.

The findings reveal that while environmental considerations, such as Environmental Impact Assessments (EIAs), are moderately well-integrated during project planning, the implementation of social and governance components remains weak and inconsistent during execution. Statistical analysis demonstrates a strong positive correlation between ESG integration and improved project performance, particularly in terms of stakeholder satisfaction and risk mitigation.

The study identifies regulatory gaps, limited institutional capacity, and inadequate stakeholder engagement as key barriers to the effective adoption of ESG. It concludes with practical recommendations including strengthening regulatory frameworks, institutionalising ESG within corporate governance structures, enhancing stakeholder participation, and leveraging digital technologies for ESG monitoring. The findings contribute to the broader discourse on sustainable energy development, offering actionable insights for policymakers, industry practitioners, and civil society actors.